Sharkitecture.NET » Mechanic’s Lien http://sharkitecture.net Study Guide for the California Supplemental Exam Tue, 27 Jan 2009 21:58:26 +0000 en hourly 1 http://wordpress.org/?v=3.3.2 How would you limit your client’s potential exposure to liens or other encumbrances on their property? http://sharkitecture.net/2009/01/how-would-you-limit-your-client%e2%80%99s-potential-exposure-to-liens-or-other-encumbrances-on-their-property-2/ http://sharkitecture.net/2009/01/how-would-you-limit-your-client%e2%80%99s-potential-exposure-to-liens-or-other-encumbrances-on-their-property-2/#comments Sun, 25 Jan 2009 05:02:13 +0000 admin http://sharkitecture.net/?p=217 By using the AIA G700-series documents, or similar documents, to properly record the contractor’s schedule of values, provide site observation to verify validity of contractor’s applications for payment, and to ensure that consent of the bond surety is secured prior to the release of any retainage or final payment to the contractor, as well as secure affidavits of lien releases from the contractor or a bond to properly protect the owner’s property in the case of any unsecured affidavits of lien releases.

Advise the owner to require labor and material payment bond to cover any lack of payment by the GC. Require the contractor indemnify the owner against any third-party claims. Affidavits of lien release can also be required with each application for payment. If the owner has reason to suspect a sub is not being paid, they can request proof of payment from the GC.

]]> http://sharkitecture.net/2009/01/how-would-you-limit-your-client%e2%80%99s-potential-exposure-to-liens-or-other-encumbrances-on-their-property-2/feed/ 0 Your office is involved in a project in which the client has not paid for your services, what would you do? http://sharkitecture.net/2009/01/your-office-is-involved-in-a-project-in-which-the-client-has-not-paid-for-your-services-what-would-you-do/ http://sharkitecture.net/2009/01/your-office-is-involved-in-a-project-in-which-the-client-has-not-paid-for-your-services-what-would-you-do/#comments Sun, 25 Jan 2009 04:44:52 +0000 admin http://sharkitecture.net/?p=208 How would your options and response change depending on the stage of the project?

Regardless of the stage of the project, the first step would be to contact the owner or owner’s representative to discuss the issue and make sure they are aware. If payment is subsequently not made, I would provide written notice that the owner has breached the terms of our contractual agreement and if payment is not received within a specified period (I would need to check the AIA B101 Owner-Architect Agreement to verify the standard period but I believe it would be 7 days) my office will stop working on the project until payment is received. If the project has been permitted but construction has not begun I would consider the use of a California Design Professional’s Lien as a remedy. If construction has begun I would consider the use of a Mechanic’s Lien or Stop Notice to secure payment. In addition to these remedies mediation, arbitration or litigation would also be potential ways of securing payment.

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