Filing Liens on Solar Projects: What’s the Deal?

Solar panels as a form of alternative energy continue to grow in popularity, both on residential and commercial projects. As the demand for solar panels increases, so does the likelihood of a creditor grappling with a customer when securing lien rights on solar projects. Unlike traditional forms of energy, determining lien rights on properties with...
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Filing Liens on Solar Projects: What’s the Deal?

Solar panels as a form of alternative energy continue to grow in popularity, both on residential and commercial projects. As the demand for solar panels increases, so does the likelihood of a creditor grappling with a customer when securing lien rights on solar projects. Unlike traditional forms of energy, determining lien rights on properties with...
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266 Hits
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Filing Liens on Solar Projects: What’s the Deal?

Solar panels as a form of alternative energy continue to grow in popularity, both on residential and commercial projects. As the demand for solar panels increases, so does the likelihood of a creditor grappling with a customer when securing lien rights on solar projects. Unlike traditional forms of energy, determining lien rights on properties with...
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268 Hits
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Illinois House Passes Bill Affecting Subcontractor Wages

Illinois is looking to follow the example led by California and Maryland, which are holding general contractors liable for unpaid wages of subcontractors. House Bill 2838 would amend the Illinois Wage Payment and Collection Act and take effect on contracts entered into on or after July 1. The bill was referred to the Senate's Assignments Committee ...
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Federal Court Clarifies When Idle Equipment Costs Are Recoverable Under the Miller Act

United States ex rel. Am. Civ. Constr., LLC v. Hirani Eng'g & Land Surveying, P.C. , 2018 U.S. Dist. LEXIS 200829 (D.D.C. Nov. 28, 2018). The case involved the construction of a levee wall on the National Mall in Washington, DC. In September 2010, the Army Corps of Engineers awarded Hirani Engineering & Land Surveying, P.C. ("Hirani") the p...
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Delayed Delivery, Lien Filed at Las Vegas Stadium

Timeframes are imperative on construction projects. Ground-breaking events, actual start dates of the construction project, etc. are all important, but delivery dates and completion of the project are in a league of their own during the building process. Delivery (first and last furnishing) and completion dates are of vital importance to those part...
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Job Information: When to Gather It, What to Do With It

When extending credit to a customer in the construction industry, beyond the credit application, credit managers also need to be mindful of critical job information. Just as creditors give new customers a credit application before extending credit for the first time, job information needs to be gathered for each of the customer's projects. Should t...
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Wisconsin Contractors Facing Nonpayment

What traffic is to major metropolitan areas during rush hour disputes are to the construction industry. They're more than likely always there, whether or not they're wanted. While cars and other vehicles are at a standstill, it's payments in construction that are logjammed. Traffic congestion happens for all sorts of reasons, such as accidents or s...
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How Construction Creditors Can Stay Protected Amid Labor Shortages

Regardless of the type of project, payments are always just around the corner in the construction industry and often driven by project deadlines. According to recent reports from Dodge Data & Analytics, construction's struggles to maintain a solid labor force have created an increase in project delays, possibly marking the beginning of a domino...
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When Creditors Lien on a Lease, the Traditional Lien Process Does Not Apply

When beginning the process of extending credit to a customer in construction, several caveats must be considered: Which state laws apply to the job, who are the people involved in the transactions, etc. In the process of obtaining job information and beginning to file a lien, oftentimes creditors forget a crucial element: whether the lien must be f...
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Recent Washington Court Decision Examines Lien Claim, Part II

Without a solid explanation of how a lien might actually be considered "frivolous" under the statute, the court focused its examination on whether the lien claim in Woodley v. Style Corp. d/b/a Servpro of Shoreline/Woodinville, No. 77352-6-I (Wash. Ct. App. Feb. 11, 2019) was "clearly excessive." For this analysis, the court considered the dictiona...
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Recent Washington Court Decision Examines Lien Claim, Part 1

On Feb. 11, 2019, Division One of the Washington Court of Appeals issued an opinion in the case of Woodley v. Style Corp. d/b/a Servpro of Shoreline/Woodinville , No. 77352-6-I (Wash. Ct. App. Feb. 11, 2019). The case highlights the care that should be exercised in filing a lien claim for services furnished to improve a condominium and the conseque...
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Creating a ‘Conduit Relationship’ to Avoid Construction Payment Mishaps

The business-to-business (B2B) credit process is fairly similar across various industries: A grantor provides credit to a debtor for business or commercial purposes. While this definition, found in NACM's Principles of Business Credit , extends to the construction industry, project owners often encounter additional hurdles that, otherwise, aren't a...
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The Often-Overlooked Protection Provided By a Statutory Payment Bond Under Chapter 53 of the Texas Property Code

Owners of construction projects are often surprised to learn that they are required to withhold 10% retainage on private construction projects in Texas. Failure to withhold 10% can result in liability up to that amount. [1] Similarly, owners often continue to pay the general contractor after receiving a lien notice with fund-trapping language which...
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Two Colorado Construction Projects in Peril

A pair of Colorado construction projects hundreds of miles apart are coming under fire as is the case with many construction projects no matter the location. One is facing thousands of dollars in unpaid bills and is set for the courtroom, while the other recently had its noteholder withdraw foreclosure. According to the Longmont Times-Call , there ...
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What Goes Into a Protective Subcontract?

A solid business relationship in the construction industry begins with a subcontract that establishes clear parameters between all involved parties. Before any general contractor (GC) or subcontractor (sub) moves forward with a collaborative project, each party must define their objectives and duties throughout the course of the project in addition...
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You Don’t Have to Be a Mechanic to File a Mechanic’s Lien: Understanding What Types of Services Are Lienable in Connecticut

A mechanic's lien is an extremely effective tool for getting paid on privately owned construction projects. However, not everyone who provides services in connection with such projects is entitled to file a lien. Connecticut courts are routinely asked to decide whether certain types of services are lienable, including landscaping work, snow and deb...
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A Two-Way Ripple Effect: What Happens When a Sub’s Legal Woes Divert Finances

Construction projects, large and small, feature a chain of command: general contractors (GCs) at the top, followed by subcontractors (subs) and then sub-subcontractors. As delegations trickle down from the top tiers, each party may be responsible for the actions of those below them, so any problem at the lower level could potentially trickle upward...
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Unpaid vs. Full Price: What’s the Difference?

Mechanic's lien law across the U.S. is a creature of statute, meaning there are specified items within each states' law (a to-do list) that must be done in order to have any chance of becoming a secured creditor on a private or public, but not federal, construction project. There are some states where a party with lien rights does everything asked ...
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