Tag Archives: construction

Greening the Cities- free webinar

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Interested in how to “Green” our Cities?  Attend a free web seminar to learn from top experts.  Entitled “Retrofitting Cities: How to “Green” the Cities We’ve Got”, the live webinar will be held this Monday, November 22nd at 1pm ET.  (Event free but registration required).

The webinar is hosted by the Sustainable Cities Collective, and it is presenting the discussion “to explore the ideas that could make retrofitting the low-hanging fruit of urban re-engineering,” including:

  • Transit networks and mobility hubs
  • Improving energy use in buildings
  • Bike infrastructure, bike-sharing, and more
  • Efficient electric grids
  • Small-scale solar power and other alternative energy sources
  • Funding: Where will the money come from? Can solutions like public-private partnerships help fill the gap?

(hat tip to Chris Cheatham, Green Building Law Update blogger and seminar speaker, who alerted me to the webinar)

The 123s of Current NC Lien Law: Issues for Owners

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Last week, we talked about the ABCs of liens for contractors, subcontractors, and design professionals.  For every yin, there is a yang.  Today we’ll talk about the 123’s of how to handle a lien claim if you are the Owner of the property. 
 
   James Bond 007   An Owner can always “Bond off” a lien
  

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If you are  the owner of the property, you may not have been aware that subcontractors were not being paid, if lien waivers were not being submitted or were fraudulently executed by the general contractor.  Being served with a Notice of Claim of Lien on Funds and/or a Claim of Lien on Real Property can literally stop work on a project.  Many construction deeds of trust and similar bank financing require owners to keep the property free from liens or other claims on title.

If you are the Owner faced with a Lien on your property, what can you do?

Rule #1:  Never pay “over” a lien.  Even if you owe the contractor $80,000, and the subcontractor’s lien is for $5,000, do not think you can set aside $5,000 for the subcontractor (to be worked out later) and pay the contractor $75,000.

Rule #2:  Consider your options carefully:

            Option 1:  Finish the project without any additional payment to the contractor.  Pay for a replacement contractor to finish, offset those payments, pay lien claimants from remaining funds.

             Option 2:  Issue a joint check payable to the lien claimant and the contractor.

             Option 3:  Bond off the lien upon funds (N.C.Gen. Stat. 44A-20)

             To bond off the lien, you issue either a bond (equal to 1 ¼ ) or a cash payment (equal to the full lien value) to the Clerk of Court, which is held pending resolution of the dispute.

Rule #3:  If the project is upside down, consider negotiating directly with a subcontractor for a reduced payment in exchange for a lien cancellation filed by the subcontractor.

Rule #4:  Whatever you do, do it after consultation with your construction law attorney.  Liens cannot be ignored, and properly handling them can make or break your project.

Experience working with a lien on your property?  How did you handle the situation?   Also, as always, if you have questions or comments about this or any other post, drop me a line. 

Note:  While I welcome comments from all, be aware that  I do not currently accept homeowner (residential) clients.

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Photo “James bond – quantum of solace” by Julien Haler via Flickr/Creative Commons license.   

 

Contractor working in neighboring state? Read these blogs! (Tues Tip)

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glassesWant more construction law?  Want to read about case and statutory developments in other southeastern states?

If you work in one of North Carolina’s neighboring states, check out the Blogroll  for blogs written specifically by construction attorneys practicing in Virginia (Chris Hill & Tim Hughes), South Carolina (Clay Olson), and Tennessee (Matt DeVries).

While you’re there, check out all of the other fine bloggers too.  There is a lot of good information being volunteered by folks across the nation to help you as you encounter legal issues in your construction business.

Am I missing somebody that I should include on the blogroll?  If so, let me know!

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Photo “366 * 139 * Taking off my glasses” by Pragmagraphr via Flickr/Creative Commons License.

 

The ABCs of Current NC Lien Law

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Since we talked last week about possible changes to the lien law, I’ve had a few folks ask me to take a step back and discuss the ABCs of current lien law in North Carolina.  Ask and ye shall receive………..

 Part 1:  Lien Law Rights for Contractors, Subcontractors, & Design Professionals

Who can file a lien?

Anyone who furnishes materials or labor to improve real property can file a lien on that property.  This includes design professionals who provide services related to improvement of real property, contractors, and subcontractors (down to the 3rd tier). 

What types of liens are there in NC?

There are three types of lien claims in North Carolina.

1.  The Claim of Lien on Real Property (NC Gen. Stat. §44A-12) is for a person who contracts directly with the owner of the property.  This can be a general contractor, a separate independent contractor, or a design professional.

2.  The Notice of Claim of Lien upon Funds (NC Gen. Stat. §44A-18 and §44A-19) is available to subcontractors (down to third-tier subcontractors), and allows them to have a lien right to any funds owed to the party that contracted with them in the chain of title.  In other words, if the owner still owes money to the general contractor, and the owner receives a Notice of Claim of Lien upon Funds by a subcontractor (and the lawsuit to enforce the lien is thereafter properly filed), the owner cannot pay the general contractor until the subcontractor’s lien is extinguished.

3.  The Subrogated Claim of Lien on Real Property (NC Gen. Stat. §44A-23) also provides real property lien rights to the subcontractor, to the extent the party he contracted with has lien rights.

When and Where must a lien be filed?

Lien claims in North Carolina must be filed in the clerk of court where the property is located, within 120 days of the claimant’s last date of furnishing. 

What does “perfecting a lawsuit” mean?

A lawsuit must be filed to enforce the lien.  This is called “perfecting” the lien, and it must be done within 180 days of a claimant’s last date of furnishing.  The lawsuit can be filed in any proper county so long as an appropriate Lis Pendens is also timely filed in the county where the property is located. 

What special remedies are available for a lien claim?

If a lien lawsuit is perfected and a judgment rendered, the court can direct the property to be sold to satisfy the lien.  Additionally, you can recover attorney fees for the lien lawsuit.  Pretty cool, huh?

  souffle

Crafting a proper lien is like making souffle- no room for error!

In summary:

As you can imagine, liens can be very powerful tools to help ensure recovery of money owed to contractors and subcontractors on a project.  The key to exercising your lien rights is to keep watch on the running of the claim period (use of online resources can help with this)  and to ensure that the lien is (1) properly drafted; (2) timely served; (3) appropriately filed; (4) perfected with a timely lawsuit.  This is not an area where you can make a mistake—liens are subject to strict rules that must be followed to the t.  If in doubt about a lien issue, contact a knowledgeable construction law attorney in your jurisdiction.

We’ll continue our discussion with Part 2 (next Thursday), when we discuss how to handle a lien on your property if you are the Owner

Comments about your experience using liens to maximize your chances of recovery?  Post below.  [And as always, please sign up for an email subscription to the blog  if you have not already done so].

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Photo “Soufflé” by stu_spivack via Flickr/Wikimedia/Creative Commons

Two more Construction Marketing Seminars (Tue. Tip)

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In this still weak economy, marketing is at the top of everyone’s mind.  Another web-based seminar related to Construction Marketing is coming up that aims to assist construction professionals in their marketing efforts.  Entitled “Measuring Marketing Results Best Practices for Construction,” the webinar is hosted by the Construction Marketing Association (CMA).

CMA logo

According to CMA, the webinar will address:  1) traditional methods of measuring marketing results, 2) the use of internet-based measures, and 3) new tools for social media monitoring. 

The webinar is scheduled for Monday, November 15th at 1pm Eastern Time.   Preregistration is required.

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Also next week, a second (reprisal) of Mike Jeffries’ “Profit from Your Most Important Brand- You” will be held.  The seminar is scheduled for Thursday, November 18th at 5pm Eastern.   Preregistration is also required for this seminar.

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As always, if you attend either or both seminars, please share what you learned and if the seminar(s) you attended were worthwhile to your construction practice.

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Photo:  CMA Logo