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In NC, would each piece of equipment count as a new contract with new time frames?

North Carolina

We are an equipment supplier. The problem we are running into, is that by the time the invoices hit, we are already outside the time frames to file the notice to lien agent. However, if we consider each piece of equipment as a new contract, even though it is on the same project, that could potentially change our time frames. Would this be a viable option? If not what is the best option for suppliers to secure rights?

1 reply

Jul 21, 2021

Under North Carolina's lien laws, a Notice to Lien Agent must be provided no later than 15 days after first furnishing labor and/or materials to the project. 

For equipment lessors, the "first furnishing date" would be the first date the equipment is physically on site, rather than the date of invoicing. Furthermore, this deadline is "no later than," which means nothing is preventing claimants from sending the notice earlier.

Lastly, only one notice will be required to secure lien rights if all the equipment is provided pursuant to a single contract. However, if there are multiple contracts, then more than one may be necessary, and the same timing considerations mentioned above will apply.

Here are some additional resources you may find helpful:

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