Missed the Deadline to File a Mechanic’s Lien? Here are Some Options

The best way for material suppliers and subcontractors to ensure payment if a debtor files for bankruptcy is by creating a lien ahead of time. As a general bankruptcy rule, in most states, liens that are filed or perfected post-bankruptcy-petition are not successful.But if a mechanic's lien was not filed properly, or not filed at all, that does not...
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Construction Startup Katerra Files for Bankruptcy, How Are Creditors Protected?

SoftBank-funded construction startup Katerra filed for Chapter 11 bankruptcy this week in the Southern District of Texas, leaving numerous projects unfinished, between $500 million to $1 billion in assets, and $1 billion to $10 billion in liabilities. The company blamed its downfall on a number of factors in a recent statement, including financial ...
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Analysis of Job information is Vital Before Starting Work or Supplying Materials

When it comes to assessing a customer's creditworthiness, information is king. Gathering the critical information upfront helps subcontractors and suppliers set limits, reduces the chance of nonpayment and helps secure lien rights."The security of mechanic's liens and payment bonds afford you greater flexibility in extending the lines of credit to ...
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NACM Southwest Show of Strength Gets Bill Changed

NACM Southwest members recently took a stand against Texas House Bill 2237 during a public hearing last month. Thanks to their efforts, they were able to persuade the Texas House of Representatives' Business & Industry Committee to amend unfavorable language within the bill that they said hurt suppliers."I am pleased to report that the efforts ...
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What Lien Waivers Say Matters

Lien waivers are legal documents designed to protect both parties: the payee and the payer. However, addressing unfavorable language and negotiating the conditions of the waiver is essential to ensure your company receives equal protection in the process.To start, what constitutes conditional and unconditional lien waivers? Conditional waivers beco...
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How to Get the Most Out of Preliminary Notices

Whenever starting a new construction project, subcontractors and material suppliers should always verify state requirements for securing mechanic's lien rights.In most states, the process starts with sending a preliminary notice to the owner and general contractor. Start by determining whether the state in which you are working requires them. Requi...
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Court Supports Pro Landscape USA Lien Claims on Appeal

A Utah Court of Appeals decided in the case of Zion Village Resort LLC v. Pro Curb U.S.A. LLC that the order in which information is presented on a preliminary notice is not as important as having all of the necessary information.Pro Landscape had filed its preliminary notices for the Zion Village condominium project through the Utah State Construc...
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Nike Bombarded with Liens Totaling Over $100 Million

A heap of liens is stacking up against Nike and its general contractor following the construction of its monstrous campus expansion near Beaverton, OR. As it stands, about $110 million worth of liens, across several construction companies, have been filed against the corporate powerhouse.Topping this list is Hoffman Construction, which claims Nike ...
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Pushback on Texas House Bill Gets Pre-Lien Language Dropped

A seemingly innocuous Texas House bill turned contentious after the state House of Representatives' Business & Industry Committee considered a revised version that required subcontractors to send pre-lien notices at the start of each new project.The bill as originally drafted would not have created a lot of problems for NACM members, said Perri...
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NACM Members Testify Against Proposed Mechanic’s Lien Changes in Texas

NACM Southwest members testified last week against proposed legislation that would change mechanic's lien notice requirements and deadlines in Texas during a recent Business and Industry Committee hearing of the Texas House of Representatives.Although HB2237, sponsored by Rep. Dustin Burrows and Rep. Joe Deshotel (D), aims to simplify and modernize...
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Proposed Texas Bill Would Change State’s Mechanic’s Lien Process

The Texas legislature is considering House Bill 2237, which would alter how material suppliers file mechanic's liens within the state. If the bill is approved, it would change notice requirements and deadlines.To provide a quick overview, here's a list of what this proposed legislation would do:Eliminates the subcontractors' and material suppliers'...
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3D Technology Could Overhaul Construction Industry

When you think of commercial construction materials, supplies of concrete, brick, steel and wood stored in warehouses and shipped on demand would likely come to mind. Today, you can add a mix of materials generated on demand and on-site from 3D printing."Three-dimensional (3D) printing is an additive manufacturing process that creates a physical ob...
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Housing Headed for Bubble?

Those of you who remember the housing crisis that precipitated the Great Recession may have been looking somewhat askance at the situation facing the residential housing market. It has been booming throughout what has been an extremely difficult year and that begs the question: Is this another bubble ready to burst?Will there suddenly be a collapse...
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Five-Year Fraud Scheme Raises Questions About Scam Protection

The sentencing of former MGT Construction executive, Patrick Lindsey, for a five-year fraud scheme has Chris Ring, of NACM's Secured Transaction Services, considering ways material suppliers or subcontractors could have protected themselves better in this situation.Over the five-year period, Lindsey served an integral role in the large-scale corpor...
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Construction Sector Hit by Rapid Input Prices

Soaring prices in construction materials are hurting the industry."After almost two years of decline, steel prices have risen sharply in recent months," Credendo analyst, Matthieu Depreter, wrote in a recent report on the sector. "If we look at the steel price index1, we see that the level of January 2021 is 40% higher than that of January 2020."De...
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Extreme Weather Has Texas Contractors Pressing Pause on Projects

It appears everything is bigger in Texas—even its temperature extremes. A recent barrage of winter weather has Texan contractors shutting down their construction sites across the state.The temporary shutdowns are not only the result of snow and ice accumulation, but the uncharacteristic drop in temperature and loss of power. Many contractors are ta...
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NIBS Convenes BIM Executive Roundtable on Construction Industry Digital Transformation

The National Institute of Building Sciences is working toward a U.S. building information modeling (BIM) standard. The organization met Feb. 4 with about 40 leaders from public and private organizations to discuss the need for a coordinated program to advance collaboration and innovation in the building industry.As defined on buildinginformationman...
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Will BIM Become the Standard in the USA?

Construction projects around the world have been, and are continually being revolutionized by the techniques of building information management, or BIM. The benefits of BIM in the realms of architecture, engineering and construction are multifaceted, from improvements in speed and efficiency to reducing materials wasted and increasing safety.These ...
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Delaware Bankruptcy Court Teaches Important Lesson on Timely Lien Perfection

Perfect your liens on time or you may lose them. That's the painful lesson U.S. Bankruptcy Judge Karen B. Owens taught Halliburton Energy Services, Inc., in her recent decision.Ruling on plaintiff-debtor Southland Royalty Company LLC's motion for partial summary judgment, Judge Owens found that Halliburton did not obtain a lien on Southland's produ...
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Wash Your Hands, Wear a Mask and Read Your Contract

In the midst of this pandemic, not to mention social upheaval, political chaos, and events of historic ramifications, everyone in the world right now is dealing with risk and uncertainty. Personal, family, professional, public, private, cultural, economic, it seems that if it is a noun, it is uncertain. We are coping, mitigating, avoiding, research...
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