Under Washington law, prime contractors perform construction for consumers, while speculative builders construct on property they own. The differentiation between these classifications is important because prime contractors are subject to Washington’s business and occupation (“B&O”) tax and retail sales tax, while speculative builders are not. In Lanzce G. Douglass, Inc. v. Department of
New Washington Case Strictly Construes Lien Statute and Rejects Warranty Work as Basis to Extend Lien Filing Period
In its March 11, 2021 opinion, Division Three of the Washington Court of Appeals considered whether the 90-day period to record a claim of lien is extended by a contractor performing work after substantial completion to correct nonconforming work – usually referred to as “warranty work.” In the case of Brashear Electric, Inc. v. Norcal Properties, LLC, the Court strictly construed the statutory term “repairing” to exclude the contractor’s correction of its own work and rejected the notion that warranty work extended the 90-day timeframe to file a lien claim.
Norcal Properties, LLC (“Norcal”) and Blue Bridge Properties, LLC (“Blue”) own adjacent properties. Norcal and Blue separately contracted with Vandervert Construction (“Vandervert”) to construct a building on each property. The prime agreements’ substantive provisions were identical. Vandervert subcontracted with Brashear Electric, Inc. (“Brashear”) to work on both projects.
Under the prime agreements, Vandervert promised to correct nonconforming work up to a year after substantial completion. Vandervert’s subcontracts with Brashear required Brashear to assume the prime agreements’ warranty provisions.
Washington Court of Appeals Provides Guidance Regarding Frivolous and Excessive Lien Claims Against Condominium Projects
Recently, Division One of the Washington Court of Appeals issued an opinion providing guidance regarding the scope of Washington’s frivolous lien statute and the subtle intricacies of preparing and filing a construction lien against a condominium project. This article provides a high-level overview of how to file a lien against a condominium project in Washington