Once a contractor finishes a project, the next step is typically getting paid for the job. As most of the construction industry is aware, if you are facing a situation where you are having trouble getting paid for the job, the Private Works Act (PWA) provides clear instructions for protecting your claims in the event of this situation. To view the second half of this article, please visit Part 2.
A Private Work Act will allow a contractor to lien a property to secure their right of payment. However, as Bradenton construction lawyers, we are aware that many people do not know that there are very clear limitations on this protection of rights. In this article we will be discussing one of these limitations, the requirement of filing a notice of contract for specific projects. The notice of contract filing is vital because the filing date will decide the time period in which a contractor can file a lien (depending on the amount of the contract).
What is the Notice of Contract?
To help define the notice of contract, we will use an example of a homeowner and a contractor executing a contract. To make certain that both parties will later be able to protect their claims, it is necessary for a notice of contract to be filed with the mortgage office in the city where the work is being done.
There is certain information that is required to be included in the notice of contract:
- The signatures of both the contractor and the owner
- The legal property description where the work is being performed
- The price
- When the payment of the price is to be made
- A description of the work that needs to be done
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.