“Show Me” the Steps to Securing Lien Rights in Missouri
Securing mechanic’s lien rights in Missouri, as with most states, begins with serving the statutory notice. Some states are quite particular about the format of the statutory notice, and Missouri is one of those states.
First, it’s important to note that Missouri has different statutory requirements for commercial and residential projects. In this post, we will cover commercial projects.
Per The National Lien Digest©, if you have contracted directly with the owner, you must serve the Notice to Owner prior to receiving payment and
- At the time of execution of the contract, or
- When the materials are delivered, or
- When the work is commenced, or
- Deliver with first invoice.
Plus, as author Jessica Courtway explains in her article, Notice Provisions of Missouri’s Mechanic’s Lien Statutes, the notice must be in 10-point bold font.
“The notice must be written in 10-point bold font, and state:
NOTICE TO OWNER
FAILURE OF THIS CONTRACTOR TO PAY THOSE PERSONS SUPPLYING MATERIAL OR SERVICES TO COMPLETE THIS CONTRACT CAN RESULT IN THE FILING OF A MECHANIC’S LIEN ON THE PROPERTY WHICH IS THE SUBJECT OF THIS CONTRACT PURSUANT TO CHAPTER 429, RSMO. TO AVOID THIS RESULT YOU MAY ASK THIS CONTRACTOR FOR “LIEN WAIVERS” FROM ALL PERSONS SUPPLYING MATERIAL OR SERVICES FOR THE WORK DESCRIBED IN THIS CONTRACT. FAILURE TO SECURE LIEN WAIVERS MAY RESULT IN YOUR PAYING FOR LABOR AND MATERIAL TWICE.
Compliance with this notice provision is a condition precedent to the creation of a valid mechanic’s lien by an original contractor.”
If you are a subcontractor or material supplier, you are not required to serve a preliminary notice like a general contractor. However, as a best practice, NCS recommends serving a non-statutory notice to alert all parties in the ladder of supply that you are furnishing to the project.
One exception to the above is for those who supply rental equipment. Lessors must provide a notice within 15 business days from the first use of the rental equipment.
Although subcontractors and material suppliers are not required to serve a preliminary notice, they are required to serve a Notice of Intent at least 10 days prior to filing the mechanic’s lien. What information should you include in the Notice of Intent? According to Courtway, “The notice must include the name of the claimant, the amount of the claim, from whom the money is due, and a description (preferably a legal description) of the property.”
Courtway also reminds subcontractors and suppliers that it’s important to carefully track the mechanic’s lien deadline of 6 months from last furnishing, to allow for enough time to serve the Notice of Intent.
“This notice is a condition precedent to the creation of a valid lien. It is important that subcontractors and suppliers keep a careful eye on the six-month deadline within which to file the mechanic’s lien, to leave enough time to serve the 10-day pre-lien notice upon the owner.”
Remember, this information is for commercial projects. Questions about furnishing to residential projects in Missouri? Contact NCS to discuss!
Read this week’s post to learn more about the important role of UCC filings when you are extending credit to the foodservice industry.
In the first part of our series for creditors supplying to the foodservice, hospitality & beverage industries, we specifically discuss blanket filings. Blanket filings are common in the foodservice industry and most frequently used in situations where your customer consumes your goods, rather than stocks your goods.
Blanket UCC Filings in the Foodservice Industry
Upcoming Educational Opportunities
- 3/21/17 @ 1:00 pm: Implementing a Lien/Bond Claim Program: Overcoming Obstacles
- 4/4/17 @ 1:00 pm: UCC Remedies Upon Debtor’s Default
- 4/18/17 @ 1:00 pm: Understanding Lien Waivers
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