Construction Lawyers News

The Miller Act of 1935, provides protection to subcontractors and suppliers on federal jobs. On federal projects, payment bonds are required for any contract “for the construction, alteration or repair of any public building or public work.” No liens are allowed to be filed against federal property, meaning that subcontractors and suppliers must look to a payment bond for satisfaction, should their contractor not pay them.
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Landlord-tenant projects are the most problematic to obtain proper liens on, if for some reason you do not get paid. In most cases, the problems arise from not thoroughly understanding the landlord-tenant project contract.
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Retainage is the requirement to withhold a certain percentage, usually of the contract price or the value of the work, until a certain period of time. This is done to secure payments owned to subcontractors, suppliers, providers of specially fabricated materials, and other persons tasked for a project.
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What are the contractor's remedies when a job is canceled after he has specially ordered and fabricated materials? In such a situation, many states have a mechanism to file a lien to recover the costs of the specially fabricated materials..
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Without a mechanic's lien, a contractor can only sue the party whom they contracted with. With a lien, they can sue the property owner, those up the contracting chain from them, and the surety bonding the project. A mechanic's lien can prevent a property from being sold, transferred, or refinanced.
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