Refresh Your Knowledge: Pro-Tips for Notice to Owner, Lien, and Bond Claim

by | Jun 21, 2023 | TIPS Bonds




This webinar is hosted by SunRay Construction Solutions and features Alex Barthet, a board-certified construction lawyer who serves clients in the state of Florida. The focus of this webinar is Notices to Owner, liens and bond claims. The following points will also be discussed:

1. Why Notices, Liens, and Bonds? (2:00)
2. Notice to Owner (6:00)
3. Claim of Lien (11:55)
4. What is a Notice of Nonpayment? (19:44)
5. Payment Bond Claims (19:33)
6. When to serve a Contractor’s Final Affidavit (26:42)
7. Lien foreclosure date (27:07)

Read the blog of this webinar:
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SunRay construction solutions is the #1 online construction documents service in USA. For more than a decade small, medium, and large-level companies, contractors, and suppliers have been working with us to ease out their work process and to secure their payments. We have been recognized as the most reliable and affordable in providing NTO, preliminary notice, lien documentation, etc. with a friendly team of industry experts you can rely upon.

Apart from our regular services, we have been conducting seminars and webinars to empower you with the knowledge to get paid for your hard-earned money in time.

Check our upcoming free informative webinars on Lien Laws:

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Notice to Owner, Lien and Bond Claim Refresher (with Pro-Tips)

Navigating the complex world of construction projects can be challenging, especially when it comes to payment and securing your rights as a contractor or supplier. Understanding the Notice to Owner, Lien, and Bond Claim process is crucial for protecting your interests and ensuring you get paid for the work you’ve completed. In this article, we will provide a refresher on these essential concepts, along with some pro-tips to help you navigate the process with ease.

1. Notice to Owner (NTO):
The Notice to Owner is a document that must be served to the property owner by a contractor, subcontractor, or material supplier before or within a certain timeframe, depending on the state’s requirements. By sending an NTO, you are putting the property owner on notice of your involvement in the project and securing your right to file a lien in case of non-payment.

Pro-Tip: Always make sure to send the NTO within the specified time limits to preserve your rights. Keep a record of the delivery or certified mail receipt to validate the delivery date.

2. Mechanic’s Lien:
A Mechanic’s Lien is a legal claim against a property that ensures payment for labor, materials, or services provided on a construction project. If you have not been paid for your work, you can file a lien on the property to secure your right to payment.

Pro-Tip: Familiarize yourself with the specific lien laws in your state, including deadlines for filing the lien and the required documentation. Failing to comply with these requirements could result in an invalid lien.

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3. Bond Claim:
A Bond Claim is an alternative to filing a lien when working on public projects or private projects with a payment bond. Instead of filing a lien on the property, you file a claim against the bond held by the project owner. This allows you to recover payment from the bond in case of non-payment.

Pro-Tip: Be aware of the deadline for filing a bond claim, as it can be significantly shorter than the lien filing deadline. Make sure to gather all the necessary documentation, including a copy of the bond and any notices or invoices to support your claim.

4. Documentation is Key:
Whether you’re serving an NTO, filing a lien, or submitting a bond claim, maintaining accurate and detailed documentation is crucial. This includes invoices, receipts, contracts, change orders, delivery confirmations, and any correspondence related to the project. Having a clear paper trail will strengthen your position in case of a dispute.

Pro-Tip: Start documenting the project from the beginning, including daily reports, progress photos, and signed agreements. This will help establish your work’s legitimacy and protect your rights if a payment issue arises.

5. Seek Legal Advice:
While you can handle the NTO, lien, and bond claim process on your own, seeking legal advice is highly recommended, especially if you’re unfamiliar with the specific requirements in your state. A construction attorney can help you understand your rights, ensure compliance with the relevant laws, and guide you through the process.

Pro-Tip: Consulting an attorney before starting a project can help you set up a solid foundation and ensure you are aware of all the legal requirements and potential pitfalls specific to your project and jurisdiction.

See also  Notice to Contractor, Lien and Bond Claim Refresher (With pro-tips)

In conclusion, understanding and properly executing the Notice to Owner, Lien, and Bond Claim process is essential for securing your right to payment in the construction industry. By sending timely notices, maintaining accurate documentation, and seeking legal advice when necessary, you can navigate these processes confidently and protect your interests.

Remember, always stay informed about the laws and regulations in your state or region, as they may vary. Taking proactive measures and understanding your rights will help you streamline the payment process and minimize the risk of non-payment.

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