North Carolina State Lien Law Guidelines

PRIVATE:

A Notice to Lien Agent should be mailed within 15 days of first performance.  A standard notice is still only required if contracted to a sub.

PUBLIC:

ASAP and no later than 75 days after first performance.

PRIVATE:

Real Property:

Filed and served after the maturity of the obligation but within 120 days after claimant’s last delivery.

Contract Funds:

Any time before final notice on real property lien is filed, but the sooner the better because, once received, it requires the obligor to withhold funds for the claimant’s benefit.

PUBLIC:

Within 120 days of date of last delivery or performance of labor.  Also, owner must be served within 120 days.

PRIVATE:

Within 180 days after claimant’s last delivery.

PUBLIC:

More than 90 days, but less than one year after last delivery by contractor or sub, or final settlement with contractor, whichever is later.

A. Do Suppliers to Suppliers Have Lien or Bond Claim Rights?

On Private Projects:

Where a claimant is supplying a supplier knowing where the product will ultimately be used, and the claimant is selling the product to the supplier specifically for use in that project, then the claimant (a supplier to a supplier) will have lien rights

On Public Projects:

Suppliers to suppliers MAY have rights to claim against the bond. The statutory language is broad enough to allow it, but case law has not discussed the issue.

B. Is this a Full Price Lien State:

On Private Projects:

The subcontractor or supplier’s subrogated claim is limited to the rights of the general contractor, and therefore cannot be greater than the amount owed to the general.

On Public Projects:

This is a full price lien state as long as the contractor provides an adequate bond.  If the contractor does not provide an adequate bond a claimant may bring a claim against the contract funds in the hands of the contractor that have not yet been paid to a subcontractor.