{"id":1542,"date":"2013-04-18T06:46:45","date_gmt":"2013-04-18T12:46:45","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=1542"},"modified":"2013-04-16T16:47:04","modified_gmt":"2013-04-16T22:47:04","slug":"what-architects-engineers-need-to-know-about-the-new-lien-law-melissa-dewey-brumback-jdsupra","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/what-architects-engineers-need-to-know-about-the-new-lien-law-melissa-dewey-brumback-jdsupra\/","title":{"rendered":"What Architects & Engineers Need to Know about the New Lien Law | Melissa Dewey Brumback – JDSupra"},"content":{"rendered":"

Melissa Dewey Brumback – April 8, 2013<\/p>\n

I have previously discussed the ABCs of Lien Laws for those making claims on a project (that is, architects, engineers, contractors, subcontractors, and suppliers)\u00a0and the 123s of Lien Laws for project owners.\u00a0 Now, time to learn some new tricks:\u00a0 enter, the Lien Agent.<\/p>\n

\"engineering<\/p>\n

In case you\u2019ve been hiding in your man-cave waiting for warmer weather to arrive and missed all the hoopla, as of April 1, 2013, North Carolina has a new lien law act.\u00a0 Essentially, for *most* construction projects [there are a few limited exceptions for low dollar work or single family, owner occupied residences], \u00a0owners will need to file a notice of an entity to be their \u201cLien Agent\u201d, and contractors will file notices within a short window of starting work.\u00a0 If done correctly, it should keep everyone aware of who is on the project, who is doing what work, and who may have a lien.<\/p>\n

The most pertinent part that affects architects and engineers?\u00a0 This:<\/p>\n

N.C. Gen. Stat. \u00a7 44A-11.2<\/p>\n

(h)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 When a lien agent is not identified in a contract for improvements to real property subject to G.S. 44A-11.1 entered into between an owner and a design professional, the design professional will be deemed to have met the requirement of notice under subsections (l) and (m) of this section on the date of the lien agent\u2019s receipt of the owner\u2019s designation of the lien agent. The owner shall provide written notice to the lien agent containing the information pertaining to the design professional required in a notice to lien agent pursuant to subdivisions (1) through (3) of subsection (i) of this section, by any method of delivery authorized in subsection (f) of this section. The lien agent shall include the design professional in its response to any persons requesting information relating to persons who have given notice to the lien agent pursuant to this section. For purposes of this subsection, the term \u201cdesign professional\u201d shall mean any architects, engineers, land surveyors, and landscape architects registered under Chapter 83A, 89A, or 89C of the General Statutes.<\/p>\n

In other words, if the owner designates a lien agent up front, you follow the process and note your involvement for the record.<\/p>\n

What if the owner does NOT\u00a0designate a lien agent up front? You are covered by default, once he does so.\u00a0 And he will do so, as\u00a0 before the owner can get a building permit, he will be forced to designate a lien agent.\u00a0 Nice, right?\u00a0 You have built in protections, and you don\u2019t need to worry about filing a lien and damaging a relationship with an owner if they are slow to pay.<\/p>\n

The on-line system for selecting Lien Agents (for owners) and notifying Agents of your work (for everyone else) on a project is\u00a0LiensNC.\u00a0 A helpful tip sheet\u00a0\u00a0produced by the Title Insurance industry walks you through the process.<\/p>\n

Many other fine folks have weighed in on the nuts & bolts of how the new system works, so I will not repeat it all here.\u00a0 Instead, let me direct you to a few of these resources (apologies in advance for anyone I may have slighted):<\/p>\n

Bryan Scott:\u00a0 A good place to start for a broad overview\u00a0of what you need to know<\/p>\n

Gregory Shelton:\u00a0 Perspective of Lien Claimants;\u00a0 Perspective of Owners\u00a0on the what the new lien law means to each<\/p>\n

For\u00a0the designer\u2019s perspective, from Matthew Bouchard:<\/p>\n

I\u2019m a design professional providing services prior to the execution of a contract for construction.\u00a0 What if there\u2019s no lien agent in placing during my pre-construction performance?<\/p>\n

That depends on whether your contract is with the owner or with another design professional.\u00a0 If you are in direct contractual privity with the owner and your contract does not include the lien agent information, the owner is responsible for providing your contact information to its lien agent upon the owner\u2019s appointment of same.\u00a0 If you are a design subcontractor, you should make a written request to the owner for the lien agent\u2019s contact information.\u00a0 By statute, you will have no obligation to comply with the preliminary notice requirements until you receive the contact information you have requested.<\/p>\n

I believe that the new lien law will help design professionals, as you no longer have to worry about alienating the owner by filing a lien or risk losing your lien priority.\u00a0 Instead, the lien agent will be as common as a building permit.\u00a0 You will be protected from the beginning with little effort, and without even having to depend on the owner.\u00a0\u00a0 What do you think?<\/p>\n

via What Architects & Engineers Need to Know about the New Lien Law | Melissa Dewey Brumback – JDSupra<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Melissa Dewey Brumback – April 8, 2013 I have previously discussed the ABCs of Lien Laws for those making claims on a project (that is, architects, engineers, contractors, subcontractors, and suppliers)\u00a0and the 123s of Lien Laws for project owners.\u00a0 Now, time to learn some new tricks:\u00a0 enter, the Lien Agent. In case you\u2019ve been hiding… Continue reading What Architects & Engineers Need to Know about the New Lien Law | Melissa Dewey Brumback – JDSupra<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[8],"tags":[333,334,184],"class_list":["post-1542","post","type-post","status-publish","format-standard","hentry","category-mechanics-lien-rights","tag-architects","tag-engineers","tag-mechanics-lien-law","entry"],"jetpack_publicize_connections":[],"yoast_head":"\nWhat Architects & Engineers Need to Know about the New Lien Law | Melissa Dewey Brumback - JDSupra - Advise & Consult, Inc.<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/what-architects-engineers-need-to-know-about-the-new-lien-law-melissa-dewey-brumback-jdsupra\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What Architects & Engineers Need to Know about the New Lien Law | Melissa Dewey Brumback - JDSupra - Advise & Consult, Inc.\" \/>\n<meta property=\"og:description\" content=\"Melissa Dewey Brumback – April 8, 2013 I have previously discussed the ABCs of Lien Laws for those making claims on a project (that is, architects, engineers, contractors, subcontractors, and suppliers)\u00a0and the 123s of Lien Laws for project owners.\u00a0 Now, time to learn some new tricks:\u00a0 enter, the Lien Agent. 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