Why Understanding Liens is Important
Construction liens are a critical aspect of the construction industry, providing security for those who contribute labor, materials, or services to a project. Understanding construction liens is essential for disparate parties involved in private construction since liens, as security interests, can significantly impact payment rights and property title. Ignoring lien
Expired construction liens can create unexpected headaches for property owners, even after they are no longer enforceable. These liens, while initially protecting contractors and suppliers, can linger in the property records and complicate transactions like sales or refinancing. Different states have varying processes for clearing these expired liens from the chain of title, ranging from
The new RCW 39.04.360, effective June 6, 2024, outlines protections and payment assurances for contractors, subcontractors, and suppliers involved in public and private construction projects in Washington. This statute mandates timely issuance of change orders for undisputed additional work, imposes interest on delays, and clarifies the rights of aggrieved parties to seek appropriate relief, including
Construction project owners, contractors, and design professionals sometimes fall into the trap of not giving careful consideration to the risks specific to a given project and will wait until an actual dispute arises before closely analyzing the dispute resolution provisions in a design or construction agreement. In my latest article in the Daily Journal of
Here are some useful basics if you have a dispute that may be headed to court for resolution.
Bringing a construction project to fruition involves significant risks to project owners, designers, and contractors. Many of those risks will be allocated in the parties’ contracts, in turn requiring those parties to obtain insurance and further allocating risks to insurance companies. Several commonly used insurance policies are at the heart of any construction project insurance
In a case of first impression in Washington, the Washington State Supreme Court held that a landowner may satisfy its duty to guard an invitee “against known or obvious dangers on the premises by delegating the duty of protection to an independent contractor.” Eylander v. Prologis Targeted U.S. Logistics Fund, LP, 539 P.3d
Purchase agreements for construction, development, or real estate-related projects frequently offer parties the option of early mediation for settling a dispute before proceeding to arbitration or court litigation. While in my experience early mediation sessions tend to fail, additional mediation sessions held months later have a better chance of succeeding. In my latest column for
Washington’s construction lien statute, RCW 60.04, balances the interests of persons performing work to improve real property with the interests of property owners in avoiding the necessity of paying for the same work twice. An unpaid contractor can assert a lien against property it has improved, but the owner has a right to notice that the work is taking place. On commercial projects, a contractor that is not under contract with the owner or prime contractor (a “lower-tier” subcontractor) usually must give a pre-claim notice to the owner to preserve its lien right. A contractor supplying only labor is expressly exempt from this requirement, though there has been some question regarding whether a lower-tier subcontractor providing both labor and materials is subject to the notice requirement.
The glue that holds together a construction project—an undertaking that can be massive, with millions of dollars at stake and the coordination of thousands of people required—is the construction contract, the primary purpose of which is to provide a path for parties to apportion the risk involved in any construction at the front end of