In this article we will continue to discuss the importance of notice of contract filing. As Orlando construction lawyers, we know it’s essential for contractors to have a firm understanding over notice of contract filing, because in some cases it could be what is standing in the way of getting paid. To view the first half of this article, please visit Part 1.
Who Should File a Notice of Contract?
Filing a notice of contract is important because it will be what helps in determining when the tolling period starts for filing liens. However, filing notice of contract can sometimes prove to be complicated. There are numerous parties involved that are affected by the filing of a notice of contract.
The biggest party affected by the notice is the contractor. If the contractor decides not to file a notice of contract for a project that exceeds $25,000, then the contractor will lose their rights to file a lien later. It’s crucial for a contractor to know that if they want to keep their rights given to them by the Private Works Act, on projects that total a certain amount, they must file a notice of contract before the work begins. If a contractor files a notice of contract correctly, they will have until 60 days after the filing of the notice of termination to file their lien.
When a notice of contract is filed correctly, subcontractors only have 30 days after the filing of the notice of termination to get their lien filed.
What Does This Mean?
A notice of contract is vital in deciding when a lien period ends. For example, if a notice of contract is filed correctly, but there is never any termination of work filling, a subcontractor’s lien period might go on forever. This can greatly impact the rights of the parties involved in the contract. However, the language of the Private Works Act can be extremely particular and key phrases were chosen specifically, i.e., “filing of notice of termination of work” compared to “substantial completion of work”. These are two completely different concepts, and if interchanged, can change the time period to file a lien sufficiently.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.