Monthly Archives: September 2013

Vermont Mechanics Lien Guidlines

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

In Vermont, preliminary notices are not required when filing a lien.

Vermont mechanics’ liens on private property must be filed within 180 days of the last date the lienor provided materials, labor or services to the Project.

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 attempting to file a Vermont Mechanics Lien Claim.

To learn more about Vermont Mechanics Liens, please visit our website at LienItNow.

New Bond Bill to Help Subs and Suppliers

According to Gibbs Giden Attorneys At Law, there has been a new law in California and other states that help protect subs and suppliers on P3 projects.  On these projects, the public entity provides a piece of land where a private entity designs, builds, and sometimes operates the finished public project.

In California, public projects exceeding $25,000 require that the prime contractor furnish a surety bond with an amount not less than 100 percent of the total contract.  This is to help insure that the project will be completed and that the subs and suppliers can be paid for the labor and other services that have been provided. 

On August 13, the governor of California signed a legislation, known as Assembly Bill 164, to help secure payment claims for laborers, mechanics, and material suppliers that have been employed under contracts.  This bill authorized local government agencies to use public-private partnerships for the design, finance, and maintenance of fee-producing facilities. 

Boost for Single-Family Homes by U.S. Builders

According to ABC News, work on single-family homes by U.S. builders were at a high from 6 months ago during the month of August.  Not only was the present construction work high during August, but permits were also requested by the workers for even more future builds for the months ahead, despite higher mortgage rates.  

The building of houses and apartments were built at an annual rate of 891,000 last month, which rose from a 883,000 from the previous month. 

Mortgage rates could rise even more depending on what the Federal Reserve decides on its $85 billion a month bond purchase, which is meant to help keep long-term rates low. 

To read more on this topic, visit ABC News.

US Home Indusrty

According to BBC, the US home-building industry grew in the month of July, in part due to the increase of construction for new apartments. 
According to the Commerce Department, the new-home industry rose by 5.9 percent since the previous month. 
New homes grew at an annual rate of 896,000, which was below the rate for March that had a rate of 1 million. 
Mortgage rates could be rising due to a recent drop in new single-family homes built.  The new single-family home construction dropped by 2.2 percent.

Permits to build new homes have begun to rise, which recently showed an increase of 2.7 percent.  Also, 30-year mortgage rates have increased by a full percentage in July since it was at 3.4 percent in the month of May.


Idaho Mechanic’s Lien

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.
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.

 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.

Road, Bridge, and Tunnel Construction Report

According to Yahoo, as the country recovers from the recession, the U.S. road construction industry continues to struggle.  Overall spending on road, bridge, and tunnel construction in 2009 and 2011 has dropped by 4.4 percent, due to the lack of a long-term transportation bill and the completion of most American Recovery and Reinvestment Act-funded projects.  Even though bridge and tunnel construction have kept strong in 2010 and 2011, road construction has plunged the entire market due to the lack of funding.  Although SBI Energy expects total road, bridge & tunnel market to be up 0.6 percent over 2011 to reach a total of $76.4 billion for the year, the trends have seemed to continue through 2012.

The new federal highway bill (MAP-21) passed in July 2012 will help improve market funding to a certain degree.  This legislation entails that states are more likely to start and fund medium scale projects (less than five year terms) with funding levels assured through Fiscal Year 2014.  However, due to both state and federal governments refusing to increase gas taxes and implement user-based funding schemes, the long-term market prospects remain difficult to fund.  The funding for these long-term projects will come other state sources such as state tolls, public-private partnerships, and state infrastructure banks.  This will help grow the road, bridge, and tunnel industry, but at a very low rate through 2014.

A report from the Kansas City Federal Reserve Bank

According to Bizjournals, the Federal Reserve Bank of Kansas City which regulates banks in a seven-state region, allowed for land development and construction loans to be made during the second quarter.   According to the recent report by the Federal Reserve Bank of Kansas City, the banks only netted a profit of $110 million over loans in the quarter which isn’t much, but is an improvement compared to previous quarters where banks shunned construction and land loans.    

While home equity credit lines remained unchanged, $760 million was made in the quarter through commercial and industrial loans.  The banks in the region received $3.45 billion in the quarter from loans. 

Even though loan levels increased throughout the region during the 12 months ending June 30th, New Mexico’s loan-to-asset ration fell by 63 percent during this time frame, previously being at 64 percent the year before and 65 percent in 2011. 

The rest of the region’s ratio was just over 56 percent.  The states included it the region that the Kansas City Federal Bank oversees are Wyoming, Kansas, Missouri, New Mexico, Colorado, Oklahoma and Nebraska.

A report from the Commerce Department

According to the Washington Post, the Commerce Department reported strong gains in non-residential and housing projects from June to July at an upward rate of 0.6 percent.  This increase has put the residential construction at it’s highest level since September of 2008.  Non- residential construction, which includes construction on hotels and motels, showed an increase of 6.1 percent.  Shopping centers and office buildings also showed an increase in construction activity, while government projects dropped by 0.3 percent due to budget constraints. 

Virginia’s Mechanics Lien Amendment

Virginia’s legislature has added a new section to it’s Mechanics Lien. According to Williams Mullen, beginning July 1, 2013, anyone performing labor without a valid contractor’s license, certificate, or proper class of license for the value of worked performed in the state of Virginia will lose their entitlement to a mechanic’s lien.  Check out Virginia’s guidelines at LienItNow.

College Construction Spending in Accordance to the Rise and Fall of the Economy

According to the The Chronicle of Higher Education, research presented at the Association for the Study of Higher Education has shown that state expenditures on college construction for higher-education does not coincide with the rise or fall of the economy.  The study has also shown that college construction spending tended to rise in the best and worst of times, while tending to fall when the budget for state spending was fairly stable.  According to James C. Palmer, who oversees an annual survey of state higher-education spending and is a professor of higher-education at Illinois State University, says “The new study shows the planning of capital projects is a different beast than the planning of annual budget cycles that the states go through.”