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.