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Richard Harrison Skalbania

Richard Skalbania’s Answers

2 total

  • What funds in a construction project does a stop notice affect? Only the scope involved or all sub contracts?

    The scope of work is erection, it has been completed. There is a dispute over change orders. Most of the erection has been paid, the prime contractor claims no more money available for remaining change orders. Erector has been paid about 80% not i...

    Richard’s Answer

    A notice to lender(stop notice) only works on privately funded projects and only works if the following are true:

    1. there are still funds left to distribute under the construction loan;

    2. the claimant serves the stop notice on the lender within the time frame required by the statute;

    If the above conditions are met, the lender is required to withhold from the next construction draw the amount of the claim. If it fails to do so the lien(which must be separately filed) of the claimant takes priority over the lender's deed of trust to the extent of the stop notice claim.

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  • What is the time limit for filing a construction lien if the contract or scope of work is not completed 100%.

    There is a delay in the completion of a project that I have a signed contract to perform work on. The owner is acting as the General Contractor. Payment for work completed to date is past the 90 day limit but there is still work to be performed ...

    Richard’s Answer

    The answer is that your lien claim must be filed within 90 days of your last day of work. If you are still within this time period I would recommend filing now(eventhough you may be called back to do more work) because if the project is not resumed and you let 90 days pass, you will lose your lien rights. However, if you are called back to do more work on the same contract, and you file within 90 days of your new last day of work, the lien will cover all of the work you did on the project, even work you did before the project was delayed. All of the above assumes this is a private Washington state construction project, not a government project.

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