Preliminary Notices Become Even More Crucial as Payment Bond Thresholds Rise
When payment bond thresholds rise, it's even more important for subcontractors and suppliers to send preliminary notice and foster healthy payment chains.
When payment bond thresholds rise, it's even more important for subcontractors and suppliers to send preliminary notice and foster healthy payment chains.
A recent case, Precision Framing Systems Inc. v. Henry Luzuriaga, may distort how the California mechanics lien deadline is calculated for subcontractors.
Because a supplier used a proper change order format, they were able to revive their Oregon mechanics lien from the dead.
Illinois introduced retainage laws by passing Senate Bill 1636. 10% retainage can be withheld for the first half of the project, and only 5% after that.
Mississippi subcontractors and suppliers take note: contractors on private projects can now use payment bonds to keep mechanics liens off of their projects.
Recent legislation drastically changed the Colorado payment bond requirements. These bonds will now be required for P3 projects.
The Missouri payment bond requirements were changed in a few major ways after SB 167 was recently passed. These changes are effective August 28, 2019.
Alabama pay if paid clauses are strong - the state has upheld them for all project types. Sureties can use these clauses to fend off bond claims, too.
Tennessee contractors license renewal just gained one more step - continuing education requirements. Only some residential contractors must participate.
Payment bonds are especially helpful in Florida because public projects are not subject to a claim of lien. However, payment bonds in Florida have a lot of specific requirements and...