12.03.2015 Views

Help in Getting Paid – Ohio's Mechanics' Lien Law - Frost Brown Todd

Help in Getting Paid – Ohio's Mechanics' Lien Law - Frost Brown Todd

Help in Getting Paid – Ohio's Mechanics' Lien Law - Frost Brown Todd

SHOW MORE
SHOW LESS

You also want an ePaper? Increase the reach of your titles

YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.

Furnish<strong>in</strong>g on the pr<strong>in</strong>cipal contractor. The same 21-day rule for commercial projects also applies to<br />

public projects.<br />

The Notice of Commencement and Notice of Furnish<strong>in</strong>g procedures apply to residential projects, except<br />

those where the owner uses or <strong>in</strong>tends to use the property as his or her personal residence and the<br />

property is a 1 or 2 family dwell<strong>in</strong>g or a condom<strong>in</strong>ium unit.<br />

Time Limits For Fil<strong>in</strong>g <strong>Lien</strong>s<br />

Assum<strong>in</strong>g you have properly served the Notice of Furnish<strong>in</strong>g, how long do you have to file a lien? On<br />

commercial projects, a mechanics' lien affidavit must be recorded with the county Recorder with<strong>in</strong> 75<br />

days from the date on which the lien claimant last worked or furnished materials. A lien affidavit must<br />

also be served on the owner of the property with<strong>in</strong> 30 days after fil<strong>in</strong>g with the county Recorder. If the<br />

owner cannot be found, a copy of the lien must be posted conspicuously on the project site.<br />

On public projects, lien claims must be filed with the public authority with<strong>in</strong> 120 days from the last day the<br />

claimant provided work or materials on the project. To obta<strong>in</strong> priority over unrecorded claims, the<br />

claimant should also file a copy of the affidavit with the county Recorder with<strong>in</strong> 30 days after fil<strong>in</strong>g with the<br />

public authority. If the claimant is a sub-subcontractor or a supplier to a subcontractor, the claimant must<br />

also serve a copy of the lien affidavit on the subcontractor with<strong>in</strong> 20 days after serv<strong>in</strong>g the affidavit on the<br />

public authority.<br />

The time period for fil<strong>in</strong>g a lien on a residential project is just 60 days from the last date the lien claimant<br />

performed labor or provided materials. However, all lien rights on a residential project are ext<strong>in</strong>guished if<br />

the owner has paid the pr<strong>in</strong>cipal contractor <strong>in</strong> full before the owner's receipt of the lien affidavit.<br />

F<strong>in</strong>al Observation<br />

Some subcontractors and material suppliers decide not to serve a Notice of Furnish<strong>in</strong>g because they<br />

worry it might "rock the boat" and cause tension with the owner or general contractor at the beg<strong>in</strong>n<strong>in</strong>g of<br />

the project. Others just do not want to add to their "paperwork". But neglect<strong>in</strong>g to preserve your lien<br />

rights can be a big mistake. Owners and general contractors generally understand and expect that a<br />

Notice of Furnish<strong>in</strong>g will be served. The bottom l<strong>in</strong>e is that if you do not preserve your lien rights, you<br />

may f<strong>in</strong>d it much harder to get paid at the end of the project.<br />

Published <strong>in</strong> The Constructor (Allied Construction Industries/AGC-C<strong>in</strong>c<strong>in</strong>nati)Scott Gurney is Chairman of the<br />

Construction <strong>Law</strong> Group of <strong>Frost</strong> <strong>Brown</strong> <strong>Todd</strong> LLC. He can be contacted at (513) 651-6841 or sgurney@fbtlaw.com.<br />

This article is presented for educational purposes. Neither the author nor <strong>Frost</strong> <strong>Brown</strong> <strong>Todd</strong> LLC, nor their present or<br />

future clients, can be bound by the op<strong>in</strong>ions, comments and <strong>in</strong>terpretations expressed here<strong>in</strong>.

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!