Sometimes mechanics lien law can be tricky to understand. If you are interested in learning a little bit more about how to file a New Mexico mechanics lien, you might want to check out some of the most important “5 things to know.”

Contractors Must Be Licensed to File a Valid New Mexico Mechanics Lien

New Mexico mechanics lien protection is pretty broad. Licensed contractors, subcontractors, as well as material and equipment suppliers that have participated in the contributed to the construction, alteration or repair of a property are all entitled to mechanics lien rights. While design professionals including surveyors, architects, and engineers all have lien rights as well, the design plans must be used in order to file.

However, New Mexico has strict licensing requirements. If the claimant is required to have a license by the Construction Industries Licensing Act, the claimant must be licensed in order to claim a lien.  Further, an unlicensed contractor may not be able to file suit to recover any money owed even without the protection of a lien.  And finally, if a contractor is unlicensed it may be possible for the property owner to request a return of the money already paid.

Be Aware of Two Different Deadlines to File Depending On Project Tier

There are two different deadlines to file a mechanics lien in New Mexico. For general contractors, the deadline to file a mechanics lien is 120 days from the completion of the project. Subcontractors, and other parties without a direct contract with the property owner, only have 90 calendar days from the completion of the project in which to file a New Mexico mechanics lien.

While it is not required that a copy of a New Mexico mechanics lien be sent to the property owner after recordation, a party without a direct contract with the property owner may send notice of the lien to the property owner in an attempt to eliminate a possible defense that the owner has paid the full contract amount to the general.

New Mexico has Very Specific Preliminary Notice Requirements

The conditions in which preliminary notice are required in New Mexico are very specific. New Mexico only requires a preliminary notice to be sent under certain conditions. Preliminary notice must be given when: 1) The claimant does not contract directly with the property owner or the general contractor; AND 2) The claim is more than $5000; AND 3) The project is NOT on a residential property with less than 4 dwellings.  All other parties are not required to send preliminary notice, but may send a notice of intent to lien if desired, in an attempt to facilitate payment.

When required, preliminary notice must be sent within 60 days of the first date that service or materials were provided on a project.

Attorney’s Fees May Be Awarded In Lien Foreclosure Action – But Only To Successful Claimant

While not included in the mechanics lien document itself, attorney’s fees will be awarded to a lien claimant in a successful enforcement action. Interestingly, the award of attorney fees in a successful enforcement action may not be reciprocal to the property owner in New Mexico. If the property owner is successful in defeating the mechanics lien claim in a foreclosure action, the unsuccessful lien claimant may not be held liable for the property owner’s attorney’s fees.

A Legal Property Description is Not Required

A legal property description is not required when filing a mechanics lien in New Mexico. Instead, the lien simply needs to include a description “sufficient for identification” of the property. Clearly, a full legal description is sufficient to identify the property, and if available, may be used. As a guideline, the description should be sufficient for a stranger to identify the property (at the exclusion of other properties). In the case of residential property, a municipal street address may be sufficient to identify the property for the purposes of filing a New Mexico mechanics lien.

Written by Scott Wolfe Jr See original article at New Mexico Mechanics Lien Law: 5 Things to Know Originally posted on the LIEN

Thinking about filing a Louisiana mechanics lien? Look no further, here are “5 things to know” that will help you hit the ground running!

Louisiana Mechanics Lien Protection Extends To Many Project Participants

Louisiana mechanics lien law extends protection to many different parties. Not only are general contractors and subcontractors able to file a mechanics lien, but laborers or employees, material suppliers, equipment lessors (if leased to owner, contractor or subcontractor by written lease), architects, engineers, and surveyors also qualify. Even parties that supply fuel for machinery have mechanics lien rights in Louisiana. Out of luck however, are suppliers to suppliers who do not have the right to lien.

The Deadline to File a Louisiana Mechanics Lien Varies

The deadline to file a Statement of Claim and Privilege, (a Louisiana mechanics lien) depends on the party’s role in the project as well as whether or not a Notice of Contract or Notice of Termination has been filed.

General Contractor:

• If a Notice of Termination has been filed, the general contractor has 60 days from the date the notice was filed
• If a Notice of Termination had not been filed, the general contractor has 60 days from the date the project was considered completed

All Other Parties:

• If a Notice of Contract was filed, project participants not in contact with the property owner are required to file the lien 30 days from the date that the Notice of Termination was filed
• If a Notice of Contract was not filed, project participants not in contact with the property owner have 60 days from the date the Notice of Termination was filed, or 60 days from the date of substantial completion of the work, if no notice of termination is filed.
• For material suppliers specifically, if a Notice of Contract was not filed on a residential project, the project participant has 70 days to file a mechanics lien. The 70 days will either begin on the date notice of termination was filed, or, if no notice of termination was filed, from abandonment or substantial completion of the work.

Preliminary Notice is Only Required for Some Project Participants

Preliminary notice in Louisiana is very specific to the project participant and their role. Specifically, general contractors must file a Notice of Contract in the office of the recorder of mortgages in the property’s parish before beginning to work on a project valued at over $25,000. In the event that a general contractor is working on an owner occupied existing residence, a Notice of Lien Rights is required to be given to the property owner prior to beginning any work on the property. Failure to provide the appropriate preliminary notice could prevent the project participant from lien rights.

Material suppliers have a different set of requirements. If working on a residential project, material suppliers are required to provide a Notice of Non-Payment via certified mail with return receipt requested to the property owner and general contractor 10 days prior to filing a mechanics lien.

Even further, equipment lessors must also provide preliminary notice if not directly in contact with the property owner. A copy of the lease must be sent to the property owner via certified mail with return receipt requested to the property owner and general contractor at least 10 days prior to the first date of providing materials for a project.

Though preliminary notice is not required of any other project participants, it is always a good idea to provide notification. Additionally, project participants are allowed to request notification of the filing of a Notice of Termination, or of abandonment/substantial completion of the project. If this preliminary notice is given and the owner fails to notify the claimant of the filing of a Notice of Termination/abandonment/substantial completion, the owner will be liable for the claimant’s attorney’s fees.

Working Unlicensed Could Effect How Much A Project Participant Gets Paid

Licensing laws in Louisiana are unique. While it is not required that project participants are licensed, it is recommended. If project participants are unlicensed, the licensing board may only recover the “minimum value” of work completed on the project.

Notary is No Longer Required in Louisiana

Unlike many states, Louisiana mechanics lien law has been amended and no longer requires the a mechanics lien be notarized. It does require however, that after being filed, a copy of the lien statement is sent to both the property owner and general contractor (if applicable)

Written by Scott Wolfe Jr See original article at Louisiana Mechanics Lien Law: 5 Things to Know Originally posted on the LIEN

The size of your company will determine whether this post is applicable. Figuring out whether a centralized credit department is a good choice only applies to companies with more than one location.

Advantages to a Centralized Credit Department

Many companies have credit departments. If a company has multiple locations, it has to decide if each location will will manage credit separately. If each location does not manage their own separate credit issues, one office will have to undertake the credit management for the entire company. This is called a centralized credit department.

There are multiple advantages to having a centralized credit department. Having a central hub in charge of these decision allows a certain group of people (or just one person) to have all eyes on credit issues. The credit department makes sure that the credit applications are proper, that the intake information is sufficient, and makes the final determination authorizing an extension of credit to the potential client.

Further, after credit is extended, a centralized credit department is in the best position to uniformly implement the lien policy, including notices and liens, to gain security. Then, after the debt becomes due, it will send out letters saying that the debt is due and can contact an attorney to file suit on the old debt. Imagine how difficult it would be to keep all of this systematic and applied in a uniform manner if many locations were undertaking the process at once.

Having one section of the company (at one location) that deals with credit issues, is often times better because the knowledge is specialized and deadlines can be tight. Further, when working with vendors such a Zlien or the credit attorney, there will be only one point of contact. Decentralization can cause delay.

Disadvantages to a Centralized Credit Department

There can also be disadvantages to a centralized credit department, however. Often times the relationship with clients is sensitive due to the ongoing business relations. If a credit department, which does not deal with the clients on a regular basis, contacts a client who has an overdue debt, it could strain the working relationship. At times this is fine, but other times good clients can be contacted by mistake. We all know its easier to keep clients that it is to find new ones.

Having a credit department in each location may avoid this potential peril. This is usually a small advantage compared to the disadvantage of all of the education and training you would have to give each location if you want to have a credit department locally.

Which is Better for Your Company?

The short answer is, it all depends. Generally a centralized credit department is better. This is for both small and large companies. Its always best to have a specific department who focuses on one aspect of the business. This department is accountable for making decisions to give out credit and when to collect on bad debt. They know the vendors and attorneys who can make collection possible.

Another helpful article on this very topic is by Michael C. Dennis.

Related articles

• Credit Department: What Does a Credit Department Do?
• Credit Management: Legal Tricks To Make Extending Credit Easier
• Credit Policy: Are Credit Checks Mandatory If Lien Policy Is Strong?

Written by Seth Smiley See original article at Credit: One Centralized Credit Department for All Locations? Originally posted on the LIEN

Ownership of a property can change frequently, and those transfers of ownership can happen before, during, or after construction. This can cause serious headaches in states, like Florida, in which some parties are required to send a notice to owner prior to filing a valid lien. Is a subcontractor or supplier on a Florida project required to constantly monitor who owns the property and send a notice to owner each time the property changes hands, or is sending a notice to the original owner enough to satisfy the requirement as to a later owner? Further, and more related to this case, what happens if a party contracts directly with the owner of a property (and so is not required to send a preliminary notice to owner), and the property then changes hands? Since the lien claimant no longer has contracted directly with the property owner, is a notice to owner required at that point – and if so, what about the deadlines? A recent Florida court of appeals case recently shed some light on this issue.

Notice to Owner Requirements in Florida

The statute only dictates that such notice be sent to “the owner”. Additionally, if the owner has designated a person “in addition to himself or herself to receive a copy of such lienor’s notice” (an owner’s designee) then the subcontractor or supplier must also serve the preliminary notice upon this party as well.

Since the statute only provides that the notice must be given to the property owner (and owner’s designee), and does not address what a lienor should do if the property changes hands, no statutory guidance is provided as to what should occur in that instance. In the event of a property transfer, multiple questions arise, including questions of role, repetition, and timing: 1) Does the potential lien claimant’s role in the project change for the purposes of notice requirements if the property changes hands (such that the potential lien claimant no longer has a contract with the property owner)?; 2) If the potential lien claimant was already required to provide notice, should the lien claimant give the notice to the party who owned the property prior to the statutory deadline for providing the notice only, or should the lien claimant also give notice to the property owner who owns the property at the time the lien is to be filed?

Recent Case Partially Clarifies Notice to Owner Requirements

The potential ambiguity of the statute has required Florida courts to settle multiple disputes as to the preliminary notice’s exact requirements. In fact, on March 27, 2013, the District court of Appeal of Florida, Fourth District issued an opinion in Marble Unlimited, Inc. v. Weston Real Estate Investment Corporation providing at least some clarification of the notice to owner requirements under Florida law.

The basic facts of the case are as follows: Beginning in 2003, the plaintiff, Marble Unlimited (“Marble”), entered into several contracts with the defendant, Weston Real Estate Investment Corporation, to complete renovations of several buildings in a condominium complex. In 2006, the same parties entered into two more contracts for renovations to additional buildings in the complex. At some point prior to 2008, the ownership of the property was transferred from Weston Investment, to Weston Development. In 2008, Marble filed mechanics liens, and initiated a foreclosure suit naming both Weston Investment and Weston Development, the latter being the owner of the property at the time of suit. The trial court dismissed the lien claims because Marble had not provided a preliminary notice to owner.

The appeals court noted that, pursuant to Florida law, lien claimants with a direct contractual relationship (in privity) with the property owner is not required to send a preliminary notice to owner. The appeals court noted that, after Weston Investment contracted as the owner of the property, it’s subsequent transfer of the property to an associated corporation could not trigger a new duty on Marble’s part to provide a preliminary notice to owner. The court postulated that, if allowed, this would be akin to allowing a corporate shell-game in which corporations could frustrate potential lien claimants by constantly changing the ownership of the property.

Takeaways from Marble Unlimited

Really, the takeaways from Marble Unlimited are few. While the case is important, and provides some protection to certain parties, the case is narrow in application. A property owner cannot avoid a suit to foreclose on a mechanics lien merely by transferring property ownership to a related or associated owner, and the transfer of the property to a related owner will not trigger preliminary notice requirements that were previously not required.

It would be interesting to see if the decision would be the same if the new owner was not associated with the original owner, and, if a new duty to provide a preliminary notice to owner is required in that case, whether the deadline to provide the notice would reset.

If a Florida court decides that issue, we’ll let you know.

Written by Nate Budde See original article at Notice to Owner: Florida Court Provides Some Clarification Originally posted on the LIEN

Nevada mechanics lien law can get complicated. This post will point you in the right direction with “5 things to know” about Nevada mechanics lien law.

Most Project Participants Have Nevada Mechanics Lien Rights

Nevada mechanics lien law is especially inclusive. As long as a party provided labor and/or materials worth $500 or more, they likely have Nevada mechanics lien rights. Parties provided protection include contractors, subcontractors, suppliers, equipment lessors, architects, engineers, surveyors, geologists are all allowed lien rights. Even consultants performing work at the project sire may be allowed rights!

The only project participants with a hoop to jump through are suppliers. Suppliers only have lien rights if the materials provided are actually used for the project. It is not enough for materials only to be delivered to the property – they must be used and/or consumed into the project.

Further, it is worth noting that if the potential lien claimant is required to be licensed by Nevada for the type of work performed, that party may only claim a Nevada mechanics lien if he is licensed as required.

Deadline to File a Nevada Mechanics Lien May Be Quick

A mechanics lien in Nevada must be filed with the county recorder (in the county where the property is located) within 90 days of the date the lien claimant last provided labor and/or materials to the project, or 90 days from the project’s completion or termination – whichever is later. However, if a Notice of Completion is filed, the time in which to file a Nevada mechanics lien is cut by more than half to only 40 days from the filing of the Notice of Completion.

On residential projects, a Notice of Intent to Lien must be sent to the property owner 15 days prior to filing the lien. Unlike many other states, the service of this notice in Nevada extends the time for filing the lien by 15 days.

Preliminary Notice is Generally Required

Typically all project participants are required to send a Notice of Right to Lien within 31 days of the date that labor and/or materials were first provided. Individuals exempt from this preliminary notice are parties who contracted directly with the property owner and wage laborers. The Notice of Right to Lien must be sent to both the property owner and the general contractor.

Residential project require an additional notice to be sent. As noted above, a Notice of Intent to Lien is required to be sent to the property owner 15 days prior to filing a lien on a residential project – and the service of this notice extends the lien filing period for 15 days.

Although general contractors are generally not required to send preliminary notice, the State Contractors Board may assess a penalty if a copy of the lien information notice has not been delivered to each subcontractor.

A Copy of the Nevada Mechanics Lien Must be Provided to Owner and General Contractor

In Nevada, not only it is required that a mechanics lien be recorded at the county recorder in the county where the property is located, a copy of the lien must also be sent to both the property owner and the general contractor via certified mail with return receipt requested within 30 days from the date the lien was filed. Failure to send a copy of the lien to the property owner may result in the lien being invalidated, and failure to send a copy of the lien to the general contractor may result in disciplinary proceedings against the subcontractor.

There May Be Opportunity for the Reimbursement of Some Fees

Generally, a lien includes the amount of an unpaid contract, subtracting any deductions or credits and adding any change orders. While fees such as attorney’s fees and filing costs are not to be included in the lien, sometimes they are awarded to a project participant in a successful foreclosure action. Reasonable overhead and lost profits might also be included by the court. It is important to note, however, that Nevada mechanics lien law specifically prohibits the recovery of consequential damages.

Written by Scott Wolfe Jr See original article at Nevada Mechanics Lien Law: 5 Things to Know Originally posted on the LIEN

Before a mechanics lien can properly attach to property and provide security for the lien claimant, several questions need to be asked: Did the lien claimant do the work? Does the work performed by the lien claimant give rise to mechanics lien protection under the laws of the particular state? Did the lien claimant comply with all applicable notice requirements? In some states, however, answering all these questions affirmatively is not enough – there is still a question that can make or break a claim: Is a license required to do the work performed by the lien claimant, and if so, does the lien claimant have that license? An unlicensed contractor, if a license is required for the work he/she performs, is unable to gain the protection of a mechanics lien. What’s more, some states don’t even allow an unlicensed contractor to recover under other legal methods like a breach of contract suit, or quantum meruit, either.

Like many other aspects of mechanics lien law, and the law in general, the approaches taken by different states vary drastically. One thing that doesn’t vary, however, is that it is always best practice to be licensed if a license is required (or even if it isn’t).

Unlicensed Contractors in The West Are Living Dangerously – And Potentially Working for Free

While there are licensing and/or registration requirements in states all throughout the county, if a party is performing work in a western state there is a good chance a license is required. Washington, Oregon, California, Nevada, Arizona, and New Mexico all have at least some licensing and/or registration requirements, and they can be very strict.

Not only can unlicensed contractors be denied payment in some states, they may be required to give back money already paid. That’s about the worst accounts receivable (or credit management) disaster there can be. New Mexico also prohibits mechanics liens for unlicensed contractors and also prohibits suit to recover money unpaid even without mechanics lien protection. Further, like the California case above, New Mexico may also require unlicensed contractors to return money already paid to the property owner.

It is also worth noting that in some states an unlicensed contractor may be subject to fines and/or penalties, may be liable to the property owner for damages, and may be guilty of a misdemeanor or even a felony.

Long story short – get licensed.

Some States Allow Unlicensed Contractors Minimal Recovery

While it is still clearly the best practice to be licensed when required, the ability to recover payment for work depends drastically on the state in which the work was performed.

The wildly different approaches to this situation come from different views of how a state should balance the regulation of the construction market against the ability of people performing work to be paid for the work they did. Some states, like California, New Mexico, Washington, etc. clearly feel the state’s best interest is served by strictly and harshly regulating the construction market – likely, this was enacted to protect the state’s citizens from sub-par construction work by unlicensed and unregulated contractors. Other states, like Louisiana, have decided that it is more important to ensure that parties performing work in the state are paid for the work they do.

Which Approach Is Better?

In my opinion, there should be a mid-ground approach to this issue, taking parts from each side. Both positions have some merit. While the regulation of the construction industry is needed, and there must be some incentive to comply with the licensing scheme (or disincentive to not comply), this should be accomplished without the potentially significant injustice caused by the harsh schemes discussed above.

An approach like Louisiana’s, but modified to include stricter penalties, might be the way to go. In my scheme, unlicensed contractors would be allowed to recover the value of the work they performed (if it is the first offense), but would be penalized a set percentage of the amount recovered and potentially found guilty of a misdemeanor. Second offenses would result in non-payment.

No matter what scheme is in place, or in which state work is performed, one thing remains the same, however. If there is a license required – get that license.

Written by Nate Budde See original article at Unlicensed Contractor?: Depending on the State, You May be Working for Free Originally posted on the LIEN

Mechanics Liens and Pennsylvania’s HICPA

Pennsylvania’s Home Improvement Consumer Protection Act (HICPA) became effective on July 1, 2009.  Under the law, all parties, including contractors and subcontractors, who perform more than $5,000 of work per year, and whose company is worth less than $50 million dollars, must register with the Pennsylvania Office of Attorney General.  HICPA essentially has an all-encompassing effect: If the subcontractor is not registered with the Attorney General or the contract is not in conformity with the Act’s requirements, then it is simply unenforceable.  Interestingly, even valid contracts may be rescinded by the homeowner within three days of the signing date without any penalty.  Additionally, there are civil penalties for failing to register or violating the Act’s strict requirements of up to $1,000.  But how does HICPA square with mechanics liens?

Violating HICPA and Mechanics Liens

Just last week a Pennsylvania appeals court, the Superior Court of Pennsylvania, ruled on a very important dispute in Shafer Electric & Construction v. Mantia.  The issue in that case boiled down to whether a subcontractor who was in violation of the Home Improvement Consumer Protection Act could still recover unpaid amounts under the quantum meruit doctrine and a mechanics lien.

The defendants, Raymond and Donna Mantia, hired Shafer to complete a 34′ x 24′ addition to their home.  Although Shafer is a licensed contractor in neighboring West Virginia, Shafer was not, at the time of the contract, registered with the Pennsylvania Attorney General.  Since Shafer’s work was worth more than $5,000, Shafer was required but failed to register.

After completing the work, Shafer’s invoice in the amount of nearly $38,000 went unpaid.  Shafer filed a mechanics lien on the Mantia’s property on April 29, 2011, and on December 6, 2011, Shafer sued to recover the $38,000 under either breach of contract or quantum meruit.  (Quantum meruit essentially allows a party to recover for work already performed even when a valid contract does not exist.)

On February 21, 2012, the Mantias filed an objection to Shafer’s lawsuit and asked the court to dismiss Shafer’s claims.  Specifically, the defendants argued that since Shafer was not registered with the Attorney General, as required by HICPA, the home addition contract was invalid and thus unenforceable in Pennsylvania.  After oral arguments were held on the objection, the court agreed with the Mantias and held that Shafer was precluded from recovery under both breach of contract and quantum meruit.  Unhappy with the prospect that it would be completely unable to recover any of the $38,000 it was still owed, Shafer appealed.

Fortunately for Shafer (and unfortunately for the Mantias) the Superior Court of Pennsylvania reversed the trial court’s dismissal of the plaintiff’s claims.  The court pointed out that, even under HICPA’s strict requirements and consequences:

Nothing in this section shall preclude a contractor who has complied with subsection (a) from the recovery of payment for work performed based on the reasonable value of services which were requested by the owner if a court determines that it would be inequitable to deny such recovery.

Subsection (a) lists all the requirements of a valid contract, including that it must be in writing, signed by all the appropriate parties, contains “the date of the transaction,” and describes the work to be performed, amongst many others.  In essence, so long as the contract itself is valid, an unlicensed subcontractor may still have other avenues of recovery despite violating HICPA.

The court held that even without a “valid and enforceable contract” under Pennsylvania law Shafer could still recover under the section quoted above using the doctrine of quantum meruit.

The Superior Court cited its own opinion released a year ago in Durst v. Milroy General Contracting, Inc. to bolster its holding.  In Durst an unpaid contractor was able to recover under the quantum meruit doctrine even though the work it performed was based on an oral contract.

Lessons from Mantia

While the court’s holding in Mantia may be a relief to unpaid subcontractors and contractors in Pennsylvania who are in violation of HICPA, one must wonder what the point of the Act is if unpaid parties still have other avenues to recovery even if they have not followed the law.  In other words, do the holdings in Mantia and Durst defeat the purpose of the HICPA entirely if unpaid parties can still recover even with an invalid and unenforceable contract.

Perhaps the blame for such an illogical conclusion isn’t with the courts but rather with the legislators that included the “savings clause” (“nothing in [HICPA] precludes a contractor … from the recovery of payment for work … if a court determines that it would be inequitable to deny such recovery”) to begin with.  Certainly HICPA provides other protections to homeowners – such as the right to rescind a valid contract within three days of signing – but if the major purpose is to prevent unlawful contractors from getting paid, this extra provision makes no sense.

Until Durst and Mantia are overturned, if ever, even without a valid contract under Pennsylvania’s Home Improvement Consumer Protection Act, unpaid subcontractors and contractors can still recover using quantum meruit.

Written by Elliot Singer See original article at Mechanics Liens and Pennsylvania’s Home Improvement Act Originally posted on the LIEN

The construction industry is complex and you juggle so much as a credit professional. It’s not an accident that the construction industry boasts some of highest failure rates of any other business sector, and that building suppliers have some of the lowest profit margins of all industries. Getting paid in the construction industry is hard, as is understanding how to succeed as someone controlling the money going in and out of these businesses.

Plus, there is simply no quality training out there for credit professionals, credit managers or controllers. This publication is dedicated to this problem.

In addressing the issue, we’ve published over 1200 articles and 575,000 words that help our readers understand credit management, credit risk and mechanics lien security options in the construction industry. Who has time for that?!

Our authors have combed through our materials and created a six week email course titled: 6 Weeks To Success As A Credit Manager.  The course combines our blog’s content with content exclusive to the email course, and organizes it in a systematic and simple way to help you understand and implement effective credit management strategies.

What You Can Expect

Sign up for our email course and ou’ll receive two emails per week for six weeks going through high level information about finding success as a credit professional in the construction industry.   The email course will also include:

• Free sample credit policies, credit applications, joint check agreements and mechanics lien policies
• Access to high-impact ebooks on credit management and credit practices
• Ongoing email newsletter
• An organized reference guide to the “best of the best” that’s appeared on our blog over the years, and how it all fits together

Free Registration

Bringing It All Together – Why You’ll Benefit

Over the years, we’ve published a lot of resources and information through this blog that has helped hundreds of thousands of readers (yes, hundreds of thousands). Since our commitment to quality is so high, every resource and article is written and edited by licensed attorneys with specific experience in construction law, corporate credit management laws and mechanics lien / bond claim instruments.

The topic being tackled, however, is huge.  That’s why we have nearly 600,000 written words. So, how do you wade through all of this information and make any big picture sense out of it?

That’s the point of this six week course. We take the best of our content and resources and organize it for simple and systematic reading that shows you how it all fits together.

Consider this email course an opportunity to be personally trained by a team of legal and business credit experts over a six week period. When you’re through, you’ll understand what separates great credit professionals from the merely good, and you’ll have the resources to succeed.

Written by Scott Wolfe Jr See original article at Credit Management: 6 Week Course To Success As A Credit Professional Originally posted on the LIEN

Suppliers to Suppliers Do Not Have Indiana Mechanics Lien Rights

Contractors, subcontractors, suppliers to prime or sub contractors, laborers, and equipment lessors are all eligible to file an Indiana mechanics lien. Unfortunately, though, as is the case in many states, suppliers to suppliers do not have mechanics lien rights in Indiana.

Deadline to File Indiana Mechanics Liens Depends on Project Type

There are different deadlines to file an Indiana mechanics lien depending on the nature of the project. Indiana mechanics lien law states there are 3 different types of project: residential projects (1-2 units), state regulated utilities projects (heat, light, water, power) and all other projects (commercial or industrial). For residential projects the deadline to file a mechanics lien in Indiana is 60 days from the last date that services or labor were provided. For all other projects, the lien must be filed within 90 days of the date that services and labor were last provided.

Preliminary Notice is Required For Residential Properties (1-2 Units)

Preliminary notice is never required for a general contractor directly in contact with the property owner. It is also not typically required of utility, commercial or industrial projects. Preliminary notice is required, however, on residential projects for project participants not in direct contract with the owner. The notice required is called a preliminary Notice to Owner of Mechanic’s Lien Rights and can be sent to the property owner via certified mail with return receipt requested. If the notice is for the repair or alteration of a property it must be sent within 30 days from first furnishing labor or materials for the project. However, if it is for original construction, the notice must be sent 60 days prior to the first day of providing labor or materials on a project. Even further, original residential construction in a subdivision or of a spec home requires that the preliminary notice be recorded at the recorders office in the county where the property is located.

An option to further secure rights includes sending a Notice to Owner of Personal Liability that works similar to a Stop Notice. Because it is not required there is no deadline by which it must be sent. It should be sent to the property owner via certified mail with return receipt requested.

An Indiana Mechanics Lien Must be Recorded and Sent to the Property Owner

A mechanics lien in Indiana must be recorded with the recorder in the county where the property is located. Once the lien has been recorded, the recorder is required to send one of the duplicate copies of the lien (provided by the lien claimant) to the property owner a copy via priority mail no later than 3 business days after recording.

A Legal Property Description Is Required for An Indiana Mechanics Lien

A legal description of the property is required by Indiana mechanics lien law. A property description can be determined legal if it is obtained from the latest entry in the transfer books of the county auditor, the transfer books of the township or county assessor at the time the lien is being filed.

Written by Scott Wolfe Jr See original article at Indiana Mechanics Lien Law: 5 Things to Know Originally posted on the LIEN

Are your receivables are a bit of an issue? Well, you are not  alone.  Too many companies are letting their accounts receivable run wild, with some invoices extending even 180 days past due!  By letting your customers go without paying, you are essentially financing their business without the benefit of collecting interest.

This post will outline steps you can take to eliminate invoices more than 60 days overdue, and collect on virtually all outstanding receivables.  Ready?

Creating Your Accounts Receivable Policy

First, you will need to establish your terms for your customers (net 30, net 45, net 60, etc.) and send the invoice on the day that you finish working on the project (or the day that you last delivered materials).  Then you must identify your state’s lien deadline based on your role in the project:

- Go to Zlien’s Resources Page

- Pick your state from the map

- Note the notice and lien requirements for your role in the project (General Contractor, Sub-Contractor, Material Supplier)

Then pick a number of days between your payment terms and the lien deadline where you will file a lien. For example, if you are giving net 30 terms to your customers, and the state where the project is located gives you 90 days to file a lien from the last date you delivered labor or materials; a good recommendation would be to set the date you file the lien at 60 days after the invoice was issued (halfway between 30 and 90).

Lastly, file a lien on the property if you have not been paid by the deadline you set (60 days after the invoice was issued in the example above).

Once you have filed the lien on the property, you can remove the invoice from your accounts receivable report and focus on getting paid!

Use Zlien to File Your Liens!

In our experience, filing a lien results in payment about 60% of the time without any further action.  And the easiest way to file a lien is by using Zlien.

To recap:

1. Establish payment terms for your customers.

2. Identify your lien deadline

3. Set the a personal deadline when you will file a lien

4. If you havent’ been paid by the deadline you set, use Zlien to file a lien.

5. Get paid!

Note: Every State has different laws for protecting your lien right.  Use Zlien’s resources to make sure you are complaint, and always file a preliminary notice to eliminate the risk of not getting paid.

Written by Martin Roth See original article at How To Eliminate Overdue Accounts Receivable Originally posted on the LIEN