Tag: Lien Priority
-
A Notice to Proceed Solidifies Project Timelines
A Notice to Proceed marks the date when a contractor or subcontractor’s work is to begin on a construction project – the date that the clock starts ticking.
-
Mechanics Liens and Superpriority
Lien priority can be a tricky topic, but thankfully, it’s not one that comes up often for the average person in the construction business. The general rule in property law is that liens have priority in the order that they are filed in the county records office. This is known as the first in time, first in right rule.…
-
When Advance Waiver of Lien Not Allowed, Subordination by Contract Might Do the Same Thing
Because of the protection afforded by lien waivers, and due in part to the ongoing risk-shifting battle that occurs over construction payment and the risk of non-payment, it is an occasional but unfortunate occurrence that “no-lien” clauses, or other methods by which a right to file a lien is extinguished preemptively, are contained within contracts,…
-
Will Filing a Mechanics Lien Stop Foreclosure?
Parties sometimes turn to a mechanics lien filing in an attempt to stop or slow down a sale or mortgage foreclosure (on their or a family member’s property) – even if the claimant was not technically a construction industry participant generally allowed mechanics lien protection. Is this proper, though, or an effective idea? That question…
-
Construction Contracts – Beware of Certain Clauses
Due to this difficulty, or just due to the ongoing risk-shifting battle that occurs in construction over the risk on non-payment, some parties look to out-leverage others through contract, by preemptively extinguishing or crippling the ability to file a lien before work even starts. Since the ability to file a mechanics lien to secure the right…