Tag: States

A lien waiver is a legal document that relinquishes a party’s right to claim a lien on a property or asset. It is commonly used in construction projects, where subcontractors or suppliers may have a right to place a lien on the property to secure payment for their services or materials. By signing a lien waiver, these parties agree to waive their right to file a lien against the property in exchange for payment or other consideration.

Contractors are prohibited from filing mechanic’s liens on public projects like highways, schools or fire stations, as this would lead to public real estate foreclosure. Instead, they are offered alternative security in a performance bond as a guarantee against the failure of the other party to meet the contract obligations. Why it matters: Understanding the prohibition of mechanic’s liens on public projects and the role of performance bonds is important for contractors to secure their financial interests and ensure fulfillment of contractual obligations.

Arbitration is an alternative dispute-resolution process that uses a neutral third party to make a binding decision. Disputes are inevitable in any business or partnership, but most do not expect future litigation against the other party. However, in the construction industry, the average value of disputes in North America increased by 42% in 2023, according to a report from Arcadis. And 70% of construction projects end up with claims.

In response to global conflicts, the U.S. and its allies have increased economic sanctions and enforcement measures against various countries. Businesses can minimize their exposure to these changes by regularly monitoring sanction updates, understanding applicable laws, integrating sanctions compliance into regulatory processes and strengthening Know-Your-Customer (KYC) policies. Why it matters: The noticeable surge in, attention to and enforcement of international trade requirements and regulations underscore the need for credit managers to stay vigilant and be aware of potential …

Housing starts rose to a 1-½-year high at 14.8% in November. According to a mid-December report from the U.S. Department of Commerce, permits for future construction of single-family housing in November increased to the highest level since May 2022.

A mechanic’s lien is a tool to secure payment across all states. However, each state has adopted their own unique set of rules or statutes which must be followed to preserve and protect rights. Nearly 10 years ago, statute laws in Iowa changed, developing a registry for filing preliminary notices on residential projects.

In the intricate world of construction and property development, the mechanic’s lien serves as an essential legal tool, safeguarding the interests of those who contribute labor or materials to a project. The absence of such a tool is a loss of legal protection for contractors, subcontractors and suppliers ultimately leading to larger losses for all involved. Cleveland Brothers Equipment Company is facing that fate in a mechanic’s lien case that has been appealed to the Pennsylvania Superior Court, and the issue to be decided is whether equipment rental companies will continue to have rights…

For the past several years, a number of Chapter 11 debtors, typically with significant mass tort exposure, have used a bankruptcy strategy known as the “Texas Two-Step” to resolve mass tort liability in a bankruptcy forum while shielding their operating businesses from the direct impact of bankruptcy.

Escheatment is a legal process by which unclaimed or abandoned assets, typically financial assets like bank accounts, uncashed checks, or securities, are transferred to the government. This occurs when the rightful owner of the property or funds cannot be located or identified after a specified period, known as the dormancy period. The account or property can be reclaimed if someone emerges with a legal claim, but reclamation is generally subject to a statute of limitations. Statutes not only vary by state, but by property type with costs that continue to increase.