Blog, Construction Law
Construction Projects and Surety Bonds
We often counsel consumer and commercial clients on property rights. Often, those discussions begin with a primer on property law. This blog entry breaks down construction projects and surety bonds. In three prior entries we discussed types of ownership estates as well as the method of ownership, then the forms of deeds, mortgage rights and responsibilities and finally mechanic’s liens. If you find these articles helpful, or if you have additional questions, please don’t hesitate to contact us. Indiana does not require payment bonds to be posted on private projects, although some municipalities require surety bonds to secure against code violations. Conversely, public bonds do require surety bonds. If a bond is posted the deadlines for filing a claim and filing suit will be outlined in the bond. It is also essential that regardless of the statutory deadlines, you should always read the bond. If the bond enlarges these time periods, the deadlines in the bond will control. Public projects There are four different types of public projects in Indiana. It’s important to know which type of project you are working on so that you are aware of your statutory rights and obligations. The four types of projects are: a. Title 4 State Projects – Indiana Code §4-13.6-1-1 et seq. Title 4 projects are Indiana state public works projects solicited by the Indiana Department of Administration, the Public Works Division. Unless the bond provides for a greater period of time, a claimant must file a claim with the Public Works Division and the surety within 60 days…
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Don’t Forget to File Your Mechanic’s Lien
Timely filing your mechanic’s lien is important as it may make the difference in receiving payment before other creditors or being relegated to the end of the line. It will also allow you to recover your attorneys’ fees if your contract does not already have a clause allowing recovery of fees. You will forfeit your lien rights if you miss the filing deadline by even one day. In Indiana, there are two different deadlines to keep in mind depending on the type of project you are working on. If you are working on a project that involves a commercial or industrial project and regulated public utilities you must file your mechanic’s lien notice within 90 days after last performance of labor or furnishing materials to the project. If your project involves a single or double family dwelling, the mechanic’s lien notice must be filed within 60 days after last performance of labor or furnishing materials to the project. See Ind. Code §32-28-3-3. Once expired, the time cannot be revived by doing incidental work on the project. The lien must be based upon work that was required under the contract. Other work performed gratuitously or for work not contemplated by the original contract will not extend the time for filing your mechanics lien. Also, keep in mind that a mechanic’s lien is recorded when the lien is file stamped by the recorder’s office, not when the lien was mailed. Ind. Code §32-28-5-5. Therefore, if the deadline is fast approaching, walk the lien over to the recorder’s office in person. If you have not…
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Did you know…?
A clause in a contract for construction in Indiana that makes the contract subject to the laws of another state, or requires litigation or arbitration in another state is void in Indiana as against public policy. Ind. Code §32-28-3-17
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