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20 Jun, 2017

Don’t Get Caught Holding the Bag: Hold the State Liable When General Contractor Fails to Pay on a Public Project.

By |2018-04-23T18:22:19+00:00June 20th, 2017|Bond Claims, Breach of Contract, Construction Claims, Construction Contractor Advisor, Construction Law, Government Contracting, Lien Rights, Midwest Agricultural Law, Nebraska Construction, Payment Bond|

Holding the Bag 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 [...]

6 Jul, 2015

Thank Your Founding Fathers for Mechanic’s Liens

By |2018-04-23T23:55:10+00:00July 6th, 2015|Construction Contractor Advisor, Lien Rights|

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 [...]

26 Feb, 2013

Can you Waive Lien Rights Before the Project Starts?

By |2013-02-26T09:00:21+00:00February 26th, 2013|Lien Rights|

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 [...]

11 Sep, 2012

Beware of Waiving Your Lien Rights

By |2012-09-11T08:16:37+00:00September 11th, 2012|Construction Lien, Lien Rights|

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, [...]

12 Jul, 2012

Do You Always Have Lien Rights?

By |2012-07-12T07:55:38+00:00July 12th, 2012|Lien Rights|

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 [...]