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"Utah Mechanics Liens" Posts

Protecting Lien Rights on Retail Projects

When contractors and suppliers do work on retail projects, contractors and suppliers can be faced with certain complex problems that you need to make sure that you are aware of in order to fully protect you and enforce your rights.
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Liens for Maintenance and Snow Removal

In Utah, lien rights are limited to work which is done for the alternation, repair, or improvement of property.  Often, landscape contractors and others who do maintenance work want to file liens for the work that they have done.  Since maintenance work does not qualify for liens, nor does snow removal, we often have contractors call and ask whether they can get paid for maintenance work.  Of course, the answer is: no.  But, even though a construction lien cannot be used for maintenance or snow removal, a judgment lien can. 
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Difference Between a Construction Lien and Judgment Lien

Now that contractors and suppliers are required to file preliminary notices in the State Construction Registry to have construction/mechanics lien rights, I am frequently asked by contractors who do service work or other work directly for owners, whether they should file a preliminary notice for every job.  Since many of these jobs are of relatively small value, the administrative costs of filing a preliminary notice for each job can be significant.  Therefore, one of the recommendations I make is to use the judgment lien process rather than the construction lien process. 
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2014 Utah Construction/Mechanics Lien Legislation

A committee of various construction groups, lenders and title companies met throughout the interim to address issues relating to the State Construction Registry and Utah mechanics lien/construction lien law.  As a result of these meetings there will be legislation in the 2014 General Session which will change the process for closing construction loans.
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Utah Construction Lien Laws: Lien Legislation 2013

On Monday, February 11, 2013 a committee of representatives from the Construction, Banking and Title Industry met to discuss changes to the State Construction Registry and other Lien and Bond laws.  As a result of the discussions, changes are going to be made to the operation of the Utah State Construction Registry for allowing Banks to payoff Preliminary Notices which have been filed before a Construction Loan has closed.  Additionally, since the State Construction Registry fails to adequately provide for operation of projects where multiple parcels are included in one project or where one parcel includes multiple projects, changes will be made to the State Construction Registry to allow General Contractors and Banks to know and understand the specific Preliminary Notices applying to individual construction projects and to be able to manage their risks appropriately.
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Utah Construction Lien Laws: 2013 Construction Legislation

Currently, there are a handful of bills being considered by the Utah Legislature which affect the construction industry.  The first is House Bill 277 Building Code Amendments which is adoption of the 2012 International Building, Plumbing and other codes.  This bill is based upon recommendations to the international building codes by the Utah building code commission and was approved by the interim business and labor committee during the interim session. 
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Utah Lien Laws: Utah State Construction Registry (SCR) Programming Changes

On Wednesday, January 9, 2013 I met with Tom Harper the Director of the Utah State Construction Registry at DOPL, and with Ray Walker to discuss the programming changes for parcel numbers in the SCR.  The purpose of the discussion was to understand the reasons why Utah Interactive changed the SCR website to require that tax property ID numbers be put in according to a specific format.  Based upon the information in that conversation, it appears that there have been concerns about the quality of parcel number information coming into the State Construction Registry and in order to try and facilitate more accurate searching and more accurate input of the numbers, DOPL and Utah Interactive decided to require formatting according to fixed formats from the various counties.  As a result of these changes, parcel numbers must follow the formatting requirements which the counties provided to DOPL and Utah Interactive. 
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Utah Construction Lien Laws: Recent SCR Changes

Recently, there have been some changes to the State Construction Registry regarding the entry of parcel numbers.  Multiple Tax Parcel ID’s are still separated by a comma, but now there can no longer be a space in between the comma and the next Tax Parcel ID.  Also, in the counties which have standard formatting, the dashes or colons are now required to be included in the Tax Parcel ID.  Also, you can no longer put “Unknown” or other words as the Tax Parcel ID, rather if you are filing on a public project you need to link to a Notice of Commencement or include a Tax Parcel ID. 
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Difference Between a Construction Lien and Judgment Lien

Now that contractors and suppliers are required to file preliminary notices in the State Construction Registry to have construction/mechanics lien rights, I am frequently asked by contractors who do service work or other work directly for owners, whether they should file a preliminary notice for every job.  Since many of these jobs are of relatively small value, the administrative costs of filing a preliminary notice for each job can be significant.  Therefore, one of the recommendations I make is to use the judgment lien process rather than the construction lien process. 
read more

Liens for Maintenance and Snow Removal

In Utah, lien rights are limited to work which is done for the alternation, repair, or improvement of property.  Often, landscape contractors and others who do maintenance work want to file liens for the work that they have done.  Since maintenance work does not qualify for liens, nor does snow removal, we often have contractors call and ask whether they can get paid for maintenance work.  Of course, the answer is: no.  But, even though a construction lien cannot be used for maintenance or snow removal, a judgment lien can. 
read more

Protecting Lien Rights on Retail Projects

When contractors and suppliers do work on retail projects, contractors and suppliers can be faced with certain complex problems that you need to make sure that you are aware of in order to fully protect you and enforce your rights.
read more

Lien and Bond Amendments for the 2013 Legislative Session

On Wednesday, August 16, 2012, the Interim Business and Labor Committee asked for comments and information about the implementation of the State Construction Registry amendment which went into effect on August 1, 2011.  The following is a list of information which was given to the Legislature by the Utah construction Suppliers Association. 
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Mechanics Lien Rights During Bankruptcy

When Bankruptcies are filed construction Creditors are often faced with difficult decisions about money they are owed and how to protect their rights.  The use of mechanics liens even when a Bankruptcy exists, or immediately prior to a Bankruptcy can be substantial to Creditors.
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