It Starts with Being Proactive Regarding Lien/Bond Rights   Preserving lien / bond rights allows YOU to secure (collateralize) potential nonpayment against real property (lien) or against a payment bond if general contractor furnished bond   By preserving and enforcing lien / bond rights YOU are doing 3 things: (1) Maximizing YOUR right to get paid from 3 rd party (e.g., owner or surety); (2) Maximizing YOUR right to collect payment; and (3) Removing the pay-if-paid provision from the equation

Do I have lien or bond rights?   Private Projects – Notice of Commencement will be recorded in official records and give YOU appropriate lien / bond information. Look to see whether Notice of Commencement attaches payment bond.   Public Projects (excluding FDOT projects) – Projects greater than $200k, GC required to furnish payment bond. Will be recorded in official records.   (FDOT Projects- Projects greater than $250k, GC required to furnish payment bond. May not be recorded, but GC should maintain it at office and shall provide upon request)

1 st Step – Do I Need to Serve a Preliminary Notice LIENPRIVATE BOND PUBLIC BOND (EXC. FDOT) Do I need to serve a preliminary notice? If not in privity with owner If not in privity with GC What type of preliminary notice? *Notice to Owner*Notice of Intent to Look to Bond Time frame to serve preliminary notice? W/in 45 days of initial furnishing Who should I serve preliminary notice on? Owner, GC, persons identified in Notice of Commencement GC *= common to serve Notice to Owner /Notice to Contractor

2 nd Step– How do I Enforce? LIENPRIVATE BOND PUBLIC BOND (EXC. FDOT) How do I Enforce lien/ bond rights? Record lienFurnish notice of non-payment Furnish notice of non-payment if NOT in privity with GC Time frame to record lien or serve notice of non- payment? W/in 90 days of *final furnishing Who do I serve lien or notice of non- payment on? Owner (w/in 15 days from lien recording) GC and surety Time frame to sue?W/in 1 yr from lien recording W/in 1 yr from *final furnishing *= exclusive of punchlist or warranty work

What other tidbits are there to maximize payment?   Spend the time to ensure your contractual scope of work clarifies your intended scope of work for the contract sum   When receiving progress payments / final payments, do NOT release lien or bond rights or amounts that are in dispute (e.g., change order work, delays, acceleration, inefficiency, etc.)   Learn the notice provisions for change order requests and claims so these rights are properly preserved during construction

What other tidbits are there to maximize payment?   Send a letter of your intent to pursue lien / bond rights if remain unpaid depending on circumstances (consider having counsel sending this type of demand letter)   Don’t withhold warranties or refuse to perform punchlist work as it could legitimize the withholding of payment   Don’t automatically be opposed to joint checks – getting suppliers and sub-subs paid will get them off your back. BUT, DON’T enter into a joint check agreement with the GC without seeking advice from counsel to ensure you are not releasing or giving up any rights by executing the agreement

(855) (954)