While the conservative approach is to rely on an experienced construction attorney to serve preliminary lien and bond notices for North Carolina construction projects, there are many subs and suppliers who prefer the DIY approach. I’m sure many of you do-it-yourselfers already rely on these web-based tools for facilitating your preliminary notices, but just in case, here are my three favorites:
Tag Archives: lien preliminary notices
Last Thursday, November 14, 2013, I participated in a webinar hosted by Engineering News-Record® on “The Five Risks You Never Saw Coming,” which is still available on-demand and free to the public on ENR’s webinar page.
The first risk addressed by the panel is the subject of this post: the risk that a private owner’s financial well might run dry.
As one of the panelists, Atlanta construction attorney Gina Vitiello (@GinaVitiello on Twitter), discussed, project funding can fail for a number of reasons. The owner might run out of capital funds, perhaps because it overestimated the availability of project funding or underestimated the total costs of the endeavor. Or the owner might lose its financing, for example by defaulting on its loan obligations. Or the lending institution financing the project might fail.
No matter how or why the financial well might run dry, the consequences for the prime contractor, construction manager at risk or design-builder can be catastrophic. What can be done to guard against this risk?