• Kentucky is an UNPAID BALANCE lien state when the owner can prove that funds were paid to the General Contractor and the General Contractor paid related subcontractors and material suppliers.
• A contractor who obtains a judgment against a private landowner may file a mechanics' lien within 60 days of a judgment.
• Minor or trivial repairs not done in good faith, and/or not necessary in the performance of the contract, does not prolong the time for giving notice in Kentucky.

Notice Speed Bumps

• Kentucky law does not require any notice or filing prior to the performance of the work by the Prime Contractor or a first, second or third tier Subcontractor. However, the Kentucky statutes do provide a mechanism for Prime Contractors, Subcontractors or Suppliers to file a Notice of Contract, that they have furnished, or expect to furnish, labor or materials for the improvement of real property and, if properly filed, protects them from subsequent mortgages or conveyances.
• For owner-occupied single- or double-family dwellings, such written notice must be given to the owner-occupant or his authorized agent.

Mechanic's Lien Speed Bumps

• The lien of a principal contractor attaches to the extent of the interest of the owner in the house, building or other structure and the land upon which the same is situated; the lien of a subcontractor, materialman or laborer attaches to the same extent, but in no case may the liens be for a greater amount in the aggregate than the contract price under the original contract.
• The Lienor entitled to interest at legal rate.

Foreclosure Speed Bumps

• A lien expires in one year from the filing date if no suit brought to enforce lien; where debtor dies within year, period extended another six months after qualification of personal representative.
• Kentucky law allows broad protection to parties that supply materials, services and/or labor including professionals. Items that are typically not allowed in a lien claim are attorneys' fees, lost profits, indirect and consequential damages.
• The lien must be released 30 days after satisfaction, or the lienholder may be subject to damages.

Oil & Gas Liens

• A person who performs labor or furnishes materials to a lessee relating to oil, gas or other minerals shall have a lien on the leasehold for the entire interest of the lessee.

Public Speed Bumps

• Bond Claim: The claimant must file a statement in writing verified by affidavit, setting for the amount due, the date on which work was last performed, and the name of the public improvement upon which it is claimed. The statement shall be filed in the county clerk's office of the county in which the seat of government of the owner is located.
• Suit Against Bond: Kentucky's general statute of limitations includes civil actions on bonds in the class of procedures which must be initiated within 15 years after cause of action has accrued. However, the Kentucky courts have allowed the surety to a shorter period in the bond.
• Kentucky statutes provide that "any person, firm, or corporation who performs labor or furnishes materials or supplies for the construction, maintenance, or improvement of any public improvement in this state by contract, express or implied, with the owner thereof or by subcontract thereunder shall have a lien on the funds due the contractor from the owner of the property improved.
• April 8, 2016 Legislation was approved requiring payment and performance bonds on P3 projects.