Lien Law Update April

Monthly Lien Law Update: Lien laws keep changing as they become more important as a payment protection

April Monthly Lien Law Update

Lien laws keep changing as they become more important as a payment protection.

Oakland Raiders may lose bet on Las Vegas Stadium

Merrill Steel filed a $278 million-dollar mechanics lien against the Oakland Raiders and Clark County for money owed for steel fabrication work. It appears the $2 billion-dollar project suffered a few setbacks that led to the non-payment to the steel fabricator. First, the project suffered almost $100,000,000 in cost overruns. Second, Clark County was financing a portion of the stadium project through a Stadium Hotel Tax. The revenue from the tax has fallen short of projected estimates. Attorneys for Merrill Steel are currently working with the Las Vegas Stadium Authority to find a resolution to the debt owed by the Raiders and Clark County for the stadium work.

Saskatchewan follows Ontario to modernize construction lien laws

Since 2015 Ontario has created a committee to research and find the best ways to improve construction lien laws, prompt pay statutes, and the adjudication process for construction payment issues. The committee’s finding produced a bill which went into effect July 1, 2018 which greatly improved the laws protecting payments to contractors.  Saskatchewan followed suit, creating Bill 152 which follows in detail the laws put in place by Ontario. It will not be known whether the bill will pass until late 2019 but could be law as early as January 2020. For details on the law’s impacts, review the article below and consult a local lien lawyer for guidance.

Texas doesn’t give up on improving mechanic’s and materialman’s lien laws

If you do construction work in Texas, you may want to pay attention to a few bills in this year’s Texas legislative session. HB 598 revamps Chapter 53 of the Texas Property Code by creating a web-based system for filing liens and changing notice and posting deadlines. While the intent is to simplify the existing and difficult system, opponents argues this bill would make filing more difficult. Other construction industry related bills to keep an eye on include HB 1152 which would add building materials and construction tools to a list of essential items, and therefore open construction companies open to liability, which cannot be priced exorbitantly during or after times of crisis. Finally, stay aware of HB 750 and SB 163 which may make worker’s compensation insurance mandatory for all Texas contractors and subcontractors.




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