{"id":897559,"date":"2020-06-04T15:55:00","date_gmt":"2020-06-04T21:55:00","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=897559"},"modified":"2020-06-03T16:02:53","modified_gmt":"2020-06-03T22:02:53","slug":"when-does-mechanics-lien-effect","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/when-does-mechanics-lien-effect\/","title":{"rendered":"When Does a Mechanics\u2019 Lien Effect?"},"content":{"rendered":"\n<p>Kent Scott | <a rel=\"noreferrer noopener\" href=\"https:\/\/www.babcockscott.com\/attorney\/kent-b-scott\/\" target=\"_blank\">Babcock Scott &amp; Babcock<\/a><\/p>\n\n\n\n<p>The Utah Mechanic\u2019s Liens Act needed some clarification on when exactly a <a href=\"https:\/\/www.myconstructionexpert.com\/blog\/the-only-thing-clear-about-nevada-mechanics-lien-priority-is-that-the-lien-claimant-will-likely-get-his-day-in-court\/\" target=\"_blank\" rel=\"noreferrer noopener\">mechanic\u2019s lien<\/a> goes into effect. That clarification came in February 2015 from the Court of Appeals of Utah. In the case <em>Pentalon Construction, Inc. v. Rymark Properties, LLC<\/em> the court ruled that \u201cnearly completed excavation constitutes \u2018commencement\u2019 under the Act because the excavation was sufficient \u2018to put a prudent lender on notice that lienable work was under way.\u201d<a href=\"#_ftn1\">[1]<\/a><\/p>\n\n\n\n<p>What this means for contractors is that to make sure a mechanic\u2019s lien has priority over other liens or mortgages, they need to file their lien with the recorders office and construction needs to be underway on the jobsite to a point where a \u201creasonable observer\u201d can tell that a mechanic\u2019s lien is sure to be in effect.<\/p>\n\n\n\n<p>The court found that there are easy ways for a jobsite to pass the \u201cwork started\u201d test. For example having large piles of dirt from excavation activities helps people know that a construction project is under way.<a href=\"#_ftn2\">[2]<\/a> Heavy machinery operating on the jobsite also demonstrates the beginning of a construction project.<a href=\"#_ftn3\">[3]<\/a> Adding in construction materials to the excavated portions of the jobsite, and a nearly completed foundation are the final examples from the court that place observers on notice that work has started.<a href=\"#_ftn4\">[4]<\/a><\/p>\n\n\n\n<p>Contractors need to know that two previous rulings regarding preparatory work for a jobsite is still in effect. The ruling in <em>Ketchum, Konkel, Barrett, Nickel &amp; Austin v. Heritage Mountain Development Co.<\/em> states that architectural work and other site preparation such as surveying, staking, and soil sampling does not always put the \u201creasonable observer\u201d on notice that work has started on a jobsite.<a href=\"#_ftn5\">[5]<\/a><\/p>\n\n\n\n<p>Similarly, \u201cwetlands delineations, groundwater monitoring, geotechnical testing, and irrigation work\u201d does not place a reasonable observer on notice because the work should demonstrate \u201cimpending or ongoing work.\u201d<a href=\"#_ftn6\">[6]<\/a><\/p>\n\n\n\n<p>The important thing to remember is that the more obvious it is to a reasonable observer that construction has started on a jobsite, the more likely that a filed mechanic\u2019s lien has taken effect. A jobsite\u2019s almost completed foundation, large piles of dirt accompanied by heavy machinery, and construction materials onsite provides more than adequate notice of a mechanic\u2019s lien that is in effect.<\/p>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<p><a href=\"#_ftnref1\">[1]<\/a> <em>Pentalon Const., Inc. v. Rymark Properties, LLC<\/em>, 344 P.3d 180, 186, 2015 UT App 29, \u00b6 19 (Utah App., 2015).<\/p>\n\n\n\n<p><a href=\"#_ftnref2\">[2]<\/a> <em>Id.<\/em> at 183.<\/p>\n\n\n\n<p><a href=\"#_ftnref3\">[3]<\/a> <em>Id<\/em>.<\/p>\n\n\n\n<p><a href=\"#_ftnref4\">[4]<\/a> <em>Id<\/em>.<\/p>\n\n\n\n<p><a href=\"#_ftnref5\">[5]<\/a> Ketchum, Konkel, Barrett, Nickel &amp; Austin v. Heritage Mountain Development Co., 784 P.2d 1217, 1228 (Utah App., 1989).<\/p>\n\n\n\n<p><a href=\"#_ftnref6\">[6]<\/a> EDSA\/Cloward, LLC v. Klibanoff, 192 P.3d 296, 300, 2008 UT App 284, \u00b6 10 (Utah App., 2008).<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Kent Scott | Babcock Scott &amp; Babcock The Utah Mechanic\u2019s Liens Act needed some clarification on when exactly a mechanic\u2019s lien goes into effect. That clarification came in February 2015 from the Court of Appeals of Utah. In the case Pentalon Construction, Inc. v. Rymark Properties, LLC the court ruled that \u201cnearly completed excavation constitutes&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/when-does-mechanics-lien-effect\/\">Continue reading <span class=\"screen-reader-text\">When Does a Mechanics\u2019 Lien Effect?<\/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":[10772],"tags":[9895,184,106],"class_list":["post-897559","post","type-post","status-publish","format-standard","hentry","category-mechanics-lien-law","tag-advise-consult","tag-mechanics-lien-law","tag-utah","entry"],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>When Does a Mechanics\u2019 Lien Effect? 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