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Can a lien be placed on a public and or city building such as a city water plant that is doing renovations?

North CarolinaBond Claims Right to Lien

I know that anything over $30,000 in North Carolina you must get on the lien agents list within 120 day of being on-site to have any lien right on a project but I do not know if that would apply to a city water plant building that is doing major renovations or not. Please let me know your thoughts. Thanks for your help!

1 reply

Oct 18, 2019

Generally, mechanics lien rights won't be available when work is being done on publicly owned property. While privately owned property may be liened by those who go unpaid, when property is owned by the public, it typically cannot be encumbered by private persons and businesses. Instead, the public usually requires that payment and performance bonds be submitted by their prime contractor in order to sure that the work is completed and that everyone gets paid for their work. And, subs and suppliers who go unpaid will generally be entitled to post a claim against the contractor's payment bond in order to recover payment. For a little more background on bond claim rights in North Carolina, here's a great resource: North Carolina Bond Claim Guide and FAQs.

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