News & Analysis as of

Mechanics Lien Construction Contracts

Mechanic's Liens 101: Ways to Avoid Them

by Faegre Baker Daniels on

A mechanic’s lien is a powerful tool for many construction participants on private projects and a major source of risk for owners. A mechanic’s lien is an involuntary lien and a statutory right that protects contractors,...more

Burr Alert: Procedure for Perfecting a Mechanic’s Lien Claim in Alabama

by Burr & Forman on

Introduction A mechanic’s lien is a construction lien placed on real property which arises in favor of parties who furnish labor or material that is incorporated into the construction of a building or other improvement to...more

A primer for contractors: Getting paid -- fact or fiction?

by Hellmuth & Johnson PLLC on

As a contractor, getting paid for work completed isn't always as easy as collecting onsite or sending an invoice. Hellmuth & Johnson construction law attorney Blake Nelson answers fact or fiction when it comes to collections,...more

Court Finds Public Owners Responsible for Evaluating Surety as well as Surety Bonds

by Shipman & Goodwin LLP on

Mechanic’s liens provide security for nonpayment to subcontractors and suppliers on private projects. Because mechanic’s liens are not valid against property that is owned by the state or a municipality, the Little Miller Act...more

Construction and Infrastructure Update - July 2017

California’s New Public Works Claims Resolution Process - If you’re a public entity or contractor involved in public works construction, you should be aware of a new law that took effect this year establishing a new...more

New State Construction Notices Directory: A Valuable Tool for Owners

by Cozen O'Connor on

Effective December 31, 2016, Pennsylvania’s Mechanics’ Lien Law of 1963 (lien law) was amended to allow for an online State Construction Notices Directory (directory) to provide notice to parties involved in projects costing...more

Picerne Construction Corp. v. Castellino Villas (Feb. 18, 2016, C071197)

The Third District Court of Appeal recently held that completion under the mechanics lien statute requires actual completion of the work of improvement, meaning completion of the entire structure or scheme of improvement as a...more

Court rejects contractor’s mechanic’s lien because of ‘intent’

by Thompson Coburn LLP on

The Illinois Court of Appeals’ recent decision in AUI Construction Group, LLC v. Vaessen highlights the need for careful planning in structuring development agreements, construction contracts, and the use of an easement as...more

The Construct - November 2016

In This Issue: - Election 2016: Where the Candidates Stand on Issues Affecting the Construction Industry: Here we are. The rollercoaster 2016 election ends tomorrow. Millions of Americans have voted already. Polls...more

Unpaid construction work? Stay calm – and make sure every word of your mechanics lien is accurate

by Thompson Coburn LLP on

Not getting paid infuriates most contractors and material suppliers. Don’t let that anger cause you to make a bad situation worse by overdoing a mechanics lien. By the time a contractor reaches the point of recording a...more

Tennessee Federal District Court Holds That Contractor May Pursue Both Breach of Contract Action in Federal Court and Lien...

by Pepper Hamilton LLP on

Summit Contracting Grp., Inc. v. Ashland Heights, LP, 2016 U.S. Dist. LEXIS 60662 (M.D. Tenn. May 6, 2016) - Ashland Heights, LP (“Owner”) contracted with Summit Contracting Group, Inc. (“Contractor”) to construct an...more

Your Invaluable Mechanic’s Lien Rights – Exercise Them!

by Cole Schotz on

The right to file a mechanic’s lien is established by state statute, allowing those providing work, services, materials or equipment to a construction project with additional valuable security in the event of non-payment of...more

One Word Makes All The Difference – The Distinction Between “Pay If Paid” and “Pay When Paid” Clauses

Payment clauses in California construction contracts are often complex and multi-layered. This is especially true in contracts between general contractors and their subcontractors. The general does not want to pay the subs...more

Construction News - December 2015

by Barley Snyder on

Evolution in the Law – Is a “Right to Repair Act” in Pennsylvania’s Future? Various states have attempted through legislation to reduce litigation and increase constructive engagement in construction projects. One...more

Caution: Pay-When-Paid Clauses Are a Danger Zone in California

by Snell & Wilmer on

Subcontracts often contain payment provisions to deal with the issue that a general contractor wants to be paid by the project owner before the general contractor has to pay its subcontractors. Two common subcontract...more

[Event] Construction Liens: Understand the Complexities; Protect Your Interest - Jan. 13th, Grand Rapids, MI

by Dickinson Wright on

Please join us to learn about the Michigan Construction Lien Act and other important laws affecting the construction industry. Learn how to use the lien act to secure payment for your work and avoid common...more

Partial Subordination Agreement not Involving or Affecting Mechanics Lien Claimant Priority is Enforceable in Nevada

by Snell & Wilmer on

When visible construction begins, Nevada law says mechanic’s liens attach to the construction site. A construction lender wants to ensure that its deed of trust securing the construction loan has first priority to the...more

Construction E-Note - September 2015

by Burr & Forman on

Florida's Department of Business and Professional Regulation requires and issues licenses for entities and individuals to qualify to construct improvements to real property in Florida. Generally speaking, an out-of-state...more

Appellate Court Notes

by Pullman & Comley, LLC on

Appellate Court Advance Release Opinions - AC36506 - Sidorova v. East Lyme Board of Education - Due to budget cuts, the Board of Education laid off the plaintiff who was a tenured French teacher. She sued for...more

Is the Mechanic’s Lien or Bond Waiver Clause in Your Contract Enforceable in Virginia?

by Williams Mullen on

A new Virginia law invalidates any mechanic’s lien or payment bond waiver signed before work has commenced. The Governor recently signed new legislation into law, effective July 1, 2015, that invalidates waivers of...more

Security on Large Construction Projects. The Payment Remedy You Probably Never Heard of

California has a number of statutory payment remedies available on construction projects. Some, such as the mechanics lien, are relatively well known and often utilized. Others, such as the stop payment notice, are somewhat...more

Alberta Court Clarifies Builders’ Lien Registration When Contract Abandoned

On February 25, 2015, the Alberta Court of Appeal released its decision in Tervita Corporation v. ConCreate USL (GP) Inc. In that case, the court was required to determine whether a builders’ lien registered by Tervita...more

Utah Clarifies Lien Amounts and Bonding Requirements

by Snell & Wilmer on

The Utah Supreme Court recently clarified that the only permissible amounts to claim under Utah’s mechanic lien statutes are those “equivalent to the value of the services rendered, labor performed, or materials or equipment...more

General Contractors Beware of Subordination Clauses

by Ervin Cohen & Jessup LLP on

In California, a general contractor can usually rest assured that in the event of nonpayment, it can rely upon the remedy of a mechanics lien, which remedy is, in fact, even a constitutional right....more

General Contractor’s Prospective Waiver of its Lien Rights is Enforceable in California

by Snell & Wilmer on

In an opinion published in September 2014, entitled Moorefield Construction, Inc. v. Intervest Mortgage Investment Company, et al., D065464, the California Court of Appeal held an original contractor can contractually waive...more

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