First, the answer is yes.  The general rule all across the country is that a party is entitled to file a lien if they are furnishing labor, materials, services or equipment to an improvement or property. While every state has its own nuances, if you fall within this general definition you’re pretty safely within the lien laws of any state, and spray foam installation falls within the definition of providing “labor, services, material,” etc. to an improvement.

Second, however, and the reason I wanted to post about this is because there are currently a lot of “green” or energy saving technologies being installed into properties all across the United States. Some of these installations include smart home devices, solar panels, insulation, water preservation systems, etc.

For whatever reason, I get the feeling that these companies feel like their improvements to the property are not the same as standard construction improvements, and therefore, may not qualify for a lien. However, this is far from the truth.  Installing a solar panel or smart home wiring is no different from installing a kitchen sink or countertop.

In the end, just like more traditional installers or tradespeople, those making energy efficient improvements to properties (residential and commercial, new and existing alike), are providing “labor, materials or services” to an improvement.  Therefore, they have the right to file a mechanics lien.

I love the Avvo service, and have been participating in their community for a few years now.  To date, I’ve published 17 Legal Guides on their site and answered over 50 legal questions, frequently all about mechanic’s liens in the states where I practice (Washington, Oregon, California, Louisiana).

Take a look at how my legal answers look on a smart phone:

In addition to this participation, we’ve partnered Zlien with Avvo through the use of the company’s API. So when you log into the LienPilot, you have relevant and immediate access to the power of Avvo, the nation’s largest online directory of attorneys.

Specifically, once you add a project to the system, click on the “Legal Center” tab.  From there, you can ask attorneys questions about mechanic lien laws, see the Top 10 construction law attorneys in your area, and read legal guides about construction law and lien law in the jurisdiction of your project.  Take a look at the screenshot of this below:

The guide is a great step-by-step how-to that guides the reader on the state’s mechanic lien process from start (i.e. delivering preliminary notice) to finish (i.e. filing a foreclosure lawsuit).

While the legal guide does a fine job of explaining the mechanic’s lien process, that doesn’t change the fact that properly preparing and filing a mechanic’s lien in California is tedious, technical and a trap for the unwary.  Using a company like Zlien, who is a licensed Legal Document Preparation company in the State of California, is a great way for your company to affordable file a mechanic’s lien.

Zlien takes care of the tedious research and work, and for only $295, researches the property owner and legal property description, serves the owner and signs an affidavit of service, and makes all arrangements to get your mechanic’s lien recorded.

So, take a look at the legal guide to get an education on how mechanic’s lien law works in California, and then outsource the hard work to a filing service like Zlien.

In the construction business, the “preliminary notice” can be a dreaded document.  It’s paperwork you just don’t want to deal with, or a requirement you don’t fully understand.  If you’re supplying materials or providing services across state lines, it’s a legal moving target, seemingly impossible to comply with, and a frequent spoiler to your lien rights.

We’ve written about preliminary notices so frequently on this blog that we’ve given them their own category:  Preliminary Notices.

However, while I’ve written about some of the nuances with these instruments, and about their particular requirements in the various states, I don’t think I’ve ever written a big-picture type of article about the idea of a preliminary notice, and just explaining how they work in general.  Therefore, I put something like this together and published it on Avvo.com:  Everything You Need To Know About Preliminary Notices.

This article examines the preliminary notice document without focusing on any particular state’s requirements, and therefore, may help the reader understand how these things generally work. With a better general appreciation for the preliminary notice, you can then turn to the state’s particular requirements and have a better chance at complying.

Part of the article discusses the actual filing of preliminary notices, trying to answer the practical question of “how do you do it?”

If you’re always working or supplying materials in the same state, and related to the same type of work, it’s not impossible to send your notices in house.  You can get a form, learn the process and implement (But think about it, why would you want your staff’s time being spent on this?!).

if you’re supplying or working across state lines, however, compliance with preliminary notice requirements is a lot more difficult.  Each state has different rules about when to send the notice, how to send it, who to send it to, and what to send.  Keeping up with this just takes too much time and resources, and is likely to result in error.

The article suggests the Zlien business concept, explaining that Zlien can file preliminary notices (including California 20-Day Preliminary Notices) for you, all across the nation.  Simply send Zlien your contract when you sign it (or input the information in our online system), and Zlien will put together the notice, send it on its way, and keep records and proof of delivery.

Check out the article on Avvo, and I hope it helps clear up any confusion you harbor about preliminary notices.

On private construction projects, the mechanics lien attaches to the land itself, and restricts the owner from selling, refinancing or transferring the property without accommodating the lien.   On public construction projects (projects on state or federal lands), the lien typically attaches to the project’s bond, which acts to insure payment of subcontractors and suppliers.

So, how do you actually file a mechanic’s lien?   The devil is always in the details, and if you’re a reader of this blog you likely know that mechanic lien laws in the United States have an extraordinary amount of detail.    See, for example, all the posts we have describing the many mistakes one can make in filing a lien.

To make matters more complex, the requirements for filing a lien differs depending on the project’s location.    This post does not intend to describe in detail how you can file a lien in your particular state or county.  Instead, we’ll provide you with an overview of the resources available to you online, and a comprehensive general discussion of what to do to file a claim.

Consult These Resources

This blog post is not going to exhaust the legal requirements associated with mechanics liens (i.e. when they must be filed, when notices are required, etc.).   However, the web is full of resources on mechanic liens that answer these questions.

In fact, we publish one of these resources at mechaniclien.com (screenshot below).    Go to this site, select your state and project type, and you’ll see a chart explaining the lien and notice requirement.   A lien law summary sheet is also available, as well as forms you can use (i.e. lien forms, notice forms, etc.).   It’s all free.

In addition to this, Avvo.com has some really great state-specific publications, such as:

• How to File a Mechanics Lien in Washington State
• How to File a Mechanic’s Lien in Oregon
• How to File a Mechanic’s Lien in Louisiana
• How to File a Miller Act Claim

Step 1:  Do You Have The Right?

The first step to filing a mechanic’s lien is to determine whether you have the right to file the lien.   This typically involves asking yourself these three questions:

1. Are you in the class of persons allowed to lien by the law?   Each state has different laws that allow certain classes of construction participants to file construction liens.  Some are very liberal allowing virtually anyone to file.  Others are more conservative.   One frequent restriction is on suppliers to suppliers (i.e. Miller Act Claims not allowed to suppliers of suppliers), and another is on equipment lessors (i.e. Mississippi just began allowing equipment lessors to lien).
2. Was notice required, and if so…did you send it?   If you were required to send preliminary notice, and you didn’t…you may have forfeited your lien rights.   So, it’s important to figure out whether your state required a preliminary notice.  We posted this listing of notice states on this blog here.
3. Would your lien be timely?    Mechanic liens must be filed within a certain amount of time following completion of your work.   You must determine how long you have, and whether you still have time to lien.

Step 2: Draft Lien With Care

If you have the right to lien, the next step is to produce the lien. Lien laws are quirky. You must be careful, and include every piece of information required by the statute.

We’ve written about strict requirements of mechanic lien forms previously (read it here). One of the most frequent mistakes is that the lien claimant fails to properly identify a the liened property. Most states require a legal property description, as opposed to a simple address.

Step 3:  File with Recording Office

There are two areas of danger here.

First, make sure you file with the correct recording office.   Each state will designate an office that accepts mechanic lien filings.  Make sure you know the correct office, and that you file in the correct county.

Second, follow the filing requirements listed by the county.   For example, many counties have strict font, margin and paper size requirements.   Failing to follow these standards may cost you additional filings fees, or result in having your lien rejected.   Also, note warnings from counties that mailed filings can take days or weeks to process!   We reported a 6 week backlog in Los Angeles County in 2008…and this is not unusual.   Make sure you get the lien into the county recorder’s hands…and get it filed upon presentation.

Step 4: Notify Parties and Enforce

After you file the lien, make sure you notify the appropriate parties.  In most states, the lien claimant must sent immediate notice to the property owner.  In some states, like Oregon, notice must also go to other parties.  Make sure you know who gets notices, and you send the required notices.

And finally, don’t let your lien expire.   Your mechanic lien is only valid for a definite period of time.  Make sure you file a lawsuit to enforce the lien before it expires if you don’t get paid…or, if you are in a state that allows it, file to extend the lien.

Zlien’s launch of LienPilot3 and new API (application programming interface) partnership with Avvo.com which allow users to reach out to a lawyer has been noticed by the Constructech Magazine.

Here is a little clip as to what has been published:

Zlien decided to create a solution, the LienPilot – is a Web-based application that allows contractors or suppliers to enter the state, project type, and important dates, and the technology calculates the notice and lien requirements for the project. The application will display deadlines, as well as send email reminders.

The remainder of the article mentions the Lien Application and how it helps simplify the process of managing mechanic lien deadlines and preliminary notice requirements across the country.

The question is this:   What are my legal rights as a contractor if my lien is not filed on time?

The question was asked related to Washington law, but the answer is applicable around the nation.   Mechanic liens are an excellent remedy – and I highly recommend preserving and using these rights when needed.   However, they are not a contractor’s only remedy.

What other rights does a contractor have?  Take a look at my answer here:

Liens are a terrific remedy for contractors. If you’re unpaid and file your lien on time, you acquire security rights against the property itself and are legally able to file suit against parties who you did NOT contract with (i.e. the property owner, if you are a sub).

However, if you don’t file a lien, you still have plenty of legal rights to recover what is owed to you.

Your rights, however, are exclusively against the party who you contract with. You have an action against them for breach of contract. The period to bring this suit is quite a bit longer, between 3-6 years, depending on the type of contract.*

*This is the statute for Washington.  Remember that the statute of limitations will be different depending on your state.

It’s important to contact a great construction attorney to bring a breach of contract suit if you are unpaid, and are too late to proceed with lien rights.    Find a construction attorney in your area at Avvo.com.

To make the Legal Center even more productive, we’ve partnered with Avvo.com, the world’s largest legal directory, to provide content from construction law attorneys around your project.   Still can’t find what you’re looking for?   You can ask an attorney from Avvo.com for legal advice…for free!

Take a look:

Chart Specific To Your Project

Aren’t you sick of charts and mechanic lien law digests that show you all the information you could possibly want to know about liens….but nothing about your specific project?   The LienPilot’s legal center solves this problem.  It learns about your project, and displays only the relevant info.   Starting with this chart.

The chart displays the Mechanic Lien Law and Preliminary Notice Requirements relevant to your project in an easy-to-read chart.

Free Forms

Underneath the chart in your project’s legal center are Mechanic Lien, Notice, Release and Lien Waiver forms that are applicable to your project (again, only stuff that applies to your project).    Download them with the click of a button, or don’t – they’ll always be there.

Ask A Lawyer For Free Legal Advice

Our Legal Center is not designed to be a substitute for good legal advice.   The Legal Center is providing you with information about mechanic lien laws in the project’s area, but you may still have some questions.   Well, through our partnership with Avvo.com, you can ask for legal advice from construction attorneys in your state.    The legal advice is absolutely free of charge, and you can ask your legal questions from right within our Legal Center.

Find Construction Attorneys Near Your Project

Is it time to raise the stakes and hire an attorney to collect your debt, or resolve your dispute?    Well, the Legal Center displays to you the Top 10 Construction Attorneys near the construction project. The rankings are provided by Avvo.  The Legal Center helps you hire great construction attorneys who are familiar with the laws and procedures near your project.

Deadline Explanations

The Legal Center also provides you with a list of deadlines calculated for your project, and explanations for each.

There’s More!

There’s even more to our Legal Center – we just couldn’t fit it all here.   Sign up for Free to get a Legal Center for your project, and Lien Smarter.

While we work hard to provide great  construction and mechanics lien resources, there’s no need for us to be greedy and re-publish every single feature of the mechanic lien laws.   There’s a lot of great information on other websites out there, and everyone once in a while, we find it useful to our readers to stop and point to those other resources.

This post does just that, as it relates to Oregon Mechanics Lien laws.

Let’s Start With Me

I know I just talked about not being self-centered when it comes to posting information, but there’s not harm in starting this post with a re-cap of the resources we’ve published here and elsewhere.

– The Lien Law Summary Sheet for Oregon

– The Construction Lien Blog’s posts concerning Oregon

– Avvo.com Legal Guide published by Scott Wolfe Jr. on Oregon Mechanic Liens

– The Northwest Construction Law Blog’s posts on Oregon Mechanic Liens and Construction Lien Laws.

Some Others

– An Associated General Contractors chapter in Oregon has published the Oregon Construction Lien Pamphlet.  The Pamphlet does an excellent job of summarizing some of the notice requirements in Oregon, which while not very complex, are very strict.   Oregon’s notice requirement is one of the fastest expiring anywhere in the country – while some states allow for 60 day notices (Washington), or 20 day notices (California), Oregon requires the Notice to Owner be sent within just 8 days!    So, better be on top of things.  This Pamphlet helps.

– I recently came across a service called “Deeper Web? (@about_law)”   From how things look to me, this website scans the web for relevant articles and information on a specific topic, and displays all the results in a magazine-like format in one location.  I’m not familiar enough with the website to say it works all the time…but, I am impressed with their “Special Report on Oregon Construction Lien Laws.”   Some neat things this site links to is the Oregon Contractors Board’s page for consumer help containing information on Oregon lien laws, and a great discussion on LinkedIn on whether a lien can be filed against someone who has filed for bankruptcy.

– No better place to get information on Oregon Lien Laws than from the horse’s mouth.   Here, that’s the Oregon Contractor’s Board.   Their website has a number of good publications that can help contractors and property owners, but most relevant here is the Construction Lien Pamphlet written “to inform contractors and consumers about Oregon’s construction lien laws.”

Here at the Construction Lien Blog we try our best to write posts concerning important updates to mechanic lien laws, or to point out relevant news stories out there that offer lessons about mechanic liens…but it’s so difficult to relay everything!   As such, we’re going to start a new segment here called the “Mid-Week Review.”  Each Wednesday, we’ll post links and short commentary on the law changes, news articles, cases and commentary out there that relate to mechanic liens, preliminary notices, bond claims or miller act claims.

It’s Wednesday now…so here goes:

New Jersey Construction Lien Law Revisions Clear First Hurdle (read)
Thanks to New Jersey’s Cole Scholtz for posting an article on their JD Supra page concerning progress on the state’s consideration of changes to the New Jersey Construction Lien Law (N.J.S.A. 2A:44A-1, et seq.).   It recently passed the NJ Assembly unanimously, and is now moving along to the Senate.   We previously wrote about these pending changes.

Missouri Lien Law Changes Signed Into Law – Effective Nov 1 (read)
Home Builders Association of St. Louis and Eastern Missouri posted an update on their blog that Missouri’s Governor Nixon has signed the Lien Law Changes bill into law this week.    We previously wrote about this bill on our blog here.   The changes take effect on November 1st.

Minnesota Contract Provision Created Lien Waiver – Which Is Invalid (read)
Kraus-Anderson Construction v. Superior Vista LLC was decided by the Minn. Court of Appeals last week, considering a contract provision that impacted a general contractor’s lien rights.   The court found that where the general contractor entered into an agreement with a project’s owner and lenders stating that the contractor agreed “not to . . . assert or file any mechanics’ or materialmans’ lien now or hereafter existing or to sue upon or collect or receive payment of,” until a lender’s claim has been paid in full, the provision created a “de facto” mechanic’s lien waiver, which is a violation of  Minn. Stat. sec. 337.10, subd. 2.  Read the full case opinion here.

What Is The Last Day of Substantial Work in Idaho? (read)
One of our favorite websites – Avvo.com – lets consumers and businesses ask questions to licensed attorneys…for free.   Someone in Idaho just posed this question, which is an important question in determining when a lien is or is not timely.  This question was answered for Idaho specially on Avvo.com, and you can read the question and answer here.

Fewer Mechanic Lien Filings in 2010 – Good or Bad News for Economy? (read)
Louisville, KY’s business journal is reporting that a specific county there has seen a pretty drastic reduction in mechanic lien filings.  Not sure what this says about the rest of the country’s filing stats, but it begs the question in this article – is fewer mechanic liens a good or bad sign for the construction industry?

Massachusetts Mechanic Lien Digest (read)
The Massachusetts Real Estate Blog (operated by Vetstein Law Group) just posted a great primer on mechanic lien law in that state.    You can find more information on Massachusetts mechanic liens and preliminary notices right here on our blog, too, at the Massachusetts tag.

Beauty and Aggravation of the Mechanics Lien (read)
Ned Pelger, P.E. runs an excellent and informative website at ConstructionKnowledget.net, and he recently posted on his blog about this blog and the importance of mechanic liens in general.   First, a big thanks to Ned for the mention.  Second, Ned’s post (and site) contains some great overview information about why liens are important.