Monthly Archives: June 2010


Iowa Mechanics Lien Filing How To

In Iowa, liens filed on private property or on funds relating to a public project are known as Mechanic’s Liens. When an Iowa mechanics lien is filed with regard to work performed on privately owned property, it attaches to and encumbers the fee simple ownership of property. Iowa construction liens do not attach to publicly owned property in Iowa. If title to the land is held by the state or a political subdivision thereof, no mechanics’ lien right is afforded. Projects performed by industrial development boards, however, are not considered publicly owned property, and therefore an Iowa mechanics’ lien can be filed on industrial development board property.

As for who is entitled to file an Iowa mechanics lien, contractors, as well as subcontractors, design professionals, sub-subcontractors and material suppliers can file an Iowa construction lien. If a company supplies material to a material supplier, they are not eligible to file an Iowa mechanics lien claim.  Note that in Iowa, the claimant need not have a written contract in order to be eligible to file a mechanics lien.  Oral contracts are sufficient if the lien claimant has sufficient documentation to show the existence of an agreement or that it performed the work for which it is filing the Iowa mechanics lien.

Prior to filing the actual Iowa mechanics lien, there are certain steps that may need to be followed.  Pre-lien notices, also known as preliminary notices, are not required for contractors, but to maximize the enforceability of their Iowa mechanics liens, at the commencement of work on the property, subcontractors should provide written notice to the owner or the person having charge of the property that they are performing work on the property. This notice should also be provided to the construction lender, if its identity can be reasonably determined. Material suppliers without a direct contract with the owner must file service of written notice of intent to claim an Iowa mechanics lien on the owner and construction lender before the supplied material is used in connection with the project.

As for the timing requirements of when an Iowa mechanics lien claim must be filed, that is set forth by statute.  
For subcontractors and sub-subcontractors, a written notice of intent to file an Iowa mechanics lien must be served on the Owner and construction lender within four months of the last date the lienor provided materials or services to the Project. Subcontractors, sub-subcontractors and suppliers without a direct contract with the owner must then file a verified statement of lien within four months after the last date the lienor provided materials or services to the Project.

Contractors need to file a verified statement of lien within six months after the last date the lienor provided materials or services to the Project.

Laborers must file a verified statement of lien within 30 days after the last item of work has been furnished.

Filing an Iowa mechanics lien is a great way to collect oustanding receivables because on a private project, the Iowa 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 Iowa 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 Iowa Construction Lien, an Iowa Mechanics Lien, an Iowa Stop Notice, an Iowa Bond Claim, or an Iowa pre-lien notice, please visit http://www.lienitnow.com/Iowa-faq.asp.

Pennsylvania Mechanics Lien Filing “How To”

In Pennsylvania, liens filed on private property or on funds relating to a public project are known as Mechanic’s Liens. When a Pennsylvania 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 is entitled to file a Pennsylvania mechanics lien, contractors, as well as subcontractors, sub-subcontractors and suppliers who have a contract with a general contractor or a subcontractor can file a Pennsylvania construction lien.

Note, however, that to qualify as a lien claimant, the contractors must have an agreement to do the work on which the lien claim was based.  Oral contracts are sufficient if you have sufficient documentation to show the existence of an agreement.

Prior to filing a Pennsylvania lien claim, the law does provide that a pre-lien or preliminary notice be filed by certain claimants.  Subcontractors, suppliers, and sub-subcontractors must serve a formal notice of intention to the owner declaring the subcontractor’s intention to file a Pennsylvania mechanics lien. The formal notice of intention must be filed at least thirty (30) days before an actual Pennsylvania construction lien claim is filed by the subcontractor.

The timing of when a Pennsylvania construction lien claim must be filed is set by statute.  Pennsylvania Mechanics’ liens on private property must be filed within six months of the last date the lienor provided materials or services to the Project.

Filing a Pennsylvania mechanics lien is a great way to collect oustanding receivables because on a private project, the Pennsylvania 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 Pennsylvania 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.

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 Pennsylvania Construction Lien, a Pennsylvania Mechanics Lien, a Pennsylvania Stop Notice, a Pennsylvania Bond Claim, or a Pennsylvania pre-lien notice, please visit http://www.lienitnow.com/pennsylvania-faq.asp.

Indiana Mechanics Liens

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

As for who can file an Indiana mechanics lien, contractors, as well as subcontractors, design professionals, sub-subcontractors and material suppliers can file an Indiana mechanics lien. If a company supplies material to a material supplier, they are not eligible to file an Indiana mechanics lien claim.

In some circumstances, Indiana requires potential lien claimants to file pre-lien or preliminary notices prior to filing an Indiana mechanics lien.  Within 30 days from beginning alteration or repair work on a single or double family, owner occupied residence, a claimant must provide notice to the owner that they are supplying labor or materials.

Within 60 days from beginning original construction work on a single or double family residence, a claimant must provide notice to the owner that they are supplying labor or materials

As for the filing of the Indiana mechanics lien claim itself, the claimant must comply with the specific timing requirements set forth in the Indiana lien law.  The filing of a notice of intention to hold an Indiana mechanics’ lien for a commercial project must be completed within 90 days after the day on which the lien claimant last performed labor or furnished materials.
The filing of a notice of intention to hold an Indiana mechanics’ lien for a residential project must be completed within 60 days after the day on which the lien claimant last performed labor or furnished materials.

In Indiana, a mechanics lien or “statements of claim” on most public projects must be filed within 60 days after the date of last labor performed, last materials furnished, or last services rendered by the claimant.

Note that to file an Indiana mechanics lien, you do not need a written contract.  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 Indiana mechanics lien claim.

Filing an Indiana mechanics lien is a great way to collect oustanding receivables because on a private project, the Indiana 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 Indiana 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 Indiana Construction Lien, an Indiana Mechanics Lien, an Indiana Stop Notice, an Indiana Bond Claim, or an Indiana pre-lien notice, please visit http://www.lienitnow.com/Indiana-faq.asp.