Who's the Owner
If the land being improved is "Public" the owner is state or county or a city (municipality).
These projects are not subject to the mechanic's lien laws they're subject to state bond claim laws.
1. Ask and get a copy of the bond up front.
• Timetables are short and it's a friendlier time.
2. Bond companies make money from collecting premiums not paying claims.
• Bond claims can take months to resolve, be prepared for litigation.
3. Suits are prevalent.
• DSOs are extended.
4. Bond Assessment
• Solicit a rating on the bond prior to granting credit.
If the land being improved is "Private" the owner is an individual, partnership or corporation.
These projects are not subject to the state bond claim laws, they're subject to mechanic's lien laws.
• Determine deadlines prior to shipment.
2. Commercial deadlines may be different than residential deadlines.
• Residential deadlines are often shorter than commercial deadlines.
3. Mechanic's lien deadlines are always reactive.
• You'll never be asked to file a lien prior to your receivable being past due.
4. Each step in the mechanic's lien process is a perquisite.
• You must timely serve your notice to perfect a valid lien and file a valid lien to successfully foreclose.
If the land being improved is "Federal" the owner is the Federal Government.
These projects are not subject to the state bond claim or mechanic's lien laws, they're subject to Federal Miller Act.
• No notice is required when selling directly to the prime.
2. Prime contracts under $100,000 are excluded from the bonding requirements.
• The threshold is raised to $150,000 for Dept. of Defense projects.
3. Under the Miller Act last furnishing actually means substantial completion.
• Calculate your deadline from you last "big furnishing", be conservative.
4. Payment Bonds are required to be from "T" Listed" bonding companies.
• Find the link for the federal treasury list in "Quick Links"