2015 Construction Lien and Bond Update
Several states have made legislative changes to their construction lien and bond laws. This article provides a brief summary of some of the more significant changes in the state lien and bond laws for commercial projects over the last year.
● Louisiana now requires a material supplier to serve a Notice of Nonpayment each month the supplier furnishes equipment for a project. This change represents a significant departure from prior procedure in Louisiana.
● Effective July 15, 2015, if a claimant has a direct contract with the owner on a private project, the preliminary notice must be served before the first date the claimant provides labor or material.
● Effective April 2015, terms in a construction contract that serve to waive mechanic’s lien rights in advance are void and unenforceable.
In addition to the above, effective January 1, 2016, Illinois will join the majority of states that allow the posting of a bond as a substitute for a filed mechanic’s lien claim. Also, Pennsylvania has created a new online construction notice directly, beginning in January, 2017, for private projects over $1,500,000.00
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.