Monthly Archives: February 2014


Nebraska’s Mechanic Lien Requirements

In Nebraska, liens filed on private property or on funds relating to a public project are known as Mechanic’s Liens. Nebraska construction liens are regulated by the Nebraska Construction Lien Act, which generally provides for liens against real estate in favor or any person who furnished services for materials under a real estate improvement contract.  The purpose of the Nebraska lien law is to protect those who, by providing labor, materials, skills, or services has changed the value of a property. When a Nebraska 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.
Every person performing labor upon, providing or hauling equipment, tools or machinery for, or furnishing materials for the construction of a Project.  Contractors, subcontractors, sub-subcontractors, suppliers, architects, surveyors or builders can file Nebraska mechanics lien claims.
In Nebraska, no lien may be filed on public projects or publicly owned property. Contractors are required to obtain bonds on public works, and claims against the bond should be filed instead.
The Nebraska Construction Lien Act provides for certain optional notices, but no mandatory notice requirements.  For residential projects, a Notice of Right to Assert a Lien may be given by any claimant to an owner any time after entering into a contract and before a lien is recorded.
For more information about Nebraska Mechanic Liens, please visit LienItNow

New Construction for UT in Texas

According to The Daily Texan Online, new construction for a University in UT is underway.  The construction project is estimated to cost $334 million and is scheduled to conclude in May 2016.  The project consist of new research, educational and administrative buildings for the university. The main phase of the construction is the building of a new medical center for the universities first medical class.  Since the first medical class is coming in March of 2016, the construction is under time constraints. 

Normally the construction gets split into different linear portions, one building going up after the other.  Due to the time constraints, multiple portions of the project are to be worked on simultaneously.  This will constrict the flow of travel throughout the university, but is necessary for a timely completion.

California’s Mechanic Lien

In California, liens filed on private property are known as Mechanic’s Liens. When a California 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 most circumstances, California does not allow mechanics liens to be filed on government owned property.  However, nearly every project on government owned project is required to have a payment bond in place to protect subcontractors and suppliers. Filing a claim against the payment bond secures your claim for money in a way that is similar to filing a lien claim. In addition to the payment bond, stop notices may also be filed.  Both bond claims and stop notices are discussed in more detail below.

Contractors, as well as subcontractors, design professionals, sub-subcontractors and material suppliers can file a California mechanics lien. If a company supplies material to a material supplier, they are not eligible to file a California mechanics lien claim.
Within 20 days of the commencement of work on the property, subcontractors and suppliers should provide written notice to the owner, the general contractor and the construction lender that they are performing work on the property. If the notice is served late, then the claimant can claim a California construction lien for the value of the labor or materials provided in the 20 days preceding the service of the notice and thereafter.

For more information on California’s Mechanic Liens, please visit LienItNow.

Washington State’s Mechanic Lien Requirements

In the state of Washington, all contractors must be registered with the Department of Labor to enforce any potential lien rights and bond claims. Washington’s mechanics and material men’s lien laws provide contractors, subcontractors, suppliers, and professional service providers with Washington mechanics lien rights to protect their entitlement to payment on private construction projects. Under Washington law, a construction lien would not only encumber the owner’s interest in the property, but it is also possible to lien an owner’s construction financing. That would require the construction financing entity to withhold the amount of the mechanics lien from the owner’s construction draw downs until the construction lien is released.
Contractors, as well as subcontractors, sub-subcontractors and suppliers who have a contract with a general contractor or a subcontractor can file a Washington mechanics lien. Architects, engineers, and surveyors can also file Washington mechanics lien claims.
Under Washington law, prime contractors must provide all lower tier subcontractors and suppliers with a notice requirement containing certain information that is necessary for the filing of a Washington mechanics lien. A prime contractor’s failure to provide such notice will eliminate the notice requirement as a defense and subcontractors and lower tier suppliers will not have to comply with any pre-claim notice requirements. Thus, the prime contractor must disclose, by written notification or posting on the job site itself, key information that affords potential lien claimants the ability to file a Washington mechanics lien. Prime contractors and first tier subcontractors are not required to provide a notice of right to claim lien. Lower tier subcontractors/suppliers and professional service providers must provide a notice of right to claim a lien. On residential projects, the notice of right to claim lien must be provided within 10 days of the first performance of work or delivery of material or equipment. On private or commercial projects, this notice must be delivered within 60 days. Thereafter, the notice of right to claim lien must be recorded within 90 days of the claimant’s last date of work.

Those with direct contractual privity with the owner have 90 days to file a Washington mechanics lien claim; subcontractors have 90 days to do so.

For more information about Washington states mechanics liens, please visit LienItNow

Oregon’s Mechanic Lien Requirements

In the state of Oregon, liens filed on private property are known as mechanics’ liens . On public projects, Oregon law does not authorize construction liens. Rather, contractors are protected by payment bond claims. When an Oregon 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 the state of Oregon.

On private projects, Oregon law permits contractors, subcontractors, material and equipment suppliers, architects and engineers and others to file Oregon mechanics liens.

Are pre-notices for an Oregon mechanics’ lien Claim required? Yes, various pre-notices are required. To maintain an Oregon mechanics lien claim, contractors providing labor, materials or rental equipment must file various pre-lien notice requirements. In the case of residential construction, all original contractors (a contractor with a direct contract with an owner) must provide an “information notice to owner”. Failure to provide such “information notice to owner” will prevent an original contractor from enforcing a claim of construction lien. Similarly, subcontractors, material and equipment suppliers who do not have direct contracts with an owner, are required to provide a “pre-lien notice” to protect their lien rights on residential construction projects. Such “notice of right to a lien” must be filed upon the owner within eight days after beginning work or services or first supplying materials or equipment in order to preserve their lien rights under Oregon law. For commercial projects, an original contractor and all subcontractors and suppliers do not need to provide a “notice of right to a lien” or any other pre-lien notice in order to preserve their lien rights. However, “notice of right to a lien” must be filed by material suppliers who do not have a direct contract with an owner.

In the state of Oregon, a lien must be filed within 75 days after the last day of performing labor or providing materials or within 75 days after the completion of construction. Under Oregon law, “completion of construction” is determined when the project is substantially completed, when a notice of completion is posted and recorded as required by Oregon law, or when the project is abandoned as defined by statute.
For more info on mechanics liens in Oregon, please visit LienItNow

Approved New Jersey School Projects

According to NJ.com, The Development Authority for New Jersey Schools approved five new projects that have estimated cost of up to $200-$250 million.  The approved project will help repair educational facilities at four elementary schools and one middle school.  The construction will help New Jersey inch closer to their goal of providing all children with appropriate learning facilities throughout the state.

New Jersey Mechanic Lien Requirements

In the state of New Jersey, liens filed on private property are known as mechanics’ liens . When a New Jersey 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 New Jersey mechanics lien is filed on a public project, the lien attaches to and secures the funds in the public owner’s hands, prohibiting the owner from releasing that money until the mechanics lien is satisfied.

Contractors, subcontractors, sub-subcontractors, architects, engineers, and suppliers all have lien rights under New Jersey’s Construction Lien Law.

Pre-lien notice requirements exist for some lien claimants. Anyone that does not have a direct contract with the owner should file a Notice of Delivery of Materials and Services with the Owner and Prime Contractor within 20 days of starting work on the Project

New Jersey has different rules for different types of projects.
Construction Liens filed on commercial projects must be filed within 90 days after last day the claimant provided materials or labor to the Project. The filing of a Residential Lien Claim is a two step process. BOTH STEPS MUST BE COMPLETED WITHIN 120 DAYS. Within 60 days of the last furnishing of labor or materials, a lien claimant must file a Notice of Unpaid Balance along with a demand for arbitration. This arbitration has nothing to do with the litigation or resolution of the lien claimant’s underlying claim. It is solely for the purpose of determining whether the lien claimant has the right to file a lien claim. At the conclusion of the arbitration, the lien claimant may file a Construction Lien Claim for the sum of money determined by the arbitrator. Liens on public projects, also known as municipal mechanics’ liens , must be filed within 60 days of when the entire project is completed and accepted by resolution of the public agency. This differs from commercial and residential liens, which have time requirements starting when the work of the claimant, not the project, is completed.

 In New Jersey, liens on public projects do not require written contracts. Commercial and Residential Project Liens can only be filed pursuant to a written agreement. This includes claims for change order work. Written agreements do not necessarily have to take the form of traditional contracts signed by both parties. For example, delivery tickets are sufficient.  In New Jersey, a writing evidencing the existence of an agreement is sufficient to allow the filing of a New Jersey mechanics lien claim.

To find out more info on filing a mechanics lien in New Jersey, please visit LienItNow.