National Lien & Bond

Lien Law Update May 2020

Protect and collect

Lien Law Update May 2020

 As we all wait for life to return to some semblance of normalcy, the construction industry will be feeling the impact of the epidemic long thereafter. Every state is working towards re-opening operations which will include county clerk office’s operating again. You will need to stay abreast of when your state resumes office operations and how this will affect mechanic lien laws. For companies managing multiple projects across different states, the challenge to keep up with each state’s status will be significant, creating potential situations for uncollected receivables.

National Lien & Bond provides a central point of contact for accessing the nation’s top lien lawyers in every state.
We have launched a new program: Collect & Protect

The program has been designed to help your business collect and protect receivables in these times of uncertainty while addressing the specific challenges unique to today’s reality.

As we understand the complicated financial reality that most companies are facing today, the program has no upfront fees.

For more information on the new Protect & Collect Program you can call to find out more:

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The Liew Law Update May 2020

Pennsylvania Will Allow In-Person Construction Activities to Resume

Pennsylvania Governor Tom Wolf worked with the General Contractors Association of Pennsylvania to decide that all businesses in the construction industry may resume in-person operations starting May 1, 2020. Construction companies will be required to follow new social distancing and similar protective measures as they restart. The industry will also see a flood of consequences caused by the pandemic including delay claims, suspensions, restart cost recovery and, of course, mechanic liens for non-payment.

Pennsylvania courts suspended filing deadlines, including for mechanic liens, as the pandemic spread. Any deadlines that were paused through April will begin to run again. This means many construction companies will hit the ground running to prepare the necessary mechanic lien documents to avoid missing any notice or filing deadlines. This unprecedented event will likely result in increased nonpayment claims, so it is important to plan ahead how you will handle the increased need to file mechanic liens. Now more than ever, consulting a construction lien expert is vital to preserve your lien rights.

Silver Lining for the Aspen Project in Colorado

The Aspen Club and Spa and The Aspen Club Redevelopment Co. declared Chapter 11 bankruptcy in 2019, after starting a construction project to remodel the 40,000-square-foot Aspen Club and Spa building and construct a new 54,000-square-foot lodge. Prior to the bankruptcy filing, Aspen racked up almost $20 million in unpaid bills, most protected by timely filed mechanic liens. The pandemic delayed the bankruptcy court proceedings but, during the delay, Aspen secured new financing from EFO Financial.

EFO Financial offered Aspen approximately $140 million in financing to pay outstanding debts, restart the construction project and exit the bankruptcy proceeding. The Court will be required to approve the plan but, if approved, the outstanding mechanic lien claims will be paid, and the construction will resume. This is good news for workers and contractors and is a welcome positive story in these historic, trying times.



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