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February Mechanic’s Lien Deadlines

February 9, 2010 By Leave a Comment

February Mechanic’s Lien Deadlines

Commercial Projects

1st Tiered Claimant:

Your notice letters are timely for work done any time after November 1, 2009.
Your mechanic’s liens are timely for work done any time after October 1, 2009.

2nd Tiered Claimant:
Your notice letters are timely for work done any time after December 1, 2009.
Your mechanic’s liens are timely for work done any time after November 1, 2009.

Residential Projects

For all Claimants:

Your notice letters are timely for work done any time after December 1, 2009.
Your mechanic’s liens are timely for work done any time after November 1, 2009.

Filed Under: Construction Law, Mechanic's Lien Reminders Tagged With: , ,

Mechanic’s Lien Reminders Tip of the Month – Warranty Claims

January 4, 2010 By Leave a Comment

Last month, we talked about retainage claims and how you protect your ability to collect on retainage funds that are not timely paid to you.

This month, I wanted to discuss warranty claims.  Many clients believe that warranty claims can extend their mechanic’s lien deadlines.  For most clients, this would be generally untrue because the deadlines for their work performed or material supplied would not be calculated pursuant to the Substantial Completion rule, discussed below.  However, there is what may be referred to as a “loophole” that can be used to extend deadlines in very particular situations.  This would never be something I would recommend or could rely on with certainty as a court of law would have to determine its applicability to the particular circumstances.

That being said, in order to clear up some of the myths that are circulating relating to the extension of deadlines by warranty claims, it is important to understand the distinctions.  Most lien deadlines are calculated from the date that work was first performed.  Thus, doing more work does not generally extend the deadline. However, the lien deadlines are calculated by the earlier of the 3 / 4 months after work was performed (depending on whether it is considered a residential or commercial project) OR WITHIN 30 DAYS AFTER SUBSTANTIAL COMPLETION OF ENTIRE THE PROJECT (not just your portion), whichever is sooner.

So, while most subcontractors and suppliers fall within the normal mechanic’s lien deadlines, if you perform work at the end of the project (such as landscaping, which is generally one of the last aspects of a construction project), your lien deadline can be shorter than the typical 3 / 4 month time frames (as set forth in the “Deadline” portion of this email).

If you believe you are late on your mechanic’s lien or notice letter, there is quite a bit of case law that attorneys can and do use to argue around the deadlines. One such case law relates to warranty work. Warranty work can, in some instances, be the basis for arguing that substantial completion has not occurred, and thus a claimant is not late on a lien. Some courts have extended substantial completion deadlines to include punch and warranty work.

So, what does this mean to you?  If you are a subcontractor or supplier that performs work or supplies during the first or middle portion of the construction project, it means absolutely nothing because your lien deadlines are not dependent on substantial completion of the project.  However, if you perform work on what might be considered the later part of the project (about the last 4 months), your deadlines might be shorter than normal but, on the other hand, any warranty work that may have been performed on the project could possibly be used to extend the timeframe for you to properly perfect your lien.

There are a lot of companies out there filing their own liens and/or notice letters. As you can see, there is not one exact formula to the mechanic’s lien process. It depends on a variety of circumstances, all which must be taken in consideration to determine your deadlines and filing requirements. The best business practice is to meet with an attorney that understands your business and how your work fits within these deadlines. While the use of loopholes to extend your deadlines can be beneficial it certainly cannot be relied upon on a day to day basis.

Filed Under: Construction Law Tagged With: , , , ,

January Mechanic’s Lien Deadlines

January 4, 2010 By Leave a Comment

January Mechanic’s Lien Deadlines

Commercial Projects

1st Tiered Claimant:

Your notice letters are timely for work done any time after October 1, 2009.
Your mechanic’s liens are timely for work done any time after September 1, 2009.

2nd Tiered Claimant:
Your notice letters are timely for work done any time after November 1, 2009.
Your mechanic’s liens are timely for work done any time after October 1, 2009.

Residential Projects

For all Claimants:

Your notice letters are timely for work done any time after November 1, 2009.
Your mechanic’s liens are timely for work done any time after October 1, 2009.

Filed Under: Construction Law, Mechanic's Lien Reminders Tagged With: , ,

December Mechanic’s Lien Reminder

December 1, 2009 By Leave a Comment

December Mechanic’s Lien Deadlines

Commercial Projects

1st Tiered Claimant:

Your notice letters are timely for work done any time after September 1, 2009.
Your mechanic’s liens are timely for work done any time after August 1, 2009.

2nd Tiered Claimant:
Your notice letters are timely for work done any time after October 1, 2009.
Your mechanic’s liens are timely for work done any time after September 1, 2009.

Residential Projects

For all Claimants:

Your notice letters are timely for work done any time after October 1, 2009.
Your mechanic’s liens are timely for work done any time after September 1, 2009.

Filed Under: Mechanic's Lien Reminders Tagged With: , ,

November Mechanic’s Lien Reminder

November 5, 2009 By Leave a Comment

Last month, we talked about the differences between 1st Tier and 2nd Tier Claimants and reiterated that to file your mechanic’s lien and notice letters timely, first you really need to know whether or not you are a 1st Tier or 2nd Tier Claimant.  Another important difference to understand is whether you are working on a residential or commercial project.

Definition-Residential

A single family house, duplex, triplex, or quadruplex or a unit in a multi-unit structure used for residential purposes that is owned by one or more adult persons and is used or intended to be used  as a dwelling by one or more of the owners.

As an example, work on a residential house or multiunit structure is not necessarily a “Residential Project” when it comes to mechanic’s lien laws.  Specifically, if it is a spec or tract house and the builder or general contractor who owns the house does not intend to occupy it as a primary dwelling then, technically, this type of project falls under the mechanic’s lien rules for commercial projects.

Another easy hint is, does a corporation own the house or is it for an investment?  If so, it can never be “residential” for the purposes of the mechanic’s lien laws.

Once you know what type of Claimant you are and whether or not you are working on a residential or commercial project, refer to the Deadline Chart, within this email, for the current timeline on the lien process.

REMEMBER -   IF YOU ARE A 2ND TIER CLAIMANT OR ARE WORKING ON A RESIDENTIAL PROJECT, YOUR NOTICE LETTERS AND AFFIDAVITS ARE DUE 1 MONTH EARLIER THAN 1st TIERED CLAIMANTS ON COMMERCIAL PROJECTS.


November Mechanic’s Lien Deadlines

Commercial Projects

1st Tiered Claimant:

Your notice letters are timely for work done any time after August 1, 2009.
Your mechanic’s liens are timely for work done any time after August 1, 2009.

2nd Tiered Claimant:
Your notice letters are timely for work done any time after September 1, 2009.
Your mechanic’s liens are timely for work done any time after August 1, 2009.

Residential Projects

For all Claimants:

Your notice letters are timely for work done any time after September 1, 2009.
Your mechanic’s liens are timely for work done any time after August 1, 2009.

Filed Under: Construction Law, Mechanic's Lien Reminders Tagged With: , ,
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