Lien Law Changes: Bad for Designers?

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The work of the NC Bar Association’s Construction Section Lien Law committee continues, and it may drastically change the lien law landscape for architects and engineers.

On February 18, the Construction Law Section Council, the governing body of the Section, voted 11-4 to accept the latest draft version which must still be approved by the NC Bar Board of Governors. After approval by the Board, it will then need sponsorship at the General Assembly. The lien law changes have divided the construction industry – some believe the changes are beneficial, while others worry about new requirements contained within the bill.

Of particular note for architects and engineers, the new lien law envisions a new Notice of Commencement which would then act as the first date of service for everybody who works on the project. The new law would give almost everyone on a project the same priority date. Almost all liens would then relate to and take effect as of the Notice of Commencement date.

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