"Lien Services" Posts
Posted November 30, 2012
In Utah, lien rights are limited to work which is done for the alternation, repair, or improvement of property. Often, landscape contractors and others who do maintenance work want to file liens for the work that they have done. Since maintenance work does not qualify for liens, nor does snow removal, we often have contractors call and ask whether they can get paid for maintenance work. Of course, the answer is: no. But, even though a construction lien cannot be used for maintenance or snow removal, a judgment lien can.
Posted November 8, 2012
In Colorado, prior to filing a Mechanics Lien, lien claimants are required to serve the owner and general contractor a Notice of Intent to Lien. This Notice must be served no less than 10 days before the Lien is recorded. Colorado Courts recognize that failure to serve the Notice will invalidate the lien right.
Posted November 1, 2012
In Colorado your lien filing deadline is 4 months after your last work, unless:
Posted October 25, 2012
In Montana, the liens of contractors, suppliers, architects, engineers and others relate back to and take effect prior to construction loans. In most states, lien claimants must discover the date of first visible work on the property and if that date is before a loan is recorded, then the liens will have priority over the loan. However, in Montana, the law specifically provides that construction loans are behind the liens of those who improve the property. Therefore, it is not required that visible work occurred before a loan is in place for the liens of contractors and suppliers to be ahead of the construction loan.
Posted October 12, 2012
In Montana, suppliers and subcontractors are required to record a Notice of Right to Claim Lien for construction projects involving four-plexes, tri-plexes, duplexes, and single family dwellings. Although a Notice of Right to Claim Lien is not required for other types of construction projects, it is advisable for Subcontractors and Suppliers to record a Notice of Right to Claim Lien on any privately owned construction project in Montana.
Posted October 5, 2012
When contractors and suppliers do work on retail projects, contractors and suppliers can be faced with certain complex problems that you need to make sure that you are aware of in order to fully protect you and enforce your rights.
Posted August 8, 2012
When Bankruptcies are filed construction Creditors are often faced with difficult decisions about money they are owed and how to protect their rights. The use of mechanics liens even when a Bankruptcy exists, or immediately prior to a Bankruptcy can be substantial to Creditors.
Posted June 26, 2012
With the expansion of the oil and gas industry, particularly the expansion of the drilling and sale of natural gas, there are several pipeline projects throughout the west. Some of these projects cross through Utah. Since many of these pipelines cross both public and private land, subcontractors and suppliers who furnish labor and materials can find themselves in a difficult situation when it comes to filing a lien against a pipeline.
Often, subcontractors assume that if a general contractor liens a project that the subcontractor is protected by the general contractor’s lien. However, recent decisions from courts in Utah and in the Utah Federal District do not support this view. In a recent case I was involved with, a general contractor had included the total amount the contractor owed to all of his subs and suppliers for a particular construction project. Even though the lien encompassed these values, the court reduced the amount of the lien to reflect the amount of money actually owed to the general contractor exclusive of any money owed to subcontractors and suppliers, and also allowed the general contractors lien to include any amounts which the general contractor had paid out to subs but had not received from the owner and also the amounts which the general contractor owed to any subcontractors who had filed lawsuits against the general contractor. To the extent that the subcontractors that had not filed lawsuits who had not filed their own liens and started their own foreclosure actions, then the view of the Court was that those amounts were not lienable.
Utah’s Mechanic’s Lien law has been now changed to Utah Preconstruction and Construction Lien law. LienCounsel’s owner and president, Dana T. Farmer, is the Utah Mechanics Lien lawyer and is very familiar with Utah Lien Law and Utah Bond Law. He is also well versed in Utah Construction Bond Law and has litigated numerous Utah bond law cases and Utah lien law cases. Utah lien law is frequently changing and the legislature is regularly changing requirements for Utah preliens, Utah lien rights, Utah lien deadlines, Utah Preliminary Notice and other Utah construction notice requirements. While there are many construction lawyers in the state of Utah, Smith Knowles, P.C. has several of Utah’s best construction lawyers and LienCounsel’s owner, Dana T. Farmer is an experienced construction lawyer and is a trusted source for information of how to file a mechanic’s lien in Utah, how to file a construction liens in Utah, how to file Utah bond claims, and other Utah construction defect cases and Utah construction delay cases.
Questions on Utah Lien Waivers? Watch this week's blog regarding Lien Waivers on Liencounsel's webinar center. http://www.liencounsel.com/webinar_center.php
We recently became aware of a misconception that some subcontractors and suppliers have about the requirement to file a Preliminary Notice in the State Construction Registry. Some people beleive that if there is no Notice of Commencement or Preliminary Notice filed in the State Construction Registry, then they have no obligation to file a Preliminary Notice. This is incorrect. For privately owned projects, where construction commences after August 1, 2011, all general contractors, subcontractors, and suppliers have an obligation to file a Preliminary Notice within 20 days of their first date of work. The only time a Preliminary Notice is conditional, is for public projects where the General Contractor is still required to file a Notice of Commencement. If the general does not file a Notice of Commencement, then no Preliminary Notice is required. But in order to have lien rights, Preliminary Notices are required on ALL projects.
What is a Progress Waiver?
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The Preconstruction Service Lien is the document recorded with the county recorder to give notice to the property owner that a lien has been filed against their property. A Preconstruction Service Lien is a Lien for preconstruction services, which are actual services performed before construction begins.