November 12, 2014 · 10:25 AM
If you’re a prime contractor on a private, commercial construction project, your contract with the owner likely includes a provision requiring you to bond off or otherwise dispose of real property liens filed by your subs & suppliers. And if you’re a prime contractor on a bonded public project, the agreement of indemnity between you and your bonding company makes you ultimately responsible for any bond claim the surety might pay.
Either way, you’re exposed to financial loss arising from the lien & bond claims of second-tier and more remote subs & suppliers, even if you faithfully pay your first-tier subs each and every time payment is due.
So what can you do about the risk of double payment in North Carolina?
Continue reading →
March 19, 2014 · 8:57 AM
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:
Continue reading →
Filed under Lien Law, Payment Bonds, State law, policy & news, Subcontractors, Technology
Tagged as lien preliminary notices, liensnc.com, mechanic's lien agent, nc bond claims, nc lien agent, NC mechanics liens, Notice of Public Subcontract, Notice to Lien Agent, preliminary notice, preliminary notice deadlines, preliminary notice mechanics lien, QR code preliminary lien notice, QR scan preliminary lien notice, QR scanning preliminary lien notice, timeanddate.com
March 7, 2013 · 2:41 PM
For North Carolina general contractors, the big prize in last year’s lien and bond law legislation was protection from double payment exposure on bonded public contracts. Carolinas AGC lobbyist Dave Simpson has said on numerous occasions that he spent the better part of two decades pushing the N.C. General Assembly for double payment protection. In a similar vein, Carolinas AGC member Susie Shaw of Beam Construction added that “this has been an issue I have heard about from my father since I was a young child. It took a long time, but I am glad it is coming to pass in my lifetime.”
This post explains the “double payment” provisions of the new lien/bond laws in-depth, focusing on how prime contractors are exposed to double payment liability on public projects, how the new statute provides protection from that exposure, and the limits of the new legislation. Continue reading →
Filed under Feature story, Payment Bonds, Payment for Goods and Services, State law, policy & news, Subcontractors
Tagged as contractor's project statement, double payment, double payment construction, double payment liability, general agreement of indemnity, general indemnity agreement, lien law, nc bond law, nc bond law changes, nc bond law revisions, nc bond lawyer, nc bond rights subs, nc lien lawyer, nc little miller act, nc payment bond, nc surety law, notice of contract, Notice of Public Subcontract, notice of subcontract, surety law
May 23, 2012 · 12:03 PM
Legislation revising North Carolina’s mechanic’s lien law was filed in both the House and Senate sides of the N.C. General Assembly yesterday. Text of the legislation can be found here.While not the ambitious rewrite that members of the construction bar and real property bar had envisioned when the process of revising the statutory scheme began a few years ago, the pending legislation would make several important changes to existing mechanic’s lien law, while leaving a couple other significant issues for future legislative effort.
Click “Continue reading” below for my thoughts on the five most significant proposed changes embodied by the current revisions — as well as my thoughts on the top two “non-changes” to existing law.
Continue reading →
Filed under Feature story, Lien Law, State law, policy & news
Tagged as change to NC lien law, definition of improvement, false lien waivers, fraudulent lien waivers, lien upon funds bankruptcy, lien waivers, nc contractor lien, nc mechanics lien, NC mechanics lien law, Notice of Public Subcontract, payment bond notice requirements NC, revisions to NC mechanics lien law