Notice Speed Bumps

• Notice of right of claim must be given to the contracting owner within 20 days after the date materials are furnished. The period may be extended to 45 days if the construction is financed by a regulated lender. This does not apply to owner occupied residences.

• The consequences of a failure to meet the 20-day or 45-day notice requirement is not the complete loss of construction lien rights. However, in the event of untimely notice, the construction lien claimant is entitled only to a lien for the services or materials furnished within the 20-day or 45-day period, whichever is applicable, preceding the date on which the notice is provided.Mechanic's Lien Speed Bumps.
• Some parties will be required to file a Notice of Right to Claim Lien. Notice of right to claim lien not required by:
  "(a) a person who furnishes services or materials directly to the owner at the owner's request; 
  (b) a wage earner or laborer who performs personal labor services for a person furnishing any service or material pursuant to a real estate improvement contract; 
  (c) a person who furnishes services or materials pursuant to a real estate improvement contract that relates to a dwelling for five or more families; or 
  (d) a person who furnishes services or materials pursuant to a real estate improvement contract that relates to an improvement that is partly or wholly commercial in character."
  - 71‐3‐531 Montana Statute

Mechanic's Lien Speed Bumps

• The Notice of the Right to Claim a Lien, when properly filed, is valid for a period of one year from the date of the filing. The notice lapses upon the expiration of that one-year period, unless the lien claimant files with the Clerk and Recorder a one year Continuation of the Notice of the Right to Claim a Lien prior to the date on which the first notice will lapse.
• Montana statute requires a lien claimant who's lien has been satisfied to acknowledge the satisfaction of that lien or be held liable for any damages that result from the refusal to do so.

Oil & Gas Lien Speed Bumps

• Oil & Gas Liens are created and perfected in the same manner as mechanic's liens except that filing statement must be within six months of completion of work

• Suit Against Bond Details: No special statutory provision. In the case where a settlement procedure is provided by a contracting agency, all actions authorized thereunder must be commenced within one year after a final decision has been rendered pursuant to such settlement procedure; and in the case where no settlement procedure is provided by the contracting agency, the action must be commenced by the contractor within one year after the cause of action has arisen.

• A school district may waive the bonding requirements for building or construction projects, as defined in 18-2-10, that cost less than $7,500.
• 
  

  If any board, council, commission, trustee, or body acting for the state or any board of county commissioners or any mayor and common council of any incorporated city or town or tribunal transacting the business of any such municipal corporation waives or fails to take the security required or authorized by 18-2-201, the state or the county, incorporated city or town, or other municipal corporation is liable to the full extent and for the full amount of all of the contracted debts by any subcontractor as well as the contractor.
• 
  

  Costs – attorney fees. In a suit the prevailing party is entitled to recover, in addition to all other costs, attorney fees in a sum that the court finds reasonable. However, attorney fees may not be allowed in a suit or action brought or instituted before the expiration of 30 days following the date of filing of the bond claim notice.