SB 595

Current law allows a person who provides services or goods to improve land,

such as building a home, to have a claim against the land owner for the person's cost

of providing the services or goods (a construction lien) if the person follows certain

procedures, including providing notice of the claim to the owner. The person can then

file a construction lien with the clerk of circuit court, who is required to keep a

judgment and lien docket.

Currently, the notice requirement does not apply if a person provides services

or goods for an improvement to land that is wholly residential in character and

involves more that four family living units, or is partially or wholly nonresidential

(a commercial project). In addition, certain other persons are not required to give

notice of his or her claim to the land owner to maintain the right to a construction

lien, including a person other than a prime contractor who works on an improvement

on which the prime contractor is not required to give notice.

This bill limits those who do not have to give notice of his or her claim to

maintain the right to a construction lien for a commercial project to prime

contractors and other claimants who have a contract with the prime contractor.

Currently, those persons who are not prime contractors and who are required

to give notice to the land owner to maintain the right to a construction lien must serve

the written notice on the owner or authorized agent within 60 days after providing

the first services or goods.

This bill continues that requirement if the improvement involves four family

units or fewer and is wholly residential in character. However, under the bill, if the

improvement involves a commercial project, the persons who are required to give

notice of a claim to maintain the right to a construction lien must serve the written

notice on the owner or authorized agent within 45 days after providing the first

services or goods.

Currently, no action may be maintained to enforce a construction lien unless the

lien claimant files a claim for the lien with the office of the clerk of circuit court within

six months from the date that the services or goods were last provided and then

commences an action within two years of filing the claim. Current law requires the

lien claimant to notify the owner of the land that he or she intends to file the claim

for a lien. The lien claimant is also required under current law to serve a copy of the

claim for a lien within 30 days after the filing of the lien claim.

Under this bill, after the lien is filed, the land owner or any other interested

party may serve the lien claimant with a written demand that the lien claimant bring

an action to determine the validity of the lien. Under the bill, if the lien claimant fails

to bring that action within 90 days after being served with the demand, the lien is

forfeited.

Under current law, certain contract, payment, and performance assurance

requirements exist for contracts involving public improvements and public works.