Alabama Speed Bumps

Private Speed Bumps

* The Alabama Mechanics Lien Statute provides for two types of liens: an "unpaid balance" and a "full price" lien. Notification prior to furnishing perfects a full price lien unless the owner or proprietor or his or her agent notifies, (Notice of Objection), the furnisher in writing before the material is used, that he or she will not be responsible for the price thereof.
* Important Reminder: First and last furnishing dates and claim amounts are required on all statutorily required NTOs.
* Serving the option Notice to Owner prior to the furnishing of material, significantly increases the rights of the lienor and potentially the size of his encumbrance on the property. Alabama Code § 35-11-210.
* Before filing a Statement of Lien, a claimant must first provide statutory notice to the owner in the form of either a Notice to Owner (Prior to Performance) or a Notice to Owner (Unpaid Balance) Lien as appropriate.
* Alabama law does not allow for the recovery of attorney's fees or other miscellaneous amounts in a mechanic's lien.
* Parties not protected by lien law in Alabama include surveyors, suppliers to suppliers, and, in most instances, design professionals.
Companies must be registered with Alabama’s Secretary of State to have lien rights.
* Owner can use unpaid funds to complete job when a General Contractor abandons project. The notice would not be a protection to Suppliers in this instance.

Bond Claims must contain the amount claimed to be due and the nature of the claim.
The giving of notice by registered or certified mail, postage prepaid, addressed to the surety at any of its places of business or offices shall be deemed sufficient.
The contractor shall, immediately after the completion of the contract, give notice of the completion by an advertisement in a newspaper of general circulation published within the city or county in which the work has been done, for a period of four successive weeks. A final settlement shall not be made upon the contract until the expiration of 30 days after the completion of the notice. Proof of publication of the notice shall be made by the contractor to the authority by whom the contract was made by affidavit of the publisher and a printed copy of the notice published. If no newspaper is published in the county in which the work is done, the notice may be given by posting at the courthouse for 30 days, and proof of same shall be made by the judge of probate, sheriff, and the contractor.