July 11, 2012 by Stephen
On a residential project, a General Contractor is required to provide a Pre-Construction Notice to Owner PRIOR to the start of work or all lien rights are invalidated. Although the general contractor’s notice to owner covers the subcontractors and suppliers, in the event that he fail to give the required notice, the subcontractors and suppliers are left out in the cold and lose all lien rights. As a safeguard, subcontractors and suppliers should provide their own Pre-Construction Notice to Owner to protect their Arkansas Mechanic’s Lien rights.
In addition to the above notice requirements, a potential lien claimant must provide the property owner with a Notice of Intent to Lien at least 10 days prior to filing a lien.
A Notice to Owner and Contractor, and the 10-day Notice of Intent to Lien, may be given by personal service, by any form of mail addressed to the person to be served with the mail, return receipt requested, restricted delivery, to addressee or agent of addressee, or by any means that provides written, third-party verification of delivery. The Preliminary Notice is considered delivered when sent, and verified by a return receipt signed by the addressee or the agent of the addressee, or a returned envelope, postal document, or affidavit by a postal employee reciting or showing refusal of the notice by the addressee or that the item was unclaimed.
April 19, 2010 by Stephen
In Arkansas, liens filed on private property or on funds relating to a public project are known as Mechanic’s Liens. When a 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 a construction lien in Arkansas. If a company supplies material to a material supplier, they are not eligible to file a mechanics lien claim.
Ten days prior to the filing of a mechanics lien claim, Arkansas requires that a construction lien claimant give the owner, or the owner’s agent, or both of them, notice that a mechanics lien claim is going to be filed.
On 1 to 3 family residential projects, prior to the furnishing of materials or labor, the principal contractor must provide the owner with a formalized notice that materials and labor will be used in the construction of the project and the owner is responsible for payment.
Suppliers on commercial construction projects must send written notice of non-payment to the general contractor and the owner within 75 days of the date on which the supplies were provided. This notice does not apply to residential projects.
After the appropriate pre-notice has been provided to the owner, Prime contractors, subcontractors, materialmen and design professionals must file a mechanics’ lien within 120 days of the last date the claimant provided labor or materials to the project.
For more information on filing an Arkansas Construction Lien, an Arkansas Mechanics Lien, or an Arkansas pre-lien notice, please visit http://lienitnow.com/arkansas-faq.asp.
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