Re: 2012 Senate Bill 1038 (“Construction Lien Act" details )

rebconstruction@sbcglobal.net — Tue, 27 Mar 2012 14:14:19 GMT

There are good points to this bill but extending the time to file a lien is not one of them. A time period of ninety days is more than adequate to protect one's lien rights. I for see at least two issues with extending the time period: First: Many construction projects have a short duration and the contractor and his subcontractors may have been paid in full. Then a supplier of one of the subs gives notice of intent to file and the main contractor has no recourse to recover the money from the subcontractor short of legal action. Increasing the time limit past ninety days just causes more of these type of situations. If anything, suppliers of materials should only have sixty days to file the lien. Second: Owners & general contractors often are slow to pay or only pay part of the invoice. The threat of a lien at ninety days is a great motivator to secure payment from the oblige. Extending the time period would only cause further delay in payments and could seriously exacerbate a poor cash flow situation.

2012 Senate Bill 1038 (“Construction Lien Act" details )

Votes Admin — Tue, 27 Mar 2012 14:00:50 GMT

Introduced in the Senate on March 22, 2012

Click here to view bill details.

Economy

Re: 2012 Senate Bill 1038 (“Construction Lien Act" details )

2012 Senate Bill 1038 (“Construction Lien Act" details )