1. Deadline to Give Preliminary Notice (Notice of Furnishing Labor or Materials)
PRIVATE:
There is no time limit, but it must be received before the final notice is received. NOTE: We recommend sending out the Notice ASAP because the lien amount is limited to the unpaid funds at the time the notice is received.
PUBLIC:
No specific date, but the sooner the better, as the public body’s liability is limited to the remaining balance on the contract with the general contractor when the sub notifies the government of the general contractor’s nonpayment, and once the contractor has received the notice of furnishing, no payment it makes will reduce the amount recoverable by the claimant.
2. Deadline to File Claim
PRIVATE:
Within 90 days of the date of last delivery of materials or performance of labor.
PUBLIC:
Within 90 days of the date of last delivery of materials or performance of labor.
3. Deadline to File Suit or Foreclose Claim
PRIVATE:
Within 6 months of the date of last delivery of materials or performance of labor.
NOTE: If there is a payment bond the deadline is more than 90 days but less than one year after claimant’s last delivery.
PUBLIC:
More than 90 days but less than one year after last delivery by claimant.
4. Common Questions About State Lien & Bond Claims
A. Do Suppliers to Suppliers Have Lien or Bond Claim Rights?
On Private Projects:
Suppliers to suppliers apparently do not have lien rights. Please contact Levy von Beck & Associates for more information.
On Public Projects:
Suppliers to suppliers apparently may have rights against the payment bond, where the claimant has a contract with the bonded contractor.
B. Is this a Full Price Lien State:
On Private Projects:
If a preliminary notice is not given then the lien cannot exceed the amount owed by the general contractor to the subcontractor (the claimant’s customer). In addition, the total of all liens on a project cannot exceed the amount due by the owner. If the preliminary notice is given, then the lien amount is limited to the amount owed to the general contractor at the time the notice is given.
On Public Projects:
If a preliminary notice is not given then the claim cannot exceed the amount due to the claimant’s customer. If the claimant gives the preliminary notice, then no payment the contractor makes after receiving the notice will reduce the amount recoverable by the claimant. In all cases, however, the aggregate amount of all claims against the bond cannot exceed the penal sum of the bond.
If a Notice of Commencement is not filed:
The claims are not limited to the amount owed to the contractor, though the total of all claims cannot exceed the amount of the bond.
If there is no bond:
The claimant’s claim is limited to the unpaid balance of the general contract at the time the claimant notifies the government of the general contractor’s nonpayment.
