Posts Tagged ‘Government Lien’

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

Posted in:     Construction News  /  Tags: , , , , , ,   /   1 Comment

Filing Your Public Works Lien!

As a contractor, you will inevitably walk down both the private and public path to jobs. Most contractors will generally become involved in privately-funded projects, such as commercial malls, stores, and offices, and residential condominiums, apartments and homes. But there are a select few of you who will lock down that all important public bid job. Getting paid on those jobs has never been more easy!

Public bid jobs are referred to in many states as “public works.” Public works are a great way to find well-managed and supervised work. These jobs are bid out to the best contractor based upon a statewide public bid law. Once awarded, the general contractor is required to obtain bonding, practically ensuring that you, as a contractor on the job, will get paid.

Zlien files privileges against Public Works for its clients! Some things that you need to know before considering filing a lien include: what is a public lien? who is responsible for my claim? and how do we file the lien? Of course, we are here to answer your questions:

What is a Public Lien?

Public “liens” are not liens at all. In fact, you as a contractor cannot “lien” public land. A public works project is generally determined by the owner of the land where the work is performed. If the land is owned by a government agency, entity, or section, you will have to file a Public Works statement.

The statement filed upon Public Works is not a “lien,” but instead a sworn statement of the amount due under the contract with your contracting partner. The sworn statement is filed against the project in the local records and sent to all interested parties.

Who is responsible for your claim?

In the majority of states, each of the contracting parties up the ladder to the initiating government-affiliate, is responsible for your claim. Typically, Zlien will search to find the contracting government agency, the prime contractor and the bonding agent who acts as surety on the project.

As a contractor, the law will provide you with a legal remedy against the owner, surety and other contractors, if in fact you are not paid.

How do we do it?!?

By fax, internet or phone, we can get your public lien filing accomplished. Because your personal contract is unlikely to include the information necessary for the filing of a privilege, we ask that you attempt to collect all of the prime contractor’s contract and the bonding information, in order to save time.

Here is what you need to provide:

(1) Your company/personal contact information.

(2) A copy of your contract to perform the work (purchase order or work orders are fine)

(3) Name and Address of Owner/Government Agency

(4) Name and Address of any contractors above you – i.e. those who have subcontracted the work you performed downward, starting at the prime contractor.

(5) Relevant dates when your work began and ended.

(6) Copy of the Prime Contract and Bond.

(7) Copy of any Certificates of Substantial or Final Completion.

Remember that some states require that you Statement be filed within a short period afer substnatial completion. Please make sure that you get your claims filed immediately to prevent any delays in the research system. Some states work under a short time frame for considereing Sworn Statements. In most areas, the statement must be filed within 30-60 days from filing of a Ceritificate of Substantial or Final Completion.

What if I cannot obtain a copy of the Bond?

We are able to utilize online databases, public records, and couriers to pull documents at an additional fee. If we are unable to locate surety information, we will file the Statement against a default surety until the name is located.

Zlien, LLC will obtain the relevant data, file your statement an send out notices to each of the interested parties in the contract. You will never need to worry again about not getting paid! Public works collection projects are much more likely to be paid! So take a step and protect your business today.

Posted in:     Mechanic Liens  /  Tags: , , ,   /   1 Comment

The Public Works Act: Promoting Capitalism?

As a contractor you are probably aware that governments pay well. Often publicly funded or publicly operated projects provide strong mechanisms for getting paid. These jobs often seek the tireless and qualified contractor to provide work of a high standard to ease public pressures for safety, environmental sustainability and liability protection.

Over the next few weeks, Zlien.Com will bring you several articles discussing the basics of the Public Works bidding process and the mechanisms required to secure and perfect your claim to payment. By the end of our information period, we hope to provide you as contractors, suppliers and lessors, an avenue to find remediation of your unpaid claims.

As an introduction, Zlien.Com would like to direct you to the Louisiana Public Works Act. This is a section of the Louisiana Revised Statutes, located at Title 38, Article 2241, and following. (La. R. S. 38:2241, et seq.). This Act enables all contractors, subcontractors, suppliers, lessors and even designers to make a claim against the project, as long as certain notice provisions are met. An entry outlining the notice procedures will follow shortly.

For the most part, the Public Works Act is similar to the more familiar Private Works Act, which grants a privilege against the title to the land improved. However, under the Public Works Act, the land cannot be liened. Instead, the prime contractor is required to obtain a bond in the amount of no less than 50% of the total project costs (for all projects over $25,000.00).

A claimant brings its claim against the surety of the bond. Louisiana requires that the prime contractor secure a bond with a licensed and registered surety. The claimant will make a Sworn Statement of Amount Due against the surety, securing its privilege against the bond. This claim must be made within the parameters and time expectations contemplated by the law. If made correctly, a claimant should secure a right to payment from the surety.

The Public Works Act is filled with quirky governmental fodder. The State is able to set an agenda by controlling the methods by which contractors obtain the right to do public work. For instance, and Zlien.Com favorite is found under La. R.S. 38:2212.3. That statute enables the State, and its agencies, to purposely discriminate against the bids of Communist countries. The statute specifically reads, “any public entity is authorized to reject the lowest bid if received from a bidder domiciled in a Communist country, or if the materials or supplies are manufactured in a Communist country, including but not limited to the Soviet Union, China, North Korea, and Vietnam.” (emphasis added) This is one of the few permissive discriminatory statutes Louisiana has enacted – but with a political policy agenda and a mountain of public funds, Louisiana is able to keep control on who works on its projects.

Stay tuned for the next installment of The Public Works Act: Lets Get Started.

Posted in:     Mechanic Liens  /  Tags: , , ,   /   1 Comment

Mechanic’s Lien Solution

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