dginn's blog

New Requirements for Mechanic's Liens in 2011

As of January 1, 2011, claimants recording mechanic's liens have new requirements to follow in order to have an enforceable mechanic's lien.

1. Serve Notice of Mechanic's Lien.

The first requirement is that you have to serve the mechanic's lien and a new form entitled a "Notice of Mechanic's Lien" upon the Owner by registered mail, certified mail, or first class mail with a certificate of mailing. The "Notice of Mechanic's Lien" that must accompany the Mechanic's Lien, reads as follows:

Understanding and Dealing with Construction Loans

What is a Construction Loan?

A construction loan is money borrowed from a lender to construct a building.  It is different from a normal loan in a few ways.


(1) The lender does not lend all of the money to you at once.  Instead, there is a construction fund from which the lender will pay for the construction based on the progress of construction.


(2)  Part of the loan includes a contingency fund to account for change orders and other unanticipated expenses.


Construction Alert - Contractor Defaults on the Horizon

It has been a very tough time for contractors over the past few months. Private jobs have dwindled to virtually nothing. Public works jobs are not being flooded with bidders, bringing the price bid down to absurd levels. The lack of work combined with the highly competitive environment is a prescription for contractor defaults. Owners, subcontractors and suppliers should take immediate action to maximize protection. Here are a few tips on what to do.

19 of 19: Effective Project Close Out

XIX. Effective Project Close Out

A. Determining Substantial Completion

As the project winds down to a close, particular attention should be paid to establishing and documenting the date of substantial completion. The general rule to be applied is that substantial completion arises when all of the contract work is completed, and the work remaining is work to repair work that is already in place.

17 of 19: Addressing Stop Notices, Liens and Contractor Claims

Part 17 of Our Series on Construction Project Management Skills

XVII. Addressing Stop Notices, Liens and Contractor Claims

A. Dealing with the Unbonded Stop Notice on a Private Project

On both public and private projects, stop notices are used by subcontractors and material suppliers to place a claim upon the construction fund, such as the money that a public entity sets aside for construction, or, on a private project, the amount set aside by the construction lender for the construction.

15 of 19: Dealing with the Claims Oriented Contractor

Part 15 of Our Series on Construction Project Management Skills

XV. Dealing with the Claims Oriented Contractor

A. Common Claims Manufacturing Techniques

Claims oriented contractors use similar devices in order to manufacture claims of dubious validity. Contractors count on their ability to distract the owner's representatives, their creation of a unilateral paper record, and a surprise claim to catch project personnel surprised and anxious to resolve claims.