Mechanic's Lien Law Changes in Effect for First Week in CA


A number of states have made small yet important changes to their mechanic’s lien statutes in the early weeks of the summer of 2012. However, the biggest construction-based buzz centers on the slew of changes in California, with the majority of them taking effect July 1.

In California, like in DC in early June, changes went into effect that loosened lien requirements allowing them to now be filed prior to the completion of a project, noted Greg Powelson, director of NACM’s Mechanic’s Lien and Bond Service (MLBS). While no specific alteration was earth shattering, the combination is important and ones “we all need to digest,” as Powelson characterized them.

“The reality is it’s a bunch of small changes, but credit managers who are not up to speed on the changes could lose their rights. In California, they think their change was a big deal because the entire statute was re-codified on July 1,” he said.

A list of changes in California, as well as new wrinkles in Washington, DC; Indiana and Iowa are available in this week's eNews and, in even more detail, by visiting MLBS' web site at http://www.nacm.org/construction-liens-mlbs.html.


-Brian Shappell, CBA, NACM staff writer

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