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Lien Rights of Subcontractors in Arizona, Florida, Michigan, South Carolina and Washington

Author: LegalEase Solutions 

Introduction

Our client, who is a subcontractor, provides commercial construction and renovation services to general contractors. He would like to ensure that the work he performs under a contract to the general contractor is protected in the event of the contractor’s non-payment. The client requires research on the statutes governing the lien rights of subcontractors and template documents from the six jurisdictions of Arizona, California, Florida, Michigan, South Carolina, Washington, incorporating applicable deadlines or lien rights.

Discussion

When a subcontractor is hired to work on a project, he generally does not have a direct contract with the owner of the project. The general contractor will be the only person aware of the subcontractor’s presence on the project. Because of this, until and unless the owner of the project is made aware of the subcontractor’s presence he remains unknown to the owner of the project. It is the owner’s responsibility to make sure that everyone on a project is paid, including all subcontractors. The only way the owner can do this is if he knows who the subcontractors on the project are. The subcontractor wants to guarantee his work payment in the event of non-payment by the general contractor. This can be enforced through a construction lien, otherwise known as mechanic’s lien in some states.

The main document required to be filed by the subcontractor, in the six states, in order to ensure his lien is a notice and claim of lien.  California and Arizona additionally require the filing of a 20 day notice, while the other states do not have such a requirement.  Additionally, most states require a notice of furnishing and/or notice of completion to be filed.  Even though the names of these documents vary in the respective states, their purpose remains the same.

ARIZONA

Attached templates: Preliminary 20 day notice (corporation), Preliminary 20day notice (individual), Notice of completion (corporation), Notice of completion (individual), Notice and of claim of lien(corporation), Notice and claim of lien(individual).

Attached statutes   : A.R.S. §  33-992.01  (2006), A.R.S. §  33-993  (2006).

Procedure               :Attached.

CALIFORNIA

Attached templates: Preliminary 20 day notice, Lien Claim Form,  10 day stop notice.

Attached statutes  : Cal Civ Code §  3097 (2005), Cal Civ Code §  3098 (2005);

Cal Civ Code §  3117

FLORIDA

Attached templates: Notarized statement of commencement, Request for sworn statement, Sworn statement of account, Notice to owner form, Notice to contractor form, Notice of bond, Notice of contest of payment, Lienors request for sworn statement from owner, Notice of contest of lien form, Contractors final affidavit, Certificate of payment of lien, Claim of lien form.

Attached statutes   : Fla. Stat. §  713.13 (2005),Fla. Stat. §  713.08 (2005), Fla. Stat. §  713.06 (2005), Fla. Stat. §  713.16 (2005) Fla. Stat. §  713.16 (2005)

Procedure              : Attached.

Notice of completion is called sworn statement in Florida.

MICHIGAN

Attached templates: Notice of commencement (corporation), Notice of commencement (individual), Notice of furnishing (corporation), Notice of furnishing (individual), Demand of payment of unpaid amount (corporation), Demand of payment of unpaid amount (individual), Claim of lien (corporation), Claim of lien (individual).

In Michigan notice of completion is called a sworn statement

Attached statutes   : MCLS §  570.1108 (2005), MCLS §  570.1109 (2005) MCLS §  570.1110 (2005), MCLS §  570.1111 (2005)

Procedure              : Attached.

SOUTH CAROLINA 

Attached templates: Notice of commencement (corporation), Notice of commencement (individual), Notice of furnishing (corporation), Notice of furnishing (individual),Statement of account(corporation), Statement of account (individual), Contractor’s affidavit to payment of subcontractor’s, Contractors final affidavit of payment to subcontractors, Lien notice.

Attached statutes   : S.C. Code Ann. §  29-5-23  (2005), S.C. Code Ann. §  29-5-20  (2005), S.C. Code Ann. §  29-5-40  (2005); S.C. Code Ann. §  29-5-90  (2005)

Procedure              : Attached.

WASHINGTON

Attached templates: Notice to owner (corporation), Notice to owner (individual), Notice of furnishing of professional service (corporation), Notice of furnishing of professional service (individual), Claim of lien (corporation), Claim of lien (individual).

Attached statutes   : Rev. Code Wash. (ARCW) §  60.04.031  (2005), Rev. Code Wash. (ARCW) §  60.04.091  (2005)