Help in Getting Paid â Ohio's Mechanics' Lien Law - Frost Brown Todd
Help in Getting Paid â Ohio's Mechanics' Lien Law - Frost Brown Todd
Help in Getting Paid â Ohio's Mechanics' Lien Law - Frost Brown Todd
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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>.