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Latest Mechanics Lien Law and News

Mechanic’s Lien and Profit and Overhead Claims

There is no need to specify your exact profit and overhead in a contract--that is your private business. No state regulates the amount of your profit and overhead. Basically, it is what the traffic will bear. However, most states have home improvement contract laws which require you to specify the terms of the contract. But this applies to the overall contract price and does not require itemization of the exact profit or overhead. If it is a lump sum or ...
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Project Delays and Filing a Mechanic’s Lien

In most cases, the controversy surrounding a contested mechanics lien has to do with the accusation from the owner that the labor and materials were not furnished adequately. In turn, this has to do with the defense of defective material, substandard performance, untimely work, not following the plans and specifications, violation of local building codes, and contested change orders. The contractor’s goal is to prevent as many of these disputes as possible so that the filing of a mechanic’s lien ...
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What is Meant by the Requirement of Filing a Mechanic’s Lien in Good Faith?

If you look in detail at the case law, some court decisions require as a prerequisite, that a mechanic lien be filed in good faith. What exactly does that mean and should we be concerned with that requirement? Without being irreverent or flip, it happens in very few cases and it’s not something that should keep you up at night. In other words, it only applies in substantially unreasonable or outrageous cases. In almost all situations, it doesn’t even arise ...
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