Information and updates on the construction industry. Legal developments in the construction lien law are provided here, with helpful information on when to file a mechanics lien or prelien notice. This forum is meant to help the construction industry, or anyone who provides improvements to real estate.
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Working On a Public Project?
Preserve Your Right to Payment
In many ways, a
bond claim is similar to a lien claim. Instead of placing a lien on
real estate, you place a claim against a bond (essentially cash backed
by a first tier company regulated by the State). In
the same sense, the company that the bond covers (usually a prime
contractor on the Project) has the right to know his exposure on the
project. Thus, many jurisdictions require that if you do not have a
contract with the contractor, you must inform the contractor that you
are working or providing materials to the project. Failure to provide a
pre-bond notice can result in a claim being denied. If you need to know
whether your State requires a pre-bond notice, check out our Reference
Desk, which contains a wealth of information
about mechanics liens and bonds.
How Do I Know if a Project
the project on which you are working is a public in nature, funded by
the government, or on government land (i.e. libraries, schools,
military bases, the Washington Monument), then there's a 99% chance
that a bond is in place. All States and the Federal Government require
that the prime contractors on a project (and in some cases
subcontractors that have a contract exceeding a certain threshold
amount) procure a bond to protect subcontractors and suppliers that
Projects can be a bit trickier, but keep in mind that the owner
requires the bond because they want to ensure that you get paid.
Calling the owner, the project architect or the project engineer and
asking for a copy of the bond usually works. If you're looking to file
a bond claim, we offer such services for a low flat price. Check
out our website or give us
a call for more information.
Can If File a Bond Claim and
a Lien Claim on the Same Project?
YES! At least most of the
time. A bond exists in many States as extra protection. While many
States do not allow for any type of mechanics lien to be filed on a
public project, many other do, and also do not prohibit you from taking
full advantage of the bond at the same time.
Take the necessary action
that you need to take and file both a bond claim and a mechanics lien
when you are not paid for the work you perform.