(as
published in the Western Business Journal, Summer, 2005)
Montana contractors are often involved in Wyoming construction projects. Accordingly, contractors performing work in Wyoming need to be aware of the legal formalities associated with filing construction liens.
A construction lien is utilized to secure payment for work performed on, or materials provided for, improvements to real property. In Wyoming , a construction lien must arise from a written contract. If properly filed, a construction lien attaches to the improvement, as well as the realty where the improvement is located.
A construction lien is a creature of statute. Therefore, a construction lien will not be enforceable if a Montana contractor fails to substantially comply with specific statutory requirements. To that end, this article encapsulates the main steps required to file construction liens in Wyoming .
There are seven general steps for properly filing construction liens in Wyoming . First, the Montana contractor needs to follow certain preliminary notice requirements. If the project is residential, the contractor must provide the property owner with written notice that the furnishing of materials may result in a construction lien. For commercial projects, the contractor must provide notice of its lien right to the prime contractor within 60 days after providing services or materials.
Second, a contractor must give written notice to the property owner within 10 days before filing a lien. Third, the contractor must draft a statutorily compliant lien statement.
Fourth, the contractor must file the lien statement in a timely manner. Contractors must file within 120 days after work is substantially completed. Subcontractors must file a lien statement after the last day the subcontractor performed work under the direction of a contractor. Fifth, the contractor must file a notarized lien statement with the county clerk in the county where the project is located.
Sixth, after the lien statement is filed, the contractor must provide notice of the filing to the property owner by certified mail. Finally, a contractor needs to foreclose its lien within 100 days of filing the lien statement.
As can be surmised by this article, filing construction liens can be complicated. As such, the Moulton Law Firm recommends that Montana contractors consult an attorney prior to filing liens in Wyoming .
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