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bonding around a mechanic's lien

WashingtonBonding Off Lien

As the general contractor on a completed project we are in dispute of a subcontractor who double billed for their work in Washington on a mailbox center in an apartment complex. The filed a mechanic's lien on the property, so both their's and our attorneys have been trying to get the subcontractor to see reason. In the mean time the client wants us to bond around the mechanic's lien. 1st. we did the work for the property owner, they then sold the property to a government low income rental program. The subcontractor never followed any of the required preliminary notice steps, it took months to get copies of their time and material documents, where we found bills that were not even for our job, and duplicate time cards, all put into their bill. They want $53,000 but the documentation only adds up to $26,000 how do we bond around the mechanic's lien, what are our options? thanks

1 reply

Mar 10, 2020
Bonding off a Washington mechanics lien is a relatively easy process, though it won't always be the cheapest one. Generally, a contractor just needs to reach out to a surety provider to obtain a mechanics lien release bond. They'll be able to provide insight on the exact bond and language that's needed. Once the contractor provides the claim documents, some information about their business, and whatever other documentation the surety requests, the contractor should be able to pay the bond premium and receive a copy of the bond. Once the bond has been obtained, it must then be recorded in the county records - much like the mechanics lien was filed. And, notice of the lien being bonded off should generally be sent to the lien claimant. Though, it doesn't look like Washington specifically requires that. As for the amount of the bond - under RCW § 60.04.161, claims over $10,000 will require a bond that's 1.5x the claim amount. So, to bond off a mechanics lien claim of $53,000, a bond totalling $79,500 (1.5 x $53,000) should be sufficient.

Additional resources

There are a number of different surety providers that might be able to help with bonding around a Washington mechanics lien, including Surety One, Inc. So, a quick google search of bond providers should be a good first step for finding the right surety. For more general information on bonding off a lien: Primer on Mechanics Lien Bonds and Bonding Off a Mechanics Lien.
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