Click Your Heels for Mechanic’s Lien and Bond Claim Rights in Kansas
OK, maybe you can’t simply click your heels to file a lien in Kansas, but you can read today’s post to learn more about the steps to securing lien and bond claim rights!
Kansas Mechanic’s Liens
For private, commercial projects there is no statutory provision requiring a preliminary notice, however, we recommend serving a non-statutory notice as a best practice.
For private residential projects there is a statutory notice:
- Residential Projects(residence intended for use by not more than two families):
- New Construction: File a Notice of Intent to Perform no earlier than 18 months prior to filing a lien, but prior to title passing to the buyer.
- Improvement: Serve warning statement upon the owner or obtain and retain a statement signed by the owner that states they were given a warning statement.
Whether furnishing to commercial or residential, the mechanic’s lien deadlines are as follows.
- Subcontractors or Material Suppliers:
- File the lien within 3 months from last furnishing materials or services and serve a copy of the lien on the owner, the prime contractor and the party with whom you contracted.
- Prime Contractors:
- File the lien within 4 months from last furnishing materials or services and serve a copy of the lien on the owner.
When furnishing to a commercial project, a Notice of Extension to file lien, which extends the time to file a lien to 5 months from last furnishing materials or services, may be filed within the above lien period. Serve a copy of the Notice of Extension on the general contractor or construction manager, and on the owner.
In the event the mechanic’s lien does not prompt payment, you should file suit to enforce the lien within 1 year from filing the lien or, if a promissory note was attached to the lien in lieu of a statement, within 1 year from the maturity date of the promissory note.
- Kansas is a full balance lien state, which means the lien is enforceable for the full amount owed, regardless of payments made by the owner.
- The contractor or owner may record a payment bond as security, preventing liens from attaching to the property or discharging any liens already filed.
Bond Claim for a Private Project? Yep!
Kansas statute provides that a properly recorded payment bond will prevent mechanic’s liens from attaching to the property. It is recommended to serve a bond claim upon the prime contractor within 90 days from last furnishing materials or services.
Kansas Bond Claims
Like commercial projects, the public Kansas statute does not provide for a preliminary notice & we recommend serving a non-statutory notice.
Generally, payment bonds are required for general contracts exceeding $100,000; you should always attempt to obtain a copy of the payment bond from the public entity. There are separate bond requirements for state highway projects & county road projects.
- State Highway Projects: Generally, payment bonds are required on general contracts exceeding $1,000.00.
- County Road Projects: Generally, payment bonds are required on general contracts exceeding $25,000.00.
You should serve the bond claim notice in accordance with the terms and conditions of the payment bond. Frequently a bond claim notice is required within 90 days from last furnishing.
For state highway projects, you should serve your bond claim within the terms of the bond, plus you should file an itemized statement of account with the Secretary of Transportation within 6 months from completion of the project.
Should you need to proceed with suit to enforce your bond claim, you should file suit within 6 months from completion of the project, unless it is a state highway project, where the deadline is within 1 year from completion of the contract.
Here are links to prompt pay, retainage, and P3 statute!