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Furnishers of labor or ma­terial to owner, owner-builder, general contractor or first-tier subcontrac­tor. Per case law, coverage will extend to sub-subcontractor where the sub-sub’s services improve the land that is the subject of the lien. Includes rentals of materials, etc. Suppliers to suppliers MAY have lien rights. [572.1, 572.2; Baumhoefener Nursery, Inc. v. A & D Partnership, II, 618 N.W.2d 363 (2000); Schor at §16.03[B]]

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Furnisher of labor or materials to general contrac­tor or subcontractor. (Suppliers to suppliers are not protected). [573.7; Schor at §§16.01, 16.02] Union fringe benefits are covered. Trustees of Iowa Laborers Dist. Council Health and Welfare Trust v. Ankeny Community School Dist., 807 N.W.2d 158 (Iowa App.2011)]

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Building and the entire land. NOTE THAT per a 2003 case, a judgment foreclosing a lien is not a judgment against the homeowner personally. [572.2, 572.5; W.P. Barber Lumber Co. v. Celania, 674 N.W.2d 62 (2003), rehearing denied]

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-Contractor’s performance bond or funds deposited in lieu of bond.   [573.5] NOTE that where the bond requirement is waived because the general contractor is a targeted small business (TSB) and the contractor fails to pay its subs, the subs may pursue the state for the unpaid balance, and this balance will not be limited to the amount of retainage withheld. [Star Equipment, Ltd. v. State, Iowa Department of Transportation, 843 N.W.2d 446 (2014)]

-Retainage.   NOTE that there is now a provision for the contractor to obtain the early release of retainage upon substantial completion of a highway, bridge or culvert project. [573.12; 26.13]

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RESIDENTIAL PROJECTS (1-2 FAMILY DWELLINGS):

General contractor who has contracted with or will contract with a subcontractor to furnish labor or materials to the property must give a preliminary notice, and all subcontractors must give it as well. Note that suppliers are considered subcontractors, as are people contracting directly with an owner-builder. [572.13, 572.13B]

ALL COMMERCIAL CONSTRUCTION PROJECTS:

NOTE THAT on all commercial construction projects, the owner is not required to pay the general contractor until 90 days after the completion of the project unless the general contractor furnishes to the owner either (1) receipts and waivers of claims for mechanics liens, signed by all persons who furnished material or performed labor for the project, or (2) provides a bond approved by the owner holding the owner harmless from loss due to subs’ mechanics’ liens. [572.33A]

In addition, suppliers of labor or materials to a subcontractor must give a preliminary notice. [572.33]

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BOND:

Material Suppliers must sent a prelien within 30 days of first delivery.

RETAINAGE:

Subcontractors who have no di­rect contract with the gen­eral contractor and material suppliers who have no di­rect contract with the gen­eral contractor. A sub-subcontractor who does not give this notice will still be able to bring a claim for the labor portion of the claim. [573.15; Accurate Controls, Inc. v. Cerro Gordo County Bd. of Supervisors, 627 F.Supp.2d 976 (N.D.Iowa,2009)]

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RESIDENTIAL PROJECTS:

The general contractor’s notice is given to the owner. The subcontractor’s (including suppliers) notice is posted to the mechanics’ notice and lien registry internet site. We strongly recommend also sending a copy to the owner so that the claimant is able to prove personal service on the owner without relying on proof from the registry. [572.13, 572.13A, 572.13B]

ALL COMMERCIAL CONSTRUCTION PROJECTS:

To the general contractor or owner-builder. [572.33]

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RETAINAGE:

General contractor. [573.15]

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RESIDENTIAL PROJECTS:

As to the general contractor’s notice, no timing is specified, though the sooner the better. Presumably it should be given at the outset. As to the subcontractor’s (including suppliers) notice, the sooner the better, as a preliminary notice posted before the balance due is paid to the general contractor or the owner-builder is effective as to all labor, services, equipment and material furnished to the property by the subcontractor. In addition, the liability of the owner is limited to the amount owed the general contractor on the date he or she receives notice, so it is best for the claimant to send notice to the owner as well. This notice should be given by certified mail, RRR, or personal service with proof of service or a signed receipt. The lien is limited to the amount due the general contractor or owner-builder at the time the preliminary notice is posted to the registry internet site, and in the case of an owner that is not an owner-builder, is limited to the balance due the general contractor at the time the owner actually receives the notice provided by either the administrator of the registry (which is automatically sends a copy when the preliminary notice is posted) or by the claimant. NOTE that a preliminary notice that remains posted on the registry internet site for two years after the date of posting will be declared inactive unless it is renewed. [572.13, 572.13B, 572.34]

ALL COMMERCIAL CONSTRUCTION PROJECTS:

Notice must be received within 30 days of first furnish­ing the labor or materials. NOTE that a preliminary notice that remains posted on the registry internet site for two years after the date of posting will be declared inactive unless it is renewed. [572.33, 572.34]

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RETAINAGE:

Notice must be received within 30 days after claimant’s last delivery, or dur­ing the progress of the claimant’s work. [573.15, Schor at §16.02[D][1]; Marquart Block Co. v. Denis Della Vedova, Inc., 725 N.W.2d 658 (Iowa App. 2006)]

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RESIDENTIAL PROJECTS:

For general contractor preliminary notice information please contact Levy von Beck & Associates.

The subcontractor’s (including suppliers) notice must contain the following:

-Name of the owner.

-Mechanics’ notice and lien registry number.

-Name, address and telephone number of the subcontractor furnishing the labor, service, equipment or material.

-Name and address of the person who contracted with the claimant for the furnishing of the labor, service, equipment or material.

-Name of the general contractor or owner-builder under which the claimant is s performing or will perform the work.

-Address of the property or a description of the location of the property if the property cannot be reasonably identified by an address.

-Legal description that adequately describes the property to be charged with the lien.

-Date the material or materials were first furnished or the labor was first performed.

-Tax parcel identification number.

-Any other information required by the secretary of state.

NOTE that there are now forms available from the Secretary of State that can be completed and submitted online. The forms are found at http://sos.iowa.gov/business/FormsandFees.html#MNLR.   [572.13, 572.13B]

ALL COMMERCIAL CONSTRUCTION PROJECTS:

-Name, mailing address, and telephone number of the claimant

-Name of the subcontractor to whom the labor or materials were furnished.

NOTE that there are forms available from the Secretary of State that can be completed and submitted online. The forms are found at http://sos.iowa.gov/business/FormsandFees.html#MNLR. [572.33]

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RETAINAGE:

If within 30 days:

-Description of amount, kind and value of materials; OR

-Itemized invoices contain­ing the same information stated above. [573.15]

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RESIDENTIAL PROJECTS:

No specific method for the general contractor to provide notice. The subcontractor (or supplier) is to post it to the mechanics’ notice and lien registry internet site, and then strongly recommend providing a copy to the owner by either certified mail with return receipt, personal service, or actual notice with a signed receipt from the owner acknowledging notice. If the claimant provides an affidavit of mailing (this would presumably include an affidavit of mailing from the secretary of state), the presumption is that the owner received the notice on the 4th business day after the notice was sent. [572.13, 572.13B]

ALL COMMERCIAL CONSTRUCTION PROJECTS:

No specific provision; person­al service or certified mail recommended.

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RETAINAGE:

No specific provision; per­son­al service or certified mail advised.

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An interim notice is not required.

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An interim notice is not required.

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Every claimant. [572.8] NOTE that a contractor cannot foreclose on a mechanic’s lien if the contractor cannot show substantial performance of his or her contract, though the contractor may be able to collect for work performed based on other equitable theories. [Palmer v. Glasbrenner, 686 N.W.2d 235 (Iowa Ct. App. 2004)]

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Every claimant, whether against retainage or bond. [573.7] Also, for a contractor on a bridge, highway or culvert project to obtain the early release of retainage, they must notify all known subcontractors, sub-subcontractors and suppliers prior to submitting the actual request. [26.13]

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-To the mechanics’ notice and lien registry internet site. The administrator then sends a copy of the notice to the owner. [572.8]

-Where the claimant posts the lien more than 90 days after the claimant’s last furnishing of labor or materials, then the claimant must also serve the owner. [572.10]

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BOND AND RETAINAGE:

-Officer, board or commis­sion authorized to let con­tracts for the improvement

-Highway improvements by county: County auditor of county letting the contract. [573.7, 573.8]

EARLY RELEASE OF RETAINAGE:

-First to all known subcontractors, sub-subcontractors and suppliers.

-Then to the public entity. [26.13]

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Posted to the registry internet site within the 90-day period following claimant’s final delivery of materials or performance of labor on the project. If the claimant posts the lien during this time period, then any payment made by the owner to the general contractor during that 90-day period will not reduce the owner’s liability to the claimant. Legally, the claimant may post the lien at any time up to two years and 90 days after the claimant’s last delivery, however, if the claimant posts the lien beyond the 90-day time period, then the claimant’s lien will be of lower priority than the claims of purchasers, encumbrancers, and others who acquire an interest in the property in good faith, for valuable consideration, and without notice of a lien perfected. Where the claim is against a specific dwelling unit in a co-op or a condo building, the notice must be posted within 90 days after the last labor or materials were provided to that specific dwelling unit. [572­.9, 572.10, 572.31] Overall, there are so many benefits that accrue if the claimant gives its notice within 90 days after its last performance or delivery, that it is STRONGLY recommended to give the notice sooner rather than later. The only exception to this 90-day rule is that, where there is a bond provided by the general contractor or the subcontractor’s customer, the claimant’s claim will be for the full amount found to be due. [572.11, 572.14]

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BOND:

Received within 30 days of completion and final acceptance of work, or later if contract has not yet been paid in full and no action is pend­ing to settle a dispute on the contract funds. [573.10]

A claim may even be filed during action, IF the claimant contracted with the general contractor and IF the court de­cides it won’t materially delay the action. [573.11]

RETAINAGE:

Received within 30 days after completion of 95% of the contract, or later if the public body hasn’t paid the full contract price and there is no action pending against the remaining contract funds. [573.15A]

EARLY RELEASE OF RETAINAGE:

To all known subcontractors, sub-subcontractors and suppliers: Received after substantial completion but 10 days prior to giving notice to the public contracting body.

To the public body: Received ten days after notifying subs, etc. [26.13]

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Posted with the mechanics’ notice and lien registry internet site. When the notice is being given more than 90 days after the claimant’s last furnishing of labor or materials, then the claimant must also serve a copy on the owner “in the manner original notices are required to be served.” This apparently means personal service. If the party to be served is out of the county where the property is located, then posting a return of that fact by the person charged with serving the owner will constitute sufficient service from and after the time it was posted to the mechanics’ notice and lien registry internet site. [572.8, 572.9, 572.10]

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BOND AND RETAINAGE:

-Filed with officer, board or commission authorized to let contract

-County auditor of county letting contract in case of highway improvement by coun­ty. [573.7, 573.8]

EARLY RELEASE OF RETAINAGE:

No method of delivery specified. The notice must be received to be effective. [26.13, 26.13]

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ALL CLAIMANTS:

-Statement of account of the demand, less credits. (Note that the amount may be limited depending on when the notice is given. See “when is final notice given”, above.)

-Dates when labor and materi­al were first and last furnished by the claimant

-The legal description that adequately describes the property. Note that in order to have a lien against the interests of an owner in an owner-occupied unit in a condo or a co-op building, the notice must specifically identify the dwelling unit affected.

-The name and last known mailing address of the owner

-The address of the property or a description of the location of the property if the property cannot be reasonably identified by an address.

-The tax parcel identification number.

-Claim must be verified. The statute and case law do not indicate if anyone other than the claimant or an employee is authorized to sign the statement.

NOTE that there are now forms available from the Secretary of State that can be completed and submitted online. The forms are found at http://sos.iowa.gov/business/FormsandFees.html#MNLR [572.8; 572.31]

SUPPLIER OF MATERIALS OR LABOR TO SUBCONTRACTOR ON A COMMERCIAL CONSTRUCTION PROJECT:

All of the above PLUS a certified statement that the claimant sent the general contractor or owner-builder a one-time notice (the preliminary notice), within 30 days after materials were first furnished, stating the name, mailing address, and telephone number of the person furnishing the labor or materials, and the name of the subcontractor to whom the labor or materials were furnished. The statute and case law do not indicate who is authorized to sign the statement.

NOTE that there are now forms available from the Secretary of State that can be completed and submitted online. The forms are found at http://sos.iowa.gov/business/FormsandFees.html#MNLR. [572.33]

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BOND OR RETAINAGE:

-Itemized sworn statement of labor or materials fur­nished. The statute and case law do not indicate who is authorized to sign the statement.

-Amounts due

-Claim for payment.

NOTE THAT a furnisher of materials who has no direct contract with general contractor and has claim against retainage must give the above notice AND must ALSO include a certi­fied statement to the effect that that general contractor was notified, within 30 days of furnishing, as to the amount, kind and value of the labor or materials furnished, or else was provided with an itemized copy of the invoices. The statute and case law do not indicate who is authorized to sign the statement. [573.7, 573.15]

EARLY RELEASE OF RETAINAGE:

To all known subcontractors, sub-subcontractors and suppliers: See FORM B, below.

To the public body: A notice requesting the release of all or part of the retained funds owed. The request must be accompanied by a sworn statement of the contractor that, ten calendar days prior to filing the request, the notice set out was given to all known subcontractors, sub-subcontractors, and suppliers. [26.13]

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Within 2 years and 90 days after the claimant last furnished labor or materials, unless owner serves written demand to commence action, in which case the claimant must file suit within 30 days after re­ceiving demand. If the claimant fails to do so, the owner can post documents proving that he or she made the demand, and the lien will be forfeited. [572.27, 572.28] NOTE THAT per a 2003 case, a judgment foreclosing a lien is not a judgment against the homeowner personally. [W.P. Barber Lumber Co. v. Celania, 674 N.W.2d 62 (2003), rehearing denied.] NOTE ALSO that a contractor cannot foreclose on a lien where it has not substantially performed the contract, though they may be entitled to payment under other theories of recovery. [Schor update at §16.03[C][1]]

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BOND:

-More than 30 days, but less than 60 days after com­pletion and acceptance of work. [573.16]

-If general contractor de­mands it in writing and serves claimant with notice, claimant must start suit within 30 days after receiv­ing notice. [573.16]

RETAINAGE:

More than 30 days, but less than 60 days after com­pletion of 95% of the contract. [573.15A] HOWEVER, if the general contractor de­mands it in writing and serves claimant with notice, claimant must start suit within 30 days after receiv­ing notice. [573.16]