Is Utah’s SCR (State Construction Registry) A Model For Rest of States?

Since 2005, Utah has maintained a standardized, state-wide system for filing preliminary notices, notices of commencement and notices of completion – the State Construction Registry, or SCR.  The result?  Any supplier, contractor or other interested party can log into the system, search for a project, and know exactly when it started and begun, and who is working on it.

This is a huge time-saver for folks working on construction projects in Utah.    We know the frustration contractors and suppliers have in other states, because we experience them ourselves at Express Lien.

The property records offices in counties across the country can be an absolute mess.   Sometimes, its next to impossible for a subcontractor or supplier to locate the legal proeprty description for a parcel of land, the name of the property owner, and whether anything has been filed on the project.    Even though its incredibly hard to find this information, the contractor or supplier may still be responsible to know it.

Imagine if across the country this information was inputted into standardized online registry of construction projects?    That’s how things work in Utah.

In and out of Utah, one of the most compelling selling features of the Express Lien service is that we make things simple for you.    After all, running your construction or supply business is difficult enough that you shouldn’t have to be research experts, or monitor lien and notice requirements across the 50 states.   How is this for simple:   You give us the project details, and our staff researches the property owner and the legal property description for you.

This can save your company hours, and since we’re more experienced at searching for this data, our search results are reliable.

Even thought the information is more accessible in Utah, that doesn’t nullify our utility.   You give us the project information, and we do the legal work.   Forget about spending an hour or two figuring out the SCR system, or having to followup with the city, or having to verify information by doing research online.

Express Lien is the smarter way to lien, and we guarantee it.

Think You Know The Last Date You Delivered Materials or Performed Services? Think Again

Back in November 2009, we posted “The Importance of Knowing When Your Lien Period Begins,” discussing the importance of knowing how to calculate your project’s “trigger dates.”

What is a trigger date?

Every state provides contractors and materialmen the right to lien a project, but they also require these parties to file their liens within a certain “lien period.”   The lien period always has a beginning point and an ending point…but the question sometimes arises, when exactly does the lien period begin and end?

It’s a surprising complex question, and when liens are filed in proximity to the lien period’s expiration dates, parties may become involved with proceedings to contest the liens validity and the exact beginning date of the lien period.

In many states, the lien period begins with the last date a claimant has delivered materials or services.   Calculating this date, as we previously wrote, can invovle more than expected:

In many states (if not most states), labor and/or materials necessary to perform remedial, punch list items, or warranty obligations are generally not considered in establishing the completion date or the last date of providing work. Contractors and suppliers, therefore, can theoretically have the lien period begin days, weeks or months before they are off the job.

So, what is the “trigger date?”  The trigger date is the date that starts or triggers the lien period.   In most cases, as discussed in this post and the prior post, the start date for a lien period is the date materials and/or labor were last delivered to a job, or the substantial completion of a job.

After you add a project to our Lien Pilot, the “Date Management” section of the page will ask you to input the trigger dates that are important to your construction project.   A screenshot of this portion of the page is displayed to the left.

To calculate your lien deadline for this particular project, you would add the date you last delivered labor or materials.    The system will calculate the appropriate number of days from that trigger date and determine the deadline to file your lien.

But be careful.   As discussed, figuring out this particular date can be tricky in many states.     You’ll want to be extra cautious in determining this date, and to be safe, file your lien with some time to spare.

Of course, to determine the beginning date for your lien period, its best to consult with an attorney.   Lawyers in your state will be familiar with the case law that evaluates that state’s statutes and makes determinations as to what does and what does not constitute the start and end of a lien period.

What You Need To Do Immediately After Filing A Construction Lien

So, you filed your construction lien on time.  Whew!   Now what?

If you’re a subscriber to our blog, you know we frequently post about the technical requirements and strict deadlines that lead up to the filing of a construction lien.   We don’t, however, frequently discuss the technical requirements and strict deadlines that follow a lien’s filing.   There are a few, and as usual, these requirements vary state-by-state.

Generally speaking, however, you have to keep two things in mind immediately after filing a construction lien.

First, you may need to send notice of filed lien to the property owner and/or contractors “up the chain.”  In some states (like in Texas) a lien is actually unenforceable unless a copy of the filed lien is delivered to the property owner within 5 days of its filing.   That’s a serious penalty, and a pretty immediate deadline.   Other states have similar penalties (in Oregon, for example, you cannot collect attorneys fees from the other party in foreclosing on lien that was not delivered to the property owner after filing).

Now, here is how Express Lien helps.

Any liens ordered from us (in any state) are delivered to the property owner and all other interested parties (those named on the lien) immediately after filing.   Notice of the filing is delivered certified mail, and a record of the mailing is maintained in your online account, available for you to review or download at anytime.   You simply place your order and forget about it – we do all the rest.

Second, liens expired if they are not “foreclosed upon” or “enforced” within a certain period of time.    In some states, liens must be enforced within just 90 days (California), while other states can provide up to 2 years (Texas).   Failure to file a lawsuit enforcing / foreclosing the lien will result in the lien expiring.

How does Express Lien help with this?

Well, once you put the “Lien’s Filing Date” into our system, the system will calculate your lien’s expiration date.  If you order the lien from Express Lien, we’ll put the date in the system for you.    We don’t actually foreclose or enforce the lien for you (you’ll need an attorney for that), we do give you a heads-up when the deadline is approaching.

Use Express Lien To Stay Organized in 2010

Thanks to our friends over at Wolfe Law Group’s Construction Law Monitor for their blog post yesterday recommending the Express Lien Lien Pilot to contractors looking to get organized in the new year.   Organization: A Secret to Managing Legal Messes discussed how good organization tools (and specifically web-based tools) can help contractors and others in the legal industry to avoid legal disputes and expensive legal bills.

In discussing how organization can help an organization with its legal obligations, the post says:

And insofar as your contractual and legal duties are concerned, if you’re organized and know what they are, you’ll have a much better chance of fulfilling them.

This is exactly what the Lien Pilot can do for your business.

Notice and lien requirements are hyper-technical and confusing.  If your company is handling multiple construction projects, or working in multiple states, it’s nearly impossible to keep track of notice and lien requirements.    Some clients reported that they used to keep track of lien and notice deadlines by inputted all due dates in Outlook – which, of course, required them to manually calculate the dates.

Express Lien provides contractors with an easier way.  You simply input your project’s details, and Express Lien calculates all of the project’s notice and lien requirements and deadlines.

In 2010, make a resolution to increase your bottom line and utilize the nation’s lien laws to protect your right to payment on construction projects.   Resolute your company to Lien Smarter in the new year, and sign up for a free account with Express Lien.

Step-By-Step Guide on Using Lien Pilot to Manage Lien and NTO Deadlines

Do you manually input all notice and lien deadlines into Outlook or some other calendaring system? Are you constantly trying to figure out which deadlines or requirements apply to your construction project?  Express Lien’s lien pilot helps you manage the lien and notice requirements applicable to your construction project.

It’s easy. You input your project information, and it alerts you to what is due, and when.

This video is a screen-cast of the Lien Pilot system that shows you how to use our system (free) to Lien Smarter, and Get Paid.

Got a Public Contract?: Be Sure to Preserve Your Rights to Payment

Over the past two years, the construction industry has seen a boom in public works. This is due to lower construction costs, influx of federal stimulus funds and lower financing rates for local governments.

The result has meant tons of public work for contractors, who benefit both from Davis-Bacon wages and bonded work, which virtually ensures payment!

Express Lien has taken the time to ensure that its clients know the basics of filing and preserving lien rights on the public job. A recent article describes your rights under the Miller Act, a federal series of laws which govern contracts for construction over the amount of $100,000.00.

But, did you also know that each state has what is called a “Little Miller Act.” These collections of laws mirror the purpose and structure of the Miller Act, namely providing rules for payment, security and claims on the public project.

For instance, did you know that every state or locally managed construction contract issued in Louisiana for a total of no less than $100,000.00, requires a performance and payment bond and demands that you file a sworn statement of your unpaid claim within 45 days of completion? (See La. R.S. 38:2241, et seq.) We’ve have reported on this before.

How about the great state of Washington (our home), which requires that a contractor provide 60 day notice of its right to a lien against a public contract’s retainage? (RCW 60.28, et seq.) Failing to timely file could result in forfeiture to timely payment, and your right to proceed in an action against the contractor’s bond.

Its important that contractors understand that it takes more than simple contractual compliance to ensure payment. Having a qualified lien management company on hand makes it all that much easier to feel secured on the jobsite!

Express Lien’s $395 flat fee services includes tracking down and obtaining copies of the prime contractor’s bond, noticing the surety and prime contractor, and filing with the appropriate state or federal agency, your claim. Remember that our services also include all mailing and delivery confirmation.

Also, remember that in many cases, suppliers, second-tier subcontractors, and equipment lessors, may be required to issue preliminary notices of the materials they sell or lease, or the work that they will perform on a public project. Express Lien’s $35 flat fee notices can save you!

Using Express Lien’s Lien Pilot, you could greatly benefit from tracking deadlines and lien obligations. Please be sure to check out Lien Pilot and keep up with ConstructionLienBlog.com, for more information on how to protect your business.

Filing A Lien Is A Discipline, and Not A Knee-Jerk Reaction

You’re a contractor, subcontractor or material supplier, and you’re unpaid on a project.   Instantly, your thoughts focus on the mechanics lien concept.  It’s the natural law in the construction industry.

Now, I’m the first to tell you that filing a mechanics lien is one of the best methods of collecting construction debt, and it’s certainly important to think about filing a construction lien as soon as you’re faced with a non-paying customer. But, being prepared and qualified to file a lien takes discipline.

If we’ve said it once, we’ve said it a thousand times….lien laws are complex and hyper-technical.   Across the country, lien laws protect contractors and suppliers by providing them the right to lien non-paying projects.   Likewise, though, the laws protect property owners to prevent owners from paying for services twice, or having an improper lien filed against its property.

So, why is filing a mechanics lien a discipline?   Because it starts the moment you sign your contract.

• In many (not all) states, you can actually waive your right to lien before ever providing any services or materials.  If you’re in one of these states, it’s important to review your contract for this type of waiver language.

• Many states require contractors and/or suppliers to deliver a Preliminary Notice to the property owner (“NTO”) before furnishing labor or materials.  Failure to deliver notice, and to deliver it properly, may result in the forfeiting of lien rights.

• Many states require contractors and/or suppliers to deliver a “Notice of Intent to Lien” or similar instrument a certain number of days after accounts receivables become due, or a certain number of days before filing a lien.   Failure to deliver this notice, and to deliver it properly, may result in the forfeiting of lien rights.   (Read about the differences between Preliminary Notices and Notices of Intent here).

• Liens must be filed within a certain time period, and each state is absolutely different.   (Get state-by-state lien deadlines here).   Liens must be filed timely, or they are likely void.

Express Lien Helps Your Company Be Disciplined About Liens

Express Lien is more than a simple notice and lien filing company (although we’re darn good at this, too).  We were founded to help clear the air concerning the complex lien and notice requirements across the nation.

Here’s how we do it:

• Our Lien Wizard guides you through the notice and lien requirements associated with your role in the project, and the state the project is located.   You tell the Wizard some key information, and it pulls the notice and lien requirements from its database.   From there, you can order the products / documents that are relevant to what you and the law requires.  (Watch a Video on how our Lien Wizard Guides You Through Notice and Lien Requirements).

• We provide you with Free Lien Law Punchlists.   This is a summary of the basic notice and lien requirements of each state.

• The Lien Pilot helps you calculate project deadlines.   For free, you can manage your project data, contacts and important dates.   The Lien Pilot calculates applicable deadlines and filing requirements, and prompts you when they are approaching.

• We do the work for you.   If you don’t want to prepare and send the documents out yourself, or if you just have too many to send and want to focus on running your construction or supply business…Express Lien will do all the work for you.    For notices, we’ll print them, mail them, track them, and store proof of their delivery on our secure servers.  For liens and other filed documents, we’ll prepare them, have them filed, and deliver notice to the project’s relevant contacts.

The Wizard Makes Ordering the Right Document at the Right Time Easy

Express Lien’s new Lien Wizard makes it easier than ever for contractors and suppliers to have preliminary notices, notices of intent to lien, mechanics liens and even lien releases processed.

It’s this simple:

1. You put in your project information (state, your role, project type);
2. The Wizard tells you the applicable notice requirements and lien deadlines
3. You select from the list of associated documents

Express Lien’s database of lien and notice deadlines and requirements is more extensive and accurate than any other database in the country.

Take a look at these screen shots to see how the first 2 screens of the Wizard works:

Step 1: Inputting Your Project Information

The first step is easy.    The Wizard asks four basic questions about your project – the state where you are working,  your role in the project, who hired you, and what the type of project.

Lien laws vary state-by-state, but they also vary depending on those other three factors.   It is common for states to impose heightens notice requirements for residential projects…and oftentimes, notices are required only from subcontractor and those without a contract with the owner (rather than from everyone).

Step 2:  Getting Applicable Notice and Lien Requirements for your project

With the small amount of information you provided, the Wizard pulls and displays from its database only the information, requirements and deadlines that are relevant to your project.

Once you’ve read over the notice and lien requirements, you’ll be ready to choose the type of document you want to file or send.   Even this component of the Wizard is tailored to your project, as only the documents relevant to you and your project will display.

Watch It On Video

Screen shots just not doing it for you?

Take a walk-through of these first two steps on video:

And remember, a database is just a database.   It has limitations.   We feel great about our product and its ability to display to you the relevant laws, notice requirements and lien deadlines.   However, there will never be a substitute for a real live attorney reviewing your specific project.    Express Lien is not a law firm.

ConstructionLawMonitor.Com: Pay When Paid Clauses and Lien Rights

Our good friends over at Wolfe Law Group (ok, it was me) have put up an article on the trials and tribulations facing subcontractors due to the use of the dreaded “Pay When Paid” clause.

See their article here and how these clauses work.  As a contractor you need to be aware of your right to payment and potential roadblocks on the way to getting paid.

One of the most important defenses to the “Pay When Paid” clause is your right to lien a project, and consequently the owner. Since the owner’s failure to pay the general contractor has caused your inability to recover payment, a lien will allow you to proceed against that party in  a legal action for payment.

Read the article to better understand your rights and the tools you can use to ensure payment. Remember that owners and surety bonds can be reached with a properly filed lien.

Contact ExpressLien.Com in order to protect your right to payment.

Pro-Owner ‘Trick’ in the Delaware & Pro-Contractor ‘Trick’ in the Louisiana Lien Statutes

Here and there, there are statutes within a state’s lien laws that allow a property owner to place a duty of performance on subcontractors and contractors.

When representing property owners, savvy construction attorneys will recommend that these statutes be utilized to protect the owner from future liens.

An example of these types of statutes can be found in Delaware, under the Code Title 25, Section ¶2705.  The statute provides simply as follows:

The owner of any structure built, repaired or altered by any contractor or subcontractor may require such contractor or subcontractor from time to time to furnish and submit to him a complete and accurate list in writing of all persons who have furnished labor or material, or both, in connection therewith, and who may be entitled to avail themselves of the provisions of this chapter. Should any such contractor or subcontractor fail to furnish such list for 10 days after demand made therefor by such owner, he shall be entitled to receive no further payments from the owner until such list be furnished and shall not be entitled to avail himself of any of the provisions of this chapter.

What does this mean?

Well, quite simply, if an owner makes this “demand” in writing, the contractor or subcontractor ought to immediately comply or risk losing the ability to file a lien.

Unlike Delaware, Louisiana has a reverse requirement…allowing the contractor or subcontractor to burden the property owner with future performance with the risk of penalty for non-compliance.

La. R.S. 9:4822(K) provides that any person with lien rights may give a certain notice to the property owner, and if provided properly, the owner will be required to notify that person within 3 days of the filing of a notice of termination, the substantial completion or the abandonement of the work.  Of course, these events trigger time requirements under the lien statute.

What happens when an owner fails to provide this notice?   They are liable for “all costs and attorney’s fees for the establishment and the enforcement of the claim.”

Working on a private project in either state?  Both the Delaware and Louisiana notice can be ordered from Express Lien today.