Alabama

Alabama Construction Lien

Alabama 

 

Alabama Private Projects
Notice Req.
Intent to Lien
Lien Req.
Prime Contractor

Not Required

Not Required to send Intent to Lien Before Filing a Lien

Record mechanic’s lien known in the state of Alabama as “Statement of Lien,” six months (6) months after last day of furnishing labor or material.

File Suit on the “Statement of Lien” “within six (6) months after the maturity of the entire indebtedness secured” generally this means the last day of furnishing labor or material.

Sub Contractor

In order to secure lien rights, Subcontractors and Laborers should send a “Notice to Owner (Unpaid Balance Lien)”

Not Required to send Intent to Lien Before Filing a Lien

Subcontractors- Record mechanic’s lien known in the state of Alabama as “Statement of Lien,” Four (4) months after last day of furnishing labor or material.

Laborers- Record mechanic’s lien known in the state of Alabama as “Statement of Lien,”Thirty  (30) days after last day working on the project.

File Suit on the “Statement of Lien” “within Six (6) months after the maturity of the entire indebtedness secured” generally this means the last day of furnishing labor or material.

Suppliers/Other

A “Notice to Owner (Prior to Performance)” notice is required BEFORE materials are furnished to the property. A “Notice to Owner (Prior to Performance)” provides the most protection in securing lien rights.

If the “Notice to Owner (Prior to Performance)” notice is not sent before materials are shipped you may send another type of notice called, “Notice to Owner (Unpaid Balance Lien)” This only time requirement is to send the “Notice to Owner (Unpaid Balance Lien)” before a “Statement of Lien” is recorded. This notice allows the owner to make decisions and pay suppliers accordingly so that the property is not liened.

Not Required to send Intent to Lien Before Filing a Lien

Record mechanic’s lien known in the state of Alabama as “Statement of Lien,” Four (4) months months after last day of furnishing labor or material.

File Suit on the “Statement of Lien” “within Six (6) months after the maturity of the entire indebtedness secured” generally this means the last day of furnishing labor or material.

Alabama

Notice to Owner-Prior to Performance, Unpaid Balance Lien, Statement of Lien

 

 1. Does Alabama require a Notice to Owner-Prior to Performance if I am a MATERIAL SUPPLER?

It is not requirement to send a Notice to Owner-Prior to Performance HOWEVER

By sending a Notice to Owner-Prior to Performance you significantly increase the rights as a lienor. This Notice to Owner-Prior to Performance secures the lien right to a “Full Price lien” if you are a material supplier.

SECURE YOUR LIEN RIGHTS by sending a Notice to Owner-Prior to Performance NOW!

If you are a subcontractor or supplier you can always send the Notice to Owner-Prior to Performance as a collection tool however it will not provide you the rights to a “Full Price Lien”.

 

2. If I don’t have a direct contract with the owner do I have any rights?

Yes, “Unpaid Balance Lien” This lien is available to those who do not have a direct contract with the owner and where no advance notice was given, such as the Notice to Owner-prior to performance. This is not a lien this is only an “after the fact” notice.  There is not time requirement to send this notice before or during the job.

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3. Who does the Full Price Lien apply to?

“Full Price Lien” which is in favor of the materialman and those that have a direct contract with the owner of the property. Remember if you do not give prior Notice to Owner-Prior to Performance and you are a materialman you will not have the rights to a “Full Price Lien.”

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4. When is my last day of work so that I can file a lien to get paid?

Subcontractors and Suppliers must file within 4 months after the last item of work has been performed or material has been furnished.

Laborers must file the Statement of Lien within thirty 30 days of the last provided labor on the job.

Original contractors must file within 6 months after the development of the entire debt secured by the lien.

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5. Are you a surveyor or a supplier to a suppler? 

Surveyors, suppliers to suppliers, and, in most instances, design professionals, are not protected.

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6. What costs or damages made are not generally allowed in a lien claim?

Interest is recoverable at the rate provided for by the contract between the parties or at the maximum rate allowed by Alabama law.  Attorney fees are recoverable only if provided for by the contract between the parties.

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7. What is the deadline to start a lien foreclosure?

Any action for the enforcement of a lien must be commenced within 6 months after the maturity of the entire indebtedness secured by the lien.

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Alabama State Projects
Notice Requirements
Lien Requirements
Prime Contractor

Not Required

Not Required

Suppliers/Other

Not Required

Before filing a suit, a Notice of Bond Claim must be filed with the surety in 45 days. All suits to enforce must be filed within 1 year from final settlement of the contract.

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