News and Views

WHO?

Who are the parties involved on the construction project? As part of your sales procedure, require that your salesperson obtain complete project information. A standard job information sheet should include the project address, the names, and addresses of all parties within the contractual chain, including the owner of the project, and surety and lender information where applicable.

WHAT?

What remedy is available to you? Know whether the project is privately, publicly, or federally owned, so that you know whether your action, if you remain unpaid, would take the form of a mechanic's lien, a bond claim, or a Miller Act bond claim.

WHEN?

When is your deadline for protecting your lien or bond claim rights? The requirements vary greatly from state to state, and some states even require that preliminary notices be served before materials or services are provided. Know these deadlines before you have a problem so that you can avoid missing any statutorily required actions.

HOW?

How do you protect your rights? Know the states where preliminary notices must be served. Know whether the statute requires specific language or specific information within the notice. Know whether the lien will offer more protection if filed earlier rather than later (unpaid balance lien states).

WHERE?

Where must the notice be served? Some states require that notices be served upon the owner of the project, some must be served upon the prime contractor. Liens must sometimes be served upon the owner; Bond Claims on the owner, or the prime contractor, or the surety; sometimes on all three. Know the requirements of each state.

WHY?

These tools have been put in place to protect the owners of construction projects and to ensure that all contractors, subcontractors and material providers receive payment for the services and materials provided. Use these tools to your advantage!!