Nebraska State Lien Law Summary

Furnisher of services, materials or rental equipment to a project. Apparently coverage is limited to those supplying the general or a first-tier sub. Suppliers to suppliers cannot obtain a lien. Employees of subcontractors may file liens. A union pension plan and a union health and welfare plan have lien rights on behalf of employees for unpaid contributions. [52-131, 52-134; Blue Tee Corp. v. CDI Contractors, Inc., 247 Neb. 397, 529 N.W.2d 16 (1995); Omaha Constr. Indus. Pension Plan v. Children’s Hosp., 642 N.W. 2d 849 (2002); In the Matter of MBA Poultry, LLC, 261 B.R.229 (D. Neb. 2001), reversed and remanded, 291 F.3d 528 (8^th Cir. 2002)]

NOTE that where a subcontractor is not registered or licensed in the state Department of Revenue database for contractors, the general contractor is required to withhold 5% of payments to the sub, and pay it over to the Department of Revenue. [77-2753]

Under the Prompt Payment Act, if a contractor is not paid within than 30 days after submitting its pay request, or a subcontractor is not paid within ten days after the contractor is paid, then the contractor or sub is entitled to interest. This statute does not apply to residential projects of four units or less. See “Special notes”, below. [45-1202 et seq.]

Furnishers of labor or materials or rental equipment whose work or materials are actually used in or incorporated into the project. A supplier to a supplier MAY be entitled to bring a bond claim in certain circumstances. Where, for example, the supplier contracting with the contractor has taken responsibility for a large and definable part of the construction project, he or she may be considered a subcontractor; otherwise the supplier is a materialman. If the supplier can be considered a subcontractor, then its suppliers will be covered by the bond. [52-118.01, 52-118.02; McElhose v. Universal Surety Co., 158 NW2d 158 (1968); Schor at §28.02[D][2][a]]

Under the Prompt Payment Act, if a contractor is not paid within than 30 days after submitting its pay request, or a subcontractor is not paid within ten days after the contractor is paid, then the contractor or sub is entitled to interest. This statute applies to contracts with political subdivisions in the state, except for federal-aid or state-aid projects in which the state makes payments to the contractor on behalf of the political subdivision. It does not apply to contracts with the state itself. See “Special notes”, below. [45-1202 et seq.]

Real property or bond. [52-133, 52-141]

Contractor’s payment bond. If the public body fails to require a bond, the public body may be liable, but it is not certain. [52-118; Schor at §28.02[D][2]]

This notice is optional. It is always recommended that the notice be given; however, it is especially important on residential real estate of four units or less, or a condominium project. On those projects, the amount of the claim will be limited to the lesser of (a) the amount unpaid on the claimant’s contract, or (b) the amount unpaid under the prime contract through which the claimant claims as of the date the owner receives the claimant’s Notice of the Right to Assert a Lien or a copy of the recorded lien itself. [52-135, 52-129, 52-136]

A preliminary notice is not required.

To the owner. [52-135]

Not applicable.

Any time after claimant has entered into contract and before a lien has been recorded, but the sooner the better on a residential project be­cause the amount of the claim will be limited to the lesser of the amount unpaid on the contract with the general, or what is due to the clai­mant, as of the date the owner receives the claimant’s Notice of the Right to Assert a Lien or a copy of the recorded lien itself. [52-135(1), 52-136(2) and (5); Schor at §28.03[G][3]]

Not applicable.

-Statement that the notice is a Notice of Right to Assert a Lien against real estate for services or ma­terials furnished in con­nection with the improve­ment of real estate

-Name and address of claimant (the address must be one to which the owner or others may send communications to the claimant)

-Name and address of per­son to whom owner or others may send communications to the claimant, if other than claimant

-Name and address of per­son with whom claimant con­tracted

-Name of owner against whom the lien may be claimed

-Description of labor or material furnished or to be furnished

-Description of real es­tate sufficient for iden­tification

-Statement that the cla­imant is entitled to record a lien

-The amount unpaid, whether or not due, or a good faith estimate of the amount due or to be due, designated as an esti­mate.

-The following warning, typed in print no smaller than the rest of the preliminary notice: “Warning. If you did not contract with the person giving this notice, any future payments you make in connection with this project may subject you to double liability.”

-The notice may include a re­quest for notice of record­ing of termination of No­tice of Commencement, with instructions to owner to provide written notice of recording of notice of ter­mination of notice of com­mencement at least 3 weeks before effective date. This request may be included with the notice or sent separately. [52-135]

NOTE that when liens are filed while a Notice of Commencement is effective (usually within 6-12 months of filing), they attach as of the date of filing the Notice of Commencement. (52-145)

Not applicable.

No specific provision other than actually receiving notice; regular mail together with certified or regis­tered mail recommended, or personal service if necessary.

Not applicable.

An interim notice is not required.

An interim notice is not required.

LIEN:

Every claimant. [52-137]

BOND:

Every claimant not contracting with prime contractor. [52-141]

All claimants having a dire­ct contractual relationship with a subcontractor, and not with the general contractor supplying the bond. [52-118­.01]

LIEN:

-Register of Deeds for coun­ty where land is locat­ed. [52-127(13)]

-After recording, copy must also be given to the owner. [52-135]

BOND:

Prime contractor. [52-141]

To general contractor. [52-118.01]

LIEN:

-To Register of Deeds: Recorded after entering the con­tract and within 120 days after the claimant’s last delive­ry. [52-137]

-To Owner: Within 10 days after recording, claimant must send a copy of the recorded lien to the owner. [52-135]

BOND:

Received within 90 days of last de­livery or labor. [52-141]

Received within 4 months from claimant’s last furnishing of labor or materi­a­ls. [52-118.01]

LIEN:

-Recorded with Regis­ter of Deeds for county where land is located. [52-147]

-“Sent” to the owner. Certified or registered mail, and a copy sent by first class mail as well, recommended. There is a presumption that a properly addressed, stamped and mailed notice was received, but it is rebuttable, so recommend personal service if necessary. Proof of service may be required, so be sure to prepare one. [52-135; Schor at forms §29.04]

BOND:

No specific provi­sion; certified or reg­is­tered mail recommended.

Registered or certified mail or personal service. The consequences of refusal of delivery are not clear, thus recommend ensuring actual receipt. [52-118­.01]

LIEN:

NOTE: THE LIEN CLAIM MUST BE SIGNED BY THE CLAIMANT, NOT THE ATTORNEY.

-Description of real estate sufficient for identifica­tion

-Name of person against whom lien is claimed (i.e. owner, tenant, etc.)

-Name and address of clai­mant

-Name and address of person with whom claimant contrac­ted

-Description of services or material furnished or to be furnished and their contract price

-Amount unpaid, whether or not due, or an estimate designated as an estimate. (NOTE that the amount of the claim will be limited to the lesser of the amount unpaid on the contract with the general, or the unpaid balance of the clai­mant’s contract, as of the date the owner receives the claimant’s Notice of the Right to Assert a Lien or a copy of the recorded lien itself. [52-136])

-Date of last delivery, or estimated date if it has not yet occurred

–Must be executed and acknowledged by claimant. [52-147; Schor at §28.03[B][3]]

-If more than one lot, ap­portion lien amount. [52-133(5)]

BOND:

-Amount due

-Notice of nonpayment. [52-141; Schor at §28.03[H][1]]

NOTE: After time to lien has expired, lien may only be amended to reduce lien amount, reduce real proper­ty affected, or apportion lien amount among the lots liened. [52-148]

-Amount claimed

-Name of party to whom labor or material was fur­nished. [52-118.01]

LIEN:

Within 2 years after re­cor­ding the lien, BUT, if own­er or other interested par­ty giv­es demand to in­sti­tute sui­t, must do so with­in 30 days of receipt of written demand, or else record an affidavit stating that the total contract price is not yet due. [52-140, Schor at §28.03[C]] NOTE that a lien foreclosure action can also include a separate cause of action for additional damages for breach of contract. [Preston Refrigeration Co., Inc. v. Omaha Cold Storage Terminals, Inc., 742 N.W.2d 782, 16 Neb.App. 228 (Neb.App. 2007)]

BOND:

Within 1 year of claimant’s last de­livery, unless a longer period is provided in the bond itself. [52-157]

After giving notice, where necessary, and more than 90 days after last delivery, but less than 1 year after the date of final settlement of the principal con­tract. [52-118.01, 52-118.02]