2013 Construction Lien and Bond Update
Several states have made legislative changes to their construction mechanic’s lien and payment bond laws. This article provides a summary of some of the more significant changes in the state lien and bond laws over the last year.
– Effective January 1, 2013, all mechanic’s lien claims will be filed with a central “State Construction Registry” to be maintained by the Iowa Secretary of State’s office.
– Effective August 1, 2013, the deadline to file a lien foreclosure lawsuit will be one year after the date the mechanic’s lien claim was filed.
– There is a new preliminary notice requirement on public projects for subcontractors, if the subcontractor’s contract is over $20,000.
– On a public project, the contractor must now provide each subcontractor with a “Contractor’s Project Statement” detailing specific project information. Additionally, each subcontractor must provide the “Contractor’s Project Statement” to its sub-subcontractors and suppliers.
– On certain private projects, an owner must designate a “lien agent” and all potential lien claimants must serve a new preliminary notice on the “lien agent.”
– If a claimant will be performing labor under its contract on a private project, and if the claimant hires any suppliers for the project, the claimant must provide each supplier with written notice of the Lien Agent contact information within three (3) days after the claimant enters into its contract with the supplier.
– Effective July 1, 2013, lien claimants who provide labor on a private project will not be entitled to a lien unless the claimant has a valid license or certificate from the Virginia Board of Contractors, if such license is required. Additionally, the license information must now be listed on the preliminary notice for a private project.
If you have any questions about the above legislative changes, please contact a WFJ Construction Attorney to discuss the impact of the changes on your business. WFJ will continue to provide a complete explanation of the current status of state lien and bond laws on the WFJ Client Extranet.