Monthly Archives: May 2010


Rhode Island Mechanics Lien “How To”

In Rhode Island, a mechanics’ lien is known as a Notice of Intention to Do Work or Furnish Materials. When a Rhode Island mechanics lien is filed with regard to work performed on privately owned property, it attaches to and encumbers the fee simple ownership of property.

In order to be eligible to file a Rhode Island mechanics lien, you must be a Contractor, subcontractor, sub-subcontractor or a suppliers who has a contract with a general contractor or a subcontractor, and have provided labor or materials that were actually used to improve a real estate construction project.

Many states require that, at the beginning of the project, potential lien claimants give notice to the owner that they are working on the project.  Rhode Island, however, does not have such a requirement.  Thus, a Rhode Island construction lien can be filed without providing what is known as a pre-lien notice.

As for the timing of when a Rhode Island mechanics lien should be filed, Rhode Island mechanics’ liens on private property must be filed within 120 days of the last date the lienor provided materials or services to the Project.

Rhode Island does require that a lien claimant have a written contract for the work performed in order to be eligible to file a Rhode Island mechanics lien.

Filing a Rhode Island mechanics lien is a great way to collect oustanding receivables because on a private project, the Rhode Island mechanics’ lien places an encumbrance on the property that makes it difficult to resell or re-finance the property without first removing the lien.

In addition to Rhode Island mechanics lien claims, LienItNow.com also provides other methods for collecting money that is owed on a construction project.  These other services include the provision of Stop Notices and Bond Claims.

A Stop Notice is a notification that has the ability to enhance the effectiveness of a mechanic’s lien. A Stop Notice, or a notice to withhold funds, is sent to the company that is financing or funding the construction funds for a project. Once that company receives the Stop Notice, that company has notice that it should withhold sufficient money to satisfy the stop notice claim. The purpose of the Stop Notice is to provide the lender, financiers or funders of the construction project notice that there is money owed to a contractor, subcontractor or supplier so that an inquiry can be made as to why that money is not being paid.

Bond claims can only be filed on a project where the owner, contractor or subcontractor has obtained a payment bond to ensure that every contractor receives payment for the work performed on the Project.  The payment bonds issued by sureties for construction projects have specific timing requirements, but most require claimants to submit claims against the bond within sixty to ninety days from the claimants’ last date of work.  Bond claims are as or more effective than a lien claim because the payment bond acts as a guarantee that payment will be made for work properly completed.

For more information on filing a Rhode Island Construction Lien, a Rhode Island Mechanics Lien, a Rhode Island Stop Notice, a Rhode Island Bond Claim, or a Rhode Island pre-lien notice, please visit http://lienitnow.com/rhode-island-faq.asp.

Illinois Mechanics Lien Filing “How To”

In Illinois, liens filed on private property or on funds relating to a public project are known as Mechanic’s Liens. When an Illinois mechanics lien is filed with regard to work performed on privately owned property, it attaches to and encumbers the fee simple ownership of property. Illinois construction liens on public property to do not attach to the real property, but rather to the money due from the owner to the prime contractor.

As for who can file an Illinois mechanics lien claim, contractors, as well as subcontractors and material suppliers can file an Illinois construction lien. If a company does not have a contract with the owner or with the contractor, they are not eligible to file an Illinois mechanics lien claim.  Oral contracts are sufficient if you have sufficient documentation to show the existence of an agreement or that you performed the work for which you are filing an Illinois mechanics lien.

Prior to filing an Illinois mechancis lien claim, certain pre-requisites may need to be fulfilled.  Within 60 days from beginning work on a single family, owner occupied residence, subcontractors and suppliers who do not have a contract with the owner must provide notice to the owner that they are supplying labor or materials.

On all projects, within 90 days of the completion of the work, subcontractors and suppliers who do not have a contract with the owner must provide notice to the owner and the mortgagee.

As for the timing of the filing of the actual lien claim, an Illinois construction lien should be recorded within four months after the completion of the work to prevail over the owner and third parties. An Illinois construction lien can be filed up to two years after completion of the work, but may not be valid if the property was conveyed to a third party four months after the completion of the project.

Filing an Illinois mechanics lien is a great way to collect oustanding receivables because on a private project, the Illinois mechanics’ lien places an encumbrance on the property that makes it difficult to resell or re-finance the property without first removing the lien.

In addition to Illinois mechanics lien claims, LienItNow.com also provides other methods for collecting money that is owed on a construction project.  These other services include the provision of Stop Notices and Bond Claims.

A Stop Notice is a notification that has the ability to enhance the effectiveness of a mechanic’s lien.  A Stop Notice, or a notice to withhold funds, is sent to the company that is financing or funding the construction funds for a project.  Once that company receives the Stop Notice, that company has notice that it should withhold sufficient money to satisfy the stop notice claim.  The purpose of the Stop Notice is to provide the lender, financiers or funders of the construction project notice that there is money owed to a contractor, subcontractor or supplier so that an inquiry can be made as to why that money is not being paid.

Bond claims can only be filed on a project where the owner, contractor or subcontractor has obtained a payment bond to ensure that every contractor receives payment for the work performed on the Project.  The payment bonds issued by sureties for construction projects have specific timing requirements, but most require claimants to submit claims against the bond within sixty to ninety days from the claimants’ last date of work.  Bond claims are as or more effective than a lien claim because the payment bond acts as a guarantee that payment will be made for work properly completed.

For more information on filing an Illinois Construction Lien, an Illinois Mechanics Lien, an Illinois Stop Notice, an Illinois Bond Claim, or an Illinois pre-lien notice, please visit http://www.lienitnow.com/Illinois-faq.asp.

South Carolina Mechanics Lien Filings

In the state of South Carolina, liens filed on private property are known as Mechanics’ Liens. When a South Carolina construction lien is filed with regard to work performed on privately owned property, it attaches to and encumbers the fee simple ownership of property. South Carolina law does not allow contractors working on public contracts to file any mechanics’ liens. Rather, contractors have bond claim rights pursuant to statutory law.

As for who is permitted to file a mechanics lien, contractors, subcontractors, sub-subcontractors, and suppliers all have construction lien rights under South Carolina Lien Law.

Prior to filing a mechanics lien, under South Carolina law, a “notice of furnishing labor or materials” must be provided by a subcontractor or supplier in order to maintain mechanics lien rights. Such notice requirements may be inapplicable if an owner fails to file a “notice of project commencement” within 15 days of commencement of the work.

A South Carolina mechanics’ lien claim must be filed within 90 days after completion of the contractors work. A lawsuit to foreclose upon the South Carolina construction lien must be brought no later than 6 months after the claimant ceases to furnish labor or materials.

To file a lien claim in South Carolina, the claimant need not have a written contract to perform the work for which the mechanics lien is being filed.  Oral contracts are sufficient, as long as there is sufficient evidence to indicate that a contract indeed exists.

Filing a mechanics lien claim is a great way to protect your accounts receivables because on a private project, the South Carolina mechanics’ lien places an encumbrance on the property that makes it difficult to resell or re-finance the property without first removing the mechanics lien.  On a public project, the South Carolina mechanics lien freezes the money owed to you so that the public entity cannot distribute it to the person that is not paying the lien claimant.

In addition to South Carolina mechanics lien claims, LienItNow.com also provides other methods for collecting money that is owed on a construction project.  These other services include the provision of Stop Notices and Bond Claims.

A Stop Notice is a notification that has the ability to enhance the effectiveness of a mechanic’s lien.  A Stop Notice, or a notice to withhold funds, is sent to the company that is financing or funding the construction funds for a project.  Once that company receives the Stop Notice, that company has notice that it should withhold sufficient money to satisfy the stop notice claim.  The purpose of the Stop Notice is to provide the lender, financiers or funders of the construction project notice that there is money owed to a contractor, subcontractor or supplier so that an inquiry can be made as to why that money is not being paid.

Bond claims can only be filed on a project where the owner, contractor or subcontractor has obtained a payment bond to ensure that every contractor receives payment for the work performed on the Project.  The payment bonds issued by sureties for construction projects have specific timing requirements, but most require claimants to submit claims against the bond within sixty to ninety days from the claimants’ last date of work.  Bond claims are more effective than a lien claim because the payment bond acts as a guarantee that payment will be made for work properly completed.

For more information on filing a South Carolina Construction Lien, a South Carolina Mechanics Lien, a South Carolina Stop Notice, a South Carolina Bond Claim, or a South Carolina pre-lien notice, please visit http://lienitnow.com/south-carolina-faq.asp

Idaho Mechanics Lien Law

In Idaho, liens filed on private property or on funds relating to a public project are known as Mechanic’s Liens. When an Idaho mechanics lien is filed with regard to work performed on privately owned property, it attaches to and encumbers the fee simple ownership of property.

Contractors, as well as subcontractors, design professionals, sub-subcontractors and material suppliers can file an Idaho mechanics lien. Suppliers to suppliers cannot file Idaho construction lien claims.  Keep in mind that to file a construction lien, one must first have provided materials or services for the improvement of property (real estate).

In many states, pre-lien or preliminary notices are required to be filed prior to the filing of a mechanics lien claim.  Idaho does not have such a requirement.

Even though a preliminary notice is not required in Idaho, the State is still very strict on the time in which the mechanics lien must be filed.  The filing of an Idaho construction lien must be completed within ninety days after the completion of the labor or services or furnishing of materials, or the cessation of the labor, services or furnishing of materials for any cause.  Failure to file the mechanics lien within that period of time may make it invalid.

Idaho also does not have a requirement that a written contract for the work exist in order to validate the filing of a lien.  In Idaho, oral contracts are sufficient if you have sufficient documentation to show the existence of an agreement or that you performed the work for which you are filing a construction lien.

Filing an Idaho mechanics lien claim is a great way to protect your accounts receivables because on a private project, the Idaho mechanics’ lien places an encumbrance on the property that makes it difficult to resell or re-finance the property without first removing the mechanics lien.

In addition to Idaho mechanics lien claims, LienItNow.com also provides other methods for collecting money that is owed on a construction project.  These other services include the provision of Stop Notices and Bond Claims.

A Stop Notice is a notification that has the ability to enhance the effectiveness of a mechanic’s lien.  A Stop Notice, or a notice to withhold funds, is sent to the company that is financing or funding the construction funds for a project.  Once that company receives the Stop Notice, that company has notice that it should withhold sufficient money to satisfy the stop notice claim.  The purpose of the Stop Notice is to provide the lender, financiers or funders of the construction project notice that there is money owed to a contractor, subcontractor or supplier so that an inquiry can be made as to why that money is not being paid.

Bond claims can only be filed on a project where the owner, contractor or subcontractor has obtained a payment bond to ensure that every contractor receives payment for the work performed on the Project.  The payment bonds issued by sureties for construction projects have specific timing requirements, but most require claimants to submit claims against the bond within sixty to ninety days from the claimants’ last date of work.  Bond claims are as or more effective than a lien claim because the payment bond acts as a guarantee that payment will be made for work properly completed.

For more information on filing an Idaho Construction Lien, an Idaho Mechanics Lien, an Idaho Stop Notice, an Idaho Bond Claim, or an Idaho pre-lien notice, please visit http://lienitnow.com/idaho-faq.asp.

South Dakota Mechanics Lien Filing “How To”

In South Dakota, liens filed on private property or funds relating to a public project are known Mechanics’ Liens. When a South Dakota mechanics lien is filed with regard to work performed on privately owned property, it attaches to and encumbers the fee simple ownership of the property. When a South Dakota mechanics lien is filed with regard to work performed on a public or government owned property, it attaches to the fund of money which the public agency has allocated for a project. The primary reason for this is you cannot force the sale of publicly owned property. South Dakota construction liens can be filed for any alteration, repair, erection, or removal of any building, bridge or other structure, etc. Liens may also be filed upon any mine or mining claim, oil or gas well or spring construction project. As for who can file a South Dakoa construction lien, contractors, subcontractors, and suppliers who provide work, materials, or services on construction projects in South Dakota have mechanics’ lien rights. In many states, pre-lien or preliminary notices are required to be filed prior to the filing of a mechanics lien claim. South Dakota does not have such a requirement. However, subcontractors and lower tier suppliers may file a “notice of claim” indicating the items and amounts and dates of its work and/or materials that are due and owing. The contractor has 15 days to dispute the claim, after which, it is presumed that there is no dispute and the owner may pay the amount of the claim to the lien claimant and deduct such monies from the money owed to the contractor. South Dakota does have strict limitations on when a mechanics lien claim should be filed. A South Dakota construction lien may be filed within 120 days from the last work or furnishing of the last item or services, material, or machinery to the project. To file a construction lien, South Dakota does not require that the claimant have a written contract. Oral contracts are sufficient. However, if there is a contract, the South Dakota mechanics’ lien secures the contract price for the improvement. If there is no contract, any filed construction lien would only cure the reasonable value of the work furnished or performed. Filing a mechanics lien claim is a great way to protect your accounts receivables because on a private project, the South Dakota mechanics’ lien places an encumbrance on the property that makes it difficult to resell or re-finance the property without first removing the mechanics lien. On a public project, the South Dakota mechanics lien freezes the money owed to you so that the public entity cannot distribute it to the person that is not paying the lien claimant. In addition to South Dakota mechanics lien claims, LienItNow.com also provides other methods for collecting money that is owed on a construction project. These other services include the provision of Stop Notices and Bond Claims. A Stop Notice is a notification that has the ability to enhance the effectiveness of a mechanic’s lien. A Stop Notice, or a notice to withhold funds, is sent to the company that is financing or funding the construction funds for a project. Once that company receives the Stop Notice, that company has notice that it should withhold sufficient money to satisfy the stop notice claim. The purpose of the Stop Notice is to provide the lender, financiers or funders of the construction project notice that there is money owed to a contractor, subcontractor or supplier so that an inquiry can be made as to why that money is not being paid. Bond claims can only be filed on a project where the owner, contractor or subcontractor has obtained a payment bond to ensure that every contractor receives payment for the work performed on the Project. The payment bonds issued by sureties for construction projects have specific timing requirements, but most require claimants to submit claims against the bond within sixty to ninety days from the claimants’ last date of work. Bond claims are as or more effective than a lien claim because the payment bond acts as a guarantee that payment will be made for work properly completed. For more information on filing a South Dakota Construction Lien, a South Dakota Mechanics Lien, a South Dakota Stop Notice, a South Dakota Bond Claim, or a South Dakota pre-lien notice, please visit http://lienitnow.com/south-dakota-faq.asp.

Hawaii Mechanics Lien Procedures

In Hawaii, liens filed on private property or on funds relating to a public project are known as Mechanic’s Liens. When a Hawaii mechanics lien is filed with regard to work performed on privately owned property, it attaches to and encumbers the fee simple ownership of property.

As for who can file a Hawaii mechanics lien claim, contractors, as well as subcontractors, design professionals, sub-subcontractors and material suppliers can file a Hawaii mechanics lien.

In most states, prior to filing a mechanics lien, preliminary or “pre-lien” notices are required.  However, Hawaii does not require that pre-lien notices be provided prior to filing a Hawaii mechanics lien.

That does not mean that Hawaii’s mechanics lien filing process is easier than other states.  There are certain time limitations that apply to the filing of a Hawaii construction lien, and the claimant must attend a hearing to establish the mechanics lien claim.  In Hawaii, the filing of a formal Application for a Lien and Notice of Lien must be filed within forty five days after the date of completion of the improvement. A hearing is held not less than three nor more than ten days after service of the Application and Notice. At the hearing, the court will determine whether probable cause exists to permit a Hawaii Mechanics Lien to attach. Note that Lienitnow.com does not attend the hearing, but only files the Application and Notice. You will need to attend the hearing to validate your Hawaii mechanics lien claim.

Keep in mind that Hawaii does require that, in order to file a Hawaii Mechanics Lien, the lien claimant must have a contract.  However, Hawaii does not require written contracts in order to file a Hawaii Mechanics Lien. Oral contracts are sufficient.

Filing a mechanics lien claim is a great way to protect your accounts receivables because on a private project, the Hawaii mechanics’ lien places an encumbrance on the property that makes it difficult to resell or re-finance the property without first removing the mechanics lien.  On a public project, the Hawaii mechanics lien freezes the money owed to you so that the public entity cannot distribute it to the person that is not paying the lien claimant.

In addition to Hawaii mechanics lien claims, LienItNow.com also provides other methods for collecting money that is owed on a construction project.  These other services include the provision of Stop Notices and Bond Claims.

A Stop Notice is a notification that has the ability to enhance the effectiveness of a mechanic’s lien. A Stop Notice, or a notice to withhold funds, is sent to the company that is financing or funding the construction funds for a project. Once that company receives the Stop Notice, that company has notice that it should withhold sufficient money to satisfy the stop notice claim. The purpose of the Stop Notice is to provide the lender, financiers or funders of the construction project notice that there is money owed to a contractor, subcontractor or supplier so that an inquiry can be made as to why that money is not being paid.

Bond claims can only be filed on a project where the owner, contractor or subcontractor has obtained a payment bond to ensure that every contractor receives payment for the work performed on the Project.  The payment bonds issued by sureties for construction projects have specific timing requirements, but most require claimants to submit claims against the bond within sixty to ninety days from the claimants’ last date of work.  Bond claims are as or more effective than a lien claim because the payment bond acts as a guarantee that payment will be made for work properly completed.

For more information on filing a Hawaii Construction Lien, a Hawaii Mechanics Lien, a Hawaii Stop Notice, a Hawaii Bond Claim, or a Hawaii pre-lien notice, please visit http://www.lienitnow.com/Hawaii-faq.asp.

Tennessee Mechanics Lien Guidelines

In Tennessee, liens filed on private property or on funds relating to a public project are known as Mechanic’s Liens. When a Tennessee mechanics lien is filed with regard to work performed on privately owned property, it attaches to and encumbers the fee simple ownership of property. When a Tennessee mechanics lien is filed with regard to work performed on a publicly or government owned property, it attaches to the fund of money which the public agency has allocated for a project. The reason for this is that you cannot force the sale of publicly owned land (public agencies mean any county, city, town, township, public commission, public board or other municipality authorized by law to make contracts for the making of any public improvement in any city, town, township or other municipality).

As for who can file a Tennessee mechanics lien claim, the law allows that all persons providing labor or materials for the construction, repair, or improvement or removal of any permanent building or structure next to real estate are entitled to a Tennessee mechanics’ lien. In Tennessee, architects and engineers are entitled to mechanics’ lien rights.

Prior to filing a Tennessee mechanics lien, some claimants are required to provide a pre-lien notice.  In Tennessee, a contractor in direct contractual privity with the owner has no pre-lien notice requirements. However, subcontractors have various pre-lien notice requirements.

Subcontractor pre-lien notice requirements are as follows: a notice of intent to file a lien must be filed within 90 days of the completion of the improvement or 90 days after completion of the contract in order to preserve ones lien rights. In addition, except for residential property, a notice of nonpayment must be provided to the owner and general contractor within 90 days of the last day of the month within which the subcontractor’s labor and materials were provided. Failure to provide this notice of nonpayment will extinguish any potential Tennessee Mechanics Lien rights. Subcontractors are required to give a separate pre-lien notice for each month within which unpaid services or supplies were provided.

As for the timing of when a Tennessee mechanics lien must actually be filed, those with direct contractual privity with the owner have 1 year from their last date of work file a Tennessee mechanics lien; subcontractors have 90 days from their last date of work to file a Tennessee mechanics lien.

Keep in mind that Tennessee does require that, in order to file a Tennessee Mechanics Lien, the lien claimant must have a contract.  However, Tennessee does not require written contracts in order to file a Tennessee Mechanics Lien. Oral contracts are sufficient.

Filing a mechanics lien claim is a great way to protect your accounts receivables because on a private project, the Tennessee mechanics’ lien places an encumbrance on the property that makes it difficult to resell or re-finance the property without first removing the mechanics lien.  On a public project, the Tennessee mechanics lien freezes the money owed to you so that the public entity cannot distribute it to the person that is not paying the lien claimant.

In addition to Tennessee mechanics lien claims, LienItNow.com also provides other methods for collecting money that is owed on a construction project.  These other services include the provision of Stop Notices and Bond Claims.

A Stop Notice is a notification that has the ability to enhance the effectiveness of a mechanic’s lien. A Stop Notice, or a notice to withhold funds, is sent to the company that is financing or funding the construction funds for a project. Once that company receives the Stop Notice, that company has notice that it should withhold sufficient money to satisfy the stop notice claim. The purpose of the Stop Notice is to provide the lender, financiers or funders of the construction project notice that there is money owed to a contractor, subcontractor or supplier so that an inquiry can be made as to why that money is not being paid.

Bond claims can be filed on a project where the owner, contractor or subcontractor has obtained a payment bond to ensure that every contractor receives payment for the work performed on the Project.  The payment bonds issued by sureties for construction projects have specific timing requirements, but most require claimants to submit claims against the bond within sixty to ninety days from the claimants’ last date of work.  Bond claims are as or more effective than a lien claim because the payment bond acts as a guarantee that payment will be made for work properly completed.

For more information on filing a Tennessee Construction Lien, a Tennessee Mechanics Lien, a Tennessee Stop Notice, a Tennessee Bond Claim, or a Tennessee pre-lien notice, please visit http://www.lienitnow.com/Tennessee-faq.asp.

Georgia Mechanics Lien Requirements

In Georgia, liens filed on private property or on funds relating to a public project are known as Mechanic’s Liens. When a Georgia mechanics lien is filed with regard to work performed on privately owned property, it attaches to and encumbers the fee simple ownership of property.

Georgia’s construction lien statutes permit contractors, as well as subcontractors, design professionals, sub-subcontractors and material suppliers to file a Georgia mechanics lien.

Georgia does have some specific pre-lien filing requirements that should first be satisfied prior to filing a Georgia mechanics lien.  If the owner files a “Notice of Commencement” and posts it at the project site, then all those who are not performing work directly for the owner or prime contractor should, within 30 days from the initial delivery of labor services or materials to the project by claimant, provide a “Notice to Contractor.”  Those who fail to provide the “Notice to Contractor” may have their Georgia Mechanics Lien Rights diminished.

As for the timing of filing the Georgia mechanics lien claim itself, the filing of a claim of lien in Georgia must be filed within 90 days after the day on which the lien claimant last performed labor or furnished materials.

Georgia mechanics liens should be filed because the mechanics’ lien places an encumbrance on the property that makes it difficult to resell or re-finance without first removing the lien.  This places pressure on the Owner to ensure that everyone that performed work on the project gets paid.

Another way to ensure payment is to file a stop notice.  A Stop Notice is a notification that has the ability to enhance the effectiveness of a mechanic’s lien. A Stop Notice, or a notice to withhold funds, is sent to the company that is financing or funding the construction funds for a project. Once that company receives the Stop Notice, that company has notice that it should withhold sufficient money to satisfy the stop notice claim. The purpose of the Stop Notice is to provide the lender, financiers or funders of the construction project notice that there is money owed to a contractor, subcontractor or supplier so that an inquiry can be made as to why that money is not being paid.

Finally, if a payment bond has been posted on the project, filing a bond claim can be very effective in obtaining payment.  Bond claims can only be filed on a project where the owner, contractor or subcontractor has obtained a payment bond to ensure that every contractor receives payment for the work performed on the Project.  The payment bonds issued by sureties for construction projects have specific timing requirements, but most require claimants to submit claims against the bond within sixty to ninety days from the claimants’ last date of work.  Bond claims are as or more effective than a lien claim because the payment bond acts as a guarantee that payment will be made for work properly completed.

On Georgia public projects, filing bond claims and stop notices are the most effective way to ensure that you will be paid for the work performed.

For more information on filing a Georgia Construction Lien, a Georgia Mechanics Lien, a Georgia Stop Notice, a Georgia Bond Claim, or a Georgia pre-lien notice, please visit http://www.lienitnow.com/Georgia-faq.asp.

Texas Mechanics Lien Filing “How To”

In Texas, mechanics’ liens are created by constitutional right and by statute. A Constitutional Lien is available only to contractors in direct contractual privity with the owner for the improvements to the property. Texas statutory Mechanics’ Liens may be asserted, similar to other states, by general contractors, subcontractors, materialmen, mechanics, or artisans. A Texas mechanics lien that is filed with regard to work performed on privately owned property attaches to and encumbers the fee simple ownership of the property.

Real estate brokers of commercial property also have Texas mechanics lien rights for unpaid commissions.

For public projects, a mechanics lien against monies due the prime contractor may be filed. The mechanics lien is against monies due, not against the real property or improvements.

Contractors, as well as subcontractors, sub-subcontractors and suppliers who have a contract with a general contractor or a subcontractor can file a Texas Mechanics lien. Architects, engineers and surveyors are also entitled to statutory liens so long as their design is utilized in the performance of the construction work.

In some cases, prior to filing a Texas mechanics lien, pre-requisites must first be met.  Texas pre-lien notices, known as Disclosure Statements, are required in residential construction. The original contractor should furnish a Disclosure Statement to the owner before it enters into a contract for construction. Essentially, the contractor should attach a list of subcontractors and suppliers. A signed periodic statement that lists the bills or expenses that the original contractor intends to pay or have been paid under its request for payment must also be provided.

If the lien claimant is not the original contractor, notice of unpaid amounts must be given directly to the owner and the original contractor. Specifically, any lien claimant must file its Affidavit of Lien in accordance with Texas statute.

While a mechancis lien can often be filed without first filing a pre-lien notice, claimants whose contract is not with an owner, such as subcontractors or suppliers, should provide the project owner periodic written notices of the unpaid value of the claim. These notices should be issued periodically and not solely upon the completion of work. If the pre-notices are not provided, the lien can be invalidated even if the lien itself is filed properly.

Pre-lien notices to the owner and original contractor must be issued no later than the 15th of the third month following each month in which the claimant performed all or part of its work.

In the case of lower tier claimants “e.g. sub-subcontractors”, these periodic notices must be provided to the original contractor no later than the 15th day of second month following each month of which the claimant performed all or part of its work.

In order to file a Texas mechanics lien clam, the filing must be effectuated within a certain time period.  A Texas mechanics lien must be filed by the 15th of the fourth calendar month after the day on which the indebtedness accrued or the third month for a residential project. The timing depends upon when the indebtedness accrued which can depend on the tier of lien claimant.

In the case of an original contractor has a contract with an owner, the owner’s debt accrues the last day of the month in which (1) the original contract is completed, finally settled or abandoned, or (2) either the owner or contractor receives from the other a written notice of contract termination.

In the case of a subcontractor, a debt accrues on the last day of the month in which the claimant performed labor or furnished materials.

To file a Texas mechanics lien, the work must have been accomplished in accordance with an agreement.  However, the agreement need not be in writing, unless the improvements are to homestead property or the lien claimant is an architect, engineer or surveyor. The contract may be either expressed in writing or implied.

Filing a Texas mechanics lien is useful in collecting unpaid monies because, on a private project, the mechanics’ lien places an encumbrance on the property that makes it difficult to resell or re-finance the property without first removing the mechanics lien.  On a public property, the mechanics lien freezes the funds due from the owner to the general contractor.

Another way to ensure payment is to file a stop notice.  A Stop Notice is a notification that has the ability to enhance the effectiveness of a mechanic’s lien. A Stop Notice, or a notice to withhold funds, is sent to the company that is financing or funding the construction funds for a project. Once that company receives the Stop Notice, that company has notice that it should withhold sufficient money to satisfy the stop notice claim. The purpose of the Stop Notice is to provide the lender, financiers or funders of the construction project notice that there is money owed to a contractor, subcontractor or supplier so that an inquiry can be made as to why that money is not being paid.

Finally, if a payment bond has been posted on the project, filing a bond claim can be very effective in obtaining payment.  Bond claims can only be filed on a project where the owner, contractor or subcontractor has obtained a payment bond to ensure that every contractor receives payment for the work performed on the Project.  The payment bonds issued by sureties for construction projects have specific timing requirements, but most require claimants to submit claims against the bond within sixty to ninety days from the claimants’ last date of work.  Bond claims are as or more effective than a lien claim because the payment bond acts as a guarantee that payment will be made for work properly completed.

On Texas public projects, filing bond claims and stop notices are the most effective way to ensure that you will be paid for the work performed.

For more information on filing a Texas Construction Lien, a Texas Mechanics Lien, a Texas Stop Notice, a Texas Bond Claim, or a Texas pre-lien notice, please visit http://www.lienitnow.com/Texas-faq.asp.

Florida Mechanics Lien Filing “How To”

Florida mechanics lien statutes provide broad mechanics lien rights to contactors, subcontractors and other persons working on a construction project.  The Florida mechanics liens will provide a great benefit to those who know how to use them.

In Florida, liens filed on private property or on funds relating to a public project are known as Mechanic’s Liens. When a Florida construction lien is filed with regard to work performed on privately owned property, it attaches to and encumbers the fee simple ownership of property.

Contractors, as well as subcontractors, laborers, certain design professionals, sub-subcontractors and material suppliers can file a lien. If a company supplies material to a material supplier, they are not eligible to file a lien claim. Only those who have a direct contract with the owner can file a lien if the total price for the improvement is $2,500.00 or less.

In some cases, in order to file a Florida mechanics lien claim, prerequisites must first be met.  Depending on the claimant’s status, a Florida pre-lien notice may be required.  Subcontractors and sub-subcontractors, including materialmen and suppliers who do not have a contract with the owner, are required to provide a Notice to Owner within the earliest of the following periods: within 45 days of commencing work or providing services for the Project or before the date of the owner’s final payment to the contractor who furnished an affidavit stating that all potential lien claimants have been paid.

In order to file a Florida mechanics lien claim, the filing must be effectuated within a certain time period.  A Florida claim of lien must be filed within 90 days of the last work performed on the project for it to be effective.

Florida does not require that mechanics lien claimants have a written contract to perform the work.  Oral contracts are sufficient if you have sufficient documentation to show the existence of an agreement or that you performed the work for which you are liening.

Florida mechanics liens help you get paid because, on a private project, the Florida mechanics’ lien places an encumbrance on the property that makes it difficult to resell or re-finance the property without first removing the lien.

In Florida, another way to ensure payment is to file a Stop Notice.  A Stop Notice is a notification that has the ability to enhance the effectiveness of a mechanic’s lien. A Stop Notice, or a notice to withhold funds, is sent to the company that is financing or funding the construction funds for a project. Once that company receives the Stop Notice, that company has notice that it should withhold sufficient money to satisfy the stop notice claim. The purpose of the Stop Notice is to provide the lender, financiers or funders of the construction project notice that there is money owed to a contractor, subcontractor or supplier so that an inquiry can be made as to why that money is not being paid.

Finally, if a payment bond has been posted on the project, filing a bond claim can be very effective in obtaining payment.  Bond claims can only be filed on a project where the owner, contractor or subcontractor has obtained a payment bond to ensure that every contractor receives payment for the work performed on the Project.  The payment bonds issued by sureties for construction projects have specific timing requirements, but most require claimants to submit claims against the bond within sixty to ninety days from the claimants’ last date of work.  Bond claims are as or more effective than a lien claim because the payment bond acts as a guarantee that payment will be made for work properly completed.

On Florida public projects, filing bond claims and stop notices are the most effective way to ensure that you will be paid for the work performed.

For more information on filing a Florida Construction Lien, a Florida Mechanics Lien, a Florida Stop Notice, a Florida Bond Claim, or a Florida pre-lien notice, please visit http://www.lienitnow.com/Florida-faq.asp.