Stoel Rives has published the 2024 update to The Construction Lien in Washington: A Legal Analysis for the Construction Industry. First published in 2015, the 2024 update includes recent case authorities and statutory changes. This treatise serves as a guide to lien rights and procedures, including discussion of lien-like remedies available on public projects.
Construction lien statutes are intended to encourage the construction industry by protecting persons providing labor, professional services, materials, and equipment to improve private real property. This protection takes the form of a lien on the property being improved. Lien rights arise (but are considered “inchoate”) as soon as a person begins work. To develop those inchoate rights into an enforceable lien, the lien claimant must take certain actions within deadlines defined by statute, including recording a lien claim in the property records of the county where the property is located. The final step is a civil action to prove and enforce the lien claim. This can lead to foreclosure and forced sale of the property.
The protections afforded by lien statutes inevitably affect other persons with interests in the property being improved. The law attempts to strike a balance between lien claimants and other interested parties. In Washington, construction lien rights and procedures are defined in RCW Chapter 60.04 and in numerous court decisions interpreting the lien statutes.
The construction industry is experiencing significant challenges from inflation, supply chain disruptions, and labor shortages. Rising project costs increase the risk of nonpayment for contractors and suppliers, a risk that lien statutes are intended to address. All stakeholders involved in construction work will benefit from staying updated on lien laws in this volatile environment.
Recent caselaw has addressed whether marking project boundaries counts as an “improvement” to property for purposes of supporting a lien, which parties must be joined in a lien foreclosure action if a lien release bond has been recorded, and how a lien claim can be removed from public project records once it has expired. A new Washington statute (effective in July of 2024) limits retainage and requires timely payment on private projects. These and other legal developments are addressed in the updated lien treatise.
Authored by Stoel Rives attorneys Bart Reed, Karl Oles and Evan Brown, The Construction Lien in Washington: A Legal Analysis for the Construction Industry provides insights for legal professionals and industry stakeholders new to lien law as well as those with experience in this area of law. This construction lien treatise is an essential resource for construction attorneys and in-house counsel (public and private), owners, developers, contractors, design professionals, and construction consultants. The topics covered include: the elements of a construction lien; pre-claim notices; recording a construction lien claim; foreclosing a construction lien claim; defending against a construction lien claim; the stop notice; and lien-like remedies on public projects.
When one of your cases is in need of a construction expert, estimates, insurance appraisal or umpire services in defect or insurance disputes – please call Advise & Consult, Inc. at 888.684.8305, or email experts@adviseandconsult.net.