Category: Construction Finance
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The Mechanics Lien Process in Three Steps
The mechanics lien process starts well before payment problems arise. The mechanics lien is not a stand- alone document. In order to keep the ability to file a mechanics lien, a one must send specific notices ahead of time, often when beginning work, far before a mechanics lien ever enters the picture. These notices are…
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New Legislation Benefits Connecticut Contractors and Subs
With new legislation popping up all over the map, it feels like construction payment laws are changing every other day. Considering the issues the industry has with payment, this is a good thing! States have been making progress toward a more transparent, efficient payment system. Recent revisions to the Connecticut Little Miller Act and retainage…
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Former Miss USA Facing Mechanics Liens
It’s not uncommon for construction liens to appear in the headlines. Even high profile property owners have struggled with construction payment. Liens have appeared next to the names Donald Trump, John Cena, and Justin Bieber in recent years. Liens were even a major plot point of True Detective last season. Maybe what the construction industry needs to…
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Subcontractor Goes Unpaid Due to Insolvent Surety
When a contractor, sub, or supplier works on a public project, a traditional mechanics lien is unavailable to enforce payment. Generally speaking, private parties cannot encumber public property. For this reason, the Miller Act was passed requiring performance and payment bonds when the prime contract exceeds $100,000 on a federal project. Under the Act, when a…
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Florida Contractors: Revisions Made to Anti-Corruption Laws
With new legislation popping up all the time, it’s important that construction managers stay on top of changes that can affect the way they do business. Just recently we’ve seen changes to Louisiana P3 legislation, loosened drone regulations, and potential changes to Texas lien law. While these laws quite obviously apply to contractors, sometimes the relationship can…
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Florida Contractors Must Provide Records on Public Projects
When a contractor works on a public project, the rules change a bit. Because contractors are dealing with public entities, certain protections must be afforded. One of these protections is the use of surety bonds to protect the public agency from payment disputes while also affording claimants security to payment. Mechanics liens do not attach to…
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Hiding Won’t Make a Lien Disappear
When a lien is filed, owners get scared. That’s what makes a lien such an effective tool! In order to avoid the property encumbrance, owners should understand exactly who is working on their project and make sure everyone is paid. Perhaps the best way to do this is to request preliminary notices and to require conditional…
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Canadian Lien Law Alert: Developer Must Face the Music
Understanding the lien laws of a particular state can be overwhelming. However, it is important to also take note of legal developments in other states in order to understand how lien laws are shaped. So too is it worthwhile to pay attention to lien laws in other countries, especially those with similar legal systems. As Canada looks to revise…
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Changes To Texas Lien Law May Be On The Horizon
Texas is infamous for having what may be the most confusing, jumbled set of lien laws in the nation. As it stands, the state’s notice requirements are a mess, yet remain toughest in the country. Texas construction attorneys have taken notice of this issue, and since 2013 a group has been working to make changes to Texas lien…
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Ohio Bans Contractor Hiring Requirements on State Projects
In construction, hiring is everything. Owners want to hire reputable contractors known for good work. Contractors look to hire trusted subcontractors and suppliers in order to minimize defects and payment issues. For these reasons and more, hiring in the construction industry can make or break a project. When contractor hiring requirements are imposed by state or…