REBUILDING WESTERN NORTH CAROLINA:

Construction Projects: Where to begin?

As the immediate aftermath of Hurricane Helene subsides, residents of those counties in western North Carolina impacted by the storm are beginning to rebuild not only their lives, but their homes and businesses. Understanding the legal aspects of the construction process can make the overall experience more manageable.

Whether you are an owner, a contractor, a subcontractor, or a supplier, North Carolina law provides ways to open lines of communication between parties involved in a construction project. Opening those avenues on the front end provides a means of reducing the risk of issues later down the road.

For homeowners (or owners of the real property being improved in a commercial project), make certain that a lien agent is designated by going to www.liensnc.com. The website is user-friendly and this is not “filing a lien” on the property, but instead is posting a pre-notice for all who work on the property to notify the designated lien agent of their presence and involvement. This permits the owner, the contractor, a lender, and the closing attorney to keep tabs as to who is providing labor or materials on the project and to obtain interim lien waivers to insure those working on the project are being paid. There is nothing worse than getting to the end of a project and discovering a subcontractor or supplier is still awaiting funds you thought the contractor or a subcontractor had already paid.

For contractors, subcontractors, and suppliers, the ability to post a Notice to Lien Agent even before you start work increases the opportunity to receive timely payment and permits you to identify others involved on the project. It does not guarantee you will be paid, but part of your due diligence suggests that taking this step will improve your odds and provide some protection that you will be contacted ahead of a closing, while preserving your lien rights if you are not paid.

Also, make certain you understand what a Notice of Contract and Notice of Subcontract are and how they can help you protect your interests. That topic will be the subject of an upcoming blog on this site.

The lawyers at Hannah Sheridan & Cochran look forward to working with our neighbors in western North Carolina, including, but not limited to, Ashe, Avery, Buncombe, Madison, Henderson, Watauga, Burke, and their neighboring counties.