Good work. Now make sure to hold onto the tractor until you get paid - A lien for the person who makes, alters, repairs, or enhances the value of machinery, farm tools or implements, or shoes horses or mules. Why the lien is called an Artisan's Lien is beyond me. I don't remember anybody who would be covered by this lien calling themselves an artisan. Maybe I need [...]
Lately we have been fielding a lot of calls from farmers, ranchers and various other agribusiness to assist in collecting on unpaid debts. Our first question when taking that call is “when was the work performed or the materials supplied?” Our second question, “is there an ag lien on file yet?” It seems that everybody knows ag liens exist. It also seems that only the most sophisticated know exactly [...]
Don’t Get Caught Holding the Bag: Hold the State Liable When General Contractor Fails to Pay on a Public Project.
According to a quick Google search the term holding the bag" comes from the mid eighteenth century and means be left with the onus of what was originally another's responsibility. Nobody wants to be left holding the bag. But that is the situation our client (subcontractor) found themselves in when upon completion of a public project the general contractor went out of business before paying the remaining amount due and [...]
Yep, our founding fathers, Thomas Jefferson and James Madison specifically, were responsible for proposing the first mechanic’s lien laws in the United States. Mechanic’s liens were not a new concept when the first law was passed in the United States; France, Spain and other countries already had them. But, in England, where landownership was limited to the upper classes, the concept of giving a tradesman an interest in the land for [...]
Some construction contracts contain provisions that require contractors to waive their right to file a lien. Do your contracts have provisions like this? Is this legal? The short answer is yes they are legal and the provisions can greatly impact your ability to get paid for your work. Nebraska’s Construction Prompt Pay Act, §§45-1201 to 45-1210 , requires owners to pay contractors within 30 days after the owner or owner’s [...]
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, [...]
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 [...]