Lien and bond law proposed revisions introduced in General Assembly

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The American Subcontractors Association of the Carolinas reports NC House Bill 489, titled “Mechanics Lien and Bond Law Revisions” was introduced in the NC General Assembly on March 28. The bill was assigned to a subcommittee and industry groups are encouraged to respond to the proposed revisions.

The bill’s sponsors understand that the current lien law is not meeting the constitutional mandate for an “adequate lien” in many circumstances. They have heard, as has the NC Bar Association Construction Law Section, something needs to be done, but have noted over the past several years that unilateral efforts to address the issues have a tendency to be beaten down by the rest of the industry.

While there are objections to the proposed revisions, there seems to be genuine appreciation for the Section’s willingness to undertake this task. As the matter works through the House, Keith Coltrain and the Lien/Bond Law Revision Committee will continue to educate various industry groups about the proposal. The subcontractor group reports there are a lot of rumors and a fair amount of misinformation circulating in the industry in terms of the content of the proposal.

If you have questions about House Bill 489, contact Keith Coltrain keith.coltrain@elmorewall.com, David Layton dlayton@gastonlegal.com, and any of the drafting subcommittee members – Ken Fromknecht kwflaw@dnet.net, Greg Ahlum gahlum@jahlaw.com, Ken Michael kmichael@wcsr.com, Paul Sheridan pasheridan@vannattorneys.com or Nan Hannah nehannah@vannattorneys.com. Additional analysis of the proposed legislation will appear in in the April/May 2011 issue of North Carolina Construction News.

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