Will the 2009 Economy Create More Mechanic Lien Filings?

At the Construction Lien Blog, we’ve written about the current state of the economy in America, and how this has affected the construction industry from coast-to-coast.

However, there is recent conversation in the media and out in the blog-o-sphere that the economy’s impact on construction has increased the amount of mechanic’s liens filed by contractors.

The Pacific Business News source in St. Louis, for example, has a story on a construction attorney in Missouri who says that he filed twice as many liens in 2008 as he did in 2007.

A similar article appears in the Virginia Lawyers Weekly, which reports that construction litigation in general is increasing in the current economy, with increased claims for construction delays, defects and problems with collections.

It seems that the business journals are full of stories about construction projects being slammed with liens, like the story here and here.

As the new year approaches, what will we see in the construction industry that is predicted to remain pretty stagnet?

One thing is for sure, regardless of whether lien filings increase, decrease or stay the same, with the current credit crunch and economic woes, it’s more important than ever to file liens on claims you do have, and to do it timely and properly.

Efforts to Change California Lien Law Dead…for now

Senate Bill 1691 went to Governor Schwarzenegger’s desk, and he vetoed the bill.   The law would have made significant changes to the California Mechanic’s Lien Law – but for the time being, the legislative efforts to make changes to the state’s laws have failed.

Considering the governor’s non-substantive veto message (which was copied and pasted to a number of different bills), it’s safe to assume that the matter will be re-examined in future legislative sessions.

For the time being, however, the California lien laws will remain unchanged.

The governor’s veto message was:

“I am returning Senate Bill 1691 without my signature.  The historic delay in passing the 2008-2009 State Budget has forced me to prioritize the bills sent to my desk at the end of the year’s legislative session.  Given the delay, I am only signing bills that are the highest priority for California.   This bill does not meet that standard and I cannot sign it at this time.”

Express Lien will monitor California’s efforts to make changes to the California mechanic’s lien law.

Explaining Louisiana Lien Law at AllBusiness.Com

AllBusiness.com, an online media and e-commerce company that operates one of the premier business sites on the Web, is a great tool for contractors.   They self-proclaim to help business professionals save time and money by addressing real-world business questions and presenting practical solutions.

As one of its resources, the website has re-published an article written by Lloyd N. Shields, one of New Orleans’ premiere construction attorneys.   The article, titled Mechanics Liens and Construction Bonds under Louisiana Law, offers a good discussion of Louisiana’s sometimes peculiar lien laws.

When doing work in a particular state – like Louisiana – it never hurts to spend time reviewing the overall lien laws in your area.   Understanding and following lien laws is important for your company to avoid bad collection situations, and is increasingly important in this penny-pinching economy.

It would be a prudent start to the new year to spend some time getting familiar with the lien laws in Louisiana.  You can read some basic information about Louisiana lien laws at the Construction Lien Blog here.   The allbusiness.com article is also a good resource.

Also, be sure to check out the Construction Industry Center at AllBusiness.Com.

California Freezes Funds for Public Projects

The San Diego Union-Tribune reports that with the state nearly broke, California has frozen nearly $4 billion worth of loans for public building projects.    The unprecedented move is expected to halt construction all over the state – and inevitably, leave contractors, subcontractors and suppliers bickering with one another about outstanding payments and work.

With an estimated more than 200,000 works affected by the funding freeze, it’s likely that even California laborers will find themselves with claims for unpaid wages.

If you and your company are working on a public project affected by this spending freeze, you will want to file a Stop Notice to preserve your rights to Get Paid for work performed.

A full list of affected projects is available here:  http://www.signonsandiego.com/news/state/images/081217pmib_impact.pdf

Credit Meltdown Squeezing Contractors – Lien To Protect Your Rights

The Associated General Contractors organization just published an article titled “Credit Meltdown Market Squeezes Contractors,” reporting how the recent economic problems in the U.S. are greatly effecting those in the construction industry.

The article discusses the upheaval on Wall Street, and how its stopping construction projects all over the country. You can read the article at the AGC website at this address: http://tinyurl.com/534o4h

Now more than ever contractors should consider the benefits of a construction or mechanics lien.

Lien rights do not last forever, and with the uncertainty of the U.S. economy and credit flow within the construction industry, its important for your construction company to protect your investment into a project.

Construction liens are available in virtually every state, and works to transform the project job site as a sort of “collateral” to the contractor for its payment.

Express Lien, Inc. is now filing liens across the country. Filing a mechanics lien costs only $295.00 – a flat fee that includes the preparation and filing of the lien, storage of the documents on our secure servers, and sending copies of the filings to all interested parties.

Express Lien also files lien cancellations, notices of intent to lien, and preliminary notices.

Ready to Get Started? Click Here.

Order your lien by phone, fax or online.

Is Seattle Recession-Proof? Good News for WA Contractors

Wolfe Law Group, construction attorneys in Washington and Louisiana, posted an interesting article about the construction market in Seattle, WA and the strength of Seattle’s economy as a whole on its construction law blog. The text is reproduced below:

In the midst of the “doom and gloom” economy predictions in the U.S., there seems to be some hope for the Seattle construction market.

Recent reports have been optimistic about the nonresidential sector of Seattle’s construction industry and about the Seattle economy in general.

Forbes Magazine has gone as far as to call Seattle one of America’s Ten “Recession-Proof Cities,” and specifically cited the growth of the city’s manufacturing industry, calling it the strongest statistical showing in the nation.

The Seattle Times jumped into the conversation this week as well, in an article about the “Tale of Two Construction Sectors.” The article discusses the a struggling home building market in the Puget Sound area, but a very robust nonresidential market. Read the article by clicking here.