Perspectives
2012 Construction Lien and Bond Update
Over the past year, several states have made legislative changes to their construction lien and bond laws. Thankfully for companies that have clients across the country, the number of states making legislative changes to this area of law is not nearly as onerous as it has been in past years. Below is a summary of some of the highlights.
CALIFORNIA:
•Updated waiver and release of lien forms have been adopted.
•There are new laws governing the preliminary notice requirement on public bond claims.
INDIANA:
•Modified the timing for contractors, subcontractors, and material suppliers to make claims against public project retention/contract proceeds and/or the payment bond provided on public projects.
•Recent court decision supporting the enforceability of pay-if-paid clauses.
IOWA:
•Effective January 1, 2013, Iowa follows Utah’s lead in adopting an online filing system for mechanic’s liens.
OHIO:
•A recent court decision confirmed the deadline to file the lawsuit for a “lien against public funds” claim.
TEXAS:
•There are new forms for standardized statutory lien waivers.
UTAH:
•There is a new category for mechanic’s liens, which includes “pre-construction service liens.”
•Changes to those required to file a preliminary notice.
•Changes to the Notice of Commencement requirement for private and public projects.
In addition to the above, North Carolina has made a few significant changes that will take effect next year. WFJ will continue to track the legislative changes in this area of law and update our WFJ Client Extranet database regarding construction lien and bond rights.
If you have any questions regarding the above legislative changes, please contact a WFJ Construction Attorney to discuss the impact of the changes on your business, and look to the WFJ Client Extranet for a complete explanation of the changes.