You know the construction project is not going well when you are considering filing a construction lien. However, here is a little light at the end of the tunnel—you can now demand that the property owner pay you 12% annual interest on your claim from the date you filed your construction lien. A recent Nebraska Supreme Court decision made this right clear. In Echo Group v. Lund Ross, the material [...]
Contractors sometime believe that once the lien is filed, they are home free for getting paid. Unfortunately, that is often not the case. There are always concerns about whether the owner has sufficient funds to pay the contractor and subcontractors. Obviously, that is why the lien was filed. There are also concerns about whether there is any equity in the property to satisfy the liens. But, even if you file [...]
Construction Law Join us Wednesday October 30, 2019 at 11:30 a.m. for a discussion of Construction Liens and Lien Waivers: Protecting Your Right to Payment During this presentation, we will discuss: Steps to ensure that you are preparing and filing your liens correctly What to review for before you sign a lien waiver We look forward to seeing you on October 30th at 11:30 a.m. at the offices of Lamson [...]
Construction Law Join us Wednesday October 30, 2019 at 11:30 a.m. for a discussion of Construction Liens and Lien Waivers: Protecting Your Right to Payment During this presentation, we will discuss: Steps to ensure that you are preparing and filing your liens correctly What to review for before you sign a lien waiver We look forward to seeing you on October 30th at 11:30 a.m. at the offices of Lamson [...]
How often do you review the payment terms of a contract with an eye toward whether you are waiving lien rights under that contract? This is something you should consider if your contract contains a pay-if-paid clause. I am often times asked about the difference between a pay-when-paid and pay-if-paid clause. The real difference is that a pay-when-paid clause simply allows a contractor a reasonable amount of time by which [...]
As we have discussed in other blog posts, filing a construction lien on time is critical to preserving your claim. If you file a construction lien in Nebraska outside of the 120-day window, your lien will be invalid. This past week, we filed a construction lien electronically in Douglas County. This means that we submitted the lien on-line and waited for a Douglas County employee to review the lien and [...]
This is a continuation of the series of blogs on preserving your rights to get paid on a construction project. The most effective tool you have to get paid is by filing a construction lien. But, there’s a lot to consider before you file that lien. This blog will cover how long your lien will last once it is filed. The Nebraska Construction Lien Act provides that your lien will [...]
We all know the importance of filing a construction lien within 120 days of your last work (90 days in Iowa). But, equally, if not more important, is filing the construction lien on the correct property. Often times on a construction project, the exact address of the project may not be known. And, if there are a few buildings going up on the same general site, it is difficult to [...]
You know the situation—the lender or general contractor is waiving a check in front of you, but they won’t give it to you until you sign a waiver. Before you sign it, make sure you know exactly which rights you are waiving. Nebraska statutes specially allow a contractor to waive lien rights. Section 52-144 allows a contractor to waive lien rights even before the work has been preformed or materials [...]
The information that you must include in a Nebraska construction lien is pretty straightforward. A construction lien must include the following: The real estate subject to the lien; The name of the person against whose interest in the real estate a lien is claimed; The name and address of the claimant; The name and address of the person with whom the claimant contracted; A general description of the services performed [...]
This is the first in a series of blogs on preserving your rights to get paid on a construction project. The most effective tool you have to get paid is by filing a construction lien. But, there’s a lot to consider before you file that lien. This blog will cover when you must file your lien and where the lien should be filed. The Nebraska Construction Lien Act is contained [...]
We all know the importance of filing a construction lien within 120 days of your last work. Nebraska Construction Lien Act, § 52-137. But, equally, if not more important is filing the construction lien on the correct property. Often times on a construction project, the exact address of the project may not be known. And, if there are a few buildings going up on the same general site, [...]
The Lien & Credit Journal had an interesting article the other day discussing which states’ laws allow you to waive lien rights. The blog, entitled Who Lets You Waive Your Lien Rights Before Payment? identified four types of state laws. Those states that prohibit waiver, those that allow waiver, those that appear to have conflicting laws, and those that have no law. It was interesting to see that Nebraska is [...]
You know the feeling, a contractor files a lien against the property, the owner is frustrated,and tells you to get the lien removed. Easier said than done. Here are two steps that can be taken to alleviate the owner’s frustration and expedite the fight over the lien. Bond Over the Lien Neb. Rev. Stat. § 52-142 provides that any person having an interest in the real estate may release the [...]
I do not like flirting with deadlines. If the deadline is Wednesday, I like to get it done on Tuesday. When filing a construction lien, it is always better to file a few days before the deadline or you may suffer the same fate as this Montana contractor. In Total Industrial Plant Services, Inc. v. Turner Industries Group, LLC, the Montana Supreme Court was asked to analyze whether Total Industrial [...]
As you may know, the Nebraska Legislature is back in session. During the first ten days of the session, senators may present bills to be considered throughout the session. So far, over 400 bills have been introduced. I’ve come across two bills that may be of interest to Nebraska’s Construction Industry and they both relate to construction liens. Legislative Bill 3—This bill, introduced by Senator Krist, would require that when [...]
So, you have a lien on file and you still have not gotten paid. How long do you have to enforce your lien? As with most matters in the law, it depends. The Nebraska Construction Lien Act provides that your lien will be effective for two years after recording of the lien. If you do not institute judicial proceedings within those two years, your lien will become void. This does [...]
Have you ever thought about waiving your right to file a lien on a project? Have you perhaps waived your lien rights by signing a contract without closely examining it? I recently came across a contract that contained the following clause: The subcontractor shall not file a mechanic’s or materialman’s lien or maintain any claim against the owner’s real estate or improvements for or on account of any work done, [...]
Amending your construction lien is not as easy as you might think. You cannot simply revise the dollar amount of your claim or the location of the property, if you didn't have it right the first time. Nebraska statutes require more information in the amended lien. And, if you don’t include it, you run the risk of your lien being declared invalid. Nebraska § 52-148 authorizes the amendment of construction liens, but [...]
For those of you working in Iowa, beware of the time limits by which you must make bond claims. On public works projects in Iowa, you have a very limited window to make your claim and the process can get even more complicated if the contractor abandons the project. Iowa’s statute on public works bonds provides that general contractors must pay subcontractors within seven days of payment for the subcontractor’s [...]
What is the one step most contractors forget to do when filing a lien? They forget to send a copy of the lien to the contracting owner. And, if you don’t send a copy of your lien, the lien may be invalid. Section 52-135 Nebraska Revised Statutes discusses the specifics of a lien, including the notice of right to assert lien and the necessary content. Buried in the third paragraph [...]
Did you know that your lien may be voided if it is filed in bad faith or you refuse to execute a release of lien? It’s true. And, if a court finds that you did act in bad faith, it may award attorney fees to the owner. That would be a bad turn of events. As some of you may know, section 52.157 of the Nebraska Construction Lien Act addresses [...]
A contractor sometimes believes that once the lien is filed, they are home free for getting paid. Unfortunately, that is often not the case. There are always concerns about whether the owner has sufficient funds to pay the contractor and subcontractors. Obviously, that is why the lien was filed. There are also concerns about whether there is any equity in the property to satisfy the liens. But, even if you [...]
