Construction professionals at work

Mechanics lien laws can be complicated and in light of a surge of P3 projects, this has never been truer. What makes a P3 especially tricky is being able to classify the project type, and from there, determining which remedy can be applied in the event of non-payment. Ordinarily, participants on private projects are able to use the mechanics lien, and participants on civil, state, or federal projects are able to use bond claims. However since P3s are made up of a combination of public and private investments, the legislation can get complicated.

Since P3s are made up of a combination of public and private investments, the legislation can get complicated.

MultiBriefs provides a comprehensive news briefing of the week’s top industry stories to association members and trade professionals. Last week, the news source published “P3 Projects: What if you Have Payment Problems?” addressing the question of what payment rights exists for unpaid parties on P3 projects.

According to the article, some states like Oklahoma are making moves to address the ambiguities surrounding P3s. That being said, the Surety & Fidelity Association of America has reported that P3 legislation is going slow – and according to the National Council of State Legislation (NCSL) out of 23 states which proposed 99 bills to alter public-private statues in 2014, very few of them passed. This means it’s crucial for P3 project participants to be wary of their payment rights.

The National Council of Public Private Partnerships is a leading force on the subject of P3s, educating government and businesses on how P3s can provide better public services and facilities. The NCSL participated in a July 2014 conference with the National Council of Public Private Partnerships to update attendees on state and federal policy developments, and convey essential principles such as “be informed,” “involve and educate stakeholders,” and “be clear and transparent about financial issues.” To view the full list, see the NCSL article “Few Public Private Partnerships Laws Enacted in 2014.”

As P3 projects continue to gain speed and become a mainstay in the industry, levelset is committed to publishing case studies, relevant information, and legislative updates. Chief Legal Officer, Nate Budde is at the forefront of these efforts. In the article “P3 Projects: Green Building, Alternative Energy, and Mechanics Lien and Bond Claim Rights” Budde examines the further complexity of a “green” energy public private project which poses even more difficulties to project participants facing the threat of non-payment.

To learn more about P3 projects, stay in the loop with the Construction Payment Blog. As one of leading resources for receivables and risk management education in the construction industry, Construction Payment Blog contributors have been featured in publications like CFMA’s Building Profits, Construction Executive, Construction Business Owner, MultiBriefs, and Supply House Times.

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