49
CCBA Nuts & Bolts on Construction Law: Washington Lien and Bond Claims Paige Spratt Before attending law school, Paige Spratt worked for The Boeing Company as a Construction Manager After law school, Paige went to work for a construction law firm in Seattle, Washington, focusing on construction disputes and claims. Currently, at Immix Law Group, Paige works both as a transactional attorney and litigator. She finds that her courtroom experience is valuable when advising clients on deals and contract terms. Paige has experience in a variety of cases, including construction contract disputes, lien foreclosures, tort claims, fraud, consumer protection, public contracting, Uniform Commercial Code issues, employment disputes, and corporate dissolutions to name a few. She has participated in complex disputes for large and small business owners and helped finalize multi-million dollar transactions. For a complete bio on Paige, please visit: http://immixlaw.com/paige-spratt/. Immix Law Group PC 915 Broadway Suite 250 Vancouver, WA 98660 (360) 984-5040 CCBA Nuts & Bolts on Construction Law - 1 of 49

CCBA Nuts & Bolts on Construction Law: Washington …immixlaw.com/.../2015/01/Washington-Lien-and-Bond-Cl… ·  · 2016-09-14Who has the right to a claim of lien? ... Oregon also

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CCBA Nuts amp Bolts on Construction Law Washington Lien and Bond Claims

Paige Spratt

Before attending law school Paige Spratt worked for The Boeing Company as a Construction Manager After law school Paige went to work for a construction law firm in Seattle Washington focusing on construction disputes and claims Currently at Immix Law Group Paige works both as a transactional attorney and litigator She finds that her courtroom experience is valuable when advising clients on deals and contract terms Paige has experience in a variety of cases including construction contract disputes lien foreclosures tort claims fraud consumer protection public contracting Uniform Commercial Code issues employment disputes and corporate dissolutions to name a few She has participated in complex disputes for large and small business owners and helped finalize multi-million dollar transactions For a complete bio on Paige please visit httpimmixlawcompaige-spratt

Immix Law Group PC 915 Broadway Suite 250 Vancouver WA 98660

(360) 984-5040

CCBA Nuts amp Bolts on Construction Law - 1 of 49

11122014

1

Immix Law Group PC

Paige B Spratt

Construction Law Washington Lien and Bond Claims

Immix Law Group

Washington Lien Law (RCW 6004 et al)

Immix Law Group Washington Lien and Bond Claims

ldquo[A]ny person furnishing labor professional services materials or equipment for the improvement of real property shall have a lien upon the improvement for the contract price of labor professional services materials or equipment furnished at the instance of the owner or the agent or construction agent of the ownerrdquo RCW 6004021

Washington Lien Law

CCBA Nuts amp Bolts on Construction Law - 2 of 49

11122014

2

Immix Law Group Washington Lien and Bond Claims

To promote the development of undeveloped property by giving workers a legal interest in the developed land until paid

Washington Liens ndash PolicyPurpose

Immix Law Group Washington Lien and Bond Claims

ldquoMechanicrsquos liens are creatures of statute in derogation of the common law They therefore must be strictly construed to determine whether a lien attaches But if we determine that a partyrsquos lien is covered by chapter 6004 RCW then we liberally construe the statute to provide security for all parties intended to be protected by its provisionsrdquo Top Line Builders Inc v Bovenkamp 179 Wn App 794 812 (2014) (internal citations omitted) see also RCW 6004900

Washington Liens ‐ Interpretation

Immix Law Group Washington Lien and Bond Claims

Creating a Construction Lien

Who has the right to a claim of lienbull Contractorsbull Laborersbull Materialmen (material suppliers) bull Equipment suppliersbull Subcontractorsbull Professional Service Providers

CCBA Nuts amp Bolts on Construction Law - 3 of 49

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Immix Law Group Washington Lien and Bond Claims

Creating a Construction LienWhat work gives rise to a claim of lienbull Improvement means (6004011(5))

bull (a) Constructing altering repairing remodeling demolishing clearing grading or filling in of to or upon any real property or street or road in front of or adjoining the same

bull (b) planting of trees vines shrubs plants hedges or lawns or providing other landscaping materials on any real property and

bull (c) providing professional services upon real property or in preparation for or in conjunction with the intended activities in (a) or (b) of this subsection

Immix Law Group Washington Lien and Bond Claims

Creating a Construction Lien

Condominium Improvements (RCW 6432070)bull Work performed on a condominium before the declaration creating the

condominium is filed creates a lien as against the entire condominium Work performed after the condominium declaration is filed creates a lien only as to the unit(s) where work was performed Work performed on common areas (ordered by the association) creates a lien for the proportional share of expenses as to each unit

Immix Law Group Washington Lien and Bond Claims

Creating a Construction Lien

Who can direct the workbull Construction agent (RCW 6004011(1))

bull Registered or licensed contractorbull Registered or licensed subcontractorbull Architectbull Engineerbull Other persons ldquohaving charge of any improvement to real propertyrdquo

CCBA Nuts amp Bolts on Construction Law - 4 of 49

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4

Immix Law Group Washington Lien and Bond Claims

Creating a Construction Lien

Who can direct the workbull UnregisteredUnlicensed Contractors (RCW 6004041)

bull A contractor is only responsible for verifying the registration of the contractor with which it is in direct privity (and can be verified by the State)

Immix Law Group Washington Lien and Bond Claims

Creating a Construction Lien

How is a Claim of Lien Createdbull Every person entitled to a claim of lien must take certain steps to

ensure that the lien is enforceable ndash called ldquoperfectingrdquo the lien bull Certain second or third‐tier subcontractors may be required to perform

additional steps to perfect their claim of lien bull There are also additional requirements for residential construction

which lien claimants must perform to ensure that their lien is perfected

Immix Law Group Washington Lien and Bond Claims

Creating a Construction Lien

Basic Steps to Perfecting a Lien (RCW 6004091)bull Claim of Lien

bull Must be recorded no later than 90 (calendar) days after claimantrsquos last day of work or completion or abandonment of the project whichever is earlier

bull Attaches to the property from the first day that work was performed

[NOTE Oregon is 75 days]

CCBA Nuts amp Bolts on Construction Law - 5 of 49

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5

Immix Law Group Washington Lien and Bond Claims

Creating a Construction Lien

Basic Steps to Perfecting a Lien (RCW 6004091)bull Claim of Lien

bull Must be served or sent via certified mail with return receipt to the Owner within 14 days of the lien filing

[NOTE Oregon is 20 days Oregon also requires a ldquoNotice of Intent to Forecloserdquo 10 days before the claimant can foreclose on the Claim of Lien ndash Practice Pointer Include the ldquoNotice of Intent to Forecloserdquo in the same notice as the claim of lien]

Immix Law Group Washington Lien and Bond Claims

Creating a Construction Lien

Basic Steps to Perfecting a Lien (RCW 6004091)bull Contents of the Claim of Lien

bull Claimant name address and phone numberbull First and last day of claimantrsquos workbull Name of person indebtedbull Name of property ownerbull Street address or legal description of the propertybull The principal amount of lien claim

Immix Law Group Washington Lien and Bond Claims

Creating a Construction Lien

Basic Steps to Perfecting a Lien (RCW 6004091)bull Execution

bull ldquoShall be signed by the claimant or some person authorized to act on his or her behalf who shall affirmatively state they have read the notice of claim of lien and believe the notice of claim of lien to be true and correct under penalty of perjury and shall be acknowledged pursuant to chapter 6408 RCWrdquo

CCBA Nuts amp Bolts on Construction Law - 6 of 49

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6

Immix Law Group Washington Lien and Bond Claims

Creating a Construction Lien

Additional Steps for Sub‐Tier Subcontractors Professionals and Suppliersbull ldquoNotice to Ownerrdquo (Preclaim Notice) (RCW 6004031)

bull Professionals material suppliers and equipment suppliers must provide ldquoNotice to Ownerrdquo on all projects

bull The purpose of the Notice is to inform the Owner of the project of the personsentities working on the project even though not present on the project site

Immix Law Group Washington Lien and Bond Claims

Creating a Construction LienAdditional Steps for Lower‐Tier Subs Professionals and Suppliersbull Who is not required to give Notice to Owner

bull Persons who contract directly with the owner or ownerrsquos common law agent

bull Laborers whose lien is based solely upon providing laborbull First‐tier subcontractors who contract directly with the prime

contractorbull Exclusion First‐tier subcontractors who contract directly with the

prime contractor in connection with improvements of an existing owner‐occupied single family residence

Immix Law Group Washington Lien and Bond Claims

Creating a Construction Lien

ldquoNotice to Ownerrdquobull When required

bull Commercial Project = 60 daysbull Residential Project = 10 days

bull Who servedbull Serve both the owner and general contractor via

certified or registered mail with return receipt

CCBA Nuts amp Bolts on Construction Law - 7 of 49

11122014

7

Immix Law Group Washington Lien and Bond Claims

Creating a Construction Lien

ldquoNotice to Customerrdquo (RCW 1827114)bull Must be provided by the prime contractor to the owner on a

project before the start of construction where the project isbull Four or fewer residential units and the contract price is

greater than $1000bull Commercial project where the bidcontract price is

between $1000 and $60000[NOTE In Oregon GCs are required to give several forms]

Practice Pointer Include directly in the construction contract

Immix Law Group Washington Lien and Bond Claims

Foreclosing on a Construction Lien

Lien Foreclosure Lawsuit (RCW 6004171)bull Must be commenced within eight months of the date of

recording the Claim of Lien in the jurisdiction where the real property is locatedbull [NOTE In Oregon the foreclosure suit must be commenced

within 120 days]bull Failure to foreclose invalidates the claim of lienbull Failure to prosecute the foreclosure to judgment within two

years may result in dismissal of the lien foreclosure case

Immix Law Group Washington Lien and Bond Claims

Foreclosing on a Construction Lien

Priority of the Lien (RCW 6004181)bull Not all liens are equal ndash the type of lien is ranked as follows

bull Laborbull Employee benefit plansbull Furnishing material supplies or equipmentbull Subcontractors andbull Prime contractors and professional services

bull Proceeds are applied by rank and pro rata in each class Any mortgagedeed of trust recorded after start of claimantsrsquo work will be ldquosecond in linerdquo

CCBA Nuts amp Bolts on Construction Law - 8 of 49

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8

Immix Law Group Washington Lien and Bond Claims

Foreclosing on a Construction Lien

Amount of the Lienbull Contract price

bull Includes contractual attorneysrsquo fees and interestbull If no contract then reasonable value of the work

performedbull The prevailing party is entitled to their reasonable attorneysrsquo

fees recording fees title report costs etc in pursuing and prosecuting the lien (RCW 6004181)

Immix Law Group Washington Lien and Bond Claims

Foreclosing on a Construction Lien

Bonding ldquoAroundrdquo the Lien (RCW 6004161)bull OwnerPrime can bond around the lien by obtaining a surety

bond under the following requirements bull If disputed amount is over $10000 then 150 of lien

amountbull If disputed amount is under $10000 then $5000 or twice

the amount of the lienbull The lien attaches to the bond and releases the propertybull Foreclosure proceeds as normal however the surety must be

added as a party to the lien foreclosure action

Immix Law Group Washington Lien and Bond Claims

Foreclosing on a Construction Lien

Amendments to Lien (RCW 6004091(2))ldquoWhere an action to foreclose the lien has been commenced such notice of claim of lien may be amended as pleadings may be by order of the court insofar as the interests of third parties are not adversely affected by such amendmentrdquo

[NOTE In Oregon amendments are not expressly allowed by statute] Practice Pointer Before filing a claim of lien verify that your client will not perform any additional work

CCBA Nuts amp Bolts on Construction Law - 9 of 49

11122014

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Immix Law Group

Property Ownersrsquo Claims Against Contractors

Immix Law Group Washington Lien and Bond Claims

Property Ownersrsquo Claims Against Contractors

Claiming a Frivolous Lien (RCW 6004081)bull Party can request a show cause hearing where applicant must

show that lien is frivolous and ldquomade without reasonable causerdquo or is ldquoclearly excessiverdquo

bull If lien claimant fails to show the lien will be releasedbull High standard for ldquoFrivolousnessrdquo

bull ldquopresents no debatable issue and is so devoid of merit that it has no possibility of successrdquo

bull Prevailing party may get reasonable attorneysrsquo fees and costs

Immix Law Group Washington Lien and Bond Claims

Property Ownersrsquo Claims Against Contractors

Claim Against Contractor Registration Bond (RCW 1827040)bull Contractors are required to obtain registration bonds

bull General contractors = $12000bull Subcontractors = $6000

bull Persons contracting with the contractor can sue against the contractorrsquos registration bond

bull SOLbull Homeowners = 2 yearsbull Everyone else = 1 year

CCBA Nuts amp Bolts on Construction Law - 10 of 49

11122014

10

Immix Law Group Washington Lien and Bond Claims

Property Ownersrsquo Claims Against Contractors

Claim Against Contractor Registration Bond (RCW 1827040)bull Recovery Limitations

bull Residential homeowners entitled to recover entire bond amountbull Other claimants are entitled to frac12 of the bond amount or $4000 if

subcontractor or specialty contractorbull Claimants entitled to attorneysrsquo fees up to amount of bond

Immix Law Group Washington Lien and Bond Claims

Property Ownersrsquo Claims Against Contractors

Claim Against Contractor Registration Bond (RCW 1827040)

bull Service Requirementsbull Service on the bonding company and the contractor must be made

on the Department of Labor amp Industries by serving three copies of the summons and complaint by certified andor registered mail (RCW 1827040(3)) with the filing fee

bull You should also serve the contractor and all other named defendants personally so that the breach of contract claim and other claims are properly served

Immix Law Group

Washington Public Contracts Retainage and Bond Claims

CCBA Nuts amp Bolts on Construction Law - 11 of 49

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11

Immix Law Group Washington Lien and Bond Claims

Public Contracts Retainage ClaimsRetainage Claims (RCW 6028011)bull ldquolsquoContract retainagersquo means an amount reserved by a public body from

the moneys earned by a person under a public improvement contractrdquo bull Usually five percent (5)bull Prime contractor can submit a bond in lieu of retainagebull All persons supplying labor materials equipment services entitled to

claimbull Exception Temporary labor supplier not entitled to claim against retention

because not ldquosubcontractorrdquo Better Financial Solutions Inc v Caicos Corp 117 Wn App 899 (2003)

Immix Law Group Washington Lien and Bond Claims

Public Contracts Retainage Claims

Preclaim Notice of Retainage Claim (RCW 6028011)

bull Sub‐tier subcontractors and suppliers must give preclaimnotice to the public agency within 60 days of furnishing labor material supplies or equipment to the project

bull Relates back 60 days from the date of the noticebull Must be delivered to contracting agency

Immix Law Group Washington Lien and Bond Claims

Public Contracts Retainage Claims

Notice of Retainage Claim (RCW 6028011)

bull All claimants must provide a Notice of Claim within 45 days after ldquocompletion of the contract workrdquo (essentially ldquoproject completionrdquo)

bull The Notice must be delivered to contracting agencybull Hand delivered or certified mail with return receipt

bull Must file the foreclosure suit within 4 months after providing the Notice of Claim

CCBA Nuts amp Bolts on Construction Law - 12 of 49

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12

Immix Law Group Washington Lien and Bond Claims

Public Contracts Bond Claims

Bond Claims ndash Washingtonrsquos Little Miller Act (RCW 3908010)

On Washington Public Works projects in excess of $25000 general contractors must post a payment bond usually in the amount of the contract price

Immix Law Group Washington Lien and Bond Claims

Public Contracts Bond Claims

Preclaim Notice of Bond Claim (RCW 3908010)

bull Lower‐tier subcontractors and material suppliers must give preclaim notice to the prime contractor within 10 days after starting work

Immix Law Group Washington Lien and Bond Claims

Public Contracts Bond Claims

Notice of Bond Claim (RCW 3908010)

bull All claimants must provide a Notice of Claim within 30 days after ldquoacceptance of the workrdquo (different than retention claim)bull ldquoAcceptancerdquo is an affirmative act by the public works owner

bull The Notice must be delivered to public works ownerbull Hand delivered or certified mail with return receipt

bull No deadline provided in the statute ndash foreclose by general statute of limitationsbull 3 years for oral contracts 6 years for written contracts

CCBA Nuts amp Bolts on Construction Law - 13 of 49

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13

Immix Law Group Washington Lien and Bond Claims

Public Contracts Bond amp Retainage Claims

bull Practice Pointer Coordinate the filing of the retention and bond Preclaim Notice and Notice of Claim to ensure that the contractorrsquos claims are protected

bull File the Bond amp Retainage Preclaim Notice within 10 days after starting work

bull File the Bond amp Retainage Notice of Claim within 30 days from project completion

Immix Law Group Washington Lien and Bond Claims

Public Contracts Prompt Pay ActWashingtonrsquos Prompt Pay Act

bull Prime contractors are entitled to payment within 30 days after the public agencyrsquos receipt of the invoice

bull If the public agency intends to withhold payment (all or in part) the agency must notify the contractor in writing within 8 days of receipt stating

bull Why payment (all or part) is being withheld

bull Actions required by contractor in order to receive payment

Immix Law Group Washington Lien and Bond Claims

Public Contracts Prompt Pay ActWashingtonrsquos Prompt Pay Act (contrsquod)

bull Public agency can withhold up to 150 of the disputed amount

bull Failure to comply entitles the contractor to 1 interest per month until paid

bull Subcontractors must be paid within 10 days of prime contractorrsquos receipt of payment

CCBA Nuts amp Bolts on Construction Law - 14 of 49

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14

Immix Law Group

Questions

CCBA Nuts amp Bolts on Construction Law - 15 of 49

SUMMARY OF THE REQUIREMENTS TO BE MET BY A LIEN CLAIMANT ON A WASHINGTON PRIVATE CONSTRUCTION PROJECT

NOTICE TO CUSTOMER

FROM

Prime Contractor working on four or fewer residential units when the contract price is $1000 or more or on a commercial building when the contract price is $1000 or more but less than $60000

TO Owner

WHEN Before starting construction NOTICE OF FURNISHING PROFESSIONAL SERVICES

FROM

Provider of professional services

TO County Recorder

WHEN As soon as professional services are commenced PRECLAIM NOTICE (for all projects except repair and remodeling of owner-occupied single-family residence)

FROM

Provider of professional services materials or equipment except that the following need not provide the notice (1) a provider that contracts directly with the owner or the owners actual agent or (2) a first tier subcontractor

TO Owner and usually also prime contractor

WHEN New single family residence within ten days of first supplying professional services materials or equipment All other projects within 60 days of first supplying professional services materials or equipment

PRECLAIM NOTICE (for repair and remodeling of owner-occupied single-family residence)

FROM

Provider of professional services materials or equipment to anyone other than the owner

TO Owner and usually also prime contractor

WHEN Immediately after agreeing to furnish professional services materials or equipment

FROM

Potential lien claimant to whom payment is five or more days overdue

NOTICE TO REAL PROPERTY LENDER (only applicable where there is not a payment bond of at least 50 of the amount of construction financing)

TO Construction lender owner and prime contractor

WHEN Within 35 days of date payment is due

CLAIM OF LIEN

FROM

Unpaid claimant

TO County Recorder

WHEN Not later than 90 days after the last furnishing of labor professional services materials or equipment or the last date on which employee benefit contributions were due

COPY OF CLAIM OF LIEN

FROM

Unpaid claimant

TO Owner

WHEN Within 14 days of date claim of lien is filed for recording

DEADLINE FOR FILING A LAWSUIT Within eight months of recording claim of lien

F625-055-000 const lien summary 2-96 This summary is intended to generally set forth the requirements applicable to most lien claimants The remainder of the chapter should be consulted for a more detailed discussion

CCBA Nuts amp Bolts on Construction Law - 16 of 49

CLAIM OF LIEN SIGNED BY ATTORNEY

Return Address __________________________ __________________________ __________________________

Document Title Claim of Lien

Reference Number _____________________________

Grantor _____________________________

Grantee _____________________________

Legal Description

Assessors Property Tax Parcel No

CLAIM OF LIEN

________________________ claimant vs _____________________________ name of persons indebted to claimant

Notice is hereby given that the person named below claims a lien pursuant to Chapter 6004 RCW In

support of this lien the following information is submitted

1 NAME OF LIEN CLAIMANT ______________________________________

TELEPHONE NUMBER ______________________________________

ADDRESS ______________________________________

______________________________________

2 DATE ON WHICH THE CLAIMANT BEGAN TO PERFORM LABOR PROVIDE PROFESSIONAL SERVICES SUPPLY MATERIAL OR EQUIPMENT OR THE DATE ON WHICH EMPLOYEE BENEFIT CONTRIBUTIONS BECOMES DUE _________

3 NAME OF PERSON INDEBTED TO THE CLAIMANT _________________

4 DESCRIPTIONOF THE PROPERTY AGAINST WHICH A LIEN IS CLAIMED All fee leasehold and other interests of _______________ and any other owner person or entity in the property commonly known as ___________________________located at _______________________ _________________________ _________________County Washington _______ the legal description of which is believed to be as follows

[Legal Description - andor - The legal description of the underlying real property is described on the attached Exhibit A]

CCBA Nuts amp Bolts on Construction Law - 17 of 49

5 NAME OF THE OWNER OR REPUTED OWNER (if not known state ldquounknownrdquo) ____________________________________________________________________________________________

6 THE LAST DATE ON WHICH LABOR WAS PERFORMED PROFESSIONAL SERVICES WERE FURNISHED CONTRIBUTIONS TO AN EMPLOYEE BENEFIT PLAN WERE DUE OR MATERIAL OR EQUIPMENT WAS FURNISHED _____________________________________________________________

7 PRINCIPAL AMOUNT FOR WHICH THE LIEN IS CLAIMED IS $_______

8 IF THE CLAIMANT IS THE ASSIGNEE OF THIS CLAIM SO STATE HERE ___

___________________ Claimant ___________________________

___________________________ (__)____-______

By ________s________________ Print Name ___________________ Its Attorney

STATE OF WASHINGTON )

SS COUNTYOF ____________ )

________________ being sworn says I am the attorney of the claimant above named I have read or heard the foregoing claim read and know the contents thereof and believe the same to be true and correct and that the claim of lien is not frivolous and is made with reasonable cause and is not clearly excessive under penalty of perjury

__________________________ Print Name _______________

SUBSCRIBED and SWORN to before me this ___day of ___________________ 201_

STATE OF WASHINGTON )

SS COUNTYOF ____________ )

[Seal or Stamp]

__________________________ Print Name _______________ Notary Public in and for the State of Washington residing at________________________________ My Commission Expires __________________

CCBA Nuts amp Bolts on Construction Law - 18 of 49

I certify that I know or have satisfactory evidence that___________________ is the person who appeared before me and said person acknowledged that [heshe] signed this instrument on oath stated that [heshe] was authorized to execute this instrument and acknowledged it as the attorney of___________________ to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument

CCBA Nuts amp Bolts on Construction Law - 19 of 49

F625-054-000 construction lien notice 11-05 IMPORTANT INFORMATION ON PAGE 2

NOTICE TO OWNER IMPORTANT READ BOTH SIDES OF THIS NOTICE CAREFULLY

PROTECT YOURSELF FROM PAYING TWICE

To

Date

Re

From (Description of property street address or general location)

AT THE REQUEST OF Name of person ordering their professional services materials or equipment

THIS IS NOT A LIEN This notice is sent to you to tell you who is providing professional services materials or equipment for the improvement of your property and to advise you of the rights of these persons and your responsibilities Also take notice that laborers on your project may claim a lien without sending you a notice

OWNEROCCUPIER OF EXISTING RESIDENTIAL PROPERTY Under Washington law those who furnish labor professional services materials or equipment for the repair remodel or alteration of you owner-occupied principal residence and who are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien The law limits the amount that a lien claimant can claim against your property Claims may only be made against that portion of the contract price you have not yet paid to your prime contractor as of the time this notice was given to you or three days after this notice was mailed to you Review page 2 of this notice for more information and ways to avoid lien claims

COMMERCIAL ANDOR NEW RESIDENTIAL PROPERTY We have or will be providing professional services materials or equipment for the improvement of your commercial or new residential project In the event you or your contractor fail to pay us we may file a lien against your property A lien may be claimed for all professional services materials or equipment furnished after a date that is sixty days before this notice was given to you or mailed to you unless the improvement to you property is the construction of a new single-family residence then ten days before this notice was given to you or mailed to you

Sender

Address

Telephone

Brief description of professional services materials or equipment provided or to be provided

CCBA Nuts amp Bolts on Construction Law - 20 of 49

F625-054-000 construction lien notice page 2 11-05

Important Information for your Protection

This notice is sent to inform you that we have or will provide professional services materials or equipment for the repair remodel or alteration of you property We expect to be paid by the person who ordered our services but if we are not paid we have the right to enforce our claim by filing a construction lien against your property

LEARN more about the lien laws and the meaning of this notice by

discussing them with our contractor suppliers Department of Labor and Industries the firm sending you this notice your lender or your attorney

COMMON METHODS TO AVOID CONSTRUCTION LIENS

There are several methods available to protect your property from construction liens The following are two of the more commonly used methods

DUAL PAYCHECKS (Joint Checks) When paying your

contractor for services or materials you may make checks payable jointly to the contractor and the firms furnishing you this notice

LIEN RELEASES You may require your contractor to provide

lien releases signed by all the suppliers and subcontractors from whom you have received this notice If they cannot obtain lien releases because you have not paid them you may use the dual payee check method to protect yourself

You should take appropriate steps to protect your property from

liens

Your prime contractor and your construction lender are required by law to give you written information about lien claims If you have not received it ask them for it

CCBA Nuts amp Bolts on Construction Law - 21 of 49

F625-030-000 model disclosure statement notice to customer 09-2007

Department of Labor and Industries Construction Compliance

MODEL DISCLOSURE STATEMENTNOTICE TO CUSTOMER

This contractor is registered with the state of Washington registration no____________________ and has posted with the state a bond or deposit of ______________________ for the purpose of satisfying claims against the contractor for breach of contract including negligent or improper work in the conduct of the contractorrsquos business The expiration date of this contractorrsquos registration is ______________________

THIS BOND OR DEPOSIT MIGHT NOT BE SUFFICIENT TO COVER A CLAIM THAT MIGHT ARISE FROM THE WORK DONE UNDER YOUR CONTRACT This bond or deposit is not for your exclusive use because it covers all work performed by this contractor The bond or deposit is intended to pay valid claims up to ___________________________ that you and other customers suppliers subcontractors or taxing authorities may have FOR GREATER PROTECTION YOU MAY WITHHOLD A PERCENTAGE OF YOUR CONTRACT You may withhold a contractually defined percentage of your construction contract as retainage for a stated period of time to provide protection to you and help insure that your project will be completed as required by your contract

YOUR PROPERTY MAY BE LIENED If a supplier of materials used in your construction project or an employee or subcontractor of your contractor or subcontractors is not paid your property may be liened to force payment and you could pay twice for the same work FOR ADDITIONAL PROTECTION YOU MAY REQUEST THE CONTRACTOR TO PROVIDE YOU WITH ORIGINAL ldquoLIEN RELEASErdquo DOCUMENTS FROM EACH SUPPLIER OR SUBCONTRACTOR AT YOUR PROJECT The contractor is required to provide you with further information about lien release document if you request it General information is also available from the state Department of Labor and Industries I have received a copy of this disclosure statement Dated this _______ day of _______________ of the year __________

_____________________________________________________ Signature of Customer The contractor must retain a signed copy of the disclosure statement in his or her files for a minimum of three years and produce a signed or electronic signature copy of the disclosure statement to the department upon request

CCBA Nuts amp Bolts on Construction Law - 22 of 49

Facts About Construction LiensWhat you should know about contractsIf your contractor fails to pay subcontractors suppliers or laborers or neglects to make other legally required payments those who are owed money can look to your property for payment even if you have paid your contractor in full This is true if you have hired a contractor to build a new home or are buying a newly built home

It is also true when you remodel or improve your property although the amount of your liability may be limited to the amount you owe the prime contractor at the time a lien is filed

Under Washington laws those who work on your property or provide materials and are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien

People who supply materials or labor ordered by your contractor are permitted by law to file a lien only if they do so within 90 days of cessation of performance or delivery of materials The time frame is spelled out in RCW 6004091

If you enter into a contract to buy a newly built home you may not receive a notice of a lien based on a claim by a contractor or material handler Be aware that a lien may be claimed even though you have not received a notice

Before making final payment on the project request a completed lien release form from each contractor and material supplier A sample of this release of lien form is available from the Department of Labor amp Industries Contractor Registration Section

You have final responsibility for seeing that all bills are paid even if you have paid your contractor in full

If you receive a notice to enforce a lien take the notice seriously Let your contractor know you have received the notice Find out what arrangements are being made to pay the sender of the notice

When in doubt or if you need more details consult your attorney When and how to pay your contractor is a decision that requires serious consideration

Reminder Washington laws require contractors to give you a disclosure statement if your contract exceeds $1000 [RCW 1827114(A) or (B)]

CCBA Nuts amp Bolts on Construction Law - 23 of 49

PUBLICATION F625-017-000 [01-2008]

Other formats for persons with disabilities are available on request Call 1-800-647-0982 TDD users call 360-902-5797 LampI is an equal opportunity employer

For more information

How to protect your investment

If you are dealing with a lending institution ask your loan officer what precautions the lending institution takes to verify that subcontractors and material suppliers are being paid when mortgage money is paid to your contractor

Request lender supervision when dealing with a lending institution that provides interim or construction financing

Ask the prime contractor to disclose all potential lien claimants as a condition of payment A lien claimant must mail (by certified or registered mail or by personal service) a copy of the claim of lien to the owner within 14 days of the time the lien is recorded [RCW 6004091(2)] While an action is ongoing an owner may withhold from this prime contractor the amount of money for which a claim is recorded by a subcontractor supplier or laborer [RCW 6004151]

It is recommended that your check be made payable jointly naming the contractor and the subcontractor or supplier as payees

Upon payment and acceptance of the amount due the owner has the right to an executed release of all lien rights by lien claimants [RCW 6004071]

Consider using an escrow agent to protect your interests Find out whether your escrow agent will protect you against liens when disbursing payments If you are interested in this alternative consult your attorney

Request that your contractor post a performance bond in the amount of the project cost That will give you recourse in the event the contractor fails to complete the building agreement

8 On the Web Find more information about hiring a contractor at

wwwLniwagovTradesLicensingContractorsHireCon

Contractor Registration Hotline1-800-647-0982

You may also call your local LampI office See listings under ldquoWashington State ofrdquo in the government section or the white pages of the telephone book

Please note This notice was prepared by the Department of Labor amp Industries Specialty Compliance Services Division for reproduction by lending institutions and contractors for distribution to their clients It explains the basics of the construction lien law to help you protect yourself This information is not a reflection upon the abilities or credit of your contractor

CCBA Nuts amp Bolts on Construction Law - 24 of 49

NOTICE OF CLAIM AGAINST

BOND AND RETAINED PERCENTAGE

RCW 3908030 RCW 6028010

VIA CERTIFIED MAIL ndash RETURN RECEIPT REQUESTED

TO [Public Owner] [Public Ownerrsquos Address]

Project [Project Name amp Address] NOTICE IS HEREBY GIVEN that the undersigned [Claimant] [Claimantrsquos Address] has a claim in the amount of ----- and 00100 Dollars ($XX) (not including attorneysrsquo fees or costs) together with interest at twelve percent (12) against [Public Owner] (ldquoOwnerrdquo) pursuant to RCW 6028 and the payment bond taken from [Prime Contractor] (ldquoContractorrdquo) [Prime Contractorrsquos Address] as principal and [Surety Company] (ldquoSuretyrdquo) [Suretyrsquos Address] as surety Bond No ________ pursuant to RCW 3908 for [describe services material supplies labor furnished] provided on the Project This Notice of Claim Against Bond and Retained Percentage supersedes and replaces previous Notices DATED This ___day of _________ 201_ [Claimant] By ______________________________________ Its ______________________________________ [Claimantrsquos Address]

_________________________________________

[Contractors Registration No if applicable]

(Copies furnished to General Contractor and General Contractorrsquos Bonding Company)

CCBA Nuts amp Bolts on Construction Law - 25 of 49

PRECLAIM NOTICE TO CONTRACTOR BY SUBCONTRACTORS MATERIALMEN OR SUPPLIERS FOR

CLAIM AGAINST BOND AND RETAINED PERCENTAGE

VIA CERTIFIED OR REGISTERED MAIL- RETURN RECEIPT REQUESTED

TO [Name of General Contractor] [Address]

YOU ARE HEREBY NOTIFIED that the undersigned ____________at the request of_________________ commenced to deliver or furnish materials supplies andor equipment for the use in the construction alteration andor repair of that certain project known as____________________ [project name] which is located at ____________________________ [address or description] If the undersigned is not paid for these materials supplies andor equipment it will file a claim against you and your bond andor retainage pursuant to RCW 3908 andor 6028 et seq for payment of any sum that is due and owing to the undersigned

DATED This __ day of _____________ 201_

[Name of Claimant]

By ____________________________________

Its ____________________________________

Address ______________________________

__________________________________________

__________________________________________

[Contractors Registration No if applicable]

(Mail via certified mail return receipt requested or hand deliver and obtain receipt)

CCBA Nuts amp Bolts on Construction Law - 26 of 49

Washington Liens amp Bonds ndash Pertinent Statutes

RCW 1827040 Bond or other security required mdash Actions against mdash Suspension of registration upon impairment (1) Each applicant shall file with the department a surety bond issued by a surety insurer who meets the requirements of chapter 4828 RCW in the sum of twelve thousand dollars if the applicant is a general contractor and six thousand dollars if the applicant is a specialty contractor If no valid bond is already on file with the department at the time the application is filed a bond must accompany the registration application The bond shall have the state of Washington named as obligee with good and sufficient surety in a form to be approved by the department The bond shall be continuous and may be canceled by the surety upon the surety giving written notice to the director A cancellation or revocation of the bond or withdrawal of the surety from the bond automatically suspends the registration issued to the contractor until a new bond or reinstatement notice has been filed and approved as provided in this section The bond shall be conditioned that the applicant will pay all persons performing labor including employee benefits for the contractor will pay all taxes and contributions due to the state of Washington and will pay all persons furnishing material or renting or supplying equipment to the contractor and will pay all amounts that may be adjudged against the contractor by reason of breach of contract including improper work in the conduct of the contracting business A change in the name of a business or a change in the type of business entity shall not impair a bond for the purposes of this section so long as one of the original applicants for such bond maintains partial ownership in the business covered by the bond (2) At the time of initial registration or renewal the contractor shall provide a bond or other security deposit as required by this chapter and comply with all of the other provisions of this chapter before the department shall issue or renew the contractors certificate of registration Any contractor registered as of July 1 2001 who maintains that registration in accordance with this chapter is in compliance with this chapter until the next renewal of the contractors certificate of registration (3) Any person firm or corporation having a claim against the contractor for any of the items referred to in this section may bring suit against the contractor and the bond or deposit in the superior court of the county in which the work was done or of any county in which jurisdiction of the contractor may be had The surety issuing the bond shall be named as a party to any suit upon the bond Action upon the bond or deposit brought by a residential homeowner for breach of contract by a party to the construction contract shall be commenced by filing the summons and complaint with the clerk of the appropriate superior court within two years from the date the claimed contract work was substantially completed or abandoned whichever occurred first Action upon the bond or deposit brought by any other authorized party shall be commenced by filing the summons and complaint with the clerk of the appropriate superior court within one year from the date the claimed labor was performed and benefits accrued taxes and contributions owing the state of Washington became due materials and equipment were furnished or the claimed contract work was substantially completed or abandoned whichever occurred first Service of process in an action filed under this chapter against the contractor and the contractors bond or the deposit shall be exclusively by service upon the department Three

CCBA Nuts amp Bolts on Construction Law - 27 of 49

copies of the summons and complaint and a fee adopted by rule of not less than fifty dollars to cover the costs shall be served by registered or certified mail or other delivery service requiring notice of receipt upon the department at the time suit is started and the department shall maintain a record available for public inspection of all suits so commenced Service is not complete until the department receives the fee and three copies of the summons and complaint The service shall constitute service and confer personal jurisdiction on the contractor and the surety for suit on claimants claim against the contractor and the bond or deposit and the department shall transmit the summons and complaint or a copy thereof to the contractor at the address listed in the contractors application and to the surety within two days after it shall have been received (4) The surety upon the bond shall not be liable in an aggregate amount in excess of the amount named in the bond nor for any monetary penalty assessed pursuant to this chapter for an infraction The liability of the surety shall not cumulate where the bond has been renewed continued reinstated reissued or otherwise extended The surety upon the bond may upon notice to the department and the parties tender to the clerk of the court having jurisdiction of the action an amount equal to the claims thereunder or the amount of the bond less the amount of judgments if any previously satisfied therefrom and to the extent of such tender the surety upon the bond shall be exonerated but if the actions commenced and pending and provided to the department as required in subsection (3) of this section at any one time exceed the amount of the bond then unimpaired claims shall be satisfied from the bond in the following order (a) Employee labor and claims of laborers including employee benefits (b) Claims for breach of contract by a party to the construction contract (c) Registered or licensed subcontractors material and equipment (d) Taxes and contributions due the state of Washington (e) Any court costs interest and attorneys fees plaintiff may be entitled to recover The surety is not liable for any amount in excess of the penal limit of its bond A payment made by the surety in good faith exonerates the bond to the extent of any payment made by the surety (5) The total amount paid from a bond or deposit required of a general contractor by this section to claimants other than residential homeowners must not exceed one-half of the bond amount The total amount paid from a bond or deposit required of a specialty contractor by this section to claimants other than residential homeowners must not exceed one-half of the bond amount or four thousand dollars whichever is greater (6) The prevailing party in an action filed under this section against the contractor and contractors bond or deposit for breach of contract by a party to the construction contract involving a residential homeowner is entitled to costs interest and reasonable attorneys fees The surety upon the bond or deposit is not liable in an aggregate amount in excess of the amount

CCBA Nuts amp Bolts on Construction Law - 28 of 49

named in the bond or deposit nor for any monetary penalty assessed pursuant to this chapter for an infraction (7) If a final judgment impairs the liability of the surety upon the bond or deposit so furnished that there is not in effect a bond or deposit in the full amount prescribed in this section the registration of the contractor is automatically suspended until the bond or deposit liability in the required amount unimpaired by unsatisfied judgment claims is furnished (8) In lieu of the surety bond required by this section the contractor may file with the department an assigned savings account upon forms provided by the department (9) Any person having filed and served a summons and complaint as required by this section having an unsatisfied final judgment against the registrant for any items referred to in this section may execute upon the security held by the department by serving a certified copy of the unsatisfied final judgment by registered or certified mail upon the department within one year of the date of entry of such judgment Upon the receipt of service of such certified copy the department shall pay or order paid from the deposit through the registry of the superior court which rendered judgment towards the amount of the unsatisfied judgment The priority of payment by the department shall be the order of receipt by the department but the department shall have no liability for payment in excess of the amount of the deposit (10) Within ten days after resolution of the case a certified copy of the final judgment and order or any settlement documents where a case is not disposed of by a court trial a certified copy of the dispositive settlement documents must be provided to the department by the prevailing party Failure to provide a copy of the final judgment and order or the dispositive settlement documents to the department within ten days of entry of such an order constitutes a violation of this chapter and a penalty adopted by rule of not less than two hundred fifty dollars may be assessed against the prevailing party (11) The director may require an applicant applying to renew or reinstate a registration or applying for a new registration to file a bond of up to three times the normally required amount if the director determines that an applicant or a previous registration of a corporate officer owner or partner of a current applicant has had in the past five years a total of three final judgments in actions under this chapter involving a residential single-family dwelling on two or more different structures (12) The director may adopt rules necessary for the proper administration of the security RCW 1827114 Disclosure statement required mdash Prerequisite to lien claim

(1) Any contractor agreeing to perform any contracting project (a) For the repair alteration or construction of four or fewer residential units or accessory structures on such residential property when the bid or contract price totals one thousand dollars or more or (b) for the repair alteration or construction of a commercial building when the bid or contract price totals one thousand dollars or more but less than sixty thousand dollars must provide the customer with

CCBA Nuts amp Bolts on Construction Law - 29 of 49

the following disclosure statement in substantially the following form using lower case and upper case twelve-point and bold type where appropriate prior to starting work on the project NOTICE TO CUSTOMER This contractor is registered with the state of Washington registration no and has posted with the state a bond or deposit of for the purpose of satisfying claims against the contractor for breach of contract including negligent or improper work in the conduct of the contractors business The expiration date of this contractors registration is THIS BOND OR DEPOSIT MIGHT NOT BE SUFFICIENT TO COVER A CLAIM THAT MIGHT ARISE FROM THE WORK DONE UNDER YOUR CONTRACT This bond or deposit is not for your exclusive use because it covers all work performed by this contractor The bond or deposit is intended to pay valid claims up to that you and other customers suppliers subcontractors or taxing authorities may have FOR GREATER PROTECTION YOU MAY WITHHOLD A PERCENTAGE OF YOUR CONTRACT You may withhold a contractually defined percentage of your construction contract as retainage for a stated period of time to provide protection to you and help insure that your project will be completed as required by your contract YOUR PROPERTY MAY BE LIENED If a supplier of materials used in your construction project or an employee or subcontractor of your contractor or subcontractors is not paid your property may be liened to force payment and you could pay twice for the same work FOR ADDITIONAL PROTECTION YOU MAY REQUEST THE CONTRACTOR TO PROVIDE YOU WITH ORIGINAL LIEN RELEASE DOCUMENTS FROM EACH SUPPLIER OR SUBCONTRACTOR ON YOUR PROJECT The contractor is required to provide you with further information about lien release documents if you request it General information is also available from the state Department of Labor and Industries I have received a copy of this disclosure statement

CCBA Nuts amp Bolts on Construction Law - 30 of 49

(Signature of customer) (2) The contractor must retain a signed copy of the disclosure statement in his or her files for a minimum of three years and produce a signed or electronic signature copy of the disclosure statement to the department upon request (3) A contractor subject to this section shall notify any consumer to whom notice is required under subsection (1) of this section if the contractors registration has expired or is revoked or suspended by the department prior to completion or other termination of the contract with the consumer (4) No contractor subject to this section may bring or maintain any lien claim under chapter 6004 RCW based on any contract to which this section applies without alleging and proving that the contractor has provided the customer with a copy of the disclosure statement as required in subsection (1) of this section (5) This section does not apply to contracts authorized under chapter 3904 RCW or to contractors contracting with other contractors (6) Failure to comply with this section shall constitute an infraction under the provisions of this chapter (7) The department shall produce model disclosure statements and public service announcements detailing the information needed to assist contractors and contractors customers to comply under this section As necessary the department shall periodically update these education materials RCW 3908010 Bond required mdash Conditions mdash Retention of contract amount in lieu of bond (1)(a) Whenever any board council commission trustees or body acting for the state or any county or municipality or any public body must contract with any person or corporation to do any work for the state county or municipality or other public body city town or district such board council commission trustees or body must require the person or persons with whom such contract is made to make execute and deliver to such board council commission trustees or body a good and sufficient bond with a surety company as surety conditioned that such person or persons must (i) Faithfully perform all the provisions of such contract (ii) Pay all laborers mechanics and subcontractors and material suppliers and all persons who supply such person or persons or subcontractors with provisions and supplies for the carrying on of such work and

CCBA Nuts amp Bolts on Construction Law - 31 of 49

(iii) Pay the taxes increases and penalties incurred on the project under Titles 50 51 and 82 RCW on (A) Projects referred to in RCW 6028011(1)(b) andor (B) projects for which the bond is conditioned on the payment of such taxes increases and penalties (b) The bond in cases of cities and towns must be filed with the clerk or comptroller thereof and any person or persons performing such services or furnishing material to any subcontractor has the same right under the provisions of such bond as if such work services or material was furnished to the original contractor (2) The provisions of RCW 3908010 through 3908030 do not apply to any money loaned or advanced to any such contractor subcontractor or other person in the performance of any such work (3) On contracts of thirty-five thousand dollars or less at the option of the contractor the respective public entity may in lieu of the bond retain fifty percent of the contract amount for a period of thirty days after date of final acceptance or until receipt of all necessary releases from the department of revenue the employment security department and the department of labor and industries and settlement of any liens filed under chapter 6028 RCW whichever is later (4) For contracts of one hundred thousand dollars or less the public entity may accept a full payment and performance bond from an individual surety or sureties (5) The surety must agree to be bound by the laws of the state of Washington and subjected to the jurisdiction of the state of Washington RCW 6004011 Definitions

Unless the context requires otherwise the definitions in this section apply throughout this chapter (1) Construction agent means any registered or licensed contractor registered or licensed subcontractor architect engineer or other person having charge of any improvement to real property who shall be deemed the agent of the owner for the limited purpose of establishing the lien created by this chapter (2) Contract price means the amount agreed upon by the contracting parties or if no amount is agreed upon then the customary and reasonable charge therefor (3) Draws means periodic disbursements of interim or construction financing by a lender (4) Furnishing labor professional services materials or equipment means the performance of any labor or professional services the contribution owed to any employee benefit plan on account of any labor the provision of any supplies or materials and the renting leasing or

CCBA Nuts amp Bolts on Construction Law - 32 of 49

otherwise supplying of equipment for the improvement of real property (5) Improvement means (a) Constructing altering repairing remodeling demolishing clearing grading or filling in of to or upon any real property or street or road in front of or adjoining the same (b) planting of trees vines shrubs plants hedges or lawns or providing other landscaping materials on any real property and (c) providing professional services upon real property or in preparation for or in conjunction with the intended activities in (a) or (b) of this subsection (6) Interim or construction financing means that portion of money secured by a mortgage deed of trust or other encumbrance to finance improvement of or to real property but does not include (a) Funds to acquire real property (b) Funds to pay interest insurance premiums lease deposits taxes assessments or prior encumbrances (c) Funds to pay loan commitment title legal closing recording or appraisal fees (d) Funds to pay other customary fees which pursuant to agreement with the owner or borrower are to be paid by the lender from time to time (e) Funds to acquire personal property for which the potential lien claimant may not claim a lien pursuant to this chapter (7) Labor means exertion of the powers of body or mind performed at the site for compensation Labor includes amounts due and owed to any employee benefit plan on account of such labor performed (8) Mortgagee means a person who has a valid mortgage of record or deed of trust of record securing a loan (9) Owner-occupied means a single-family residence occupied by the owner as his or her principal residence (10) Payment bond means a surety bond issued by a surety licensed to issue surety bonds in the state of Washington that confers upon potential claimants the rights of third party beneficiaries (11) Potential lien claimant means any person or entity entitled to assert lien rights under this chapter who has otherwise complied with the provisions of this chapter and is registered or licensed if required to be licensed or registered by the provisions of the laws of the state of Washington (12) Prime contractor includes all contractors general contractors and specialty

CCBA Nuts amp Bolts on Construction Law - 33 of 49

contractors as defined by chapter 1827 or 1928 RCW or who are otherwise required to be registered or licensed by law who contract directly with a property owner or their common law agent to assume primary responsibility for the creation of an improvement to real property and includes property owners or their common law agents who are contractors general contractors or specialty contractors as defined in chapter 1827 or 1928 RCW or who are otherwise required to be registered or licensed by law who offer to sell their property without occupying or using the structures projects developments or improvements for more than one year (13) Professional services means surveying establishing or marking the boundaries of preparing maps plans or specifications for or inspecting testing or otherwise performing any other architectural or engineering services for the improvement of real property (14) Real property lender means a bank savings bank savings and loan association credit union mortgage company or other corporation association partnership trust or individual that makes loans secured by real property located in the state of Washington (15) Site means the real property which is or is to be improved (16) Subcontractor means a general contractor or specialty contractor as defined by chapter 1827 or 1928 RCW or who is otherwise required to be registered or licensed by law who contracts for the improvement of real property with someone other than the owner of the property or their common law agent

6004021 Lien authorized

Except as provided in RCW 6004031 any person furnishing labor professional services materials or equipment for the improvement of real property shall have a lien upon the improvement for the contract price of labor professional services materials or equipment furnished at the instance of the owner or the agent or construction agent of the owner

6004031 Notices mdash Exceptions

(1) Except as otherwise provided in this section every person furnishing professional services materials or equipment for the improvement of real property shall give the owner or reputed owner notice in writing of the right to claim a lien If the prime contractor is in compliance with the requirements of RCW 1927095 6004230 and 6004261 this notice shall also be given to the prime contractor as described in this subsection unless the potential lien claimant has contracted directly with the prime contractor The notice may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after the date which is sixty days before (a) Mailing the notice by certified or registered mail to the owner or reputed owner or

CCBA Nuts amp Bolts on Construction Law - 34 of 49

(b) Delivering or serving the notice personally upon the owner or reputed owner and obtaining evidence of delivery in the form of a receipt or other acknowledgment signed by the owner or reputed owner or an affidavit of service In the case of new construction of a single-family residence the notice of a right to claim a lien may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after a date which is ten days before the notice is given as described in this subsection (2) Notices of a right to claim a lien shall not be required of (a) Persons who contract directly with the owner or the owners common law agent (b) Laborers whose claim of lien is based solely on performing labor or (c) Subcontractors who contract for the improvement of real property directly with the prime contractor except as provided in subsection (3)(b) of this section (3) Persons who furnish professional services materials or equipment in connection with the repair alteration or remodel of an existing owner-occupied single-family residence or appurtenant garage (a) Who contract directly with the owner-occupier or their common law agent shall not be required to send a written notice of the right to claim a lien and shall have a lien for the full amount due under their contract as provided in RCW 6004021 or (b) Who do not contract directly with the owner-occupier or their common law agent shall give notice of the right to claim a lien to the owner-occupier Liens of persons furnishing professional services materials or equipment who do not contract directly with the owner-occupier or their common law agent may only be satisfied from amounts not yet paid to the prime contractor by the owner at the time the notice described in this section is received regardless of whether amounts not yet paid to the prime contractor are due For the purposes of this subsection received means actual receipt of notice by personal service or registered or certified mail or three days after mailing by registered or certified mail excluding Saturdays Sundays or legal holidays (4) The notice of right to claim a lien described in subsection (1) of this section shall include but not be limited to the following information and shall substantially be in the following form using lower-case and upper-case ten-point type where appropriate

CCBA Nuts amp Bolts on Construction Law - 35 of 49

NOTICE TO OWNER

IMPORTANT READ BOTH SIDES OF THIS NOTICE CAREFULLY

PROTECT YOURSELF FROM PAYING TWICE

To Date

Re (description of property Street address or general location) From AT THE REQUEST OF (Name of person ordering the professional services materials or equipment) THIS IS NOT A LIEN This notice is sent to you to tell you who is providing professional services materials or equipment for the improvement of your property and to advise you of the rights of these persons and your responsibilities Also take note that laborers on your project may claim a lien without sending you a notice

OWNEROCCUPIER OF EXISTING

RESIDENTIAL PROPERTY

Under Washington law those who furnish labor professional services materials or equipment for the repair remodel or alteration of your owner-occupied principal residence and who are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien The law limits the amount that a lien claimant can claim against your property Claims may only be made against that portion of the contract price you have not yet paid to your prime contractor as of the time this notice was given to you or three days after this notice was mailed to you Review the back of this notice for more information and ways to avoid lien claims

COMMERCIAL ANDOR NEW

RESIDENTIAL PROPERTY

CCBA Nuts amp Bolts on Construction Law - 36 of 49

We have or will be providing professional services materials or equipment for the improvement of your commercial or new residential project In the event you or your contractor fail to pay us we may file a lien against your property A lien may be claimed for all professional services materials or equipment furnished after a date that is sixty days before this notice was given to you or mailed to you unless the improvement to your property is the construction of a new single-family residence then ten days before this notice was given to you or mailed to you Sender Address Telephone Brief description of professional services materials or equipment provided or to be provided

IMPORTANT INFORMATION

ON REVERSE SIDE

IMPORTANT INFORMATION

FOR YOUR PROTECTION This notice is sent to inform you that we have or will provide professional services materials or equipment for the improvement of your property We expect to be paid by the person who ordered our services but if we are not paid we have the right to enforce our claim by filing a construction lien against your property LEARN more about the lien laws and the meaning of this notice by discussing them with your contractor suppliers Department of Labor and Industries the firm sending you this notice your lender or your attorney

COMMON METHODS TO AVOID CONSTRUCTION LIENS There are several methods available to protect your property from construction liens The following are two of the more commonly used methods

DUAL PAYCHECKS (Joint Checks) When paying your contractor for services or materials you may make checks payable jointly to the contractor and the firms furnishing you this notice

CCBA Nuts amp Bolts on Construction Law - 37 of 49

LIEN RELEASES You may require your contractor to provide lien releases signed by all the suppliers and subcontractors from whom you have received this notice If they cannot obtain lien releases because you have not paid them you may use the dual payee check method to protect yourself

YOU SHOULD TAKE APPROPRIATE STEPS TO PROTECT YOUR PROPERTY FROM LIENS YOUR PRIME CONTRACTOR AND YOUR CONSTRUCTION LENDER ARE REQUIRED BY LAW TO GIVE YOU WRITTEN INFORMATION ABOUT LIEN CLAIMS IF YOU HAVE NOT RECEIVED IT ASK THEM FOR IT

(5) Every potential lien claimant providing professional services where no improvement as defined in RCW 6004011(5) (a) or (b) has been commenced and the professional services provided are not visible from an inspection of the real property may record in the real property records of the county where the property is located a notice which shall contain the professional service providers name address telephone number legal description of the property the owner or reputed owners name and the general nature of the professional services provided If such notice is not recorded the lien claimed shall be subordinate to the interest of any subsequent mortgagee and invalid as to the interest of any subsequent purchaser if the mortgagee or purchaser acts in good faith and for a valuable consideration acquires an interest in the property prior to the commencement of an improvement as defined in RCW 6004011(5) (a) or (b) without notice of the professional services being provided The notice described in this subsection shall be substantially in the following form

NOTICE OF FURNISHING

PROFESSIONAL SERVICES That on the (day) day of (month and year) (name of provider) began providing professional services upon or for the improvement of real property legally described as follows

[Legal Description is mandatory]

CCBA Nuts amp Bolts on Construction Law - 38 of 49

The general nature of the professional services provided is The owner or reputed owner of the real property is

(Signature)

(Name of Claimant)

(Street Address)

(City State Zip Code)

(Phone Number)

(6) A lien authorized by this chapter shall not be enforced unless the lien claimant has complied with the applicable provisions of this section

6004041 Contractor registration

A contractor or subcontractor required to be registered under chapter 1827 RCW or licensed under chapter 1928 RCW or otherwise required to be registered or licensed by law shall be deemed the construction agent of the owner for the purposes of establishing the lien created by this chapter only if so registered or licensed Persons dealing with contractors or subcontractors may rely for the purposes of this section upon a certificate of registration issued pursuant to chapter 1827 RCW or license issued pursuant to chapter 1928 RCW or other certificate or license issued pursuant to law covering the period when the labor professional services material or equipment shall be furnished and the lien rights shall not be lost by suspension or revocation of registration or license without their knowledge No lien rights described in this

CCBA Nuts amp Bolts on Construction Law - 39 of 49

chapter shall be lost or denied by virtue of the absence suspension or revocation of such registration or license with respect to any contractor or subcontractor not in immediate contractual privity with the lien claimant

6004081 Frivolous claim mdash Procedure

(1) Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who believes the claim of lien to be frivolous and made without reasonable cause or clearly excessive may apply by motion to the superior court for the county where the property or some part thereof is located for an order directing the lien claimant to appear before the court at a time no earlier than six nor later than fifteen days following the date of service of the application and order on the lien claimant and show cause if any he or she has why the relief requested should not be granted The motion shall state the grounds upon which relief is asked and shall be supported by the affidavit of the applicant or his or her attorney setting forth a concise statement of the facts upon which the motion is based (2) The order shall clearly state that if the lien claimant fails to appear at the time and place noted the lien shall be released with prejudice and that the lien claimant shall be ordered to pay the costs requested by the applicant including reasonable attorneys fees (3) If no action to foreclose the lien claim has been filed the clerk of the court shall assign a cause number to the application and obtain from the applicant a filing fee pursuant to RCW 3618016 If an action has been filed to foreclose the lien claim the application shall be made a part of that action (4) If following a hearing on the matter the court determines that the lien is frivolous and made without reasonable cause or clearly excessive the court shall issue an order releasing the lien if frivolous and made without reasonable cause or reducing the lien if clearly excessive and awarding costs and reasonable attorneys fees to the applicant to be paid by the lien claimant If the court determines that the lien is not frivolous and was made with reasonable cause and is not clearly excessive the court shall issue an order so stating and awarding costs and reasonable attorneys fees to the lien claimant to be paid by the applicant (5) Proceedings under this section shall not affect other rights and remedies available to the parties under this chapter or otherwise

6004091 Recording mdash Time mdash Contents of lien

Every person claiming a lien under RCW 6004021 shall file for recording in the county where the subject property is located a notice of claim of lien not later than ninety days after the person

CCBA Nuts amp Bolts on Construction Law - 40 of 49

has ceased to furnish labor professional services materials or equipment or the last date on which employee benefit contributions were due The notice of claim of lien (1) Shall state in substance and effect (a) The name phone number and address of the claimant (b) The first and last date on which the labor professional services materials or equipment was furnished or employee benefit contributions were due (c) The name of the person indebted to the claimant (d) The street address legal description or other description reasonably calculated to identify for a person familiar with the area the location of the real property to be charged with the lien (e) The name of the owner or reputed owner of the property if known and if not known that fact shall be stated and (f) The principal amount for which the lien is claimed (2) Shall be signed by the claimant or some person authorized to act on his or her behalf who shall affirmatively state they have read the notice of claim of lien and believe the notice of claim of lien to be true and correct under penalty of perjury and shall be acknowledged pursuant to chapter 6408 RCW If the lien has been assigned the name of the assignee shall be stated Where an action to foreclose the lien has been commenced such notice of claim of lien may be amended as pleadings may be by order of the court insofar as the interests of third parties are not adversely affected by such amendment A claim of lien substantially in the following form shall be sufficient

CLAIM OF LIEN

claimant vs name of person indebted to claimant

Notice is hereby given that the person named below claims a lien pursuant to chapter 6404 RCW In support of this lien the following information is submitted

1 NAME OF LIEN CLAIMANT

TELEPHONE NUMBER

CCBA Nuts amp Bolts on Construction Law - 41 of 49

ADDRESS

2 DATE ON WHICH THE CLAIMANT BEGAN TO PERFORM LABOR PROVIDE PROFESSIONAL SERVICES SUPPLY MATERIAL OR EQUIPMENT OR THE DATE ON WHICH EMPLOYEE BENEFIT CONTRIBUTIONS BECAME DUE

3 NAME OF PERSON INDEBTED TO THE CLAIMANT

4 DESCRIPTION OF THE PROPERTY AGAINST WHICH A LIEN IS CLAIMED (Street address legal description or other information that will reasonably describe the property)

5 NAME OF THE OWNER OR REPUTED OWNER (If not known state unknown)

6 THE LAST DATE ON WHICH LABOR WAS PERFORMED PROFESSIONAL SERVICES WERE FURNISHED CONTRIBUTIONS TO AN EMPLOYEE BENEFIT PLAN WERE DUE OR MATERIAL OR EQUIPMENT WAS FURNISHED

7 PRINCIPAL AMOUNT FOR WHICH THE LIEN IS CLAIMED IS

8 IF THE CLAIMANT IS THE ASSIGNEE OF THIS CLAIM SO STATE HERE

Claimant

(Phone number address city

CCBA Nuts amp Bolts on Construction Law - 42 of 49

and

state of claimant)

STATE OF WASHINGTON COUNTY OF ss being sworn says I am the claimant (or attorney of the claimant or administrator representative or agent of the trustees of an employee benefit plan) above named I have read or heard the foregoing claim read and know the contents thereof and believe the same to be true and correct and that the claim of lien is not frivolous and is made with reasonable cause and is not clearly excessive under penalty of perjury Subscribed and sworn to before me this day of The period provided for recording the claim of lien is a period of limitation and no action to foreclose a lien shall be maintained unless the claim of lien is filed for recording within the ninety-day period stated The lien claimant shall give a copy of the claim of lien to the owner or reputed owner by mailing it by certified or registered mail or by personal service within fourteen days of the time the claim of lien is filed for recording Failure to do so results in a forfeiture of any right the claimant may have to attorneys fees and costs against the owner under RCW 6004181

6004161 Bond in lieu of claim

Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who disputes the correctness or validity of the claim of lien may record either before or after the commencement of an action to enforce the lien in the office of the county recorder or auditor in the county where the claim of lien was recorded a bond issued by a surety company authorized to issue surety bonds in the state The surety shall be listed in the latest federal department of the treasury list of surety companies acceptable on federal bonds published in the Federal Register as authorized to issue bonds on United States government projects with an underwriting limitation including applicable reinsurance equal to or greater than the amount of the bond to be recorded The bond shall contain a description of the claim of lien and real property involved and be in an amount equal to the greater of five thousand dollars or two times the amount of the lien claimed if it is ten thousand dollars or less and in an amount equal to or greater than one and one-half times the amount of the lien if it is in

CCBA Nuts amp Bolts on Construction Law - 43 of 49

excess of ten thousand dollars If the claim of lien affects more than one parcel of real property and is segregated to each parcel the bond may be segregated the same as in the claim of lien A separate bond shall be required for each claim of lien made by separate claimants However a single bond may be used to guarantee payment of amounts claimed by more than one claim of lien by a single claimant so long as the amount of the bond meets the requirements of this section as applied to the aggregate sum of all claims by such claimant The condition of the bond shall be to guarantee payment of any judgment upon the lien in favor of the lien claimant entered in any action to recover the amount claimed in a claim of lien or on the claim asserted in the claim of lien The effect of recording a bond shall be to release the real property described in the notice of claim of lien from the lien and any action brought to recover the amount claimed Unless otherwise prohibited by law if no action is commenced to recover on a lien within the time specified in RCW 6004141 the surety shall be discharged from liability under the bond If an action is timely commenced then on payment of any judgment entered in the action or on payment of the full amount of the bond to the holder of the judgment whichever is less the surety shall be discharged from liability under the bond Nothing in this section shall in any way prohibit or limit the use of other methods devised by the affected parties to secure the obligation underlying a claim of lien and to obtain a release of real property from a claim of lien

6004181 Rank of lien mdash Application of proceeds mdash Attorneys fees

(1) In every case in which different construction liens are claimed against the same property the court shall declare the rank of such lien or class of liens which liens shall be in the following order (a) Liens for the performance of labor (b) Liens for contributions owed to employee benefit plans (c) Liens for furnishing material supplies or equipment (d) Liens for subcontractors including but not limited to their labor and materials and (e) Liens for prime contractors or for professional services (2) The proceeds of the sale of property must be applied to each lien or class of liens in order of its rank and in an action brought to foreclose a lien pro rata among each claimant in each separate priority class A personal judgment may be rendered against any party personally liable for any debt for which the lien is claimed If the lien is established the judgment shall provide

CCBA Nuts amp Bolts on Construction Law - 44 of 49

for the enforcement thereof upon the property liable as in the case of foreclosure of judgment liens The amount realized by such enforcement of the lien shall be credited upon the proper personal judgment The deficiency if any remaining unsatisfied shall stand as a personal judgment and may be collected by execution against any party liable therefor (3) The court may allow the prevailing party in the action whether plaintiff or defendant as part of the costs of the action the moneys paid for recording the claim of lien costs of title report bond costs and attorneys fees and necessary expenses incurred by the attorney in the superior court court of appeals supreme court or arbitration as the court or arbitrator deems reasonable Such costs shall have the priority of the class of lien to which they are related as established by subsection (1) of this section (4) Real property against which a lien under this chapter is enforced may be ordered sold by the court and the proceeds deposited into the registry of the clerk of the court pending further determination respecting distribution of the proceeds of the sale

6004900 Liberal construction mdash 1991 c 281

RCW 1927095 6004230 and 6004011 through 6004226 and 6004261 are to be liberally construed to provide security for all parties intended to be protected by their provisions

RCW 6028011

Retained percentage mdash Public transportation projects mdash Labor and material lien created mdash Bond in lieu of retained funds mdash Termination before completion mdash Chapter deemed exclusive mdash Release of ferry contract payments mdash Projects of farmers home administration mdash General contractorconstruction manager procedure mdash Definitions

(1)(a) Except as provided in (b) of this subsection public improvement contracts must provide and public bodies must reserve a contract retainage not to exceed five percent of the moneys earned by the contractor as a trust fund for the protection and payment of (i) The claims of any person arising under the contract and (ii) the state with respect to taxes increases and penalties imposed pursuant to Titles 50 51 and 82 RCW which may be due from such contractor (b) Public improvement contracts funded in whole or in part by federal transportation funds must rely upon the contract bond as referred to in chapter 3908 RCW for the protection and payment of (i) The claims of any person or persons arising under the contract to the extent such claims are provided for in RCW 3908010 and (ii) the state with respect to taxes increases and penalties incurred on the public improvement project under Titles 50 51 and 82 RCW which may be due The contract bond must remain in full force and effect until at a minimum all claims filed in compliance with chapter 3908 RCW are resolved

CCBA Nuts amp Bolts on Construction Law - 45 of 49

(2) Every person performing labor or furnishing supplies toward the completion of a public improvement contract has a lien upon moneys reserved by a public body under the provisions of a public improvement contract However the notice of the lien of the claimant must be given within forty-five days of completion of the contract work and in the manner provided in RCW 3908030 (3) The contractor at any time may request the contract retainage be reduced to one hundred percent of the value of the work remaining on the project (a) After completion of all contract work other than landscaping the contractor may request that the public body release and pay in full the amounts retained during the performance of the contract and sixty days thereafter the public body must release and pay in full the amounts retained (other than continuing retention of five percent of the moneys earned for landscaping) subject to the provisions of chapters 3912 and 6028 RCW (b) Sixty days after completion of all contract work the public body must release and pay in full the amounts retained during the performance of the contract subject to the provisions of chapters 3912 and 6028 RCW (4) The moneys reserved by a public body under the provisions of a public improvement contract at the option of the contractor must be (a) Retained in a fund by the public body (b) Deposited by the public body in an interest bearing account in a bank mutual savings bank or savings and loan association Interest on moneys reserved by a public body under the provision of a public improvement contract must be paid to the contractor (c) Placed in escrow with a bank or trust company by the public body When the moneys reserved are placed in escrow the public body must issue a check representing the sum of the moneys reserved payable to the bank or trust company and the contractor jointly This check must be converted into bonds and securities chosen by the contractor and approved by the public body and the bonds and securities must be held in escrow Interest on the bonds and securities must be paid to the contractor as the interest accrues (5) The contractor or subcontractor may withhold payment of not more than five percent from the moneys earned by any subcontractor or sub-subcontractor or supplier contracted with by the contractor to provide labor materials or equipment to the public project Whenever the contractor or subcontractor reserves funds earned by a subcontractor or sub-subcontractor or

CCBA Nuts amp Bolts on Construction Law - 46 of 49

supplier the contractor or subcontractor must pay interest to the subcontractor or sub-subcontractor or supplier at a rate equal to that received by the contractor or subcontractor from reserved funds (6) A contractor may submit a bond for all or any portion of the contract retainage in a form acceptable to the public body and from a bonding company meeting standards established by the public body The public body must accept a bond meeting these requirements unless the public body can demonstrate good cause for refusing to accept it This bond and any proceeds therefrom are subject to all claims and liens and in the same manner and priority as set forth for retained percentages in this chapter The public body must release the bonded portion of the retained funds to the contractor within thirty days of accepting the bond from the contractor Whenever a public body accepts a bond in lieu of retained funds from a contractor the contractor must accept like bonds from any subcontractors or suppliers from which the contractor has retained funds The contractor must then release the funds retained from the subcontractor or supplier to the subcontractor or supplier within thirty days of accepting the bond from the subcontractor or supplier (7) If the public body administering a contract after a substantial portion of the work has been completed finds that an unreasonable delay will occur in the completion of the remaining portion of the contract for any reason not the result of a breach thereof it may if the contractor agrees delete from the contract the remaining work and accept as final the improvement at the stage of completion then attained and make payment in proportion to the amount of the work accomplished and in this case any amounts retained and accumulated under this section must be held for a period of sixty days following the completion In the event that the work is terminated before final completion as provided in this section the public body may thereafter enter into a new contract with the same contractor to perform the remaining work or improvement for an amount equal to or less than the cost of the remaining work as was provided for in the original contract without advertisement or bid The provisions of this chapter are exclusive and supersede all provisions and regulations in conflict herewith (8) Whenever the department of transportation has contracted for the construction of two or more ferry vessels sixty days after completion of all contract work on each ferry vessel the department must release and pay in full the amounts retained in connection with the construction of the vessel subject to the provisions of RCW 6028021 and chapter 3912 RCW However the department of transportation may at its discretion condition the release of funds retained in connection with the completed ferry upon the contractor delivering a good and sufficient bond with two or more sureties or with a surety company in the amount of the retained funds to be released to the contractor conditioned that no taxes may be certified or claims filed for work on the ferry after a period of sixty days following completion of the ferry and if taxes are certified or claims filed recovery may be had on the bond by the department of revenue the employment

CCBA Nuts amp Bolts on Construction Law - 47 of 49

security department the department of labor and industries and the material suppliers and laborers filing claims (9) Except as provided in subsection (1) of this section reservation by a public body for any purpose from the moneys earned by a contractor by fulfilling its responsibilities under public improvement contracts is prohibited (10) Contracts on projects funded in whole or in part by farmers home administration and subject to farmers home administration regulations are not subject to subsections (1) through (9) of this section (11) This subsection applies only to a public body that has contracted for the construction of a facility using the general contractorconstruction manager procedure as defined under RCW 3910210 If the work performed by a subcontractor on the project has been completed within the first half of the time provided in the general contractorconstruction manager contract for completing the work the public body may accept the completion of the subcontract The public body must give public notice of this acceptance After a forty-five day period for giving notice of liens and compliance with the retainage release procedures in RCW 6028021 the public body may release that portion of the retained funds associated with the subcontract Claims against the retained funds after the forty-five day period are not valid (12) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise (a) Contract retainage means an amount reserved by a public body from the moneys earned by a person under a public improvement contract (b) Person means a person or persons mechanic subcontractor or materialperson who performs labor or provides materials for a public improvement contract and any other person who supplies the person with provisions or supplies for the carrying on of a public improvement contract (c) Public body means the state or a county city town district board or other public body (d) Public improvement contract means a contract for public improvements or work other than for professional services or a work order as defined in RCW 3910210

CCBA Nuts amp Bolts on Construction Law - 48 of 49

RCW 6432070 Liens or encumbrances mdash Enforcement mdash Satisfaction

(1) Subsequent to recording the declaration as provided in this chapter and while the property remains subject to this chapter no lien shall thereafter arise or be effective against the property During such period liens or encumbrances shall arise or be created only against each apartment and the percentage of undivided interest in the common areas and facilities and appurtenant to such apartment in the same manner and under the same conditions in every respect as liens or encumbrances may arise or be created upon or against any other separate parcel of real property subject to individual ownership PROVIDED That no labor performed or materials furnished with the consent of or at the request of the owner of any apartment or such owners agent contractor or subcontractor shall be the basis for the filing of a lien against any other apartment or any other property of any other apartment owner not expressly consenting to or requesting the same except that such express consent shall be deemed to be given by any apartment owner in the case of emergency repairs Labor performed or materials furnished for the common areas and facilities if authorized by the association of apartment owners the manager or board of directors shall be deemed to be performed or furnished with the express consent of each apartment owner and shall be the basis for the filing of a lien against each of the apartments and shall be subject to the provisions of subsection (2) of this section (2) In the event a lien against two or more apartments becomes effective the apartment owners of the separate apartments may remove their apartment and the percentage of undivided interest in the common areas and facilities appurtenant to such apartment from the lien by payment of the fractional or proportional amounts attributable to each of the apartments affected Such individual payments shall be computed by reference to the percentages appearing on the declaration Subsequent to any such payment discharge or satisfaction the apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto shall thereafter be free and clear of the liens so paid satisfied or discharged Such partial payment satisfaction or discharge shall not prevent the lienor from proceeding to enforce his or her rights against any apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto not so paid satisfied or discharged

CCBA Nuts amp Bolts on Construction Law - 49 of 49

  • Cover Sheet
  • 20141110 - Washington Lien and Bond CLE
  • LampI Lien Summary
  • Claim of Lien
  • Form Notice to Owner
  • Model Disclosure Statement (Notice to Customer)
  • LampI Facts about Construction Liens
    • What you should know about contracts
    • How to protect your investment
    • For more information
      • Notice of Claim Against Bond and Retained Percentage
      • Preclaim Notice Bond amp Retained Percentage
      • Statute Handout
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geoptimaliseerd voor prepress-afdrukken van hoge kwaliteit De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 50 en hoger) NOR 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 PTB ltFEFF005500740069006c0069007a006500200065007300730061007300200063006f006e00660069006700750072006100e700f50065007300200064006500200066006f0072006d00610020006100200063007200690061007200200064006f00630075006d0065006e0074006f0073002000410064006f0062006500200050004400460020006d00610069007300200061006400650071007500610064006f00730020007000610072006100200070007200e9002d0069006d0070007200650073007300f50065007300200064006500200061006c007400610020007100750061006c00690064006100640065002e0020004f007300200064006f00630075006d0065006e0074006f00730020005000440046002000630072006900610064006f007300200070006f00640065006d0020007300650072002000610062006500720074006f007300200063006f006d0020006f0020004100630072006f006200610074002000650020006f002000410064006f00620065002000520065006100640065007200200035002e0030002000650020007600650072007300f50065007300200070006f00730074006500720069006f007200650073002egt SUO ltFEFF004b00e40079007400e40020006e00e40069007400e4002000610073006500740075006b007300690061002c0020006b0075006e0020006c0075006f00740020006c00e400680069006e006e00e4002000760061006100740069007600610061006e0020007000610069006e006100740075006b00730065006e002000760061006c006d0069007300740065006c00750074007900f6006800f6006e00200073006f00700069007600690061002000410064006f0062006500200050004400460020002d0064006f006b0075006d0065006e007400740065006a0061002e0020004c0075006f0064007500740020005000440046002d0064006f006b0075006d0065006e00740069007400200076006f0069006400610061006e0020006100760061007400610020004100630072006f0062006100740069006c006c00610020006a0061002000410064006f00620065002000520065006100640065007200200035002e0030003a006c006c00610020006a006100200075007500640065006d006d0069006c006c0061002egt SVE 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 ENU (Use these settings to create Adobe PDF documents best suited for high-quality prepress printing Created PDF documents can be opened with Acrobat and Adobe Reader 50 and later) gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false ConvertColors ConvertToCMYK DestinationProfileName () DestinationProfileSelector DocumentCMYK Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles false MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector DocumentCMYK PreserveEditing true UntaggedCMYKHandling LeaveUntagged UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ]gtgt setdistillerparamsltlt HWResolution [2400 2400] PageSize [612000 792000]gtgt setpagedevice

          ltlt ASCII85EncodePages false AllowTransparency false AutoPositionEPSFiles true AutoRotatePages None Binding Left CalGrayProfile (Dot Gain 20) CalRGBProfile (sRGB IEC61966-21) CalCMYKProfile (US Web Coated 050SWOP051 v2) sRGBProfile (sRGB IEC61966-21) CannotEmbedFontPolicy Warning CompatibilityLevel 14 CompressObjects Tags CompressPages true ConvertImagesToIndexed true PassThroughJPEGImages true CreateJDFFile false CreateJobTicket false DefaultRenderingIntent Default DetectBlends true DetectCurves 00000 ColorConversionStrategy LeaveColorUnchanged DoThumbnails false EmbedAllFonts true EmbedOpenType false ParseICCProfilesInComments true EmbedJobOptions true DSCReportingLevel 0 EmitDSCWarnings false EndPage -1 ImageMemory 1048576 LockDistillerParams true MaxSubsetPct 100 Optimize true OPM 1 ParseDSCComments true ParseDSCCommentsForDocInfo true PreserveCopyPage true PreserveDICMYKValues true PreserveEPSInfo true PreserveFlatness true PreserveHalftoneInfo false PreserveOPIComments true PreserveOverprintSettings true StartPage 1 SubsetFonts true TransferFunctionInfo Apply UCRandBGInfo Preserve UsePrologue false ColorSettingsFile () AlwaysEmbed [ true Algerian Arial-Black Arial-BoldItalicMT Arial-BoldMT Arial-ItalicMT ArialMT ArialNarrow ArialNarrow-Bold ArialNarrow-BoldItalic ArialNarrow-Italic BaskOldFace Bauhaus93 BellMT BellMTBold BellMTItalic BerlinSansFB-Bold BerlinSansFBDemi-Bold BerlinSansFB-Reg BernardMT-Condensed BodoniMTPosterCompressed BookAntiqua BookAntiqua-Bold BookAntiqua-BoldItalic BookAntiqua-Italic BookmanOldStyle BookmanOldStyle-Bold BookmanOldStyle-BoldItalic BookmanOldStyle-Italic BookshelfSymbolSeven BritannicBold Broadway BrushScriptMT CalifornianFB-Bold CalifornianFB-Italic CalifornianFB-Reg Centaur CenturyGothic CenturyGothic-Bold CenturyGothic-BoldItalic CenturyGothic-Italic Chiller-Regular ColonnaMT ComicSansMS ComicSansMS-Bold CooperBlack CourierNewPS-BoldItalicMT CourierNewPS-BoldMT CourierNewPS-ItalicMT CourierNewPSMT EstrangeloEdessa EXTRAAPLNew-Regular EXTRAOIANew-Regular FootlightMTLight FranklinGothic-Medium FranklinGothic-MediumItalic FreestyleScript-Regular Garamond Garamond-Bold Garamond-Italic Gautami Georgia Georgia-Bold Georgia-BoldItalic Georgia-Italic HarlowSolid Harrington HighTowerText-Italic HighTowerText-Reg Impact InformalRoman-Regular Jokerman-Regular JuiceITC-Regular Kartika KristenITC-Regular KunstlerScript Latha LatinWide LucidaATTMSpecial LucidaBright LucidaBright-Demi LucidaBright-DemiItalic LucidaBright-Italic LucidaCalligraphy-Italic LucidaConsole LucidaFax LucidaFax-Demi LucidaFax-DemiItalic LucidaFax-Italic LucidaforAttachmate LucidaHandwriting-Italic LucidaSans LucidaSans-Demi LucidaSans-DemiItalic LucidaSans-Italic LucidaSansUnicode Magneto-Bold Mangal-Regular MaturaMTScriptCapitals MicrosoftSansSerif Mistral Modern-Regular Monospace821BT-Roman MonotypeCorsiva MSOutlook MSReferenceSansSerif MSReferenceSpecialty MVBoli NiagaraEngraved-Reg NiagaraSolid-Reg OldEnglishTextMT Onyx PalatinoLinotype-Bold PalatinoLinotype-BoldItalic PalatinoLinotype-Italic PalatinoLinotype-Roman Parchment-Regular Playbill PoorRichard-Regular Raavi Ravie ShowcardGothic-Reg Shruti SnapITC-Regular Stencil Sylfaen SymbolMT Tahoma Tahoma-Bold TempusSansITC TimesNewRomanPS-BoldItalicMT TimesNewRomanPS-BoldMT TimesNewRomanPS-ItalicMT TimesNewRomanPSMT Trebuchet-BoldItalic TrebuchetMS TrebuchetMS-Bold TrebuchetMS-Italic Tunga-Regular Verdana Verdana-Bold Verdana-BoldItalic Verdana-Italic VinerHandITC Vivaldii VladimirScript Vrinda Webdings Wingdings2 Wingdings3 Wingdings-Regular ZWAdobeF ] NeverEmbed [ true ] AntiAliasColorImages false CropColorImages true ColorImageMinResolution 300 ColorImageMinResolutionPolicy OK DownsampleColorImages true ColorImageDownsampleType Bicubic ColorImageResolution 300 ColorImageDepth -1 ColorImageMinDownsampleDepth 1 ColorImageDownsampleThreshold 150000 EncodeColorImages false ColorImageFilter DCTEncode AutoFilterColorImages true ColorImageAutoFilterStrategy JPEG ColorACSImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt ColorImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000ColorACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000ColorImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasGrayImages false CropGrayImages true GrayImageMinResolution 300 GrayImageMinResolutionPolicy OK DownsampleGrayImages true GrayImageDownsampleType Bicubic GrayImageResolution 300 GrayImageDepth -1 GrayImageMinDownsampleDepth 2 GrayImageDownsampleThreshold 150000 EncodeGrayImages false GrayImageFilter DCTEncode AutoFilterGrayImages true GrayImageAutoFilterStrategy JPEG GrayACSImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt GrayImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000GrayACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000GrayImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasMonoImages false CropMonoImages true MonoImageMinResolution 1200 MonoImageMinResolutionPolicy OK DownsampleMonoImages true MonoImageDownsampleType Bicubic MonoImageResolution 1200 MonoImageDepth -1 MonoImageDownsampleThreshold 150000 EncodeMonoImages false MonoImageFilter CCITTFaxEncode MonoImageDict ltlt K -1 gtgt AllowPSXObjects false CheckCompliance [ None ] PDFX1aCheck false PDFX3Check false PDFXCompliantPDFOnly false PDFXNoTrimBoxError true PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile (None) PDFXOutputConditionIdentifier () PDFXOutputCondition () PDFXRegistryName () PDFXTrapped False Description ltlt CHS ltFEFF4f7f75288fd94e9b8bbe5b9a521b5efa7684002000410064006f006200650020005000440046002065876863900275284e8e9ad88d2891cf76845370524d53705237300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200035002e003000204ee553ca66f49ad87248672c676562535f00521b5efa768400200050004400460020658768633002gt CHT ltFEFF4f7f752890194e9b8a2d7f6e5efa7acb7684002000410064006f006200650020005000440046002065874ef69069752865bc9ad854c18cea76845370524d5370523786557406300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200035002e003000204ee553ca66f49ad87248672c4f86958b555f5df25efa7acb76840020005000440046002065874ef63002gt DAN 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 DEU ltFEFF00560065007200770065006e00640065006e0020005300690065002000640069006500730065002000450069006e007300740065006c006c0075006e00670065006e0020007a0075006d002000450072007300740065006c006c0065006e00200076006f006e002000410064006f006200650020005000440046002d0044006f006b0075006d0065006e00740065006e002c00200076006f006e002000640065006e0065006e002000530069006500200068006f006300680077006500720074006900670065002000500072006500700072006500730073002d0044007200750063006b0065002000650072007a0065007500670065006e0020006d00f60063006800740065006e002e002000450072007300740065006c006c007400650020005000440046002d0044006f006b0075006d0065006e007400650020006b00f6006e006e0065006e0020006d006900740020004100630072006f00620061007400200075006e0064002000410064006f00620065002000520065006100640065007200200035002e00300020006f0064006500720020006800f600680065007200200067006500f600660066006e00650074002000770065007200640065006e002egt ESP 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 FRA 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 ITA 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 JPN ltFEFF9ad854c18cea306a30d730ea30d730ec30b951fa529b7528002000410064006f0062006500200050004400460020658766f8306e4f5c6210306b4f7f75283057307e305930023053306e8a2d5b9a30674f5c62103055308c305f0020005000440046002030d530a130a430eb306f3001004100630072006f0062006100740020304a30883073002000410064006f00620065002000520065006100640065007200200035002e003000204ee5964d3067958b304f30533068304c3067304d307e305930023053306e8a2d5b9a306b306f30d530a930f330c8306e57cb30818fbc307f304c5fc59808306730593002gt KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020ace0d488c9c80020c2dcd5d80020c778c1c4c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200035002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor prepress-afdrukken van hoge kwaliteit De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 50 en hoger) NOR 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 PTB ltFEFF005500740069006c0069007a006500200065007300730061007300200063006f006e00660069006700750072006100e700f50065007300200064006500200066006f0072006d00610020006100200063007200690061007200200064006f00630075006d0065006e0074006f0073002000410064006f0062006500200050004400460020006d00610069007300200061006400650071007500610064006f00730020007000610072006100200070007200e9002d0069006d0070007200650073007300f50065007300200064006500200061006c007400610020007100750061006c00690064006100640065002e0020004f007300200064006f00630075006d0065006e0074006f00730020005000440046002000630072006900610064006f007300200070006f00640065006d0020007300650072002000610062006500720074006f007300200063006f006d0020006f0020004100630072006f006200610074002000650020006f002000410064006f00620065002000520065006100640065007200200035002e0030002000650020007600650072007300f50065007300200070006f00730074006500720069006f007200650073002egt SUO ltFEFF004b00e40079007400e40020006e00e40069007400e4002000610073006500740075006b007300690061002c0020006b0075006e0020006c0075006f00740020006c00e400680069006e006e00e4002000760061006100740069007600610061006e0020007000610069006e006100740075006b00730065006e002000760061006c006d0069007300740065006c00750074007900f6006800f6006e00200073006f00700069007600690061002000410064006f0062006500200050004400460020002d0064006f006b0075006d0065006e007400740065006a0061002e0020004c0075006f0064007500740020005000440046002d0064006f006b0075006d0065006e00740069007400200076006f0069006400610061006e0020006100760061007400610020004100630072006f0062006100740069006c006c00610020006a0061002000410064006f00620065002000520065006100640065007200200035002e0030003a006c006c00610020006a006100200075007500640065006d006d0069006c006c0061002egt SVE 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 ENU (Use these settings to create Adobe PDF documents best suited for high-quality prepress printing Created PDF documents can be opened with Acrobat and Adobe Reader 50 and later) gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false ConvertColors ConvertToCMYK DestinationProfileName () DestinationProfileSelector DocumentCMYK Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles false MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector DocumentCMYK PreserveEditing true UntaggedCMYKHandling LeaveUntagged UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ]gtgt setdistillerparamsltlt HWResolution [2400 2400] PageSize [612000 792000]gtgt setpagedevice

          1. To
          2. Date
          3. Re
          4. From
          5. AT THE REQUEST OF
          6. Sender
          7. Address
          8. Telephone
          9. Brief description of professional services materials or equipment provided or to be provided
          10. 1
          11. 2
          12. 3
          13. reg no
          14. deposit $
          15. expiration date
          16. claims up to $
          17. Reset

11122014

1

Immix Law Group PC

Paige B Spratt

Construction Law Washington Lien and Bond Claims

Immix Law Group

Washington Lien Law (RCW 6004 et al)

Immix Law Group Washington Lien and Bond Claims

ldquo[A]ny person furnishing labor professional services materials or equipment for the improvement of real property shall have a lien upon the improvement for the contract price of labor professional services materials or equipment furnished at the instance of the owner or the agent or construction agent of the ownerrdquo RCW 6004021

Washington Lien Law

CCBA Nuts amp Bolts on Construction Law - 2 of 49

11122014

2

Immix Law Group Washington Lien and Bond Claims

To promote the development of undeveloped property by giving workers a legal interest in the developed land until paid

Washington Liens ndash PolicyPurpose

Immix Law Group Washington Lien and Bond Claims

ldquoMechanicrsquos liens are creatures of statute in derogation of the common law They therefore must be strictly construed to determine whether a lien attaches But if we determine that a partyrsquos lien is covered by chapter 6004 RCW then we liberally construe the statute to provide security for all parties intended to be protected by its provisionsrdquo Top Line Builders Inc v Bovenkamp 179 Wn App 794 812 (2014) (internal citations omitted) see also RCW 6004900

Washington Liens ‐ Interpretation

Immix Law Group Washington Lien and Bond Claims

Creating a Construction Lien

Who has the right to a claim of lienbull Contractorsbull Laborersbull Materialmen (material suppliers) bull Equipment suppliersbull Subcontractorsbull Professional Service Providers

CCBA Nuts amp Bolts on Construction Law - 3 of 49

11122014

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Immix Law Group Washington Lien and Bond Claims

Creating a Construction LienWhat work gives rise to a claim of lienbull Improvement means (6004011(5))

bull (a) Constructing altering repairing remodeling demolishing clearing grading or filling in of to or upon any real property or street or road in front of or adjoining the same

bull (b) planting of trees vines shrubs plants hedges or lawns or providing other landscaping materials on any real property and

bull (c) providing professional services upon real property or in preparation for or in conjunction with the intended activities in (a) or (b) of this subsection

Immix Law Group Washington Lien and Bond Claims

Creating a Construction Lien

Condominium Improvements (RCW 6432070)bull Work performed on a condominium before the declaration creating the

condominium is filed creates a lien as against the entire condominium Work performed after the condominium declaration is filed creates a lien only as to the unit(s) where work was performed Work performed on common areas (ordered by the association) creates a lien for the proportional share of expenses as to each unit

Immix Law Group Washington Lien and Bond Claims

Creating a Construction Lien

Who can direct the workbull Construction agent (RCW 6004011(1))

bull Registered or licensed contractorbull Registered or licensed subcontractorbull Architectbull Engineerbull Other persons ldquohaving charge of any improvement to real propertyrdquo

CCBA Nuts amp Bolts on Construction Law - 4 of 49

11122014

4

Immix Law Group Washington Lien and Bond Claims

Creating a Construction Lien

Who can direct the workbull UnregisteredUnlicensed Contractors (RCW 6004041)

bull A contractor is only responsible for verifying the registration of the contractor with which it is in direct privity (and can be verified by the State)

Immix Law Group Washington Lien and Bond Claims

Creating a Construction Lien

How is a Claim of Lien Createdbull Every person entitled to a claim of lien must take certain steps to

ensure that the lien is enforceable ndash called ldquoperfectingrdquo the lien bull Certain second or third‐tier subcontractors may be required to perform

additional steps to perfect their claim of lien bull There are also additional requirements for residential construction

which lien claimants must perform to ensure that their lien is perfected

Immix Law Group Washington Lien and Bond Claims

Creating a Construction Lien

Basic Steps to Perfecting a Lien (RCW 6004091)bull Claim of Lien

bull Must be recorded no later than 90 (calendar) days after claimantrsquos last day of work or completion or abandonment of the project whichever is earlier

bull Attaches to the property from the first day that work was performed

[NOTE Oregon is 75 days]

CCBA Nuts amp Bolts on Construction Law - 5 of 49

11122014

5

Immix Law Group Washington Lien and Bond Claims

Creating a Construction Lien

Basic Steps to Perfecting a Lien (RCW 6004091)bull Claim of Lien

bull Must be served or sent via certified mail with return receipt to the Owner within 14 days of the lien filing

[NOTE Oregon is 20 days Oregon also requires a ldquoNotice of Intent to Forecloserdquo 10 days before the claimant can foreclose on the Claim of Lien ndash Practice Pointer Include the ldquoNotice of Intent to Forecloserdquo in the same notice as the claim of lien]

Immix Law Group Washington Lien and Bond Claims

Creating a Construction Lien

Basic Steps to Perfecting a Lien (RCW 6004091)bull Contents of the Claim of Lien

bull Claimant name address and phone numberbull First and last day of claimantrsquos workbull Name of person indebtedbull Name of property ownerbull Street address or legal description of the propertybull The principal amount of lien claim

Immix Law Group Washington Lien and Bond Claims

Creating a Construction Lien

Basic Steps to Perfecting a Lien (RCW 6004091)bull Execution

bull ldquoShall be signed by the claimant or some person authorized to act on his or her behalf who shall affirmatively state they have read the notice of claim of lien and believe the notice of claim of lien to be true and correct under penalty of perjury and shall be acknowledged pursuant to chapter 6408 RCWrdquo

CCBA Nuts amp Bolts on Construction Law - 6 of 49

11122014

6

Immix Law Group Washington Lien and Bond Claims

Creating a Construction Lien

Additional Steps for Sub‐Tier Subcontractors Professionals and Suppliersbull ldquoNotice to Ownerrdquo (Preclaim Notice) (RCW 6004031)

bull Professionals material suppliers and equipment suppliers must provide ldquoNotice to Ownerrdquo on all projects

bull The purpose of the Notice is to inform the Owner of the project of the personsentities working on the project even though not present on the project site

Immix Law Group Washington Lien and Bond Claims

Creating a Construction LienAdditional Steps for Lower‐Tier Subs Professionals and Suppliersbull Who is not required to give Notice to Owner

bull Persons who contract directly with the owner or ownerrsquos common law agent

bull Laborers whose lien is based solely upon providing laborbull First‐tier subcontractors who contract directly with the prime

contractorbull Exclusion First‐tier subcontractors who contract directly with the

prime contractor in connection with improvements of an existing owner‐occupied single family residence

Immix Law Group Washington Lien and Bond Claims

Creating a Construction Lien

ldquoNotice to Ownerrdquobull When required

bull Commercial Project = 60 daysbull Residential Project = 10 days

bull Who servedbull Serve both the owner and general contractor via

certified or registered mail with return receipt

CCBA Nuts amp Bolts on Construction Law - 7 of 49

11122014

7

Immix Law Group Washington Lien and Bond Claims

Creating a Construction Lien

ldquoNotice to Customerrdquo (RCW 1827114)bull Must be provided by the prime contractor to the owner on a

project before the start of construction where the project isbull Four or fewer residential units and the contract price is

greater than $1000bull Commercial project where the bidcontract price is

between $1000 and $60000[NOTE In Oregon GCs are required to give several forms]

Practice Pointer Include directly in the construction contract

Immix Law Group Washington Lien and Bond Claims

Foreclosing on a Construction Lien

Lien Foreclosure Lawsuit (RCW 6004171)bull Must be commenced within eight months of the date of

recording the Claim of Lien in the jurisdiction where the real property is locatedbull [NOTE In Oregon the foreclosure suit must be commenced

within 120 days]bull Failure to foreclose invalidates the claim of lienbull Failure to prosecute the foreclosure to judgment within two

years may result in dismissal of the lien foreclosure case

Immix Law Group Washington Lien and Bond Claims

Foreclosing on a Construction Lien

Priority of the Lien (RCW 6004181)bull Not all liens are equal ndash the type of lien is ranked as follows

bull Laborbull Employee benefit plansbull Furnishing material supplies or equipmentbull Subcontractors andbull Prime contractors and professional services

bull Proceeds are applied by rank and pro rata in each class Any mortgagedeed of trust recorded after start of claimantsrsquo work will be ldquosecond in linerdquo

CCBA Nuts amp Bolts on Construction Law - 8 of 49

11122014

8

Immix Law Group Washington Lien and Bond Claims

Foreclosing on a Construction Lien

Amount of the Lienbull Contract price

bull Includes contractual attorneysrsquo fees and interestbull If no contract then reasonable value of the work

performedbull The prevailing party is entitled to their reasonable attorneysrsquo

fees recording fees title report costs etc in pursuing and prosecuting the lien (RCW 6004181)

Immix Law Group Washington Lien and Bond Claims

Foreclosing on a Construction Lien

Bonding ldquoAroundrdquo the Lien (RCW 6004161)bull OwnerPrime can bond around the lien by obtaining a surety

bond under the following requirements bull If disputed amount is over $10000 then 150 of lien

amountbull If disputed amount is under $10000 then $5000 or twice

the amount of the lienbull The lien attaches to the bond and releases the propertybull Foreclosure proceeds as normal however the surety must be

added as a party to the lien foreclosure action

Immix Law Group Washington Lien and Bond Claims

Foreclosing on a Construction Lien

Amendments to Lien (RCW 6004091(2))ldquoWhere an action to foreclose the lien has been commenced such notice of claim of lien may be amended as pleadings may be by order of the court insofar as the interests of third parties are not adversely affected by such amendmentrdquo

[NOTE In Oregon amendments are not expressly allowed by statute] Practice Pointer Before filing a claim of lien verify that your client will not perform any additional work

CCBA Nuts amp Bolts on Construction Law - 9 of 49

11122014

9

Immix Law Group

Property Ownersrsquo Claims Against Contractors

Immix Law Group Washington Lien and Bond Claims

Property Ownersrsquo Claims Against Contractors

Claiming a Frivolous Lien (RCW 6004081)bull Party can request a show cause hearing where applicant must

show that lien is frivolous and ldquomade without reasonable causerdquo or is ldquoclearly excessiverdquo

bull If lien claimant fails to show the lien will be releasedbull High standard for ldquoFrivolousnessrdquo

bull ldquopresents no debatable issue and is so devoid of merit that it has no possibility of successrdquo

bull Prevailing party may get reasonable attorneysrsquo fees and costs

Immix Law Group Washington Lien and Bond Claims

Property Ownersrsquo Claims Against Contractors

Claim Against Contractor Registration Bond (RCW 1827040)bull Contractors are required to obtain registration bonds

bull General contractors = $12000bull Subcontractors = $6000

bull Persons contracting with the contractor can sue against the contractorrsquos registration bond

bull SOLbull Homeowners = 2 yearsbull Everyone else = 1 year

CCBA Nuts amp Bolts on Construction Law - 10 of 49

11122014

10

Immix Law Group Washington Lien and Bond Claims

Property Ownersrsquo Claims Against Contractors

Claim Against Contractor Registration Bond (RCW 1827040)bull Recovery Limitations

bull Residential homeowners entitled to recover entire bond amountbull Other claimants are entitled to frac12 of the bond amount or $4000 if

subcontractor or specialty contractorbull Claimants entitled to attorneysrsquo fees up to amount of bond

Immix Law Group Washington Lien and Bond Claims

Property Ownersrsquo Claims Against Contractors

Claim Against Contractor Registration Bond (RCW 1827040)

bull Service Requirementsbull Service on the bonding company and the contractor must be made

on the Department of Labor amp Industries by serving three copies of the summons and complaint by certified andor registered mail (RCW 1827040(3)) with the filing fee

bull You should also serve the contractor and all other named defendants personally so that the breach of contract claim and other claims are properly served

Immix Law Group

Washington Public Contracts Retainage and Bond Claims

CCBA Nuts amp Bolts on Construction Law - 11 of 49

11122014

11

Immix Law Group Washington Lien and Bond Claims

Public Contracts Retainage ClaimsRetainage Claims (RCW 6028011)bull ldquolsquoContract retainagersquo means an amount reserved by a public body from

the moneys earned by a person under a public improvement contractrdquo bull Usually five percent (5)bull Prime contractor can submit a bond in lieu of retainagebull All persons supplying labor materials equipment services entitled to

claimbull Exception Temporary labor supplier not entitled to claim against retention

because not ldquosubcontractorrdquo Better Financial Solutions Inc v Caicos Corp 117 Wn App 899 (2003)

Immix Law Group Washington Lien and Bond Claims

Public Contracts Retainage Claims

Preclaim Notice of Retainage Claim (RCW 6028011)

bull Sub‐tier subcontractors and suppliers must give preclaimnotice to the public agency within 60 days of furnishing labor material supplies or equipment to the project

bull Relates back 60 days from the date of the noticebull Must be delivered to contracting agency

Immix Law Group Washington Lien and Bond Claims

Public Contracts Retainage Claims

Notice of Retainage Claim (RCW 6028011)

bull All claimants must provide a Notice of Claim within 45 days after ldquocompletion of the contract workrdquo (essentially ldquoproject completionrdquo)

bull The Notice must be delivered to contracting agencybull Hand delivered or certified mail with return receipt

bull Must file the foreclosure suit within 4 months after providing the Notice of Claim

CCBA Nuts amp Bolts on Construction Law - 12 of 49

11122014

12

Immix Law Group Washington Lien and Bond Claims

Public Contracts Bond Claims

Bond Claims ndash Washingtonrsquos Little Miller Act (RCW 3908010)

On Washington Public Works projects in excess of $25000 general contractors must post a payment bond usually in the amount of the contract price

Immix Law Group Washington Lien and Bond Claims

Public Contracts Bond Claims

Preclaim Notice of Bond Claim (RCW 3908010)

bull Lower‐tier subcontractors and material suppliers must give preclaim notice to the prime contractor within 10 days after starting work

Immix Law Group Washington Lien and Bond Claims

Public Contracts Bond Claims

Notice of Bond Claim (RCW 3908010)

bull All claimants must provide a Notice of Claim within 30 days after ldquoacceptance of the workrdquo (different than retention claim)bull ldquoAcceptancerdquo is an affirmative act by the public works owner

bull The Notice must be delivered to public works ownerbull Hand delivered or certified mail with return receipt

bull No deadline provided in the statute ndash foreclose by general statute of limitationsbull 3 years for oral contracts 6 years for written contracts

CCBA Nuts amp Bolts on Construction Law - 13 of 49

11122014

13

Immix Law Group Washington Lien and Bond Claims

Public Contracts Bond amp Retainage Claims

bull Practice Pointer Coordinate the filing of the retention and bond Preclaim Notice and Notice of Claim to ensure that the contractorrsquos claims are protected

bull File the Bond amp Retainage Preclaim Notice within 10 days after starting work

bull File the Bond amp Retainage Notice of Claim within 30 days from project completion

Immix Law Group Washington Lien and Bond Claims

Public Contracts Prompt Pay ActWashingtonrsquos Prompt Pay Act

bull Prime contractors are entitled to payment within 30 days after the public agencyrsquos receipt of the invoice

bull If the public agency intends to withhold payment (all or in part) the agency must notify the contractor in writing within 8 days of receipt stating

bull Why payment (all or part) is being withheld

bull Actions required by contractor in order to receive payment

Immix Law Group Washington Lien and Bond Claims

Public Contracts Prompt Pay ActWashingtonrsquos Prompt Pay Act (contrsquod)

bull Public agency can withhold up to 150 of the disputed amount

bull Failure to comply entitles the contractor to 1 interest per month until paid

bull Subcontractors must be paid within 10 days of prime contractorrsquos receipt of payment

CCBA Nuts amp Bolts on Construction Law - 14 of 49

11122014

14

Immix Law Group

Questions

CCBA Nuts amp Bolts on Construction Law - 15 of 49

SUMMARY OF THE REQUIREMENTS TO BE MET BY A LIEN CLAIMANT ON A WASHINGTON PRIVATE CONSTRUCTION PROJECT

NOTICE TO CUSTOMER

FROM

Prime Contractor working on four or fewer residential units when the contract price is $1000 or more or on a commercial building when the contract price is $1000 or more but less than $60000

TO Owner

WHEN Before starting construction NOTICE OF FURNISHING PROFESSIONAL SERVICES

FROM

Provider of professional services

TO County Recorder

WHEN As soon as professional services are commenced PRECLAIM NOTICE (for all projects except repair and remodeling of owner-occupied single-family residence)

FROM

Provider of professional services materials or equipment except that the following need not provide the notice (1) a provider that contracts directly with the owner or the owners actual agent or (2) a first tier subcontractor

TO Owner and usually also prime contractor

WHEN New single family residence within ten days of first supplying professional services materials or equipment All other projects within 60 days of first supplying professional services materials or equipment

PRECLAIM NOTICE (for repair and remodeling of owner-occupied single-family residence)

FROM

Provider of professional services materials or equipment to anyone other than the owner

TO Owner and usually also prime contractor

WHEN Immediately after agreeing to furnish professional services materials or equipment

FROM

Potential lien claimant to whom payment is five or more days overdue

NOTICE TO REAL PROPERTY LENDER (only applicable where there is not a payment bond of at least 50 of the amount of construction financing)

TO Construction lender owner and prime contractor

WHEN Within 35 days of date payment is due

CLAIM OF LIEN

FROM

Unpaid claimant

TO County Recorder

WHEN Not later than 90 days after the last furnishing of labor professional services materials or equipment or the last date on which employee benefit contributions were due

COPY OF CLAIM OF LIEN

FROM

Unpaid claimant

TO Owner

WHEN Within 14 days of date claim of lien is filed for recording

DEADLINE FOR FILING A LAWSUIT Within eight months of recording claim of lien

F625-055-000 const lien summary 2-96 This summary is intended to generally set forth the requirements applicable to most lien claimants The remainder of the chapter should be consulted for a more detailed discussion

CCBA Nuts amp Bolts on Construction Law - 16 of 49

CLAIM OF LIEN SIGNED BY ATTORNEY

Return Address __________________________ __________________________ __________________________

Document Title Claim of Lien

Reference Number _____________________________

Grantor _____________________________

Grantee _____________________________

Legal Description

Assessors Property Tax Parcel No

CLAIM OF LIEN

________________________ claimant vs _____________________________ name of persons indebted to claimant

Notice is hereby given that the person named below claims a lien pursuant to Chapter 6004 RCW In

support of this lien the following information is submitted

1 NAME OF LIEN CLAIMANT ______________________________________

TELEPHONE NUMBER ______________________________________

ADDRESS ______________________________________

______________________________________

2 DATE ON WHICH THE CLAIMANT BEGAN TO PERFORM LABOR PROVIDE PROFESSIONAL SERVICES SUPPLY MATERIAL OR EQUIPMENT OR THE DATE ON WHICH EMPLOYEE BENEFIT CONTRIBUTIONS BECOMES DUE _________

3 NAME OF PERSON INDEBTED TO THE CLAIMANT _________________

4 DESCRIPTIONOF THE PROPERTY AGAINST WHICH A LIEN IS CLAIMED All fee leasehold and other interests of _______________ and any other owner person or entity in the property commonly known as ___________________________located at _______________________ _________________________ _________________County Washington _______ the legal description of which is believed to be as follows

[Legal Description - andor - The legal description of the underlying real property is described on the attached Exhibit A]

CCBA Nuts amp Bolts on Construction Law - 17 of 49

5 NAME OF THE OWNER OR REPUTED OWNER (if not known state ldquounknownrdquo) ____________________________________________________________________________________________

6 THE LAST DATE ON WHICH LABOR WAS PERFORMED PROFESSIONAL SERVICES WERE FURNISHED CONTRIBUTIONS TO AN EMPLOYEE BENEFIT PLAN WERE DUE OR MATERIAL OR EQUIPMENT WAS FURNISHED _____________________________________________________________

7 PRINCIPAL AMOUNT FOR WHICH THE LIEN IS CLAIMED IS $_______

8 IF THE CLAIMANT IS THE ASSIGNEE OF THIS CLAIM SO STATE HERE ___

___________________ Claimant ___________________________

___________________________ (__)____-______

By ________s________________ Print Name ___________________ Its Attorney

STATE OF WASHINGTON )

SS COUNTYOF ____________ )

________________ being sworn says I am the attorney of the claimant above named I have read or heard the foregoing claim read and know the contents thereof and believe the same to be true and correct and that the claim of lien is not frivolous and is made with reasonable cause and is not clearly excessive under penalty of perjury

__________________________ Print Name _______________

SUBSCRIBED and SWORN to before me this ___day of ___________________ 201_

STATE OF WASHINGTON )

SS COUNTYOF ____________ )

[Seal or Stamp]

__________________________ Print Name _______________ Notary Public in and for the State of Washington residing at________________________________ My Commission Expires __________________

CCBA Nuts amp Bolts on Construction Law - 18 of 49

I certify that I know or have satisfactory evidence that___________________ is the person who appeared before me and said person acknowledged that [heshe] signed this instrument on oath stated that [heshe] was authorized to execute this instrument and acknowledged it as the attorney of___________________ to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument

CCBA Nuts amp Bolts on Construction Law - 19 of 49

F625-054-000 construction lien notice 11-05 IMPORTANT INFORMATION ON PAGE 2

NOTICE TO OWNER IMPORTANT READ BOTH SIDES OF THIS NOTICE CAREFULLY

PROTECT YOURSELF FROM PAYING TWICE

To

Date

Re

From (Description of property street address or general location)

AT THE REQUEST OF Name of person ordering their professional services materials or equipment

THIS IS NOT A LIEN This notice is sent to you to tell you who is providing professional services materials or equipment for the improvement of your property and to advise you of the rights of these persons and your responsibilities Also take notice that laborers on your project may claim a lien without sending you a notice

OWNEROCCUPIER OF EXISTING RESIDENTIAL PROPERTY Under Washington law those who furnish labor professional services materials or equipment for the repair remodel or alteration of you owner-occupied principal residence and who are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien The law limits the amount that a lien claimant can claim against your property Claims may only be made against that portion of the contract price you have not yet paid to your prime contractor as of the time this notice was given to you or three days after this notice was mailed to you Review page 2 of this notice for more information and ways to avoid lien claims

COMMERCIAL ANDOR NEW RESIDENTIAL PROPERTY We have or will be providing professional services materials or equipment for the improvement of your commercial or new residential project In the event you or your contractor fail to pay us we may file a lien against your property A lien may be claimed for all professional services materials or equipment furnished after a date that is sixty days before this notice was given to you or mailed to you unless the improvement to you property is the construction of a new single-family residence then ten days before this notice was given to you or mailed to you

Sender

Address

Telephone

Brief description of professional services materials or equipment provided or to be provided

CCBA Nuts amp Bolts on Construction Law - 20 of 49

F625-054-000 construction lien notice page 2 11-05

Important Information for your Protection

This notice is sent to inform you that we have or will provide professional services materials or equipment for the repair remodel or alteration of you property We expect to be paid by the person who ordered our services but if we are not paid we have the right to enforce our claim by filing a construction lien against your property

LEARN more about the lien laws and the meaning of this notice by

discussing them with our contractor suppliers Department of Labor and Industries the firm sending you this notice your lender or your attorney

COMMON METHODS TO AVOID CONSTRUCTION LIENS

There are several methods available to protect your property from construction liens The following are two of the more commonly used methods

DUAL PAYCHECKS (Joint Checks) When paying your

contractor for services or materials you may make checks payable jointly to the contractor and the firms furnishing you this notice

LIEN RELEASES You may require your contractor to provide

lien releases signed by all the suppliers and subcontractors from whom you have received this notice If they cannot obtain lien releases because you have not paid them you may use the dual payee check method to protect yourself

You should take appropriate steps to protect your property from

liens

Your prime contractor and your construction lender are required by law to give you written information about lien claims If you have not received it ask them for it

CCBA Nuts amp Bolts on Construction Law - 21 of 49

F625-030-000 model disclosure statement notice to customer 09-2007

Department of Labor and Industries Construction Compliance

MODEL DISCLOSURE STATEMENTNOTICE TO CUSTOMER

This contractor is registered with the state of Washington registration no____________________ and has posted with the state a bond or deposit of ______________________ for the purpose of satisfying claims against the contractor for breach of contract including negligent or improper work in the conduct of the contractorrsquos business The expiration date of this contractorrsquos registration is ______________________

THIS BOND OR DEPOSIT MIGHT NOT BE SUFFICIENT TO COVER A CLAIM THAT MIGHT ARISE FROM THE WORK DONE UNDER YOUR CONTRACT This bond or deposit is not for your exclusive use because it covers all work performed by this contractor The bond or deposit is intended to pay valid claims up to ___________________________ that you and other customers suppliers subcontractors or taxing authorities may have FOR GREATER PROTECTION YOU MAY WITHHOLD A PERCENTAGE OF YOUR CONTRACT You may withhold a contractually defined percentage of your construction contract as retainage for a stated period of time to provide protection to you and help insure that your project will be completed as required by your contract

YOUR PROPERTY MAY BE LIENED If a supplier of materials used in your construction project or an employee or subcontractor of your contractor or subcontractors is not paid your property may be liened to force payment and you could pay twice for the same work FOR ADDITIONAL PROTECTION YOU MAY REQUEST THE CONTRACTOR TO PROVIDE YOU WITH ORIGINAL ldquoLIEN RELEASErdquo DOCUMENTS FROM EACH SUPPLIER OR SUBCONTRACTOR AT YOUR PROJECT The contractor is required to provide you with further information about lien release document if you request it General information is also available from the state Department of Labor and Industries I have received a copy of this disclosure statement Dated this _______ day of _______________ of the year __________

_____________________________________________________ Signature of Customer The contractor must retain a signed copy of the disclosure statement in his or her files for a minimum of three years and produce a signed or electronic signature copy of the disclosure statement to the department upon request

CCBA Nuts amp Bolts on Construction Law - 22 of 49

Facts About Construction LiensWhat you should know about contractsIf your contractor fails to pay subcontractors suppliers or laborers or neglects to make other legally required payments those who are owed money can look to your property for payment even if you have paid your contractor in full This is true if you have hired a contractor to build a new home or are buying a newly built home

It is also true when you remodel or improve your property although the amount of your liability may be limited to the amount you owe the prime contractor at the time a lien is filed

Under Washington laws those who work on your property or provide materials and are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien

People who supply materials or labor ordered by your contractor are permitted by law to file a lien only if they do so within 90 days of cessation of performance or delivery of materials The time frame is spelled out in RCW 6004091

If you enter into a contract to buy a newly built home you may not receive a notice of a lien based on a claim by a contractor or material handler Be aware that a lien may be claimed even though you have not received a notice

Before making final payment on the project request a completed lien release form from each contractor and material supplier A sample of this release of lien form is available from the Department of Labor amp Industries Contractor Registration Section

You have final responsibility for seeing that all bills are paid even if you have paid your contractor in full

If you receive a notice to enforce a lien take the notice seriously Let your contractor know you have received the notice Find out what arrangements are being made to pay the sender of the notice

When in doubt or if you need more details consult your attorney When and how to pay your contractor is a decision that requires serious consideration

Reminder Washington laws require contractors to give you a disclosure statement if your contract exceeds $1000 [RCW 1827114(A) or (B)]

CCBA Nuts amp Bolts on Construction Law - 23 of 49

PUBLICATION F625-017-000 [01-2008]

Other formats for persons with disabilities are available on request Call 1-800-647-0982 TDD users call 360-902-5797 LampI is an equal opportunity employer

For more information

How to protect your investment

If you are dealing with a lending institution ask your loan officer what precautions the lending institution takes to verify that subcontractors and material suppliers are being paid when mortgage money is paid to your contractor

Request lender supervision when dealing with a lending institution that provides interim or construction financing

Ask the prime contractor to disclose all potential lien claimants as a condition of payment A lien claimant must mail (by certified or registered mail or by personal service) a copy of the claim of lien to the owner within 14 days of the time the lien is recorded [RCW 6004091(2)] While an action is ongoing an owner may withhold from this prime contractor the amount of money for which a claim is recorded by a subcontractor supplier or laborer [RCW 6004151]

It is recommended that your check be made payable jointly naming the contractor and the subcontractor or supplier as payees

Upon payment and acceptance of the amount due the owner has the right to an executed release of all lien rights by lien claimants [RCW 6004071]

Consider using an escrow agent to protect your interests Find out whether your escrow agent will protect you against liens when disbursing payments If you are interested in this alternative consult your attorney

Request that your contractor post a performance bond in the amount of the project cost That will give you recourse in the event the contractor fails to complete the building agreement

8 On the Web Find more information about hiring a contractor at

wwwLniwagovTradesLicensingContractorsHireCon

Contractor Registration Hotline1-800-647-0982

You may also call your local LampI office See listings under ldquoWashington State ofrdquo in the government section or the white pages of the telephone book

Please note This notice was prepared by the Department of Labor amp Industries Specialty Compliance Services Division for reproduction by lending institutions and contractors for distribution to their clients It explains the basics of the construction lien law to help you protect yourself This information is not a reflection upon the abilities or credit of your contractor

CCBA Nuts amp Bolts on Construction Law - 24 of 49

NOTICE OF CLAIM AGAINST

BOND AND RETAINED PERCENTAGE

RCW 3908030 RCW 6028010

VIA CERTIFIED MAIL ndash RETURN RECEIPT REQUESTED

TO [Public Owner] [Public Ownerrsquos Address]

Project [Project Name amp Address] NOTICE IS HEREBY GIVEN that the undersigned [Claimant] [Claimantrsquos Address] has a claim in the amount of ----- and 00100 Dollars ($XX) (not including attorneysrsquo fees or costs) together with interest at twelve percent (12) against [Public Owner] (ldquoOwnerrdquo) pursuant to RCW 6028 and the payment bond taken from [Prime Contractor] (ldquoContractorrdquo) [Prime Contractorrsquos Address] as principal and [Surety Company] (ldquoSuretyrdquo) [Suretyrsquos Address] as surety Bond No ________ pursuant to RCW 3908 for [describe services material supplies labor furnished] provided on the Project This Notice of Claim Against Bond and Retained Percentage supersedes and replaces previous Notices DATED This ___day of _________ 201_ [Claimant] By ______________________________________ Its ______________________________________ [Claimantrsquos Address]

_________________________________________

[Contractors Registration No if applicable]

(Copies furnished to General Contractor and General Contractorrsquos Bonding Company)

CCBA Nuts amp Bolts on Construction Law - 25 of 49

PRECLAIM NOTICE TO CONTRACTOR BY SUBCONTRACTORS MATERIALMEN OR SUPPLIERS FOR

CLAIM AGAINST BOND AND RETAINED PERCENTAGE

VIA CERTIFIED OR REGISTERED MAIL- RETURN RECEIPT REQUESTED

TO [Name of General Contractor] [Address]

YOU ARE HEREBY NOTIFIED that the undersigned ____________at the request of_________________ commenced to deliver or furnish materials supplies andor equipment for the use in the construction alteration andor repair of that certain project known as____________________ [project name] which is located at ____________________________ [address or description] If the undersigned is not paid for these materials supplies andor equipment it will file a claim against you and your bond andor retainage pursuant to RCW 3908 andor 6028 et seq for payment of any sum that is due and owing to the undersigned

DATED This __ day of _____________ 201_

[Name of Claimant]

By ____________________________________

Its ____________________________________

Address ______________________________

__________________________________________

__________________________________________

[Contractors Registration No if applicable]

(Mail via certified mail return receipt requested or hand deliver and obtain receipt)

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Washington Liens amp Bonds ndash Pertinent Statutes

RCW 1827040 Bond or other security required mdash Actions against mdash Suspension of registration upon impairment (1) Each applicant shall file with the department a surety bond issued by a surety insurer who meets the requirements of chapter 4828 RCW in the sum of twelve thousand dollars if the applicant is a general contractor and six thousand dollars if the applicant is a specialty contractor If no valid bond is already on file with the department at the time the application is filed a bond must accompany the registration application The bond shall have the state of Washington named as obligee with good and sufficient surety in a form to be approved by the department The bond shall be continuous and may be canceled by the surety upon the surety giving written notice to the director A cancellation or revocation of the bond or withdrawal of the surety from the bond automatically suspends the registration issued to the contractor until a new bond or reinstatement notice has been filed and approved as provided in this section The bond shall be conditioned that the applicant will pay all persons performing labor including employee benefits for the contractor will pay all taxes and contributions due to the state of Washington and will pay all persons furnishing material or renting or supplying equipment to the contractor and will pay all amounts that may be adjudged against the contractor by reason of breach of contract including improper work in the conduct of the contracting business A change in the name of a business or a change in the type of business entity shall not impair a bond for the purposes of this section so long as one of the original applicants for such bond maintains partial ownership in the business covered by the bond (2) At the time of initial registration or renewal the contractor shall provide a bond or other security deposit as required by this chapter and comply with all of the other provisions of this chapter before the department shall issue or renew the contractors certificate of registration Any contractor registered as of July 1 2001 who maintains that registration in accordance with this chapter is in compliance with this chapter until the next renewal of the contractors certificate of registration (3) Any person firm or corporation having a claim against the contractor for any of the items referred to in this section may bring suit against the contractor and the bond or deposit in the superior court of the county in which the work was done or of any county in which jurisdiction of the contractor may be had The surety issuing the bond shall be named as a party to any suit upon the bond Action upon the bond or deposit brought by a residential homeowner for breach of contract by a party to the construction contract shall be commenced by filing the summons and complaint with the clerk of the appropriate superior court within two years from the date the claimed contract work was substantially completed or abandoned whichever occurred first Action upon the bond or deposit brought by any other authorized party shall be commenced by filing the summons and complaint with the clerk of the appropriate superior court within one year from the date the claimed labor was performed and benefits accrued taxes and contributions owing the state of Washington became due materials and equipment were furnished or the claimed contract work was substantially completed or abandoned whichever occurred first Service of process in an action filed under this chapter against the contractor and the contractors bond or the deposit shall be exclusively by service upon the department Three

CCBA Nuts amp Bolts on Construction Law - 27 of 49

copies of the summons and complaint and a fee adopted by rule of not less than fifty dollars to cover the costs shall be served by registered or certified mail or other delivery service requiring notice of receipt upon the department at the time suit is started and the department shall maintain a record available for public inspection of all suits so commenced Service is not complete until the department receives the fee and three copies of the summons and complaint The service shall constitute service and confer personal jurisdiction on the contractor and the surety for suit on claimants claim against the contractor and the bond or deposit and the department shall transmit the summons and complaint or a copy thereof to the contractor at the address listed in the contractors application and to the surety within two days after it shall have been received (4) The surety upon the bond shall not be liable in an aggregate amount in excess of the amount named in the bond nor for any monetary penalty assessed pursuant to this chapter for an infraction The liability of the surety shall not cumulate where the bond has been renewed continued reinstated reissued or otherwise extended The surety upon the bond may upon notice to the department and the parties tender to the clerk of the court having jurisdiction of the action an amount equal to the claims thereunder or the amount of the bond less the amount of judgments if any previously satisfied therefrom and to the extent of such tender the surety upon the bond shall be exonerated but if the actions commenced and pending and provided to the department as required in subsection (3) of this section at any one time exceed the amount of the bond then unimpaired claims shall be satisfied from the bond in the following order (a) Employee labor and claims of laborers including employee benefits (b) Claims for breach of contract by a party to the construction contract (c) Registered or licensed subcontractors material and equipment (d) Taxes and contributions due the state of Washington (e) Any court costs interest and attorneys fees plaintiff may be entitled to recover The surety is not liable for any amount in excess of the penal limit of its bond A payment made by the surety in good faith exonerates the bond to the extent of any payment made by the surety (5) The total amount paid from a bond or deposit required of a general contractor by this section to claimants other than residential homeowners must not exceed one-half of the bond amount The total amount paid from a bond or deposit required of a specialty contractor by this section to claimants other than residential homeowners must not exceed one-half of the bond amount or four thousand dollars whichever is greater (6) The prevailing party in an action filed under this section against the contractor and contractors bond or deposit for breach of contract by a party to the construction contract involving a residential homeowner is entitled to costs interest and reasonable attorneys fees The surety upon the bond or deposit is not liable in an aggregate amount in excess of the amount

CCBA Nuts amp Bolts on Construction Law - 28 of 49

named in the bond or deposit nor for any monetary penalty assessed pursuant to this chapter for an infraction (7) If a final judgment impairs the liability of the surety upon the bond or deposit so furnished that there is not in effect a bond or deposit in the full amount prescribed in this section the registration of the contractor is automatically suspended until the bond or deposit liability in the required amount unimpaired by unsatisfied judgment claims is furnished (8) In lieu of the surety bond required by this section the contractor may file with the department an assigned savings account upon forms provided by the department (9) Any person having filed and served a summons and complaint as required by this section having an unsatisfied final judgment against the registrant for any items referred to in this section may execute upon the security held by the department by serving a certified copy of the unsatisfied final judgment by registered or certified mail upon the department within one year of the date of entry of such judgment Upon the receipt of service of such certified copy the department shall pay or order paid from the deposit through the registry of the superior court which rendered judgment towards the amount of the unsatisfied judgment The priority of payment by the department shall be the order of receipt by the department but the department shall have no liability for payment in excess of the amount of the deposit (10) Within ten days after resolution of the case a certified copy of the final judgment and order or any settlement documents where a case is not disposed of by a court trial a certified copy of the dispositive settlement documents must be provided to the department by the prevailing party Failure to provide a copy of the final judgment and order or the dispositive settlement documents to the department within ten days of entry of such an order constitutes a violation of this chapter and a penalty adopted by rule of not less than two hundred fifty dollars may be assessed against the prevailing party (11) The director may require an applicant applying to renew or reinstate a registration or applying for a new registration to file a bond of up to three times the normally required amount if the director determines that an applicant or a previous registration of a corporate officer owner or partner of a current applicant has had in the past five years a total of three final judgments in actions under this chapter involving a residential single-family dwelling on two or more different structures (12) The director may adopt rules necessary for the proper administration of the security RCW 1827114 Disclosure statement required mdash Prerequisite to lien claim

(1) Any contractor agreeing to perform any contracting project (a) For the repair alteration or construction of four or fewer residential units or accessory structures on such residential property when the bid or contract price totals one thousand dollars or more or (b) for the repair alteration or construction of a commercial building when the bid or contract price totals one thousand dollars or more but less than sixty thousand dollars must provide the customer with

CCBA Nuts amp Bolts on Construction Law - 29 of 49

the following disclosure statement in substantially the following form using lower case and upper case twelve-point and bold type where appropriate prior to starting work on the project NOTICE TO CUSTOMER This contractor is registered with the state of Washington registration no and has posted with the state a bond or deposit of for the purpose of satisfying claims against the contractor for breach of contract including negligent or improper work in the conduct of the contractors business The expiration date of this contractors registration is THIS BOND OR DEPOSIT MIGHT NOT BE SUFFICIENT TO COVER A CLAIM THAT MIGHT ARISE FROM THE WORK DONE UNDER YOUR CONTRACT This bond or deposit is not for your exclusive use because it covers all work performed by this contractor The bond or deposit is intended to pay valid claims up to that you and other customers suppliers subcontractors or taxing authorities may have FOR GREATER PROTECTION YOU MAY WITHHOLD A PERCENTAGE OF YOUR CONTRACT You may withhold a contractually defined percentage of your construction contract as retainage for a stated period of time to provide protection to you and help insure that your project will be completed as required by your contract YOUR PROPERTY MAY BE LIENED If a supplier of materials used in your construction project or an employee or subcontractor of your contractor or subcontractors is not paid your property may be liened to force payment and you could pay twice for the same work FOR ADDITIONAL PROTECTION YOU MAY REQUEST THE CONTRACTOR TO PROVIDE YOU WITH ORIGINAL LIEN RELEASE DOCUMENTS FROM EACH SUPPLIER OR SUBCONTRACTOR ON YOUR PROJECT The contractor is required to provide you with further information about lien release documents if you request it General information is also available from the state Department of Labor and Industries I have received a copy of this disclosure statement

CCBA Nuts amp Bolts on Construction Law - 30 of 49

(Signature of customer) (2) The contractor must retain a signed copy of the disclosure statement in his or her files for a minimum of three years and produce a signed or electronic signature copy of the disclosure statement to the department upon request (3) A contractor subject to this section shall notify any consumer to whom notice is required under subsection (1) of this section if the contractors registration has expired or is revoked or suspended by the department prior to completion or other termination of the contract with the consumer (4) No contractor subject to this section may bring or maintain any lien claim under chapter 6004 RCW based on any contract to which this section applies without alleging and proving that the contractor has provided the customer with a copy of the disclosure statement as required in subsection (1) of this section (5) This section does not apply to contracts authorized under chapter 3904 RCW or to contractors contracting with other contractors (6) Failure to comply with this section shall constitute an infraction under the provisions of this chapter (7) The department shall produce model disclosure statements and public service announcements detailing the information needed to assist contractors and contractors customers to comply under this section As necessary the department shall periodically update these education materials RCW 3908010 Bond required mdash Conditions mdash Retention of contract amount in lieu of bond (1)(a) Whenever any board council commission trustees or body acting for the state or any county or municipality or any public body must contract with any person or corporation to do any work for the state county or municipality or other public body city town or district such board council commission trustees or body must require the person or persons with whom such contract is made to make execute and deliver to such board council commission trustees or body a good and sufficient bond with a surety company as surety conditioned that such person or persons must (i) Faithfully perform all the provisions of such contract (ii) Pay all laborers mechanics and subcontractors and material suppliers and all persons who supply such person or persons or subcontractors with provisions and supplies for the carrying on of such work and

CCBA Nuts amp Bolts on Construction Law - 31 of 49

(iii) Pay the taxes increases and penalties incurred on the project under Titles 50 51 and 82 RCW on (A) Projects referred to in RCW 6028011(1)(b) andor (B) projects for which the bond is conditioned on the payment of such taxes increases and penalties (b) The bond in cases of cities and towns must be filed with the clerk or comptroller thereof and any person or persons performing such services or furnishing material to any subcontractor has the same right under the provisions of such bond as if such work services or material was furnished to the original contractor (2) The provisions of RCW 3908010 through 3908030 do not apply to any money loaned or advanced to any such contractor subcontractor or other person in the performance of any such work (3) On contracts of thirty-five thousand dollars or less at the option of the contractor the respective public entity may in lieu of the bond retain fifty percent of the contract amount for a period of thirty days after date of final acceptance or until receipt of all necessary releases from the department of revenue the employment security department and the department of labor and industries and settlement of any liens filed under chapter 6028 RCW whichever is later (4) For contracts of one hundred thousand dollars or less the public entity may accept a full payment and performance bond from an individual surety or sureties (5) The surety must agree to be bound by the laws of the state of Washington and subjected to the jurisdiction of the state of Washington RCW 6004011 Definitions

Unless the context requires otherwise the definitions in this section apply throughout this chapter (1) Construction agent means any registered or licensed contractor registered or licensed subcontractor architect engineer or other person having charge of any improvement to real property who shall be deemed the agent of the owner for the limited purpose of establishing the lien created by this chapter (2) Contract price means the amount agreed upon by the contracting parties or if no amount is agreed upon then the customary and reasonable charge therefor (3) Draws means periodic disbursements of interim or construction financing by a lender (4) Furnishing labor professional services materials or equipment means the performance of any labor or professional services the contribution owed to any employee benefit plan on account of any labor the provision of any supplies or materials and the renting leasing or

CCBA Nuts amp Bolts on Construction Law - 32 of 49

otherwise supplying of equipment for the improvement of real property (5) Improvement means (a) Constructing altering repairing remodeling demolishing clearing grading or filling in of to or upon any real property or street or road in front of or adjoining the same (b) planting of trees vines shrubs plants hedges or lawns or providing other landscaping materials on any real property and (c) providing professional services upon real property or in preparation for or in conjunction with the intended activities in (a) or (b) of this subsection (6) Interim or construction financing means that portion of money secured by a mortgage deed of trust or other encumbrance to finance improvement of or to real property but does not include (a) Funds to acquire real property (b) Funds to pay interest insurance premiums lease deposits taxes assessments or prior encumbrances (c) Funds to pay loan commitment title legal closing recording or appraisal fees (d) Funds to pay other customary fees which pursuant to agreement with the owner or borrower are to be paid by the lender from time to time (e) Funds to acquire personal property for which the potential lien claimant may not claim a lien pursuant to this chapter (7) Labor means exertion of the powers of body or mind performed at the site for compensation Labor includes amounts due and owed to any employee benefit plan on account of such labor performed (8) Mortgagee means a person who has a valid mortgage of record or deed of trust of record securing a loan (9) Owner-occupied means a single-family residence occupied by the owner as his or her principal residence (10) Payment bond means a surety bond issued by a surety licensed to issue surety bonds in the state of Washington that confers upon potential claimants the rights of third party beneficiaries (11) Potential lien claimant means any person or entity entitled to assert lien rights under this chapter who has otherwise complied with the provisions of this chapter and is registered or licensed if required to be licensed or registered by the provisions of the laws of the state of Washington (12) Prime contractor includes all contractors general contractors and specialty

CCBA Nuts amp Bolts on Construction Law - 33 of 49

contractors as defined by chapter 1827 or 1928 RCW or who are otherwise required to be registered or licensed by law who contract directly with a property owner or their common law agent to assume primary responsibility for the creation of an improvement to real property and includes property owners or their common law agents who are contractors general contractors or specialty contractors as defined in chapter 1827 or 1928 RCW or who are otherwise required to be registered or licensed by law who offer to sell their property without occupying or using the structures projects developments or improvements for more than one year (13) Professional services means surveying establishing or marking the boundaries of preparing maps plans or specifications for or inspecting testing or otherwise performing any other architectural or engineering services for the improvement of real property (14) Real property lender means a bank savings bank savings and loan association credit union mortgage company or other corporation association partnership trust or individual that makes loans secured by real property located in the state of Washington (15) Site means the real property which is or is to be improved (16) Subcontractor means a general contractor or specialty contractor as defined by chapter 1827 or 1928 RCW or who is otherwise required to be registered or licensed by law who contracts for the improvement of real property with someone other than the owner of the property or their common law agent

6004021 Lien authorized

Except as provided in RCW 6004031 any person furnishing labor professional services materials or equipment for the improvement of real property shall have a lien upon the improvement for the contract price of labor professional services materials or equipment furnished at the instance of the owner or the agent or construction agent of the owner

6004031 Notices mdash Exceptions

(1) Except as otherwise provided in this section every person furnishing professional services materials or equipment for the improvement of real property shall give the owner or reputed owner notice in writing of the right to claim a lien If the prime contractor is in compliance with the requirements of RCW 1927095 6004230 and 6004261 this notice shall also be given to the prime contractor as described in this subsection unless the potential lien claimant has contracted directly with the prime contractor The notice may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after the date which is sixty days before (a) Mailing the notice by certified or registered mail to the owner or reputed owner or

CCBA Nuts amp Bolts on Construction Law - 34 of 49

(b) Delivering or serving the notice personally upon the owner or reputed owner and obtaining evidence of delivery in the form of a receipt or other acknowledgment signed by the owner or reputed owner or an affidavit of service In the case of new construction of a single-family residence the notice of a right to claim a lien may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after a date which is ten days before the notice is given as described in this subsection (2) Notices of a right to claim a lien shall not be required of (a) Persons who contract directly with the owner or the owners common law agent (b) Laborers whose claim of lien is based solely on performing labor or (c) Subcontractors who contract for the improvement of real property directly with the prime contractor except as provided in subsection (3)(b) of this section (3) Persons who furnish professional services materials or equipment in connection with the repair alteration or remodel of an existing owner-occupied single-family residence or appurtenant garage (a) Who contract directly with the owner-occupier or their common law agent shall not be required to send a written notice of the right to claim a lien and shall have a lien for the full amount due under their contract as provided in RCW 6004021 or (b) Who do not contract directly with the owner-occupier or their common law agent shall give notice of the right to claim a lien to the owner-occupier Liens of persons furnishing professional services materials or equipment who do not contract directly with the owner-occupier or their common law agent may only be satisfied from amounts not yet paid to the prime contractor by the owner at the time the notice described in this section is received regardless of whether amounts not yet paid to the prime contractor are due For the purposes of this subsection received means actual receipt of notice by personal service or registered or certified mail or three days after mailing by registered or certified mail excluding Saturdays Sundays or legal holidays (4) The notice of right to claim a lien described in subsection (1) of this section shall include but not be limited to the following information and shall substantially be in the following form using lower-case and upper-case ten-point type where appropriate

CCBA Nuts amp Bolts on Construction Law - 35 of 49

NOTICE TO OWNER

IMPORTANT READ BOTH SIDES OF THIS NOTICE CAREFULLY

PROTECT YOURSELF FROM PAYING TWICE

To Date

Re (description of property Street address or general location) From AT THE REQUEST OF (Name of person ordering the professional services materials or equipment) THIS IS NOT A LIEN This notice is sent to you to tell you who is providing professional services materials or equipment for the improvement of your property and to advise you of the rights of these persons and your responsibilities Also take note that laborers on your project may claim a lien without sending you a notice

OWNEROCCUPIER OF EXISTING

RESIDENTIAL PROPERTY

Under Washington law those who furnish labor professional services materials or equipment for the repair remodel or alteration of your owner-occupied principal residence and who are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien The law limits the amount that a lien claimant can claim against your property Claims may only be made against that portion of the contract price you have not yet paid to your prime contractor as of the time this notice was given to you or three days after this notice was mailed to you Review the back of this notice for more information and ways to avoid lien claims

COMMERCIAL ANDOR NEW

RESIDENTIAL PROPERTY

CCBA Nuts amp Bolts on Construction Law - 36 of 49

We have or will be providing professional services materials or equipment for the improvement of your commercial or new residential project In the event you or your contractor fail to pay us we may file a lien against your property A lien may be claimed for all professional services materials or equipment furnished after a date that is sixty days before this notice was given to you or mailed to you unless the improvement to your property is the construction of a new single-family residence then ten days before this notice was given to you or mailed to you Sender Address Telephone Brief description of professional services materials or equipment provided or to be provided

IMPORTANT INFORMATION

ON REVERSE SIDE

IMPORTANT INFORMATION

FOR YOUR PROTECTION This notice is sent to inform you that we have or will provide professional services materials or equipment for the improvement of your property We expect to be paid by the person who ordered our services but if we are not paid we have the right to enforce our claim by filing a construction lien against your property LEARN more about the lien laws and the meaning of this notice by discussing them with your contractor suppliers Department of Labor and Industries the firm sending you this notice your lender or your attorney

COMMON METHODS TO AVOID CONSTRUCTION LIENS There are several methods available to protect your property from construction liens The following are two of the more commonly used methods

DUAL PAYCHECKS (Joint Checks) When paying your contractor for services or materials you may make checks payable jointly to the contractor and the firms furnishing you this notice

CCBA Nuts amp Bolts on Construction Law - 37 of 49

LIEN RELEASES You may require your contractor to provide lien releases signed by all the suppliers and subcontractors from whom you have received this notice If they cannot obtain lien releases because you have not paid them you may use the dual payee check method to protect yourself

YOU SHOULD TAKE APPROPRIATE STEPS TO PROTECT YOUR PROPERTY FROM LIENS YOUR PRIME CONTRACTOR AND YOUR CONSTRUCTION LENDER ARE REQUIRED BY LAW TO GIVE YOU WRITTEN INFORMATION ABOUT LIEN CLAIMS IF YOU HAVE NOT RECEIVED IT ASK THEM FOR IT

(5) Every potential lien claimant providing professional services where no improvement as defined in RCW 6004011(5) (a) or (b) has been commenced and the professional services provided are not visible from an inspection of the real property may record in the real property records of the county where the property is located a notice which shall contain the professional service providers name address telephone number legal description of the property the owner or reputed owners name and the general nature of the professional services provided If such notice is not recorded the lien claimed shall be subordinate to the interest of any subsequent mortgagee and invalid as to the interest of any subsequent purchaser if the mortgagee or purchaser acts in good faith and for a valuable consideration acquires an interest in the property prior to the commencement of an improvement as defined in RCW 6004011(5) (a) or (b) without notice of the professional services being provided The notice described in this subsection shall be substantially in the following form

NOTICE OF FURNISHING

PROFESSIONAL SERVICES That on the (day) day of (month and year) (name of provider) began providing professional services upon or for the improvement of real property legally described as follows

[Legal Description is mandatory]

CCBA Nuts amp Bolts on Construction Law - 38 of 49

The general nature of the professional services provided is The owner or reputed owner of the real property is

(Signature)

(Name of Claimant)

(Street Address)

(City State Zip Code)

(Phone Number)

(6) A lien authorized by this chapter shall not be enforced unless the lien claimant has complied with the applicable provisions of this section

6004041 Contractor registration

A contractor or subcontractor required to be registered under chapter 1827 RCW or licensed under chapter 1928 RCW or otherwise required to be registered or licensed by law shall be deemed the construction agent of the owner for the purposes of establishing the lien created by this chapter only if so registered or licensed Persons dealing with contractors or subcontractors may rely for the purposes of this section upon a certificate of registration issued pursuant to chapter 1827 RCW or license issued pursuant to chapter 1928 RCW or other certificate or license issued pursuant to law covering the period when the labor professional services material or equipment shall be furnished and the lien rights shall not be lost by suspension or revocation of registration or license without their knowledge No lien rights described in this

CCBA Nuts amp Bolts on Construction Law - 39 of 49

chapter shall be lost or denied by virtue of the absence suspension or revocation of such registration or license with respect to any contractor or subcontractor not in immediate contractual privity with the lien claimant

6004081 Frivolous claim mdash Procedure

(1) Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who believes the claim of lien to be frivolous and made without reasonable cause or clearly excessive may apply by motion to the superior court for the county where the property or some part thereof is located for an order directing the lien claimant to appear before the court at a time no earlier than six nor later than fifteen days following the date of service of the application and order on the lien claimant and show cause if any he or she has why the relief requested should not be granted The motion shall state the grounds upon which relief is asked and shall be supported by the affidavit of the applicant or his or her attorney setting forth a concise statement of the facts upon which the motion is based (2) The order shall clearly state that if the lien claimant fails to appear at the time and place noted the lien shall be released with prejudice and that the lien claimant shall be ordered to pay the costs requested by the applicant including reasonable attorneys fees (3) If no action to foreclose the lien claim has been filed the clerk of the court shall assign a cause number to the application and obtain from the applicant a filing fee pursuant to RCW 3618016 If an action has been filed to foreclose the lien claim the application shall be made a part of that action (4) If following a hearing on the matter the court determines that the lien is frivolous and made without reasonable cause or clearly excessive the court shall issue an order releasing the lien if frivolous and made without reasonable cause or reducing the lien if clearly excessive and awarding costs and reasonable attorneys fees to the applicant to be paid by the lien claimant If the court determines that the lien is not frivolous and was made with reasonable cause and is not clearly excessive the court shall issue an order so stating and awarding costs and reasonable attorneys fees to the lien claimant to be paid by the applicant (5) Proceedings under this section shall not affect other rights and remedies available to the parties under this chapter or otherwise

6004091 Recording mdash Time mdash Contents of lien

Every person claiming a lien under RCW 6004021 shall file for recording in the county where the subject property is located a notice of claim of lien not later than ninety days after the person

CCBA Nuts amp Bolts on Construction Law - 40 of 49

has ceased to furnish labor professional services materials or equipment or the last date on which employee benefit contributions were due The notice of claim of lien (1) Shall state in substance and effect (a) The name phone number and address of the claimant (b) The first and last date on which the labor professional services materials or equipment was furnished or employee benefit contributions were due (c) The name of the person indebted to the claimant (d) The street address legal description or other description reasonably calculated to identify for a person familiar with the area the location of the real property to be charged with the lien (e) The name of the owner or reputed owner of the property if known and if not known that fact shall be stated and (f) The principal amount for which the lien is claimed (2) Shall be signed by the claimant or some person authorized to act on his or her behalf who shall affirmatively state they have read the notice of claim of lien and believe the notice of claim of lien to be true and correct under penalty of perjury and shall be acknowledged pursuant to chapter 6408 RCW If the lien has been assigned the name of the assignee shall be stated Where an action to foreclose the lien has been commenced such notice of claim of lien may be amended as pleadings may be by order of the court insofar as the interests of third parties are not adversely affected by such amendment A claim of lien substantially in the following form shall be sufficient

CLAIM OF LIEN

claimant vs name of person indebted to claimant

Notice is hereby given that the person named below claims a lien pursuant to chapter 6404 RCW In support of this lien the following information is submitted

1 NAME OF LIEN CLAIMANT

TELEPHONE NUMBER

CCBA Nuts amp Bolts on Construction Law - 41 of 49

ADDRESS

2 DATE ON WHICH THE CLAIMANT BEGAN TO PERFORM LABOR PROVIDE PROFESSIONAL SERVICES SUPPLY MATERIAL OR EQUIPMENT OR THE DATE ON WHICH EMPLOYEE BENEFIT CONTRIBUTIONS BECAME DUE

3 NAME OF PERSON INDEBTED TO THE CLAIMANT

4 DESCRIPTION OF THE PROPERTY AGAINST WHICH A LIEN IS CLAIMED (Street address legal description or other information that will reasonably describe the property)

5 NAME OF THE OWNER OR REPUTED OWNER (If not known state unknown)

6 THE LAST DATE ON WHICH LABOR WAS PERFORMED PROFESSIONAL SERVICES WERE FURNISHED CONTRIBUTIONS TO AN EMPLOYEE BENEFIT PLAN WERE DUE OR MATERIAL OR EQUIPMENT WAS FURNISHED

7 PRINCIPAL AMOUNT FOR WHICH THE LIEN IS CLAIMED IS

8 IF THE CLAIMANT IS THE ASSIGNEE OF THIS CLAIM SO STATE HERE

Claimant

(Phone number address city

CCBA Nuts amp Bolts on Construction Law - 42 of 49

and

state of claimant)

STATE OF WASHINGTON COUNTY OF ss being sworn says I am the claimant (or attorney of the claimant or administrator representative or agent of the trustees of an employee benefit plan) above named I have read or heard the foregoing claim read and know the contents thereof and believe the same to be true and correct and that the claim of lien is not frivolous and is made with reasonable cause and is not clearly excessive under penalty of perjury Subscribed and sworn to before me this day of The period provided for recording the claim of lien is a period of limitation and no action to foreclose a lien shall be maintained unless the claim of lien is filed for recording within the ninety-day period stated The lien claimant shall give a copy of the claim of lien to the owner or reputed owner by mailing it by certified or registered mail or by personal service within fourteen days of the time the claim of lien is filed for recording Failure to do so results in a forfeiture of any right the claimant may have to attorneys fees and costs against the owner under RCW 6004181

6004161 Bond in lieu of claim

Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who disputes the correctness or validity of the claim of lien may record either before or after the commencement of an action to enforce the lien in the office of the county recorder or auditor in the county where the claim of lien was recorded a bond issued by a surety company authorized to issue surety bonds in the state The surety shall be listed in the latest federal department of the treasury list of surety companies acceptable on federal bonds published in the Federal Register as authorized to issue bonds on United States government projects with an underwriting limitation including applicable reinsurance equal to or greater than the amount of the bond to be recorded The bond shall contain a description of the claim of lien and real property involved and be in an amount equal to the greater of five thousand dollars or two times the amount of the lien claimed if it is ten thousand dollars or less and in an amount equal to or greater than one and one-half times the amount of the lien if it is in

CCBA Nuts amp Bolts on Construction Law - 43 of 49

excess of ten thousand dollars If the claim of lien affects more than one parcel of real property and is segregated to each parcel the bond may be segregated the same as in the claim of lien A separate bond shall be required for each claim of lien made by separate claimants However a single bond may be used to guarantee payment of amounts claimed by more than one claim of lien by a single claimant so long as the amount of the bond meets the requirements of this section as applied to the aggregate sum of all claims by such claimant The condition of the bond shall be to guarantee payment of any judgment upon the lien in favor of the lien claimant entered in any action to recover the amount claimed in a claim of lien or on the claim asserted in the claim of lien The effect of recording a bond shall be to release the real property described in the notice of claim of lien from the lien and any action brought to recover the amount claimed Unless otherwise prohibited by law if no action is commenced to recover on a lien within the time specified in RCW 6004141 the surety shall be discharged from liability under the bond If an action is timely commenced then on payment of any judgment entered in the action or on payment of the full amount of the bond to the holder of the judgment whichever is less the surety shall be discharged from liability under the bond Nothing in this section shall in any way prohibit or limit the use of other methods devised by the affected parties to secure the obligation underlying a claim of lien and to obtain a release of real property from a claim of lien

6004181 Rank of lien mdash Application of proceeds mdash Attorneys fees

(1) In every case in which different construction liens are claimed against the same property the court shall declare the rank of such lien or class of liens which liens shall be in the following order (a) Liens for the performance of labor (b) Liens for contributions owed to employee benefit plans (c) Liens for furnishing material supplies or equipment (d) Liens for subcontractors including but not limited to their labor and materials and (e) Liens for prime contractors or for professional services (2) The proceeds of the sale of property must be applied to each lien or class of liens in order of its rank and in an action brought to foreclose a lien pro rata among each claimant in each separate priority class A personal judgment may be rendered against any party personally liable for any debt for which the lien is claimed If the lien is established the judgment shall provide

CCBA Nuts amp Bolts on Construction Law - 44 of 49

for the enforcement thereof upon the property liable as in the case of foreclosure of judgment liens The amount realized by such enforcement of the lien shall be credited upon the proper personal judgment The deficiency if any remaining unsatisfied shall stand as a personal judgment and may be collected by execution against any party liable therefor (3) The court may allow the prevailing party in the action whether plaintiff or defendant as part of the costs of the action the moneys paid for recording the claim of lien costs of title report bond costs and attorneys fees and necessary expenses incurred by the attorney in the superior court court of appeals supreme court or arbitration as the court or arbitrator deems reasonable Such costs shall have the priority of the class of lien to which they are related as established by subsection (1) of this section (4) Real property against which a lien under this chapter is enforced may be ordered sold by the court and the proceeds deposited into the registry of the clerk of the court pending further determination respecting distribution of the proceeds of the sale

6004900 Liberal construction mdash 1991 c 281

RCW 1927095 6004230 and 6004011 through 6004226 and 6004261 are to be liberally construed to provide security for all parties intended to be protected by their provisions

RCW 6028011

Retained percentage mdash Public transportation projects mdash Labor and material lien created mdash Bond in lieu of retained funds mdash Termination before completion mdash Chapter deemed exclusive mdash Release of ferry contract payments mdash Projects of farmers home administration mdash General contractorconstruction manager procedure mdash Definitions

(1)(a) Except as provided in (b) of this subsection public improvement contracts must provide and public bodies must reserve a contract retainage not to exceed five percent of the moneys earned by the contractor as a trust fund for the protection and payment of (i) The claims of any person arising under the contract and (ii) the state with respect to taxes increases and penalties imposed pursuant to Titles 50 51 and 82 RCW which may be due from such contractor (b) Public improvement contracts funded in whole or in part by federal transportation funds must rely upon the contract bond as referred to in chapter 3908 RCW for the protection and payment of (i) The claims of any person or persons arising under the contract to the extent such claims are provided for in RCW 3908010 and (ii) the state with respect to taxes increases and penalties incurred on the public improvement project under Titles 50 51 and 82 RCW which may be due The contract bond must remain in full force and effect until at a minimum all claims filed in compliance with chapter 3908 RCW are resolved

CCBA Nuts amp Bolts on Construction Law - 45 of 49

(2) Every person performing labor or furnishing supplies toward the completion of a public improvement contract has a lien upon moneys reserved by a public body under the provisions of a public improvement contract However the notice of the lien of the claimant must be given within forty-five days of completion of the contract work and in the manner provided in RCW 3908030 (3) The contractor at any time may request the contract retainage be reduced to one hundred percent of the value of the work remaining on the project (a) After completion of all contract work other than landscaping the contractor may request that the public body release and pay in full the amounts retained during the performance of the contract and sixty days thereafter the public body must release and pay in full the amounts retained (other than continuing retention of five percent of the moneys earned for landscaping) subject to the provisions of chapters 3912 and 6028 RCW (b) Sixty days after completion of all contract work the public body must release and pay in full the amounts retained during the performance of the contract subject to the provisions of chapters 3912 and 6028 RCW (4) The moneys reserved by a public body under the provisions of a public improvement contract at the option of the contractor must be (a) Retained in a fund by the public body (b) Deposited by the public body in an interest bearing account in a bank mutual savings bank or savings and loan association Interest on moneys reserved by a public body under the provision of a public improvement contract must be paid to the contractor (c) Placed in escrow with a bank or trust company by the public body When the moneys reserved are placed in escrow the public body must issue a check representing the sum of the moneys reserved payable to the bank or trust company and the contractor jointly This check must be converted into bonds and securities chosen by the contractor and approved by the public body and the bonds and securities must be held in escrow Interest on the bonds and securities must be paid to the contractor as the interest accrues (5) The contractor or subcontractor may withhold payment of not more than five percent from the moneys earned by any subcontractor or sub-subcontractor or supplier contracted with by the contractor to provide labor materials or equipment to the public project Whenever the contractor or subcontractor reserves funds earned by a subcontractor or sub-subcontractor or

CCBA Nuts amp Bolts on Construction Law - 46 of 49

supplier the contractor or subcontractor must pay interest to the subcontractor or sub-subcontractor or supplier at a rate equal to that received by the contractor or subcontractor from reserved funds (6) A contractor may submit a bond for all or any portion of the contract retainage in a form acceptable to the public body and from a bonding company meeting standards established by the public body The public body must accept a bond meeting these requirements unless the public body can demonstrate good cause for refusing to accept it This bond and any proceeds therefrom are subject to all claims and liens and in the same manner and priority as set forth for retained percentages in this chapter The public body must release the bonded portion of the retained funds to the contractor within thirty days of accepting the bond from the contractor Whenever a public body accepts a bond in lieu of retained funds from a contractor the contractor must accept like bonds from any subcontractors or suppliers from which the contractor has retained funds The contractor must then release the funds retained from the subcontractor or supplier to the subcontractor or supplier within thirty days of accepting the bond from the subcontractor or supplier (7) If the public body administering a contract after a substantial portion of the work has been completed finds that an unreasonable delay will occur in the completion of the remaining portion of the contract for any reason not the result of a breach thereof it may if the contractor agrees delete from the contract the remaining work and accept as final the improvement at the stage of completion then attained and make payment in proportion to the amount of the work accomplished and in this case any amounts retained and accumulated under this section must be held for a period of sixty days following the completion In the event that the work is terminated before final completion as provided in this section the public body may thereafter enter into a new contract with the same contractor to perform the remaining work or improvement for an amount equal to or less than the cost of the remaining work as was provided for in the original contract without advertisement or bid The provisions of this chapter are exclusive and supersede all provisions and regulations in conflict herewith (8) Whenever the department of transportation has contracted for the construction of two or more ferry vessels sixty days after completion of all contract work on each ferry vessel the department must release and pay in full the amounts retained in connection with the construction of the vessel subject to the provisions of RCW 6028021 and chapter 3912 RCW However the department of transportation may at its discretion condition the release of funds retained in connection with the completed ferry upon the contractor delivering a good and sufficient bond with two or more sureties or with a surety company in the amount of the retained funds to be released to the contractor conditioned that no taxes may be certified or claims filed for work on the ferry after a period of sixty days following completion of the ferry and if taxes are certified or claims filed recovery may be had on the bond by the department of revenue the employment

CCBA Nuts amp Bolts on Construction Law - 47 of 49

security department the department of labor and industries and the material suppliers and laborers filing claims (9) Except as provided in subsection (1) of this section reservation by a public body for any purpose from the moneys earned by a contractor by fulfilling its responsibilities under public improvement contracts is prohibited (10) Contracts on projects funded in whole or in part by farmers home administration and subject to farmers home administration regulations are not subject to subsections (1) through (9) of this section (11) This subsection applies only to a public body that has contracted for the construction of a facility using the general contractorconstruction manager procedure as defined under RCW 3910210 If the work performed by a subcontractor on the project has been completed within the first half of the time provided in the general contractorconstruction manager contract for completing the work the public body may accept the completion of the subcontract The public body must give public notice of this acceptance After a forty-five day period for giving notice of liens and compliance with the retainage release procedures in RCW 6028021 the public body may release that portion of the retained funds associated with the subcontract Claims against the retained funds after the forty-five day period are not valid (12) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise (a) Contract retainage means an amount reserved by a public body from the moneys earned by a person under a public improvement contract (b) Person means a person or persons mechanic subcontractor or materialperson who performs labor or provides materials for a public improvement contract and any other person who supplies the person with provisions or supplies for the carrying on of a public improvement contract (c) Public body means the state or a county city town district board or other public body (d) Public improvement contract means a contract for public improvements or work other than for professional services or a work order as defined in RCW 3910210

CCBA Nuts amp Bolts on Construction Law - 48 of 49

RCW 6432070 Liens or encumbrances mdash Enforcement mdash Satisfaction

(1) Subsequent to recording the declaration as provided in this chapter and while the property remains subject to this chapter no lien shall thereafter arise or be effective against the property During such period liens or encumbrances shall arise or be created only against each apartment and the percentage of undivided interest in the common areas and facilities and appurtenant to such apartment in the same manner and under the same conditions in every respect as liens or encumbrances may arise or be created upon or against any other separate parcel of real property subject to individual ownership PROVIDED That no labor performed or materials furnished with the consent of or at the request of the owner of any apartment or such owners agent contractor or subcontractor shall be the basis for the filing of a lien against any other apartment or any other property of any other apartment owner not expressly consenting to or requesting the same except that such express consent shall be deemed to be given by any apartment owner in the case of emergency repairs Labor performed or materials furnished for the common areas and facilities if authorized by the association of apartment owners the manager or board of directors shall be deemed to be performed or furnished with the express consent of each apartment owner and shall be the basis for the filing of a lien against each of the apartments and shall be subject to the provisions of subsection (2) of this section (2) In the event a lien against two or more apartments becomes effective the apartment owners of the separate apartments may remove their apartment and the percentage of undivided interest in the common areas and facilities appurtenant to such apartment from the lien by payment of the fractional or proportional amounts attributable to each of the apartments affected Such individual payments shall be computed by reference to the percentages appearing on the declaration Subsequent to any such payment discharge or satisfaction the apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto shall thereafter be free and clear of the liens so paid satisfied or discharged Such partial payment satisfaction or discharge shall not prevent the lienor from proceeding to enforce his or her rights against any apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto not so paid satisfied or discharged

CCBA Nuts amp Bolts on Construction Law - 49 of 49

  • Cover Sheet
  • 20141110 - Washington Lien and Bond CLE
  • LampI Lien Summary
  • Claim of Lien
  • Form Notice to Owner
  • Model Disclosure Statement (Notice to Customer)
  • LampI Facts about Construction Liens
    • What you should know about contracts
    • How to protect your investment
    • For more information
      • Notice of Claim Against Bond and Retained Percentage
      • Preclaim Notice Bond amp Retained Percentage
      • Statute Handout
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(Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false ConvertColors ConvertToCMYK DestinationProfileName () DestinationProfileSelector DocumentCMYK Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles false MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector DocumentCMYK PreserveEditing true UntaggedCMYKHandling LeaveUntagged UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ]gtgt setdistillerparamsltlt HWResolution [2400 2400] PageSize [612000 792000]gtgt setpagedevice

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Onyx PalatinoLinotype-Bold PalatinoLinotype-BoldItalic PalatinoLinotype-Italic PalatinoLinotype-Roman Parchment-Regular Playbill PoorRichard-Regular Raavi Ravie ShowcardGothic-Reg Shruti SnapITC-Regular Stencil Sylfaen SymbolMT Tahoma Tahoma-Bold TempusSansITC TimesNewRomanPS-BoldItalicMT TimesNewRomanPS-BoldMT TimesNewRomanPS-ItalicMT TimesNewRomanPSMT Trebuchet-BoldItalic TrebuchetMS TrebuchetMS-Bold TrebuchetMS-Italic Tunga-Regular Verdana Verdana-Bold Verdana-BoldItalic Verdana-Italic VinerHandITC Vivaldii VladimirScript Vrinda Webdings Wingdings2 Wingdings3 Wingdings-Regular ZWAdobeF ] NeverEmbed [ true ] AntiAliasColorImages false CropColorImages true ColorImageMinResolution 300 ColorImageMinResolutionPolicy OK DownsampleColorImages true ColorImageDownsampleType Bicubic ColorImageResolution 300 ColorImageDepth -1 ColorImageMinDownsampleDepth 1 ColorImageDownsampleThreshold 150000 EncodeColorImages false ColorImageFilter DCTEncode AutoFilterColorImages true ColorImageAutoFilterStrategy JPEG ColorACSImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt ColorImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000ColorACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000ColorImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasGrayImages false CropGrayImages true GrayImageMinResolution 300 GrayImageMinResolutionPolicy OK DownsampleGrayImages true GrayImageDownsampleType Bicubic GrayImageResolution 300 GrayImageDepth -1 GrayImageMinDownsampleDepth 2 GrayImageDownsampleThreshold 150000 EncodeGrayImages false GrayImageFilter DCTEncode AutoFilterGrayImages true GrayImageAutoFilterStrategy JPEG GrayACSImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt GrayImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000GrayACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000GrayImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasMonoImages false CropMonoImages true MonoImageMinResolution 1200 MonoImageMinResolutionPolicy OK DownsampleMonoImages true MonoImageDownsampleType Bicubic MonoImageResolution 1200 MonoImageDepth -1 MonoImageDownsampleThreshold 150000 EncodeMonoImages false MonoImageFilter CCITTFaxEncode MonoImageDict ltlt K -1 gtgt AllowPSXObjects false CheckCompliance [ None ] PDFX1aCheck false PDFX3Check false PDFXCompliantPDFOnly false PDFXNoTrimBoxError true PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile (None) PDFXOutputConditionIdentifier () PDFXOutputCondition () PDFXRegistryName () PDFXTrapped False Description ltlt CHS ltFEFF4f7f75288fd94e9b8bbe5b9a521b5efa7684002000410064006f006200650020005000440046002065876863900275284e8e9ad88d2891cf76845370524d53705237300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200035002e003000204ee553ca66f49ad87248672c676562535f00521b5efa768400200050004400460020658768633002gt CHT ltFEFF4f7f752890194e9b8a2d7f6e5efa7acb7684002000410064006f006200650020005000440046002065874ef69069752865bc9ad854c18cea76845370524d5370523786557406300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200035002e003000204ee553ca66f49ad87248672c4f86958b555f5df25efa7acb76840020005000440046002065874ef63002gt DAN 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 DEU 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 ESP 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 FRA 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 ITA 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 JPN ltFEFF9ad854c18cea306a30d730ea30d730ec30b951fa529b7528002000410064006f0062006500200050004400460020658766f8306e4f5c6210306b4f7f75283057307e305930023053306e8a2d5b9a30674f5c62103055308c305f0020005000440046002030d530a130a430eb306f3001004100630072006f0062006100740020304a30883073002000410064006f00620065002000520065006100640065007200200035002e003000204ee5964d3067958b304f30533068304c3067304d307e305930023053306e8a2d5b9a306b306f30d530a930f330c8306e57cb30818fbc307f304c5fc59808306730593002gt KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020ace0d488c9c80020c2dcd5d80020c778c1c4c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200035002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor prepress-afdrukken van hoge kwaliteit De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 50 en hoger) NOR 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 PTB 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 SVE 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 ENU (Use these settings to create Adobe PDF documents best suited for high-quality prepress printing Created PDF documents can be opened with Acrobat and Adobe Reader 50 and later) gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false ConvertColors ConvertToCMYK DestinationProfileName () DestinationProfileSelector DocumentCMYK Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles false MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector DocumentCMYK PreserveEditing true UntaggedCMYKHandling LeaveUntagged UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ]gtgt setdistillerparamsltlt HWResolution [2400 2400] PageSize [612000 792000]gtgt setpagedevice

          1. To
          2. Date
          3. Re
          4. From
          5. AT THE REQUEST OF
          6. Sender
          7. Address
          8. Telephone
          9. Brief description of professional services materials or equipment provided or to be provided
          10. 1
          11. 2
          12. 3
          13. reg no
          14. deposit $
          15. expiration date
          16. claims up to $
          17. Reset

11122014

2

Immix Law Group Washington Lien and Bond Claims

To promote the development of undeveloped property by giving workers a legal interest in the developed land until paid

Washington Liens ndash PolicyPurpose

Immix Law Group Washington Lien and Bond Claims

ldquoMechanicrsquos liens are creatures of statute in derogation of the common law They therefore must be strictly construed to determine whether a lien attaches But if we determine that a partyrsquos lien is covered by chapter 6004 RCW then we liberally construe the statute to provide security for all parties intended to be protected by its provisionsrdquo Top Line Builders Inc v Bovenkamp 179 Wn App 794 812 (2014) (internal citations omitted) see also RCW 6004900

Washington Liens ‐ Interpretation

Immix Law Group Washington Lien and Bond Claims

Creating a Construction Lien

Who has the right to a claim of lienbull Contractorsbull Laborersbull Materialmen (material suppliers) bull Equipment suppliersbull Subcontractorsbull Professional Service Providers

CCBA Nuts amp Bolts on Construction Law - 3 of 49

11122014

3

Immix Law Group Washington Lien and Bond Claims

Creating a Construction LienWhat work gives rise to a claim of lienbull Improvement means (6004011(5))

bull (a) Constructing altering repairing remodeling demolishing clearing grading or filling in of to or upon any real property or street or road in front of or adjoining the same

bull (b) planting of trees vines shrubs plants hedges or lawns or providing other landscaping materials on any real property and

bull (c) providing professional services upon real property or in preparation for or in conjunction with the intended activities in (a) or (b) of this subsection

Immix Law Group Washington Lien and Bond Claims

Creating a Construction Lien

Condominium Improvements (RCW 6432070)bull Work performed on a condominium before the declaration creating the

condominium is filed creates a lien as against the entire condominium Work performed after the condominium declaration is filed creates a lien only as to the unit(s) where work was performed Work performed on common areas (ordered by the association) creates a lien for the proportional share of expenses as to each unit

Immix Law Group Washington Lien and Bond Claims

Creating a Construction Lien

Who can direct the workbull Construction agent (RCW 6004011(1))

bull Registered or licensed contractorbull Registered or licensed subcontractorbull Architectbull Engineerbull Other persons ldquohaving charge of any improvement to real propertyrdquo

CCBA Nuts amp Bolts on Construction Law - 4 of 49

11122014

4

Immix Law Group Washington Lien and Bond Claims

Creating a Construction Lien

Who can direct the workbull UnregisteredUnlicensed Contractors (RCW 6004041)

bull A contractor is only responsible for verifying the registration of the contractor with which it is in direct privity (and can be verified by the State)

Immix Law Group Washington Lien and Bond Claims

Creating a Construction Lien

How is a Claim of Lien Createdbull Every person entitled to a claim of lien must take certain steps to

ensure that the lien is enforceable ndash called ldquoperfectingrdquo the lien bull Certain second or third‐tier subcontractors may be required to perform

additional steps to perfect their claim of lien bull There are also additional requirements for residential construction

which lien claimants must perform to ensure that their lien is perfected

Immix Law Group Washington Lien and Bond Claims

Creating a Construction Lien

Basic Steps to Perfecting a Lien (RCW 6004091)bull Claim of Lien

bull Must be recorded no later than 90 (calendar) days after claimantrsquos last day of work or completion or abandonment of the project whichever is earlier

bull Attaches to the property from the first day that work was performed

[NOTE Oregon is 75 days]

CCBA Nuts amp Bolts on Construction Law - 5 of 49

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5

Immix Law Group Washington Lien and Bond Claims

Creating a Construction Lien

Basic Steps to Perfecting a Lien (RCW 6004091)bull Claim of Lien

bull Must be served or sent via certified mail with return receipt to the Owner within 14 days of the lien filing

[NOTE Oregon is 20 days Oregon also requires a ldquoNotice of Intent to Forecloserdquo 10 days before the claimant can foreclose on the Claim of Lien ndash Practice Pointer Include the ldquoNotice of Intent to Forecloserdquo in the same notice as the claim of lien]

Immix Law Group Washington Lien and Bond Claims

Creating a Construction Lien

Basic Steps to Perfecting a Lien (RCW 6004091)bull Contents of the Claim of Lien

bull Claimant name address and phone numberbull First and last day of claimantrsquos workbull Name of person indebtedbull Name of property ownerbull Street address or legal description of the propertybull The principal amount of lien claim

Immix Law Group Washington Lien and Bond Claims

Creating a Construction Lien

Basic Steps to Perfecting a Lien (RCW 6004091)bull Execution

bull ldquoShall be signed by the claimant or some person authorized to act on his or her behalf who shall affirmatively state they have read the notice of claim of lien and believe the notice of claim of lien to be true and correct under penalty of perjury and shall be acknowledged pursuant to chapter 6408 RCWrdquo

CCBA Nuts amp Bolts on Construction Law - 6 of 49

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Immix Law Group Washington Lien and Bond Claims

Creating a Construction Lien

Additional Steps for Sub‐Tier Subcontractors Professionals and Suppliersbull ldquoNotice to Ownerrdquo (Preclaim Notice) (RCW 6004031)

bull Professionals material suppliers and equipment suppliers must provide ldquoNotice to Ownerrdquo on all projects

bull The purpose of the Notice is to inform the Owner of the project of the personsentities working on the project even though not present on the project site

Immix Law Group Washington Lien and Bond Claims

Creating a Construction LienAdditional Steps for Lower‐Tier Subs Professionals and Suppliersbull Who is not required to give Notice to Owner

bull Persons who contract directly with the owner or ownerrsquos common law agent

bull Laborers whose lien is based solely upon providing laborbull First‐tier subcontractors who contract directly with the prime

contractorbull Exclusion First‐tier subcontractors who contract directly with the

prime contractor in connection with improvements of an existing owner‐occupied single family residence

Immix Law Group Washington Lien and Bond Claims

Creating a Construction Lien

ldquoNotice to Ownerrdquobull When required

bull Commercial Project = 60 daysbull Residential Project = 10 days

bull Who servedbull Serve both the owner and general contractor via

certified or registered mail with return receipt

CCBA Nuts amp Bolts on Construction Law - 7 of 49

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7

Immix Law Group Washington Lien and Bond Claims

Creating a Construction Lien

ldquoNotice to Customerrdquo (RCW 1827114)bull Must be provided by the prime contractor to the owner on a

project before the start of construction where the project isbull Four or fewer residential units and the contract price is

greater than $1000bull Commercial project where the bidcontract price is

between $1000 and $60000[NOTE In Oregon GCs are required to give several forms]

Practice Pointer Include directly in the construction contract

Immix Law Group Washington Lien and Bond Claims

Foreclosing on a Construction Lien

Lien Foreclosure Lawsuit (RCW 6004171)bull Must be commenced within eight months of the date of

recording the Claim of Lien in the jurisdiction where the real property is locatedbull [NOTE In Oregon the foreclosure suit must be commenced

within 120 days]bull Failure to foreclose invalidates the claim of lienbull Failure to prosecute the foreclosure to judgment within two

years may result in dismissal of the lien foreclosure case

Immix Law Group Washington Lien and Bond Claims

Foreclosing on a Construction Lien

Priority of the Lien (RCW 6004181)bull Not all liens are equal ndash the type of lien is ranked as follows

bull Laborbull Employee benefit plansbull Furnishing material supplies or equipmentbull Subcontractors andbull Prime contractors and professional services

bull Proceeds are applied by rank and pro rata in each class Any mortgagedeed of trust recorded after start of claimantsrsquo work will be ldquosecond in linerdquo

CCBA Nuts amp Bolts on Construction Law - 8 of 49

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8

Immix Law Group Washington Lien and Bond Claims

Foreclosing on a Construction Lien

Amount of the Lienbull Contract price

bull Includes contractual attorneysrsquo fees and interestbull If no contract then reasonable value of the work

performedbull The prevailing party is entitled to their reasonable attorneysrsquo

fees recording fees title report costs etc in pursuing and prosecuting the lien (RCW 6004181)

Immix Law Group Washington Lien and Bond Claims

Foreclosing on a Construction Lien

Bonding ldquoAroundrdquo the Lien (RCW 6004161)bull OwnerPrime can bond around the lien by obtaining a surety

bond under the following requirements bull If disputed amount is over $10000 then 150 of lien

amountbull If disputed amount is under $10000 then $5000 or twice

the amount of the lienbull The lien attaches to the bond and releases the propertybull Foreclosure proceeds as normal however the surety must be

added as a party to the lien foreclosure action

Immix Law Group Washington Lien and Bond Claims

Foreclosing on a Construction Lien

Amendments to Lien (RCW 6004091(2))ldquoWhere an action to foreclose the lien has been commenced such notice of claim of lien may be amended as pleadings may be by order of the court insofar as the interests of third parties are not adversely affected by such amendmentrdquo

[NOTE In Oregon amendments are not expressly allowed by statute] Practice Pointer Before filing a claim of lien verify that your client will not perform any additional work

CCBA Nuts amp Bolts on Construction Law - 9 of 49

11122014

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Immix Law Group

Property Ownersrsquo Claims Against Contractors

Immix Law Group Washington Lien and Bond Claims

Property Ownersrsquo Claims Against Contractors

Claiming a Frivolous Lien (RCW 6004081)bull Party can request a show cause hearing where applicant must

show that lien is frivolous and ldquomade without reasonable causerdquo or is ldquoclearly excessiverdquo

bull If lien claimant fails to show the lien will be releasedbull High standard for ldquoFrivolousnessrdquo

bull ldquopresents no debatable issue and is so devoid of merit that it has no possibility of successrdquo

bull Prevailing party may get reasonable attorneysrsquo fees and costs

Immix Law Group Washington Lien and Bond Claims

Property Ownersrsquo Claims Against Contractors

Claim Against Contractor Registration Bond (RCW 1827040)bull Contractors are required to obtain registration bonds

bull General contractors = $12000bull Subcontractors = $6000

bull Persons contracting with the contractor can sue against the contractorrsquos registration bond

bull SOLbull Homeowners = 2 yearsbull Everyone else = 1 year

CCBA Nuts amp Bolts on Construction Law - 10 of 49

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10

Immix Law Group Washington Lien and Bond Claims

Property Ownersrsquo Claims Against Contractors

Claim Against Contractor Registration Bond (RCW 1827040)bull Recovery Limitations

bull Residential homeowners entitled to recover entire bond amountbull Other claimants are entitled to frac12 of the bond amount or $4000 if

subcontractor or specialty contractorbull Claimants entitled to attorneysrsquo fees up to amount of bond

Immix Law Group Washington Lien and Bond Claims

Property Ownersrsquo Claims Against Contractors

Claim Against Contractor Registration Bond (RCW 1827040)

bull Service Requirementsbull Service on the bonding company and the contractor must be made

on the Department of Labor amp Industries by serving three copies of the summons and complaint by certified andor registered mail (RCW 1827040(3)) with the filing fee

bull You should also serve the contractor and all other named defendants personally so that the breach of contract claim and other claims are properly served

Immix Law Group

Washington Public Contracts Retainage and Bond Claims

CCBA Nuts amp Bolts on Construction Law - 11 of 49

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11

Immix Law Group Washington Lien and Bond Claims

Public Contracts Retainage ClaimsRetainage Claims (RCW 6028011)bull ldquolsquoContract retainagersquo means an amount reserved by a public body from

the moneys earned by a person under a public improvement contractrdquo bull Usually five percent (5)bull Prime contractor can submit a bond in lieu of retainagebull All persons supplying labor materials equipment services entitled to

claimbull Exception Temporary labor supplier not entitled to claim against retention

because not ldquosubcontractorrdquo Better Financial Solutions Inc v Caicos Corp 117 Wn App 899 (2003)

Immix Law Group Washington Lien and Bond Claims

Public Contracts Retainage Claims

Preclaim Notice of Retainage Claim (RCW 6028011)

bull Sub‐tier subcontractors and suppliers must give preclaimnotice to the public agency within 60 days of furnishing labor material supplies or equipment to the project

bull Relates back 60 days from the date of the noticebull Must be delivered to contracting agency

Immix Law Group Washington Lien and Bond Claims

Public Contracts Retainage Claims

Notice of Retainage Claim (RCW 6028011)

bull All claimants must provide a Notice of Claim within 45 days after ldquocompletion of the contract workrdquo (essentially ldquoproject completionrdquo)

bull The Notice must be delivered to contracting agencybull Hand delivered or certified mail with return receipt

bull Must file the foreclosure suit within 4 months after providing the Notice of Claim

CCBA Nuts amp Bolts on Construction Law - 12 of 49

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12

Immix Law Group Washington Lien and Bond Claims

Public Contracts Bond Claims

Bond Claims ndash Washingtonrsquos Little Miller Act (RCW 3908010)

On Washington Public Works projects in excess of $25000 general contractors must post a payment bond usually in the amount of the contract price

Immix Law Group Washington Lien and Bond Claims

Public Contracts Bond Claims

Preclaim Notice of Bond Claim (RCW 3908010)

bull Lower‐tier subcontractors and material suppliers must give preclaim notice to the prime contractor within 10 days after starting work

Immix Law Group Washington Lien and Bond Claims

Public Contracts Bond Claims

Notice of Bond Claim (RCW 3908010)

bull All claimants must provide a Notice of Claim within 30 days after ldquoacceptance of the workrdquo (different than retention claim)bull ldquoAcceptancerdquo is an affirmative act by the public works owner

bull The Notice must be delivered to public works ownerbull Hand delivered or certified mail with return receipt

bull No deadline provided in the statute ndash foreclose by general statute of limitationsbull 3 years for oral contracts 6 years for written contracts

CCBA Nuts amp Bolts on Construction Law - 13 of 49

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13

Immix Law Group Washington Lien and Bond Claims

Public Contracts Bond amp Retainage Claims

bull Practice Pointer Coordinate the filing of the retention and bond Preclaim Notice and Notice of Claim to ensure that the contractorrsquos claims are protected

bull File the Bond amp Retainage Preclaim Notice within 10 days after starting work

bull File the Bond amp Retainage Notice of Claim within 30 days from project completion

Immix Law Group Washington Lien and Bond Claims

Public Contracts Prompt Pay ActWashingtonrsquos Prompt Pay Act

bull Prime contractors are entitled to payment within 30 days after the public agencyrsquos receipt of the invoice

bull If the public agency intends to withhold payment (all or in part) the agency must notify the contractor in writing within 8 days of receipt stating

bull Why payment (all or part) is being withheld

bull Actions required by contractor in order to receive payment

Immix Law Group Washington Lien and Bond Claims

Public Contracts Prompt Pay ActWashingtonrsquos Prompt Pay Act (contrsquod)

bull Public agency can withhold up to 150 of the disputed amount

bull Failure to comply entitles the contractor to 1 interest per month until paid

bull Subcontractors must be paid within 10 days of prime contractorrsquos receipt of payment

CCBA Nuts amp Bolts on Construction Law - 14 of 49

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Immix Law Group

Questions

CCBA Nuts amp Bolts on Construction Law - 15 of 49

SUMMARY OF THE REQUIREMENTS TO BE MET BY A LIEN CLAIMANT ON A WASHINGTON PRIVATE CONSTRUCTION PROJECT

NOTICE TO CUSTOMER

FROM

Prime Contractor working on four or fewer residential units when the contract price is $1000 or more or on a commercial building when the contract price is $1000 or more but less than $60000

TO Owner

WHEN Before starting construction NOTICE OF FURNISHING PROFESSIONAL SERVICES

FROM

Provider of professional services

TO County Recorder

WHEN As soon as professional services are commenced PRECLAIM NOTICE (for all projects except repair and remodeling of owner-occupied single-family residence)

FROM

Provider of professional services materials or equipment except that the following need not provide the notice (1) a provider that contracts directly with the owner or the owners actual agent or (2) a first tier subcontractor

TO Owner and usually also prime contractor

WHEN New single family residence within ten days of first supplying professional services materials or equipment All other projects within 60 days of first supplying professional services materials or equipment

PRECLAIM NOTICE (for repair and remodeling of owner-occupied single-family residence)

FROM

Provider of professional services materials or equipment to anyone other than the owner

TO Owner and usually also prime contractor

WHEN Immediately after agreeing to furnish professional services materials or equipment

FROM

Potential lien claimant to whom payment is five or more days overdue

NOTICE TO REAL PROPERTY LENDER (only applicable where there is not a payment bond of at least 50 of the amount of construction financing)

TO Construction lender owner and prime contractor

WHEN Within 35 days of date payment is due

CLAIM OF LIEN

FROM

Unpaid claimant

TO County Recorder

WHEN Not later than 90 days after the last furnishing of labor professional services materials or equipment or the last date on which employee benefit contributions were due

COPY OF CLAIM OF LIEN

FROM

Unpaid claimant

TO Owner

WHEN Within 14 days of date claim of lien is filed for recording

DEADLINE FOR FILING A LAWSUIT Within eight months of recording claim of lien

F625-055-000 const lien summary 2-96 This summary is intended to generally set forth the requirements applicable to most lien claimants The remainder of the chapter should be consulted for a more detailed discussion

CCBA Nuts amp Bolts on Construction Law - 16 of 49

CLAIM OF LIEN SIGNED BY ATTORNEY

Return Address __________________________ __________________________ __________________________

Document Title Claim of Lien

Reference Number _____________________________

Grantor _____________________________

Grantee _____________________________

Legal Description

Assessors Property Tax Parcel No

CLAIM OF LIEN

________________________ claimant vs _____________________________ name of persons indebted to claimant

Notice is hereby given that the person named below claims a lien pursuant to Chapter 6004 RCW In

support of this lien the following information is submitted

1 NAME OF LIEN CLAIMANT ______________________________________

TELEPHONE NUMBER ______________________________________

ADDRESS ______________________________________

______________________________________

2 DATE ON WHICH THE CLAIMANT BEGAN TO PERFORM LABOR PROVIDE PROFESSIONAL SERVICES SUPPLY MATERIAL OR EQUIPMENT OR THE DATE ON WHICH EMPLOYEE BENEFIT CONTRIBUTIONS BECOMES DUE _________

3 NAME OF PERSON INDEBTED TO THE CLAIMANT _________________

4 DESCRIPTIONOF THE PROPERTY AGAINST WHICH A LIEN IS CLAIMED All fee leasehold and other interests of _______________ and any other owner person or entity in the property commonly known as ___________________________located at _______________________ _________________________ _________________County Washington _______ the legal description of which is believed to be as follows

[Legal Description - andor - The legal description of the underlying real property is described on the attached Exhibit A]

CCBA Nuts amp Bolts on Construction Law - 17 of 49

5 NAME OF THE OWNER OR REPUTED OWNER (if not known state ldquounknownrdquo) ____________________________________________________________________________________________

6 THE LAST DATE ON WHICH LABOR WAS PERFORMED PROFESSIONAL SERVICES WERE FURNISHED CONTRIBUTIONS TO AN EMPLOYEE BENEFIT PLAN WERE DUE OR MATERIAL OR EQUIPMENT WAS FURNISHED _____________________________________________________________

7 PRINCIPAL AMOUNT FOR WHICH THE LIEN IS CLAIMED IS $_______

8 IF THE CLAIMANT IS THE ASSIGNEE OF THIS CLAIM SO STATE HERE ___

___________________ Claimant ___________________________

___________________________ (__)____-______

By ________s________________ Print Name ___________________ Its Attorney

STATE OF WASHINGTON )

SS COUNTYOF ____________ )

________________ being sworn says I am the attorney of the claimant above named I have read or heard the foregoing claim read and know the contents thereof and believe the same to be true and correct and that the claim of lien is not frivolous and is made with reasonable cause and is not clearly excessive under penalty of perjury

__________________________ Print Name _______________

SUBSCRIBED and SWORN to before me this ___day of ___________________ 201_

STATE OF WASHINGTON )

SS COUNTYOF ____________ )

[Seal or Stamp]

__________________________ Print Name _______________ Notary Public in and for the State of Washington residing at________________________________ My Commission Expires __________________

CCBA Nuts amp Bolts on Construction Law - 18 of 49

I certify that I know or have satisfactory evidence that___________________ is the person who appeared before me and said person acknowledged that [heshe] signed this instrument on oath stated that [heshe] was authorized to execute this instrument and acknowledged it as the attorney of___________________ to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument

CCBA Nuts amp Bolts on Construction Law - 19 of 49

F625-054-000 construction lien notice 11-05 IMPORTANT INFORMATION ON PAGE 2

NOTICE TO OWNER IMPORTANT READ BOTH SIDES OF THIS NOTICE CAREFULLY

PROTECT YOURSELF FROM PAYING TWICE

To

Date

Re

From (Description of property street address or general location)

AT THE REQUEST OF Name of person ordering their professional services materials or equipment

THIS IS NOT A LIEN This notice is sent to you to tell you who is providing professional services materials or equipment for the improvement of your property and to advise you of the rights of these persons and your responsibilities Also take notice that laborers on your project may claim a lien without sending you a notice

OWNEROCCUPIER OF EXISTING RESIDENTIAL PROPERTY Under Washington law those who furnish labor professional services materials or equipment for the repair remodel or alteration of you owner-occupied principal residence and who are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien The law limits the amount that a lien claimant can claim against your property Claims may only be made against that portion of the contract price you have not yet paid to your prime contractor as of the time this notice was given to you or three days after this notice was mailed to you Review page 2 of this notice for more information and ways to avoid lien claims

COMMERCIAL ANDOR NEW RESIDENTIAL PROPERTY We have or will be providing professional services materials or equipment for the improvement of your commercial or new residential project In the event you or your contractor fail to pay us we may file a lien against your property A lien may be claimed for all professional services materials or equipment furnished after a date that is sixty days before this notice was given to you or mailed to you unless the improvement to you property is the construction of a new single-family residence then ten days before this notice was given to you or mailed to you

Sender

Address

Telephone

Brief description of professional services materials or equipment provided or to be provided

CCBA Nuts amp Bolts on Construction Law - 20 of 49

F625-054-000 construction lien notice page 2 11-05

Important Information for your Protection

This notice is sent to inform you that we have or will provide professional services materials or equipment for the repair remodel or alteration of you property We expect to be paid by the person who ordered our services but if we are not paid we have the right to enforce our claim by filing a construction lien against your property

LEARN more about the lien laws and the meaning of this notice by

discussing them with our contractor suppliers Department of Labor and Industries the firm sending you this notice your lender or your attorney

COMMON METHODS TO AVOID CONSTRUCTION LIENS

There are several methods available to protect your property from construction liens The following are two of the more commonly used methods

DUAL PAYCHECKS (Joint Checks) When paying your

contractor for services or materials you may make checks payable jointly to the contractor and the firms furnishing you this notice

LIEN RELEASES You may require your contractor to provide

lien releases signed by all the suppliers and subcontractors from whom you have received this notice If they cannot obtain lien releases because you have not paid them you may use the dual payee check method to protect yourself

You should take appropriate steps to protect your property from

liens

Your prime contractor and your construction lender are required by law to give you written information about lien claims If you have not received it ask them for it

CCBA Nuts amp Bolts on Construction Law - 21 of 49

F625-030-000 model disclosure statement notice to customer 09-2007

Department of Labor and Industries Construction Compliance

MODEL DISCLOSURE STATEMENTNOTICE TO CUSTOMER

This contractor is registered with the state of Washington registration no____________________ and has posted with the state a bond or deposit of ______________________ for the purpose of satisfying claims against the contractor for breach of contract including negligent or improper work in the conduct of the contractorrsquos business The expiration date of this contractorrsquos registration is ______________________

THIS BOND OR DEPOSIT MIGHT NOT BE SUFFICIENT TO COVER A CLAIM THAT MIGHT ARISE FROM THE WORK DONE UNDER YOUR CONTRACT This bond or deposit is not for your exclusive use because it covers all work performed by this contractor The bond or deposit is intended to pay valid claims up to ___________________________ that you and other customers suppliers subcontractors or taxing authorities may have FOR GREATER PROTECTION YOU MAY WITHHOLD A PERCENTAGE OF YOUR CONTRACT You may withhold a contractually defined percentage of your construction contract as retainage for a stated period of time to provide protection to you and help insure that your project will be completed as required by your contract

YOUR PROPERTY MAY BE LIENED If a supplier of materials used in your construction project or an employee or subcontractor of your contractor or subcontractors is not paid your property may be liened to force payment and you could pay twice for the same work FOR ADDITIONAL PROTECTION YOU MAY REQUEST THE CONTRACTOR TO PROVIDE YOU WITH ORIGINAL ldquoLIEN RELEASErdquo DOCUMENTS FROM EACH SUPPLIER OR SUBCONTRACTOR AT YOUR PROJECT The contractor is required to provide you with further information about lien release document if you request it General information is also available from the state Department of Labor and Industries I have received a copy of this disclosure statement Dated this _______ day of _______________ of the year __________

_____________________________________________________ Signature of Customer The contractor must retain a signed copy of the disclosure statement in his or her files for a minimum of three years and produce a signed or electronic signature copy of the disclosure statement to the department upon request

CCBA Nuts amp Bolts on Construction Law - 22 of 49

Facts About Construction LiensWhat you should know about contractsIf your contractor fails to pay subcontractors suppliers or laborers or neglects to make other legally required payments those who are owed money can look to your property for payment even if you have paid your contractor in full This is true if you have hired a contractor to build a new home or are buying a newly built home

It is also true when you remodel or improve your property although the amount of your liability may be limited to the amount you owe the prime contractor at the time a lien is filed

Under Washington laws those who work on your property or provide materials and are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien

People who supply materials or labor ordered by your contractor are permitted by law to file a lien only if they do so within 90 days of cessation of performance or delivery of materials The time frame is spelled out in RCW 6004091

If you enter into a contract to buy a newly built home you may not receive a notice of a lien based on a claim by a contractor or material handler Be aware that a lien may be claimed even though you have not received a notice

Before making final payment on the project request a completed lien release form from each contractor and material supplier A sample of this release of lien form is available from the Department of Labor amp Industries Contractor Registration Section

You have final responsibility for seeing that all bills are paid even if you have paid your contractor in full

If you receive a notice to enforce a lien take the notice seriously Let your contractor know you have received the notice Find out what arrangements are being made to pay the sender of the notice

When in doubt or if you need more details consult your attorney When and how to pay your contractor is a decision that requires serious consideration

Reminder Washington laws require contractors to give you a disclosure statement if your contract exceeds $1000 [RCW 1827114(A) or (B)]

CCBA Nuts amp Bolts on Construction Law - 23 of 49

PUBLICATION F625-017-000 [01-2008]

Other formats for persons with disabilities are available on request Call 1-800-647-0982 TDD users call 360-902-5797 LampI is an equal opportunity employer

For more information

How to protect your investment

If you are dealing with a lending institution ask your loan officer what precautions the lending institution takes to verify that subcontractors and material suppliers are being paid when mortgage money is paid to your contractor

Request lender supervision when dealing with a lending institution that provides interim or construction financing

Ask the prime contractor to disclose all potential lien claimants as a condition of payment A lien claimant must mail (by certified or registered mail or by personal service) a copy of the claim of lien to the owner within 14 days of the time the lien is recorded [RCW 6004091(2)] While an action is ongoing an owner may withhold from this prime contractor the amount of money for which a claim is recorded by a subcontractor supplier or laborer [RCW 6004151]

It is recommended that your check be made payable jointly naming the contractor and the subcontractor or supplier as payees

Upon payment and acceptance of the amount due the owner has the right to an executed release of all lien rights by lien claimants [RCW 6004071]

Consider using an escrow agent to protect your interests Find out whether your escrow agent will protect you against liens when disbursing payments If you are interested in this alternative consult your attorney

Request that your contractor post a performance bond in the amount of the project cost That will give you recourse in the event the contractor fails to complete the building agreement

8 On the Web Find more information about hiring a contractor at

wwwLniwagovTradesLicensingContractorsHireCon

Contractor Registration Hotline1-800-647-0982

You may also call your local LampI office See listings under ldquoWashington State ofrdquo in the government section or the white pages of the telephone book

Please note This notice was prepared by the Department of Labor amp Industries Specialty Compliance Services Division for reproduction by lending institutions and contractors for distribution to their clients It explains the basics of the construction lien law to help you protect yourself This information is not a reflection upon the abilities or credit of your contractor

CCBA Nuts amp Bolts on Construction Law - 24 of 49

NOTICE OF CLAIM AGAINST

BOND AND RETAINED PERCENTAGE

RCW 3908030 RCW 6028010

VIA CERTIFIED MAIL ndash RETURN RECEIPT REQUESTED

TO [Public Owner] [Public Ownerrsquos Address]

Project [Project Name amp Address] NOTICE IS HEREBY GIVEN that the undersigned [Claimant] [Claimantrsquos Address] has a claim in the amount of ----- and 00100 Dollars ($XX) (not including attorneysrsquo fees or costs) together with interest at twelve percent (12) against [Public Owner] (ldquoOwnerrdquo) pursuant to RCW 6028 and the payment bond taken from [Prime Contractor] (ldquoContractorrdquo) [Prime Contractorrsquos Address] as principal and [Surety Company] (ldquoSuretyrdquo) [Suretyrsquos Address] as surety Bond No ________ pursuant to RCW 3908 for [describe services material supplies labor furnished] provided on the Project This Notice of Claim Against Bond and Retained Percentage supersedes and replaces previous Notices DATED This ___day of _________ 201_ [Claimant] By ______________________________________ Its ______________________________________ [Claimantrsquos Address]

_________________________________________

[Contractors Registration No if applicable]

(Copies furnished to General Contractor and General Contractorrsquos Bonding Company)

CCBA Nuts amp Bolts on Construction Law - 25 of 49

PRECLAIM NOTICE TO CONTRACTOR BY SUBCONTRACTORS MATERIALMEN OR SUPPLIERS FOR

CLAIM AGAINST BOND AND RETAINED PERCENTAGE

VIA CERTIFIED OR REGISTERED MAIL- RETURN RECEIPT REQUESTED

TO [Name of General Contractor] [Address]

YOU ARE HEREBY NOTIFIED that the undersigned ____________at the request of_________________ commenced to deliver or furnish materials supplies andor equipment for the use in the construction alteration andor repair of that certain project known as____________________ [project name] which is located at ____________________________ [address or description] If the undersigned is not paid for these materials supplies andor equipment it will file a claim against you and your bond andor retainage pursuant to RCW 3908 andor 6028 et seq for payment of any sum that is due and owing to the undersigned

DATED This __ day of _____________ 201_

[Name of Claimant]

By ____________________________________

Its ____________________________________

Address ______________________________

__________________________________________

__________________________________________

[Contractors Registration No if applicable]

(Mail via certified mail return receipt requested or hand deliver and obtain receipt)

CCBA Nuts amp Bolts on Construction Law - 26 of 49

Washington Liens amp Bonds ndash Pertinent Statutes

RCW 1827040 Bond or other security required mdash Actions against mdash Suspension of registration upon impairment (1) Each applicant shall file with the department a surety bond issued by a surety insurer who meets the requirements of chapter 4828 RCW in the sum of twelve thousand dollars if the applicant is a general contractor and six thousand dollars if the applicant is a specialty contractor If no valid bond is already on file with the department at the time the application is filed a bond must accompany the registration application The bond shall have the state of Washington named as obligee with good and sufficient surety in a form to be approved by the department The bond shall be continuous and may be canceled by the surety upon the surety giving written notice to the director A cancellation or revocation of the bond or withdrawal of the surety from the bond automatically suspends the registration issued to the contractor until a new bond or reinstatement notice has been filed and approved as provided in this section The bond shall be conditioned that the applicant will pay all persons performing labor including employee benefits for the contractor will pay all taxes and contributions due to the state of Washington and will pay all persons furnishing material or renting or supplying equipment to the contractor and will pay all amounts that may be adjudged against the contractor by reason of breach of contract including improper work in the conduct of the contracting business A change in the name of a business or a change in the type of business entity shall not impair a bond for the purposes of this section so long as one of the original applicants for such bond maintains partial ownership in the business covered by the bond (2) At the time of initial registration or renewal the contractor shall provide a bond or other security deposit as required by this chapter and comply with all of the other provisions of this chapter before the department shall issue or renew the contractors certificate of registration Any contractor registered as of July 1 2001 who maintains that registration in accordance with this chapter is in compliance with this chapter until the next renewal of the contractors certificate of registration (3) Any person firm or corporation having a claim against the contractor for any of the items referred to in this section may bring suit against the contractor and the bond or deposit in the superior court of the county in which the work was done or of any county in which jurisdiction of the contractor may be had The surety issuing the bond shall be named as a party to any suit upon the bond Action upon the bond or deposit brought by a residential homeowner for breach of contract by a party to the construction contract shall be commenced by filing the summons and complaint with the clerk of the appropriate superior court within two years from the date the claimed contract work was substantially completed or abandoned whichever occurred first Action upon the bond or deposit brought by any other authorized party shall be commenced by filing the summons and complaint with the clerk of the appropriate superior court within one year from the date the claimed labor was performed and benefits accrued taxes and contributions owing the state of Washington became due materials and equipment were furnished or the claimed contract work was substantially completed or abandoned whichever occurred first Service of process in an action filed under this chapter against the contractor and the contractors bond or the deposit shall be exclusively by service upon the department Three

CCBA Nuts amp Bolts on Construction Law - 27 of 49

copies of the summons and complaint and a fee adopted by rule of not less than fifty dollars to cover the costs shall be served by registered or certified mail or other delivery service requiring notice of receipt upon the department at the time suit is started and the department shall maintain a record available for public inspection of all suits so commenced Service is not complete until the department receives the fee and three copies of the summons and complaint The service shall constitute service and confer personal jurisdiction on the contractor and the surety for suit on claimants claim against the contractor and the bond or deposit and the department shall transmit the summons and complaint or a copy thereof to the contractor at the address listed in the contractors application and to the surety within two days after it shall have been received (4) The surety upon the bond shall not be liable in an aggregate amount in excess of the amount named in the bond nor for any monetary penalty assessed pursuant to this chapter for an infraction The liability of the surety shall not cumulate where the bond has been renewed continued reinstated reissued or otherwise extended The surety upon the bond may upon notice to the department and the parties tender to the clerk of the court having jurisdiction of the action an amount equal to the claims thereunder or the amount of the bond less the amount of judgments if any previously satisfied therefrom and to the extent of such tender the surety upon the bond shall be exonerated but if the actions commenced and pending and provided to the department as required in subsection (3) of this section at any one time exceed the amount of the bond then unimpaired claims shall be satisfied from the bond in the following order (a) Employee labor and claims of laborers including employee benefits (b) Claims for breach of contract by a party to the construction contract (c) Registered or licensed subcontractors material and equipment (d) Taxes and contributions due the state of Washington (e) Any court costs interest and attorneys fees plaintiff may be entitled to recover The surety is not liable for any amount in excess of the penal limit of its bond A payment made by the surety in good faith exonerates the bond to the extent of any payment made by the surety (5) The total amount paid from a bond or deposit required of a general contractor by this section to claimants other than residential homeowners must not exceed one-half of the bond amount The total amount paid from a bond or deposit required of a specialty contractor by this section to claimants other than residential homeowners must not exceed one-half of the bond amount or four thousand dollars whichever is greater (6) The prevailing party in an action filed under this section against the contractor and contractors bond or deposit for breach of contract by a party to the construction contract involving a residential homeowner is entitled to costs interest and reasonable attorneys fees The surety upon the bond or deposit is not liable in an aggregate amount in excess of the amount

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named in the bond or deposit nor for any monetary penalty assessed pursuant to this chapter for an infraction (7) If a final judgment impairs the liability of the surety upon the bond or deposit so furnished that there is not in effect a bond or deposit in the full amount prescribed in this section the registration of the contractor is automatically suspended until the bond or deposit liability in the required amount unimpaired by unsatisfied judgment claims is furnished (8) In lieu of the surety bond required by this section the contractor may file with the department an assigned savings account upon forms provided by the department (9) Any person having filed and served a summons and complaint as required by this section having an unsatisfied final judgment against the registrant for any items referred to in this section may execute upon the security held by the department by serving a certified copy of the unsatisfied final judgment by registered or certified mail upon the department within one year of the date of entry of such judgment Upon the receipt of service of such certified copy the department shall pay or order paid from the deposit through the registry of the superior court which rendered judgment towards the amount of the unsatisfied judgment The priority of payment by the department shall be the order of receipt by the department but the department shall have no liability for payment in excess of the amount of the deposit (10) Within ten days after resolution of the case a certified copy of the final judgment and order or any settlement documents where a case is not disposed of by a court trial a certified copy of the dispositive settlement documents must be provided to the department by the prevailing party Failure to provide a copy of the final judgment and order or the dispositive settlement documents to the department within ten days of entry of such an order constitutes a violation of this chapter and a penalty adopted by rule of not less than two hundred fifty dollars may be assessed against the prevailing party (11) The director may require an applicant applying to renew or reinstate a registration or applying for a new registration to file a bond of up to three times the normally required amount if the director determines that an applicant or a previous registration of a corporate officer owner or partner of a current applicant has had in the past five years a total of three final judgments in actions under this chapter involving a residential single-family dwelling on two or more different structures (12) The director may adopt rules necessary for the proper administration of the security RCW 1827114 Disclosure statement required mdash Prerequisite to lien claim

(1) Any contractor agreeing to perform any contracting project (a) For the repair alteration or construction of four or fewer residential units or accessory structures on such residential property when the bid or contract price totals one thousand dollars or more or (b) for the repair alteration or construction of a commercial building when the bid or contract price totals one thousand dollars or more but less than sixty thousand dollars must provide the customer with

CCBA Nuts amp Bolts on Construction Law - 29 of 49

the following disclosure statement in substantially the following form using lower case and upper case twelve-point and bold type where appropriate prior to starting work on the project NOTICE TO CUSTOMER This contractor is registered with the state of Washington registration no and has posted with the state a bond or deposit of for the purpose of satisfying claims against the contractor for breach of contract including negligent or improper work in the conduct of the contractors business The expiration date of this contractors registration is THIS BOND OR DEPOSIT MIGHT NOT BE SUFFICIENT TO COVER A CLAIM THAT MIGHT ARISE FROM THE WORK DONE UNDER YOUR CONTRACT This bond or deposit is not for your exclusive use because it covers all work performed by this contractor The bond or deposit is intended to pay valid claims up to that you and other customers suppliers subcontractors or taxing authorities may have FOR GREATER PROTECTION YOU MAY WITHHOLD A PERCENTAGE OF YOUR CONTRACT You may withhold a contractually defined percentage of your construction contract as retainage for a stated period of time to provide protection to you and help insure that your project will be completed as required by your contract YOUR PROPERTY MAY BE LIENED If a supplier of materials used in your construction project or an employee or subcontractor of your contractor or subcontractors is not paid your property may be liened to force payment and you could pay twice for the same work FOR ADDITIONAL PROTECTION YOU MAY REQUEST THE CONTRACTOR TO PROVIDE YOU WITH ORIGINAL LIEN RELEASE DOCUMENTS FROM EACH SUPPLIER OR SUBCONTRACTOR ON YOUR PROJECT The contractor is required to provide you with further information about lien release documents if you request it General information is also available from the state Department of Labor and Industries I have received a copy of this disclosure statement

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(Signature of customer) (2) The contractor must retain a signed copy of the disclosure statement in his or her files for a minimum of three years and produce a signed or electronic signature copy of the disclosure statement to the department upon request (3) A contractor subject to this section shall notify any consumer to whom notice is required under subsection (1) of this section if the contractors registration has expired or is revoked or suspended by the department prior to completion or other termination of the contract with the consumer (4) No contractor subject to this section may bring or maintain any lien claim under chapter 6004 RCW based on any contract to which this section applies without alleging and proving that the contractor has provided the customer with a copy of the disclosure statement as required in subsection (1) of this section (5) This section does not apply to contracts authorized under chapter 3904 RCW or to contractors contracting with other contractors (6) Failure to comply with this section shall constitute an infraction under the provisions of this chapter (7) The department shall produce model disclosure statements and public service announcements detailing the information needed to assist contractors and contractors customers to comply under this section As necessary the department shall periodically update these education materials RCW 3908010 Bond required mdash Conditions mdash Retention of contract amount in lieu of bond (1)(a) Whenever any board council commission trustees or body acting for the state or any county or municipality or any public body must contract with any person or corporation to do any work for the state county or municipality or other public body city town or district such board council commission trustees or body must require the person or persons with whom such contract is made to make execute and deliver to such board council commission trustees or body a good and sufficient bond with a surety company as surety conditioned that such person or persons must (i) Faithfully perform all the provisions of such contract (ii) Pay all laborers mechanics and subcontractors and material suppliers and all persons who supply such person or persons or subcontractors with provisions and supplies for the carrying on of such work and

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(iii) Pay the taxes increases and penalties incurred on the project under Titles 50 51 and 82 RCW on (A) Projects referred to in RCW 6028011(1)(b) andor (B) projects for which the bond is conditioned on the payment of such taxes increases and penalties (b) The bond in cases of cities and towns must be filed with the clerk or comptroller thereof and any person or persons performing such services or furnishing material to any subcontractor has the same right under the provisions of such bond as if such work services or material was furnished to the original contractor (2) The provisions of RCW 3908010 through 3908030 do not apply to any money loaned or advanced to any such contractor subcontractor or other person in the performance of any such work (3) On contracts of thirty-five thousand dollars or less at the option of the contractor the respective public entity may in lieu of the bond retain fifty percent of the contract amount for a period of thirty days after date of final acceptance or until receipt of all necessary releases from the department of revenue the employment security department and the department of labor and industries and settlement of any liens filed under chapter 6028 RCW whichever is later (4) For contracts of one hundred thousand dollars or less the public entity may accept a full payment and performance bond from an individual surety or sureties (5) The surety must agree to be bound by the laws of the state of Washington and subjected to the jurisdiction of the state of Washington RCW 6004011 Definitions

Unless the context requires otherwise the definitions in this section apply throughout this chapter (1) Construction agent means any registered or licensed contractor registered or licensed subcontractor architect engineer or other person having charge of any improvement to real property who shall be deemed the agent of the owner for the limited purpose of establishing the lien created by this chapter (2) Contract price means the amount agreed upon by the contracting parties or if no amount is agreed upon then the customary and reasonable charge therefor (3) Draws means periodic disbursements of interim or construction financing by a lender (4) Furnishing labor professional services materials or equipment means the performance of any labor or professional services the contribution owed to any employee benefit plan on account of any labor the provision of any supplies or materials and the renting leasing or

CCBA Nuts amp Bolts on Construction Law - 32 of 49

otherwise supplying of equipment for the improvement of real property (5) Improvement means (a) Constructing altering repairing remodeling demolishing clearing grading or filling in of to or upon any real property or street or road in front of or adjoining the same (b) planting of trees vines shrubs plants hedges or lawns or providing other landscaping materials on any real property and (c) providing professional services upon real property or in preparation for or in conjunction with the intended activities in (a) or (b) of this subsection (6) Interim or construction financing means that portion of money secured by a mortgage deed of trust or other encumbrance to finance improvement of or to real property but does not include (a) Funds to acquire real property (b) Funds to pay interest insurance premiums lease deposits taxes assessments or prior encumbrances (c) Funds to pay loan commitment title legal closing recording or appraisal fees (d) Funds to pay other customary fees which pursuant to agreement with the owner or borrower are to be paid by the lender from time to time (e) Funds to acquire personal property for which the potential lien claimant may not claim a lien pursuant to this chapter (7) Labor means exertion of the powers of body or mind performed at the site for compensation Labor includes amounts due and owed to any employee benefit plan on account of such labor performed (8) Mortgagee means a person who has a valid mortgage of record or deed of trust of record securing a loan (9) Owner-occupied means a single-family residence occupied by the owner as his or her principal residence (10) Payment bond means a surety bond issued by a surety licensed to issue surety bonds in the state of Washington that confers upon potential claimants the rights of third party beneficiaries (11) Potential lien claimant means any person or entity entitled to assert lien rights under this chapter who has otherwise complied with the provisions of this chapter and is registered or licensed if required to be licensed or registered by the provisions of the laws of the state of Washington (12) Prime contractor includes all contractors general contractors and specialty

CCBA Nuts amp Bolts on Construction Law - 33 of 49

contractors as defined by chapter 1827 or 1928 RCW or who are otherwise required to be registered or licensed by law who contract directly with a property owner or their common law agent to assume primary responsibility for the creation of an improvement to real property and includes property owners or their common law agents who are contractors general contractors or specialty contractors as defined in chapter 1827 or 1928 RCW or who are otherwise required to be registered or licensed by law who offer to sell their property without occupying or using the structures projects developments or improvements for more than one year (13) Professional services means surveying establishing or marking the boundaries of preparing maps plans or specifications for or inspecting testing or otherwise performing any other architectural or engineering services for the improvement of real property (14) Real property lender means a bank savings bank savings and loan association credit union mortgage company or other corporation association partnership trust or individual that makes loans secured by real property located in the state of Washington (15) Site means the real property which is or is to be improved (16) Subcontractor means a general contractor or specialty contractor as defined by chapter 1827 or 1928 RCW or who is otherwise required to be registered or licensed by law who contracts for the improvement of real property with someone other than the owner of the property or their common law agent

6004021 Lien authorized

Except as provided in RCW 6004031 any person furnishing labor professional services materials or equipment for the improvement of real property shall have a lien upon the improvement for the contract price of labor professional services materials or equipment furnished at the instance of the owner or the agent or construction agent of the owner

6004031 Notices mdash Exceptions

(1) Except as otherwise provided in this section every person furnishing professional services materials or equipment for the improvement of real property shall give the owner or reputed owner notice in writing of the right to claim a lien If the prime contractor is in compliance with the requirements of RCW 1927095 6004230 and 6004261 this notice shall also be given to the prime contractor as described in this subsection unless the potential lien claimant has contracted directly with the prime contractor The notice may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after the date which is sixty days before (a) Mailing the notice by certified or registered mail to the owner or reputed owner or

CCBA Nuts amp Bolts on Construction Law - 34 of 49

(b) Delivering or serving the notice personally upon the owner or reputed owner and obtaining evidence of delivery in the form of a receipt or other acknowledgment signed by the owner or reputed owner or an affidavit of service In the case of new construction of a single-family residence the notice of a right to claim a lien may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after a date which is ten days before the notice is given as described in this subsection (2) Notices of a right to claim a lien shall not be required of (a) Persons who contract directly with the owner or the owners common law agent (b) Laborers whose claim of lien is based solely on performing labor or (c) Subcontractors who contract for the improvement of real property directly with the prime contractor except as provided in subsection (3)(b) of this section (3) Persons who furnish professional services materials or equipment in connection with the repair alteration or remodel of an existing owner-occupied single-family residence or appurtenant garage (a) Who contract directly with the owner-occupier or their common law agent shall not be required to send a written notice of the right to claim a lien and shall have a lien for the full amount due under their contract as provided in RCW 6004021 or (b) Who do not contract directly with the owner-occupier or their common law agent shall give notice of the right to claim a lien to the owner-occupier Liens of persons furnishing professional services materials or equipment who do not contract directly with the owner-occupier or their common law agent may only be satisfied from amounts not yet paid to the prime contractor by the owner at the time the notice described in this section is received regardless of whether amounts not yet paid to the prime contractor are due For the purposes of this subsection received means actual receipt of notice by personal service or registered or certified mail or three days after mailing by registered or certified mail excluding Saturdays Sundays or legal holidays (4) The notice of right to claim a lien described in subsection (1) of this section shall include but not be limited to the following information and shall substantially be in the following form using lower-case and upper-case ten-point type where appropriate

CCBA Nuts amp Bolts on Construction Law - 35 of 49

NOTICE TO OWNER

IMPORTANT READ BOTH SIDES OF THIS NOTICE CAREFULLY

PROTECT YOURSELF FROM PAYING TWICE

To Date

Re (description of property Street address or general location) From AT THE REQUEST OF (Name of person ordering the professional services materials or equipment) THIS IS NOT A LIEN This notice is sent to you to tell you who is providing professional services materials or equipment for the improvement of your property and to advise you of the rights of these persons and your responsibilities Also take note that laborers on your project may claim a lien without sending you a notice

OWNEROCCUPIER OF EXISTING

RESIDENTIAL PROPERTY

Under Washington law those who furnish labor professional services materials or equipment for the repair remodel or alteration of your owner-occupied principal residence and who are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien The law limits the amount that a lien claimant can claim against your property Claims may only be made against that portion of the contract price you have not yet paid to your prime contractor as of the time this notice was given to you or three days after this notice was mailed to you Review the back of this notice for more information and ways to avoid lien claims

COMMERCIAL ANDOR NEW

RESIDENTIAL PROPERTY

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We have or will be providing professional services materials or equipment for the improvement of your commercial or new residential project In the event you or your contractor fail to pay us we may file a lien against your property A lien may be claimed for all professional services materials or equipment furnished after a date that is sixty days before this notice was given to you or mailed to you unless the improvement to your property is the construction of a new single-family residence then ten days before this notice was given to you or mailed to you Sender Address Telephone Brief description of professional services materials or equipment provided or to be provided

IMPORTANT INFORMATION

ON REVERSE SIDE

IMPORTANT INFORMATION

FOR YOUR PROTECTION This notice is sent to inform you that we have or will provide professional services materials or equipment for the improvement of your property We expect to be paid by the person who ordered our services but if we are not paid we have the right to enforce our claim by filing a construction lien against your property LEARN more about the lien laws and the meaning of this notice by discussing them with your contractor suppliers Department of Labor and Industries the firm sending you this notice your lender or your attorney

COMMON METHODS TO AVOID CONSTRUCTION LIENS There are several methods available to protect your property from construction liens The following are two of the more commonly used methods

DUAL PAYCHECKS (Joint Checks) When paying your contractor for services or materials you may make checks payable jointly to the contractor and the firms furnishing you this notice

CCBA Nuts amp Bolts on Construction Law - 37 of 49

LIEN RELEASES You may require your contractor to provide lien releases signed by all the suppliers and subcontractors from whom you have received this notice If they cannot obtain lien releases because you have not paid them you may use the dual payee check method to protect yourself

YOU SHOULD TAKE APPROPRIATE STEPS TO PROTECT YOUR PROPERTY FROM LIENS YOUR PRIME CONTRACTOR AND YOUR CONSTRUCTION LENDER ARE REQUIRED BY LAW TO GIVE YOU WRITTEN INFORMATION ABOUT LIEN CLAIMS IF YOU HAVE NOT RECEIVED IT ASK THEM FOR IT

(5) Every potential lien claimant providing professional services where no improvement as defined in RCW 6004011(5) (a) or (b) has been commenced and the professional services provided are not visible from an inspection of the real property may record in the real property records of the county where the property is located a notice which shall contain the professional service providers name address telephone number legal description of the property the owner or reputed owners name and the general nature of the professional services provided If such notice is not recorded the lien claimed shall be subordinate to the interest of any subsequent mortgagee and invalid as to the interest of any subsequent purchaser if the mortgagee or purchaser acts in good faith and for a valuable consideration acquires an interest in the property prior to the commencement of an improvement as defined in RCW 6004011(5) (a) or (b) without notice of the professional services being provided The notice described in this subsection shall be substantially in the following form

NOTICE OF FURNISHING

PROFESSIONAL SERVICES That on the (day) day of (month and year) (name of provider) began providing professional services upon or for the improvement of real property legally described as follows

[Legal Description is mandatory]

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The general nature of the professional services provided is The owner or reputed owner of the real property is

(Signature)

(Name of Claimant)

(Street Address)

(City State Zip Code)

(Phone Number)

(6) A lien authorized by this chapter shall not be enforced unless the lien claimant has complied with the applicable provisions of this section

6004041 Contractor registration

A contractor or subcontractor required to be registered under chapter 1827 RCW or licensed under chapter 1928 RCW or otherwise required to be registered or licensed by law shall be deemed the construction agent of the owner for the purposes of establishing the lien created by this chapter only if so registered or licensed Persons dealing with contractors or subcontractors may rely for the purposes of this section upon a certificate of registration issued pursuant to chapter 1827 RCW or license issued pursuant to chapter 1928 RCW or other certificate or license issued pursuant to law covering the period when the labor professional services material or equipment shall be furnished and the lien rights shall not be lost by suspension or revocation of registration or license without their knowledge No lien rights described in this

CCBA Nuts amp Bolts on Construction Law - 39 of 49

chapter shall be lost or denied by virtue of the absence suspension or revocation of such registration or license with respect to any contractor or subcontractor not in immediate contractual privity with the lien claimant

6004081 Frivolous claim mdash Procedure

(1) Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who believes the claim of lien to be frivolous and made without reasonable cause or clearly excessive may apply by motion to the superior court for the county where the property or some part thereof is located for an order directing the lien claimant to appear before the court at a time no earlier than six nor later than fifteen days following the date of service of the application and order on the lien claimant and show cause if any he or she has why the relief requested should not be granted The motion shall state the grounds upon which relief is asked and shall be supported by the affidavit of the applicant or his or her attorney setting forth a concise statement of the facts upon which the motion is based (2) The order shall clearly state that if the lien claimant fails to appear at the time and place noted the lien shall be released with prejudice and that the lien claimant shall be ordered to pay the costs requested by the applicant including reasonable attorneys fees (3) If no action to foreclose the lien claim has been filed the clerk of the court shall assign a cause number to the application and obtain from the applicant a filing fee pursuant to RCW 3618016 If an action has been filed to foreclose the lien claim the application shall be made a part of that action (4) If following a hearing on the matter the court determines that the lien is frivolous and made without reasonable cause or clearly excessive the court shall issue an order releasing the lien if frivolous and made without reasonable cause or reducing the lien if clearly excessive and awarding costs and reasonable attorneys fees to the applicant to be paid by the lien claimant If the court determines that the lien is not frivolous and was made with reasonable cause and is not clearly excessive the court shall issue an order so stating and awarding costs and reasonable attorneys fees to the lien claimant to be paid by the applicant (5) Proceedings under this section shall not affect other rights and remedies available to the parties under this chapter or otherwise

6004091 Recording mdash Time mdash Contents of lien

Every person claiming a lien under RCW 6004021 shall file for recording in the county where the subject property is located a notice of claim of lien not later than ninety days after the person

CCBA Nuts amp Bolts on Construction Law - 40 of 49

has ceased to furnish labor professional services materials or equipment or the last date on which employee benefit contributions were due The notice of claim of lien (1) Shall state in substance and effect (a) The name phone number and address of the claimant (b) The first and last date on which the labor professional services materials or equipment was furnished or employee benefit contributions were due (c) The name of the person indebted to the claimant (d) The street address legal description or other description reasonably calculated to identify for a person familiar with the area the location of the real property to be charged with the lien (e) The name of the owner or reputed owner of the property if known and if not known that fact shall be stated and (f) The principal amount for which the lien is claimed (2) Shall be signed by the claimant or some person authorized to act on his or her behalf who shall affirmatively state they have read the notice of claim of lien and believe the notice of claim of lien to be true and correct under penalty of perjury and shall be acknowledged pursuant to chapter 6408 RCW If the lien has been assigned the name of the assignee shall be stated Where an action to foreclose the lien has been commenced such notice of claim of lien may be amended as pleadings may be by order of the court insofar as the interests of third parties are not adversely affected by such amendment A claim of lien substantially in the following form shall be sufficient

CLAIM OF LIEN

claimant vs name of person indebted to claimant

Notice is hereby given that the person named below claims a lien pursuant to chapter 6404 RCW In support of this lien the following information is submitted

1 NAME OF LIEN CLAIMANT

TELEPHONE NUMBER

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ADDRESS

2 DATE ON WHICH THE CLAIMANT BEGAN TO PERFORM LABOR PROVIDE PROFESSIONAL SERVICES SUPPLY MATERIAL OR EQUIPMENT OR THE DATE ON WHICH EMPLOYEE BENEFIT CONTRIBUTIONS BECAME DUE

3 NAME OF PERSON INDEBTED TO THE CLAIMANT

4 DESCRIPTION OF THE PROPERTY AGAINST WHICH A LIEN IS CLAIMED (Street address legal description or other information that will reasonably describe the property)

5 NAME OF THE OWNER OR REPUTED OWNER (If not known state unknown)

6 THE LAST DATE ON WHICH LABOR WAS PERFORMED PROFESSIONAL SERVICES WERE FURNISHED CONTRIBUTIONS TO AN EMPLOYEE BENEFIT PLAN WERE DUE OR MATERIAL OR EQUIPMENT WAS FURNISHED

7 PRINCIPAL AMOUNT FOR WHICH THE LIEN IS CLAIMED IS

8 IF THE CLAIMANT IS THE ASSIGNEE OF THIS CLAIM SO STATE HERE

Claimant

(Phone number address city

CCBA Nuts amp Bolts on Construction Law - 42 of 49

and

state of claimant)

STATE OF WASHINGTON COUNTY OF ss being sworn says I am the claimant (or attorney of the claimant or administrator representative or agent of the trustees of an employee benefit plan) above named I have read or heard the foregoing claim read and know the contents thereof and believe the same to be true and correct and that the claim of lien is not frivolous and is made with reasonable cause and is not clearly excessive under penalty of perjury Subscribed and sworn to before me this day of The period provided for recording the claim of lien is a period of limitation and no action to foreclose a lien shall be maintained unless the claim of lien is filed for recording within the ninety-day period stated The lien claimant shall give a copy of the claim of lien to the owner or reputed owner by mailing it by certified or registered mail or by personal service within fourteen days of the time the claim of lien is filed for recording Failure to do so results in a forfeiture of any right the claimant may have to attorneys fees and costs against the owner under RCW 6004181

6004161 Bond in lieu of claim

Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who disputes the correctness or validity of the claim of lien may record either before or after the commencement of an action to enforce the lien in the office of the county recorder or auditor in the county where the claim of lien was recorded a bond issued by a surety company authorized to issue surety bonds in the state The surety shall be listed in the latest federal department of the treasury list of surety companies acceptable on federal bonds published in the Federal Register as authorized to issue bonds on United States government projects with an underwriting limitation including applicable reinsurance equal to or greater than the amount of the bond to be recorded The bond shall contain a description of the claim of lien and real property involved and be in an amount equal to the greater of five thousand dollars or two times the amount of the lien claimed if it is ten thousand dollars or less and in an amount equal to or greater than one and one-half times the amount of the lien if it is in

CCBA Nuts amp Bolts on Construction Law - 43 of 49

excess of ten thousand dollars If the claim of lien affects more than one parcel of real property and is segregated to each parcel the bond may be segregated the same as in the claim of lien A separate bond shall be required for each claim of lien made by separate claimants However a single bond may be used to guarantee payment of amounts claimed by more than one claim of lien by a single claimant so long as the amount of the bond meets the requirements of this section as applied to the aggregate sum of all claims by such claimant The condition of the bond shall be to guarantee payment of any judgment upon the lien in favor of the lien claimant entered in any action to recover the amount claimed in a claim of lien or on the claim asserted in the claim of lien The effect of recording a bond shall be to release the real property described in the notice of claim of lien from the lien and any action brought to recover the amount claimed Unless otherwise prohibited by law if no action is commenced to recover on a lien within the time specified in RCW 6004141 the surety shall be discharged from liability under the bond If an action is timely commenced then on payment of any judgment entered in the action or on payment of the full amount of the bond to the holder of the judgment whichever is less the surety shall be discharged from liability under the bond Nothing in this section shall in any way prohibit or limit the use of other methods devised by the affected parties to secure the obligation underlying a claim of lien and to obtain a release of real property from a claim of lien

6004181 Rank of lien mdash Application of proceeds mdash Attorneys fees

(1) In every case in which different construction liens are claimed against the same property the court shall declare the rank of such lien or class of liens which liens shall be in the following order (a) Liens for the performance of labor (b) Liens for contributions owed to employee benefit plans (c) Liens for furnishing material supplies or equipment (d) Liens for subcontractors including but not limited to their labor and materials and (e) Liens for prime contractors or for professional services (2) The proceeds of the sale of property must be applied to each lien or class of liens in order of its rank and in an action brought to foreclose a lien pro rata among each claimant in each separate priority class A personal judgment may be rendered against any party personally liable for any debt for which the lien is claimed If the lien is established the judgment shall provide

CCBA Nuts amp Bolts on Construction Law - 44 of 49

for the enforcement thereof upon the property liable as in the case of foreclosure of judgment liens The amount realized by such enforcement of the lien shall be credited upon the proper personal judgment The deficiency if any remaining unsatisfied shall stand as a personal judgment and may be collected by execution against any party liable therefor (3) The court may allow the prevailing party in the action whether plaintiff or defendant as part of the costs of the action the moneys paid for recording the claim of lien costs of title report bond costs and attorneys fees and necessary expenses incurred by the attorney in the superior court court of appeals supreme court or arbitration as the court or arbitrator deems reasonable Such costs shall have the priority of the class of lien to which they are related as established by subsection (1) of this section (4) Real property against which a lien under this chapter is enforced may be ordered sold by the court and the proceeds deposited into the registry of the clerk of the court pending further determination respecting distribution of the proceeds of the sale

6004900 Liberal construction mdash 1991 c 281

RCW 1927095 6004230 and 6004011 through 6004226 and 6004261 are to be liberally construed to provide security for all parties intended to be protected by their provisions

RCW 6028011

Retained percentage mdash Public transportation projects mdash Labor and material lien created mdash Bond in lieu of retained funds mdash Termination before completion mdash Chapter deemed exclusive mdash Release of ferry contract payments mdash Projects of farmers home administration mdash General contractorconstruction manager procedure mdash Definitions

(1)(a) Except as provided in (b) of this subsection public improvement contracts must provide and public bodies must reserve a contract retainage not to exceed five percent of the moneys earned by the contractor as a trust fund for the protection and payment of (i) The claims of any person arising under the contract and (ii) the state with respect to taxes increases and penalties imposed pursuant to Titles 50 51 and 82 RCW which may be due from such contractor (b) Public improvement contracts funded in whole or in part by federal transportation funds must rely upon the contract bond as referred to in chapter 3908 RCW for the protection and payment of (i) The claims of any person or persons arising under the contract to the extent such claims are provided for in RCW 3908010 and (ii) the state with respect to taxes increases and penalties incurred on the public improvement project under Titles 50 51 and 82 RCW which may be due The contract bond must remain in full force and effect until at a minimum all claims filed in compliance with chapter 3908 RCW are resolved

CCBA Nuts amp Bolts on Construction Law - 45 of 49

(2) Every person performing labor or furnishing supplies toward the completion of a public improvement contract has a lien upon moneys reserved by a public body under the provisions of a public improvement contract However the notice of the lien of the claimant must be given within forty-five days of completion of the contract work and in the manner provided in RCW 3908030 (3) The contractor at any time may request the contract retainage be reduced to one hundred percent of the value of the work remaining on the project (a) After completion of all contract work other than landscaping the contractor may request that the public body release and pay in full the amounts retained during the performance of the contract and sixty days thereafter the public body must release and pay in full the amounts retained (other than continuing retention of five percent of the moneys earned for landscaping) subject to the provisions of chapters 3912 and 6028 RCW (b) Sixty days after completion of all contract work the public body must release and pay in full the amounts retained during the performance of the contract subject to the provisions of chapters 3912 and 6028 RCW (4) The moneys reserved by a public body under the provisions of a public improvement contract at the option of the contractor must be (a) Retained in a fund by the public body (b) Deposited by the public body in an interest bearing account in a bank mutual savings bank or savings and loan association Interest on moneys reserved by a public body under the provision of a public improvement contract must be paid to the contractor (c) Placed in escrow with a bank or trust company by the public body When the moneys reserved are placed in escrow the public body must issue a check representing the sum of the moneys reserved payable to the bank or trust company and the contractor jointly This check must be converted into bonds and securities chosen by the contractor and approved by the public body and the bonds and securities must be held in escrow Interest on the bonds and securities must be paid to the contractor as the interest accrues (5) The contractor or subcontractor may withhold payment of not more than five percent from the moneys earned by any subcontractor or sub-subcontractor or supplier contracted with by the contractor to provide labor materials or equipment to the public project Whenever the contractor or subcontractor reserves funds earned by a subcontractor or sub-subcontractor or

CCBA Nuts amp Bolts on Construction Law - 46 of 49

supplier the contractor or subcontractor must pay interest to the subcontractor or sub-subcontractor or supplier at a rate equal to that received by the contractor or subcontractor from reserved funds (6) A contractor may submit a bond for all or any portion of the contract retainage in a form acceptable to the public body and from a bonding company meeting standards established by the public body The public body must accept a bond meeting these requirements unless the public body can demonstrate good cause for refusing to accept it This bond and any proceeds therefrom are subject to all claims and liens and in the same manner and priority as set forth for retained percentages in this chapter The public body must release the bonded portion of the retained funds to the contractor within thirty days of accepting the bond from the contractor Whenever a public body accepts a bond in lieu of retained funds from a contractor the contractor must accept like bonds from any subcontractors or suppliers from which the contractor has retained funds The contractor must then release the funds retained from the subcontractor or supplier to the subcontractor or supplier within thirty days of accepting the bond from the subcontractor or supplier (7) If the public body administering a contract after a substantial portion of the work has been completed finds that an unreasonable delay will occur in the completion of the remaining portion of the contract for any reason not the result of a breach thereof it may if the contractor agrees delete from the contract the remaining work and accept as final the improvement at the stage of completion then attained and make payment in proportion to the amount of the work accomplished and in this case any amounts retained and accumulated under this section must be held for a period of sixty days following the completion In the event that the work is terminated before final completion as provided in this section the public body may thereafter enter into a new contract with the same contractor to perform the remaining work or improvement for an amount equal to or less than the cost of the remaining work as was provided for in the original contract without advertisement or bid The provisions of this chapter are exclusive and supersede all provisions and regulations in conflict herewith (8) Whenever the department of transportation has contracted for the construction of two or more ferry vessels sixty days after completion of all contract work on each ferry vessel the department must release and pay in full the amounts retained in connection with the construction of the vessel subject to the provisions of RCW 6028021 and chapter 3912 RCW However the department of transportation may at its discretion condition the release of funds retained in connection with the completed ferry upon the contractor delivering a good and sufficient bond with two or more sureties or with a surety company in the amount of the retained funds to be released to the contractor conditioned that no taxes may be certified or claims filed for work on the ferry after a period of sixty days following completion of the ferry and if taxes are certified or claims filed recovery may be had on the bond by the department of revenue the employment

CCBA Nuts amp Bolts on Construction Law - 47 of 49

security department the department of labor and industries and the material suppliers and laborers filing claims (9) Except as provided in subsection (1) of this section reservation by a public body for any purpose from the moneys earned by a contractor by fulfilling its responsibilities under public improvement contracts is prohibited (10) Contracts on projects funded in whole or in part by farmers home administration and subject to farmers home administration regulations are not subject to subsections (1) through (9) of this section (11) This subsection applies only to a public body that has contracted for the construction of a facility using the general contractorconstruction manager procedure as defined under RCW 3910210 If the work performed by a subcontractor on the project has been completed within the first half of the time provided in the general contractorconstruction manager contract for completing the work the public body may accept the completion of the subcontract The public body must give public notice of this acceptance After a forty-five day period for giving notice of liens and compliance with the retainage release procedures in RCW 6028021 the public body may release that portion of the retained funds associated with the subcontract Claims against the retained funds after the forty-five day period are not valid (12) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise (a) Contract retainage means an amount reserved by a public body from the moneys earned by a person under a public improvement contract (b) Person means a person or persons mechanic subcontractor or materialperson who performs labor or provides materials for a public improvement contract and any other person who supplies the person with provisions or supplies for the carrying on of a public improvement contract (c) Public body means the state or a county city town district board or other public body (d) Public improvement contract means a contract for public improvements or work other than for professional services or a work order as defined in RCW 3910210

CCBA Nuts amp Bolts on Construction Law - 48 of 49

RCW 6432070 Liens or encumbrances mdash Enforcement mdash Satisfaction

(1) Subsequent to recording the declaration as provided in this chapter and while the property remains subject to this chapter no lien shall thereafter arise or be effective against the property During such period liens or encumbrances shall arise or be created only against each apartment and the percentage of undivided interest in the common areas and facilities and appurtenant to such apartment in the same manner and under the same conditions in every respect as liens or encumbrances may arise or be created upon or against any other separate parcel of real property subject to individual ownership PROVIDED That no labor performed or materials furnished with the consent of or at the request of the owner of any apartment or such owners agent contractor or subcontractor shall be the basis for the filing of a lien against any other apartment or any other property of any other apartment owner not expressly consenting to or requesting the same except that such express consent shall be deemed to be given by any apartment owner in the case of emergency repairs Labor performed or materials furnished for the common areas and facilities if authorized by the association of apartment owners the manager or board of directors shall be deemed to be performed or furnished with the express consent of each apartment owner and shall be the basis for the filing of a lien against each of the apartments and shall be subject to the provisions of subsection (2) of this section (2) In the event a lien against two or more apartments becomes effective the apartment owners of the separate apartments may remove their apartment and the percentage of undivided interest in the common areas and facilities appurtenant to such apartment from the lien by payment of the fractional or proportional amounts attributable to each of the apartments affected Such individual payments shall be computed by reference to the percentages appearing on the declaration Subsequent to any such payment discharge or satisfaction the apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto shall thereafter be free and clear of the liens so paid satisfied or discharged Such partial payment satisfaction or discharge shall not prevent the lienor from proceeding to enforce his or her rights against any apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto not so paid satisfied or discharged

CCBA Nuts amp Bolts on Construction Law - 49 of 49

  • Cover Sheet
  • 20141110 - Washington Lien and Bond CLE
  • LampI Lien Summary
  • Claim of Lien
  • Form Notice to Owner
  • Model Disclosure Statement (Notice to Customer)
  • LampI Facts about Construction Liens
    • What you should know about contracts
    • How to protect your investment
    • For more information
      • Notice of Claim Against Bond and Retained Percentage
      • Preclaim Notice Bond amp Retained Percentage
      • Statute Handout
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(Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false ConvertColors ConvertToCMYK DestinationProfileName () DestinationProfileSelector DocumentCMYK Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles false MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector DocumentCMYK PreserveEditing true UntaggedCMYKHandling LeaveUntagged UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ]gtgt setdistillerparamsltlt HWResolution [2400 2400] PageSize [612000 792000]gtgt setpagedevice

          ltlt ASCII85EncodePages false AllowTransparency false AutoPositionEPSFiles true AutoRotatePages None Binding Left CalGrayProfile (Dot Gain 20) CalRGBProfile (sRGB IEC61966-21) CalCMYKProfile (US Web Coated 050SWOP051 v2) sRGBProfile (sRGB IEC61966-21) CannotEmbedFontPolicy Warning CompatibilityLevel 14 CompressObjects Tags CompressPages true ConvertImagesToIndexed true PassThroughJPEGImages true CreateJDFFile false CreateJobTicket false DefaultRenderingIntent Default DetectBlends true DetectCurves 00000 ColorConversionStrategy LeaveColorUnchanged DoThumbnails false EmbedAllFonts true EmbedOpenType false ParseICCProfilesInComments true EmbedJobOptions true DSCReportingLevel 0 EmitDSCWarnings false EndPage -1 ImageMemory 1048576 LockDistillerParams true MaxSubsetPct 100 Optimize true OPM 1 ParseDSCComments true ParseDSCCommentsForDocInfo true PreserveCopyPage true PreserveDICMYKValues true PreserveEPSInfo true PreserveFlatness true PreserveHalftoneInfo false PreserveOPIComments true PreserveOverprintSettings true StartPage 1 SubsetFonts true TransferFunctionInfo Apply UCRandBGInfo Preserve UsePrologue false ColorSettingsFile () AlwaysEmbed [ true Algerian Arial-Black Arial-BoldItalicMT Arial-BoldMT Arial-ItalicMT ArialMT ArialNarrow ArialNarrow-Bold ArialNarrow-BoldItalic ArialNarrow-Italic BaskOldFace Bauhaus93 BellMT BellMTBold BellMTItalic BerlinSansFB-Bold BerlinSansFBDemi-Bold BerlinSansFB-Reg BernardMT-Condensed BodoniMTPosterCompressed BookAntiqua BookAntiqua-Bold BookAntiqua-BoldItalic BookAntiqua-Italic BookmanOldStyle BookmanOldStyle-Bold BookmanOldStyle-BoldItalic BookmanOldStyle-Italic BookshelfSymbolSeven BritannicBold Broadway BrushScriptMT CalifornianFB-Bold CalifornianFB-Italic CalifornianFB-Reg Centaur CenturyGothic CenturyGothic-Bold CenturyGothic-BoldItalic CenturyGothic-Italic Chiller-Regular ColonnaMT ComicSansMS ComicSansMS-Bold CooperBlack CourierNewPS-BoldItalicMT CourierNewPS-BoldMT CourierNewPS-ItalicMT CourierNewPSMT EstrangeloEdessa EXTRAAPLNew-Regular EXTRAOIANew-Regular FootlightMTLight FranklinGothic-Medium FranklinGothic-MediumItalic FreestyleScript-Regular Garamond Garamond-Bold Garamond-Italic Gautami Georgia Georgia-Bold Georgia-BoldItalic Georgia-Italic HarlowSolid Harrington HighTowerText-Italic HighTowerText-Reg Impact InformalRoman-Regular Jokerman-Regular JuiceITC-Regular Kartika KristenITC-Regular KunstlerScript Latha LatinWide LucidaATTMSpecial LucidaBright LucidaBright-Demi LucidaBright-DemiItalic LucidaBright-Italic LucidaCalligraphy-Italic LucidaConsole LucidaFax LucidaFax-Demi LucidaFax-DemiItalic LucidaFax-Italic LucidaforAttachmate LucidaHandwriting-Italic LucidaSans LucidaSans-Demi LucidaSans-DemiItalic LucidaSans-Italic LucidaSansUnicode Magneto-Bold Mangal-Regular MaturaMTScriptCapitals MicrosoftSansSerif Mistral Modern-Regular Monospace821BT-Roman MonotypeCorsiva MSOutlook MSReferenceSansSerif MSReferenceSpecialty MVBoli NiagaraEngraved-Reg NiagaraSolid-Reg OldEnglishTextMT Onyx PalatinoLinotype-Bold PalatinoLinotype-BoldItalic PalatinoLinotype-Italic PalatinoLinotype-Roman Parchment-Regular Playbill PoorRichard-Regular Raavi Ravie ShowcardGothic-Reg Shruti SnapITC-Regular Stencil Sylfaen SymbolMT Tahoma Tahoma-Bold TempusSansITC TimesNewRomanPS-BoldItalicMT TimesNewRomanPS-BoldMT TimesNewRomanPS-ItalicMT TimesNewRomanPSMT Trebuchet-BoldItalic TrebuchetMS TrebuchetMS-Bold TrebuchetMS-Italic Tunga-Regular Verdana Verdana-Bold Verdana-BoldItalic Verdana-Italic VinerHandITC Vivaldii VladimirScript Vrinda Webdings Wingdings2 Wingdings3 Wingdings-Regular ZWAdobeF ] NeverEmbed [ true ] AntiAliasColorImages false CropColorImages true ColorImageMinResolution 300 ColorImageMinResolutionPolicy OK DownsampleColorImages true ColorImageDownsampleType Bicubic ColorImageResolution 300 ColorImageDepth -1 ColorImageMinDownsampleDepth 1 ColorImageDownsampleThreshold 150000 EncodeColorImages false ColorImageFilter DCTEncode AutoFilterColorImages true ColorImageAutoFilterStrategy JPEG ColorACSImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt ColorImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000ColorACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000ColorImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasGrayImages false CropGrayImages true GrayImageMinResolution 300 GrayImageMinResolutionPolicy OK DownsampleGrayImages true GrayImageDownsampleType Bicubic GrayImageResolution 300 GrayImageDepth -1 GrayImageMinDownsampleDepth 2 GrayImageDownsampleThreshold 150000 EncodeGrayImages false GrayImageFilter DCTEncode AutoFilterGrayImages true GrayImageAutoFilterStrategy JPEG GrayACSImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt GrayImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000GrayACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000GrayImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasMonoImages false CropMonoImages true MonoImageMinResolution 1200 MonoImageMinResolutionPolicy OK DownsampleMonoImages true MonoImageDownsampleType Bicubic MonoImageResolution 1200 MonoImageDepth -1 MonoImageDownsampleThreshold 150000 EncodeMonoImages false MonoImageFilter CCITTFaxEncode MonoImageDict ltlt K -1 gtgt AllowPSXObjects false CheckCompliance [ None ] PDFX1aCheck false PDFX3Check false PDFXCompliantPDFOnly false PDFXNoTrimBoxError true PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile (None) PDFXOutputConditionIdentifier () PDFXOutputCondition () PDFXRegistryName () PDFXTrapped False Description ltlt CHS ltFEFF4f7f75288fd94e9b8bbe5b9a521b5efa7684002000410064006f006200650020005000440046002065876863900275284e8e9ad88d2891cf76845370524d53705237300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200035002e003000204ee553ca66f49ad87248672c676562535f00521b5efa768400200050004400460020658768633002gt CHT ltFEFF4f7f752890194e9b8a2d7f6e5efa7acb7684002000410064006f006200650020005000440046002065874ef69069752865bc9ad854c18cea76845370524d5370523786557406300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200035002e003000204ee553ca66f49ad87248672c4f86958b555f5df25efa7acb76840020005000440046002065874ef63002gt DAN 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 DEU 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 ESP ltFEFF005500740069006c0069006300650020006500730074006100200063006f006e0066006900670075007200610063006900f3006e0020007000610072006100200063007200650061007200200064006f00630075006d0065006e0074006f00730020005000440046002000640065002000410064006f0062006500200061006400650063007500610064006f00730020007000610072006100200069006d0070007200650073006900f3006e0020007000720065002d0065006400690074006f007200690061006c00200064006500200061006c00740061002000630061006c0069006400610064002e002000530065002000700075006500640065006e00200061006200720069007200200064006f00630075006d0065006e0074006f00730020005000440046002000630072006500610064006f007300200063006f006e0020004100630072006f006200610074002c002000410064006f00620065002000520065006100640065007200200035002e003000200079002000760065007200730069006f006e0065007300200070006f00730074006500720069006f007200650073002egt FRA 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 ITA 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 JPN ltFEFF9ad854c18cea306a30d730ea30d730ec30b951fa529b7528002000410064006f0062006500200050004400460020658766f8306e4f5c6210306b4f7f75283057307e305930023053306e8a2d5b9a30674f5c62103055308c305f0020005000440046002030d530a130a430eb306f3001004100630072006f0062006100740020304a30883073002000410064006f00620065002000520065006100640065007200200035002e003000204ee5964d3067958b304f30533068304c3067304d307e305930023053306e8a2d5b9a306b306f30d530a930f330c8306e57cb30818fbc307f304c5fc59808306730593002gt KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020ace0d488c9c80020c2dcd5d80020c778c1c4c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200035002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor prepress-afdrukken van hoge kwaliteit De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 50 en hoger) NOR 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 PTB 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 SUO ltFEFF004b00e40079007400e40020006e00e40069007400e4002000610073006500740075006b007300690061002c0020006b0075006e0020006c0075006f00740020006c00e400680069006e006e00e4002000760061006100740069007600610061006e0020007000610069006e006100740075006b00730065006e002000760061006c006d0069007300740065006c00750074007900f6006800f6006e00200073006f00700069007600690061002000410064006f0062006500200050004400460020002d0064006f006b0075006d0065006e007400740065006a0061002e0020004c0075006f0064007500740020005000440046002d0064006f006b0075006d0065006e00740069007400200076006f0069006400610061006e0020006100760061007400610020004100630072006f0062006100740069006c006c00610020006a0061002000410064006f00620065002000520065006100640065007200200035002e0030003a006c006c00610020006a006100200075007500640065006d006d0069006c006c0061002egt SVE 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 ENU (Use these settings to create Adobe PDF documents best suited for high-quality prepress printing Created PDF documents can be opened with Acrobat and Adobe Reader 50 and later) gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false ConvertColors ConvertToCMYK DestinationProfileName () DestinationProfileSelector DocumentCMYK Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles false MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector DocumentCMYK PreserveEditing true UntaggedCMYKHandling LeaveUntagged UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ]gtgt setdistillerparamsltlt HWResolution [2400 2400] PageSize [612000 792000]gtgt setpagedevice

          1. To
          2. Date
          3. Re
          4. From
          5. AT THE REQUEST OF
          6. Sender
          7. Address
          8. Telephone
          9. Brief description of professional services materials or equipment provided or to be provided
          10. 1
          11. 2
          12. 3
          13. reg no
          14. deposit $
          15. expiration date
          16. claims up to $
          17. Reset

11122014

3

Immix Law Group Washington Lien and Bond Claims

Creating a Construction LienWhat work gives rise to a claim of lienbull Improvement means (6004011(5))

bull (a) Constructing altering repairing remodeling demolishing clearing grading or filling in of to or upon any real property or street or road in front of or adjoining the same

bull (b) planting of trees vines shrubs plants hedges or lawns or providing other landscaping materials on any real property and

bull (c) providing professional services upon real property or in preparation for or in conjunction with the intended activities in (a) or (b) of this subsection

Immix Law Group Washington Lien and Bond Claims

Creating a Construction Lien

Condominium Improvements (RCW 6432070)bull Work performed on a condominium before the declaration creating the

condominium is filed creates a lien as against the entire condominium Work performed after the condominium declaration is filed creates a lien only as to the unit(s) where work was performed Work performed on common areas (ordered by the association) creates a lien for the proportional share of expenses as to each unit

Immix Law Group Washington Lien and Bond Claims

Creating a Construction Lien

Who can direct the workbull Construction agent (RCW 6004011(1))

bull Registered or licensed contractorbull Registered or licensed subcontractorbull Architectbull Engineerbull Other persons ldquohaving charge of any improvement to real propertyrdquo

CCBA Nuts amp Bolts on Construction Law - 4 of 49

11122014

4

Immix Law Group Washington Lien and Bond Claims

Creating a Construction Lien

Who can direct the workbull UnregisteredUnlicensed Contractors (RCW 6004041)

bull A contractor is only responsible for verifying the registration of the contractor with which it is in direct privity (and can be verified by the State)

Immix Law Group Washington Lien and Bond Claims

Creating a Construction Lien

How is a Claim of Lien Createdbull Every person entitled to a claim of lien must take certain steps to

ensure that the lien is enforceable ndash called ldquoperfectingrdquo the lien bull Certain second or third‐tier subcontractors may be required to perform

additional steps to perfect their claim of lien bull There are also additional requirements for residential construction

which lien claimants must perform to ensure that their lien is perfected

Immix Law Group Washington Lien and Bond Claims

Creating a Construction Lien

Basic Steps to Perfecting a Lien (RCW 6004091)bull Claim of Lien

bull Must be recorded no later than 90 (calendar) days after claimantrsquos last day of work or completion or abandonment of the project whichever is earlier

bull Attaches to the property from the first day that work was performed

[NOTE Oregon is 75 days]

CCBA Nuts amp Bolts on Construction Law - 5 of 49

11122014

5

Immix Law Group Washington Lien and Bond Claims

Creating a Construction Lien

Basic Steps to Perfecting a Lien (RCW 6004091)bull Claim of Lien

bull Must be served or sent via certified mail with return receipt to the Owner within 14 days of the lien filing

[NOTE Oregon is 20 days Oregon also requires a ldquoNotice of Intent to Forecloserdquo 10 days before the claimant can foreclose on the Claim of Lien ndash Practice Pointer Include the ldquoNotice of Intent to Forecloserdquo in the same notice as the claim of lien]

Immix Law Group Washington Lien and Bond Claims

Creating a Construction Lien

Basic Steps to Perfecting a Lien (RCW 6004091)bull Contents of the Claim of Lien

bull Claimant name address and phone numberbull First and last day of claimantrsquos workbull Name of person indebtedbull Name of property ownerbull Street address or legal description of the propertybull The principal amount of lien claim

Immix Law Group Washington Lien and Bond Claims

Creating a Construction Lien

Basic Steps to Perfecting a Lien (RCW 6004091)bull Execution

bull ldquoShall be signed by the claimant or some person authorized to act on his or her behalf who shall affirmatively state they have read the notice of claim of lien and believe the notice of claim of lien to be true and correct under penalty of perjury and shall be acknowledged pursuant to chapter 6408 RCWrdquo

CCBA Nuts amp Bolts on Construction Law - 6 of 49

11122014

6

Immix Law Group Washington Lien and Bond Claims

Creating a Construction Lien

Additional Steps for Sub‐Tier Subcontractors Professionals and Suppliersbull ldquoNotice to Ownerrdquo (Preclaim Notice) (RCW 6004031)

bull Professionals material suppliers and equipment suppliers must provide ldquoNotice to Ownerrdquo on all projects

bull The purpose of the Notice is to inform the Owner of the project of the personsentities working on the project even though not present on the project site

Immix Law Group Washington Lien and Bond Claims

Creating a Construction LienAdditional Steps for Lower‐Tier Subs Professionals and Suppliersbull Who is not required to give Notice to Owner

bull Persons who contract directly with the owner or ownerrsquos common law agent

bull Laborers whose lien is based solely upon providing laborbull First‐tier subcontractors who contract directly with the prime

contractorbull Exclusion First‐tier subcontractors who contract directly with the

prime contractor in connection with improvements of an existing owner‐occupied single family residence

Immix Law Group Washington Lien and Bond Claims

Creating a Construction Lien

ldquoNotice to Ownerrdquobull When required

bull Commercial Project = 60 daysbull Residential Project = 10 days

bull Who servedbull Serve both the owner and general contractor via

certified or registered mail with return receipt

CCBA Nuts amp Bolts on Construction Law - 7 of 49

11122014

7

Immix Law Group Washington Lien and Bond Claims

Creating a Construction Lien

ldquoNotice to Customerrdquo (RCW 1827114)bull Must be provided by the prime contractor to the owner on a

project before the start of construction where the project isbull Four or fewer residential units and the contract price is

greater than $1000bull Commercial project where the bidcontract price is

between $1000 and $60000[NOTE In Oregon GCs are required to give several forms]

Practice Pointer Include directly in the construction contract

Immix Law Group Washington Lien and Bond Claims

Foreclosing on a Construction Lien

Lien Foreclosure Lawsuit (RCW 6004171)bull Must be commenced within eight months of the date of

recording the Claim of Lien in the jurisdiction where the real property is locatedbull [NOTE In Oregon the foreclosure suit must be commenced

within 120 days]bull Failure to foreclose invalidates the claim of lienbull Failure to prosecute the foreclosure to judgment within two

years may result in dismissal of the lien foreclosure case

Immix Law Group Washington Lien and Bond Claims

Foreclosing on a Construction Lien

Priority of the Lien (RCW 6004181)bull Not all liens are equal ndash the type of lien is ranked as follows

bull Laborbull Employee benefit plansbull Furnishing material supplies or equipmentbull Subcontractors andbull Prime contractors and professional services

bull Proceeds are applied by rank and pro rata in each class Any mortgagedeed of trust recorded after start of claimantsrsquo work will be ldquosecond in linerdquo

CCBA Nuts amp Bolts on Construction Law - 8 of 49

11122014

8

Immix Law Group Washington Lien and Bond Claims

Foreclosing on a Construction Lien

Amount of the Lienbull Contract price

bull Includes contractual attorneysrsquo fees and interestbull If no contract then reasonable value of the work

performedbull The prevailing party is entitled to their reasonable attorneysrsquo

fees recording fees title report costs etc in pursuing and prosecuting the lien (RCW 6004181)

Immix Law Group Washington Lien and Bond Claims

Foreclosing on a Construction Lien

Bonding ldquoAroundrdquo the Lien (RCW 6004161)bull OwnerPrime can bond around the lien by obtaining a surety

bond under the following requirements bull If disputed amount is over $10000 then 150 of lien

amountbull If disputed amount is under $10000 then $5000 or twice

the amount of the lienbull The lien attaches to the bond and releases the propertybull Foreclosure proceeds as normal however the surety must be

added as a party to the lien foreclosure action

Immix Law Group Washington Lien and Bond Claims

Foreclosing on a Construction Lien

Amendments to Lien (RCW 6004091(2))ldquoWhere an action to foreclose the lien has been commenced such notice of claim of lien may be amended as pleadings may be by order of the court insofar as the interests of third parties are not adversely affected by such amendmentrdquo

[NOTE In Oregon amendments are not expressly allowed by statute] Practice Pointer Before filing a claim of lien verify that your client will not perform any additional work

CCBA Nuts amp Bolts on Construction Law - 9 of 49

11122014

9

Immix Law Group

Property Ownersrsquo Claims Against Contractors

Immix Law Group Washington Lien and Bond Claims

Property Ownersrsquo Claims Against Contractors

Claiming a Frivolous Lien (RCW 6004081)bull Party can request a show cause hearing where applicant must

show that lien is frivolous and ldquomade without reasonable causerdquo or is ldquoclearly excessiverdquo

bull If lien claimant fails to show the lien will be releasedbull High standard for ldquoFrivolousnessrdquo

bull ldquopresents no debatable issue and is so devoid of merit that it has no possibility of successrdquo

bull Prevailing party may get reasonable attorneysrsquo fees and costs

Immix Law Group Washington Lien and Bond Claims

Property Ownersrsquo Claims Against Contractors

Claim Against Contractor Registration Bond (RCW 1827040)bull Contractors are required to obtain registration bonds

bull General contractors = $12000bull Subcontractors = $6000

bull Persons contracting with the contractor can sue against the contractorrsquos registration bond

bull SOLbull Homeowners = 2 yearsbull Everyone else = 1 year

CCBA Nuts amp Bolts on Construction Law - 10 of 49

11122014

10

Immix Law Group Washington Lien and Bond Claims

Property Ownersrsquo Claims Against Contractors

Claim Against Contractor Registration Bond (RCW 1827040)bull Recovery Limitations

bull Residential homeowners entitled to recover entire bond amountbull Other claimants are entitled to frac12 of the bond amount or $4000 if

subcontractor or specialty contractorbull Claimants entitled to attorneysrsquo fees up to amount of bond

Immix Law Group Washington Lien and Bond Claims

Property Ownersrsquo Claims Against Contractors

Claim Against Contractor Registration Bond (RCW 1827040)

bull Service Requirementsbull Service on the bonding company and the contractor must be made

on the Department of Labor amp Industries by serving three copies of the summons and complaint by certified andor registered mail (RCW 1827040(3)) with the filing fee

bull You should also serve the contractor and all other named defendants personally so that the breach of contract claim and other claims are properly served

Immix Law Group

Washington Public Contracts Retainage and Bond Claims

CCBA Nuts amp Bolts on Construction Law - 11 of 49

11122014

11

Immix Law Group Washington Lien and Bond Claims

Public Contracts Retainage ClaimsRetainage Claims (RCW 6028011)bull ldquolsquoContract retainagersquo means an amount reserved by a public body from

the moneys earned by a person under a public improvement contractrdquo bull Usually five percent (5)bull Prime contractor can submit a bond in lieu of retainagebull All persons supplying labor materials equipment services entitled to

claimbull Exception Temporary labor supplier not entitled to claim against retention

because not ldquosubcontractorrdquo Better Financial Solutions Inc v Caicos Corp 117 Wn App 899 (2003)

Immix Law Group Washington Lien and Bond Claims

Public Contracts Retainage Claims

Preclaim Notice of Retainage Claim (RCW 6028011)

bull Sub‐tier subcontractors and suppliers must give preclaimnotice to the public agency within 60 days of furnishing labor material supplies or equipment to the project

bull Relates back 60 days from the date of the noticebull Must be delivered to contracting agency

Immix Law Group Washington Lien and Bond Claims

Public Contracts Retainage Claims

Notice of Retainage Claim (RCW 6028011)

bull All claimants must provide a Notice of Claim within 45 days after ldquocompletion of the contract workrdquo (essentially ldquoproject completionrdquo)

bull The Notice must be delivered to contracting agencybull Hand delivered or certified mail with return receipt

bull Must file the foreclosure suit within 4 months after providing the Notice of Claim

CCBA Nuts amp Bolts on Construction Law - 12 of 49

11122014

12

Immix Law Group Washington Lien and Bond Claims

Public Contracts Bond Claims

Bond Claims ndash Washingtonrsquos Little Miller Act (RCW 3908010)

On Washington Public Works projects in excess of $25000 general contractors must post a payment bond usually in the amount of the contract price

Immix Law Group Washington Lien and Bond Claims

Public Contracts Bond Claims

Preclaim Notice of Bond Claim (RCW 3908010)

bull Lower‐tier subcontractors and material suppliers must give preclaim notice to the prime contractor within 10 days after starting work

Immix Law Group Washington Lien and Bond Claims

Public Contracts Bond Claims

Notice of Bond Claim (RCW 3908010)

bull All claimants must provide a Notice of Claim within 30 days after ldquoacceptance of the workrdquo (different than retention claim)bull ldquoAcceptancerdquo is an affirmative act by the public works owner

bull The Notice must be delivered to public works ownerbull Hand delivered or certified mail with return receipt

bull No deadline provided in the statute ndash foreclose by general statute of limitationsbull 3 years for oral contracts 6 years for written contracts

CCBA Nuts amp Bolts on Construction Law - 13 of 49

11122014

13

Immix Law Group Washington Lien and Bond Claims

Public Contracts Bond amp Retainage Claims

bull Practice Pointer Coordinate the filing of the retention and bond Preclaim Notice and Notice of Claim to ensure that the contractorrsquos claims are protected

bull File the Bond amp Retainage Preclaim Notice within 10 days after starting work

bull File the Bond amp Retainage Notice of Claim within 30 days from project completion

Immix Law Group Washington Lien and Bond Claims

Public Contracts Prompt Pay ActWashingtonrsquos Prompt Pay Act

bull Prime contractors are entitled to payment within 30 days after the public agencyrsquos receipt of the invoice

bull If the public agency intends to withhold payment (all or in part) the agency must notify the contractor in writing within 8 days of receipt stating

bull Why payment (all or part) is being withheld

bull Actions required by contractor in order to receive payment

Immix Law Group Washington Lien and Bond Claims

Public Contracts Prompt Pay ActWashingtonrsquos Prompt Pay Act (contrsquod)

bull Public agency can withhold up to 150 of the disputed amount

bull Failure to comply entitles the contractor to 1 interest per month until paid

bull Subcontractors must be paid within 10 days of prime contractorrsquos receipt of payment

CCBA Nuts amp Bolts on Construction Law - 14 of 49

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14

Immix Law Group

Questions

CCBA Nuts amp Bolts on Construction Law - 15 of 49

SUMMARY OF THE REQUIREMENTS TO BE MET BY A LIEN CLAIMANT ON A WASHINGTON PRIVATE CONSTRUCTION PROJECT

NOTICE TO CUSTOMER

FROM

Prime Contractor working on four or fewer residential units when the contract price is $1000 or more or on a commercial building when the contract price is $1000 or more but less than $60000

TO Owner

WHEN Before starting construction NOTICE OF FURNISHING PROFESSIONAL SERVICES

FROM

Provider of professional services

TO County Recorder

WHEN As soon as professional services are commenced PRECLAIM NOTICE (for all projects except repair and remodeling of owner-occupied single-family residence)

FROM

Provider of professional services materials or equipment except that the following need not provide the notice (1) a provider that contracts directly with the owner or the owners actual agent or (2) a first tier subcontractor

TO Owner and usually also prime contractor

WHEN New single family residence within ten days of first supplying professional services materials or equipment All other projects within 60 days of first supplying professional services materials or equipment

PRECLAIM NOTICE (for repair and remodeling of owner-occupied single-family residence)

FROM

Provider of professional services materials or equipment to anyone other than the owner

TO Owner and usually also prime contractor

WHEN Immediately after agreeing to furnish professional services materials or equipment

FROM

Potential lien claimant to whom payment is five or more days overdue

NOTICE TO REAL PROPERTY LENDER (only applicable where there is not a payment bond of at least 50 of the amount of construction financing)

TO Construction lender owner and prime contractor

WHEN Within 35 days of date payment is due

CLAIM OF LIEN

FROM

Unpaid claimant

TO County Recorder

WHEN Not later than 90 days after the last furnishing of labor professional services materials or equipment or the last date on which employee benefit contributions were due

COPY OF CLAIM OF LIEN

FROM

Unpaid claimant

TO Owner

WHEN Within 14 days of date claim of lien is filed for recording

DEADLINE FOR FILING A LAWSUIT Within eight months of recording claim of lien

F625-055-000 const lien summary 2-96 This summary is intended to generally set forth the requirements applicable to most lien claimants The remainder of the chapter should be consulted for a more detailed discussion

CCBA Nuts amp Bolts on Construction Law - 16 of 49

CLAIM OF LIEN SIGNED BY ATTORNEY

Return Address __________________________ __________________________ __________________________

Document Title Claim of Lien

Reference Number _____________________________

Grantor _____________________________

Grantee _____________________________

Legal Description

Assessors Property Tax Parcel No

CLAIM OF LIEN

________________________ claimant vs _____________________________ name of persons indebted to claimant

Notice is hereby given that the person named below claims a lien pursuant to Chapter 6004 RCW In

support of this lien the following information is submitted

1 NAME OF LIEN CLAIMANT ______________________________________

TELEPHONE NUMBER ______________________________________

ADDRESS ______________________________________

______________________________________

2 DATE ON WHICH THE CLAIMANT BEGAN TO PERFORM LABOR PROVIDE PROFESSIONAL SERVICES SUPPLY MATERIAL OR EQUIPMENT OR THE DATE ON WHICH EMPLOYEE BENEFIT CONTRIBUTIONS BECOMES DUE _________

3 NAME OF PERSON INDEBTED TO THE CLAIMANT _________________

4 DESCRIPTIONOF THE PROPERTY AGAINST WHICH A LIEN IS CLAIMED All fee leasehold and other interests of _______________ and any other owner person or entity in the property commonly known as ___________________________located at _______________________ _________________________ _________________County Washington _______ the legal description of which is believed to be as follows

[Legal Description - andor - The legal description of the underlying real property is described on the attached Exhibit A]

CCBA Nuts amp Bolts on Construction Law - 17 of 49

5 NAME OF THE OWNER OR REPUTED OWNER (if not known state ldquounknownrdquo) ____________________________________________________________________________________________

6 THE LAST DATE ON WHICH LABOR WAS PERFORMED PROFESSIONAL SERVICES WERE FURNISHED CONTRIBUTIONS TO AN EMPLOYEE BENEFIT PLAN WERE DUE OR MATERIAL OR EQUIPMENT WAS FURNISHED _____________________________________________________________

7 PRINCIPAL AMOUNT FOR WHICH THE LIEN IS CLAIMED IS $_______

8 IF THE CLAIMANT IS THE ASSIGNEE OF THIS CLAIM SO STATE HERE ___

___________________ Claimant ___________________________

___________________________ (__)____-______

By ________s________________ Print Name ___________________ Its Attorney

STATE OF WASHINGTON )

SS COUNTYOF ____________ )

________________ being sworn says I am the attorney of the claimant above named I have read or heard the foregoing claim read and know the contents thereof and believe the same to be true and correct and that the claim of lien is not frivolous and is made with reasonable cause and is not clearly excessive under penalty of perjury

__________________________ Print Name _______________

SUBSCRIBED and SWORN to before me this ___day of ___________________ 201_

STATE OF WASHINGTON )

SS COUNTYOF ____________ )

[Seal or Stamp]

__________________________ Print Name _______________ Notary Public in and for the State of Washington residing at________________________________ My Commission Expires __________________

CCBA Nuts amp Bolts on Construction Law - 18 of 49

I certify that I know or have satisfactory evidence that___________________ is the person who appeared before me and said person acknowledged that [heshe] signed this instrument on oath stated that [heshe] was authorized to execute this instrument and acknowledged it as the attorney of___________________ to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument

CCBA Nuts amp Bolts on Construction Law - 19 of 49

F625-054-000 construction lien notice 11-05 IMPORTANT INFORMATION ON PAGE 2

NOTICE TO OWNER IMPORTANT READ BOTH SIDES OF THIS NOTICE CAREFULLY

PROTECT YOURSELF FROM PAYING TWICE

To

Date

Re

From (Description of property street address or general location)

AT THE REQUEST OF Name of person ordering their professional services materials or equipment

THIS IS NOT A LIEN This notice is sent to you to tell you who is providing professional services materials or equipment for the improvement of your property and to advise you of the rights of these persons and your responsibilities Also take notice that laborers on your project may claim a lien without sending you a notice

OWNEROCCUPIER OF EXISTING RESIDENTIAL PROPERTY Under Washington law those who furnish labor professional services materials or equipment for the repair remodel or alteration of you owner-occupied principal residence and who are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien The law limits the amount that a lien claimant can claim against your property Claims may only be made against that portion of the contract price you have not yet paid to your prime contractor as of the time this notice was given to you or three days after this notice was mailed to you Review page 2 of this notice for more information and ways to avoid lien claims

COMMERCIAL ANDOR NEW RESIDENTIAL PROPERTY We have or will be providing professional services materials or equipment for the improvement of your commercial or new residential project In the event you or your contractor fail to pay us we may file a lien against your property A lien may be claimed for all professional services materials or equipment furnished after a date that is sixty days before this notice was given to you or mailed to you unless the improvement to you property is the construction of a new single-family residence then ten days before this notice was given to you or mailed to you

Sender

Address

Telephone

Brief description of professional services materials or equipment provided or to be provided

CCBA Nuts amp Bolts on Construction Law - 20 of 49

F625-054-000 construction lien notice page 2 11-05

Important Information for your Protection

This notice is sent to inform you that we have or will provide professional services materials or equipment for the repair remodel or alteration of you property We expect to be paid by the person who ordered our services but if we are not paid we have the right to enforce our claim by filing a construction lien against your property

LEARN more about the lien laws and the meaning of this notice by

discussing them with our contractor suppliers Department of Labor and Industries the firm sending you this notice your lender or your attorney

COMMON METHODS TO AVOID CONSTRUCTION LIENS

There are several methods available to protect your property from construction liens The following are two of the more commonly used methods

DUAL PAYCHECKS (Joint Checks) When paying your

contractor for services or materials you may make checks payable jointly to the contractor and the firms furnishing you this notice

LIEN RELEASES You may require your contractor to provide

lien releases signed by all the suppliers and subcontractors from whom you have received this notice If they cannot obtain lien releases because you have not paid them you may use the dual payee check method to protect yourself

You should take appropriate steps to protect your property from

liens

Your prime contractor and your construction lender are required by law to give you written information about lien claims If you have not received it ask them for it

CCBA Nuts amp Bolts on Construction Law - 21 of 49

F625-030-000 model disclosure statement notice to customer 09-2007

Department of Labor and Industries Construction Compliance

MODEL DISCLOSURE STATEMENTNOTICE TO CUSTOMER

This contractor is registered with the state of Washington registration no____________________ and has posted with the state a bond or deposit of ______________________ for the purpose of satisfying claims against the contractor for breach of contract including negligent or improper work in the conduct of the contractorrsquos business The expiration date of this contractorrsquos registration is ______________________

THIS BOND OR DEPOSIT MIGHT NOT BE SUFFICIENT TO COVER A CLAIM THAT MIGHT ARISE FROM THE WORK DONE UNDER YOUR CONTRACT This bond or deposit is not for your exclusive use because it covers all work performed by this contractor The bond or deposit is intended to pay valid claims up to ___________________________ that you and other customers suppliers subcontractors or taxing authorities may have FOR GREATER PROTECTION YOU MAY WITHHOLD A PERCENTAGE OF YOUR CONTRACT You may withhold a contractually defined percentage of your construction contract as retainage for a stated period of time to provide protection to you and help insure that your project will be completed as required by your contract

YOUR PROPERTY MAY BE LIENED If a supplier of materials used in your construction project or an employee or subcontractor of your contractor or subcontractors is not paid your property may be liened to force payment and you could pay twice for the same work FOR ADDITIONAL PROTECTION YOU MAY REQUEST THE CONTRACTOR TO PROVIDE YOU WITH ORIGINAL ldquoLIEN RELEASErdquo DOCUMENTS FROM EACH SUPPLIER OR SUBCONTRACTOR AT YOUR PROJECT The contractor is required to provide you with further information about lien release document if you request it General information is also available from the state Department of Labor and Industries I have received a copy of this disclosure statement Dated this _______ day of _______________ of the year __________

_____________________________________________________ Signature of Customer The contractor must retain a signed copy of the disclosure statement in his or her files for a minimum of three years and produce a signed or electronic signature copy of the disclosure statement to the department upon request

CCBA Nuts amp Bolts on Construction Law - 22 of 49

Facts About Construction LiensWhat you should know about contractsIf your contractor fails to pay subcontractors suppliers or laborers or neglects to make other legally required payments those who are owed money can look to your property for payment even if you have paid your contractor in full This is true if you have hired a contractor to build a new home or are buying a newly built home

It is also true when you remodel or improve your property although the amount of your liability may be limited to the amount you owe the prime contractor at the time a lien is filed

Under Washington laws those who work on your property or provide materials and are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien

People who supply materials or labor ordered by your contractor are permitted by law to file a lien only if they do so within 90 days of cessation of performance or delivery of materials The time frame is spelled out in RCW 6004091

If you enter into a contract to buy a newly built home you may not receive a notice of a lien based on a claim by a contractor or material handler Be aware that a lien may be claimed even though you have not received a notice

Before making final payment on the project request a completed lien release form from each contractor and material supplier A sample of this release of lien form is available from the Department of Labor amp Industries Contractor Registration Section

You have final responsibility for seeing that all bills are paid even if you have paid your contractor in full

If you receive a notice to enforce a lien take the notice seriously Let your contractor know you have received the notice Find out what arrangements are being made to pay the sender of the notice

When in doubt or if you need more details consult your attorney When and how to pay your contractor is a decision that requires serious consideration

Reminder Washington laws require contractors to give you a disclosure statement if your contract exceeds $1000 [RCW 1827114(A) or (B)]

CCBA Nuts amp Bolts on Construction Law - 23 of 49

PUBLICATION F625-017-000 [01-2008]

Other formats for persons with disabilities are available on request Call 1-800-647-0982 TDD users call 360-902-5797 LampI is an equal opportunity employer

For more information

How to protect your investment

If you are dealing with a lending institution ask your loan officer what precautions the lending institution takes to verify that subcontractors and material suppliers are being paid when mortgage money is paid to your contractor

Request lender supervision when dealing with a lending institution that provides interim or construction financing

Ask the prime contractor to disclose all potential lien claimants as a condition of payment A lien claimant must mail (by certified or registered mail or by personal service) a copy of the claim of lien to the owner within 14 days of the time the lien is recorded [RCW 6004091(2)] While an action is ongoing an owner may withhold from this prime contractor the amount of money for which a claim is recorded by a subcontractor supplier or laborer [RCW 6004151]

It is recommended that your check be made payable jointly naming the contractor and the subcontractor or supplier as payees

Upon payment and acceptance of the amount due the owner has the right to an executed release of all lien rights by lien claimants [RCW 6004071]

Consider using an escrow agent to protect your interests Find out whether your escrow agent will protect you against liens when disbursing payments If you are interested in this alternative consult your attorney

Request that your contractor post a performance bond in the amount of the project cost That will give you recourse in the event the contractor fails to complete the building agreement

8 On the Web Find more information about hiring a contractor at

wwwLniwagovTradesLicensingContractorsHireCon

Contractor Registration Hotline1-800-647-0982

You may also call your local LampI office See listings under ldquoWashington State ofrdquo in the government section or the white pages of the telephone book

Please note This notice was prepared by the Department of Labor amp Industries Specialty Compliance Services Division for reproduction by lending institutions and contractors for distribution to their clients It explains the basics of the construction lien law to help you protect yourself This information is not a reflection upon the abilities or credit of your contractor

CCBA Nuts amp Bolts on Construction Law - 24 of 49

NOTICE OF CLAIM AGAINST

BOND AND RETAINED PERCENTAGE

RCW 3908030 RCW 6028010

VIA CERTIFIED MAIL ndash RETURN RECEIPT REQUESTED

TO [Public Owner] [Public Ownerrsquos Address]

Project [Project Name amp Address] NOTICE IS HEREBY GIVEN that the undersigned [Claimant] [Claimantrsquos Address] has a claim in the amount of ----- and 00100 Dollars ($XX) (not including attorneysrsquo fees or costs) together with interest at twelve percent (12) against [Public Owner] (ldquoOwnerrdquo) pursuant to RCW 6028 and the payment bond taken from [Prime Contractor] (ldquoContractorrdquo) [Prime Contractorrsquos Address] as principal and [Surety Company] (ldquoSuretyrdquo) [Suretyrsquos Address] as surety Bond No ________ pursuant to RCW 3908 for [describe services material supplies labor furnished] provided on the Project This Notice of Claim Against Bond and Retained Percentage supersedes and replaces previous Notices DATED This ___day of _________ 201_ [Claimant] By ______________________________________ Its ______________________________________ [Claimantrsquos Address]

_________________________________________

[Contractors Registration No if applicable]

(Copies furnished to General Contractor and General Contractorrsquos Bonding Company)

CCBA Nuts amp Bolts on Construction Law - 25 of 49

PRECLAIM NOTICE TO CONTRACTOR BY SUBCONTRACTORS MATERIALMEN OR SUPPLIERS FOR

CLAIM AGAINST BOND AND RETAINED PERCENTAGE

VIA CERTIFIED OR REGISTERED MAIL- RETURN RECEIPT REQUESTED

TO [Name of General Contractor] [Address]

YOU ARE HEREBY NOTIFIED that the undersigned ____________at the request of_________________ commenced to deliver or furnish materials supplies andor equipment for the use in the construction alteration andor repair of that certain project known as____________________ [project name] which is located at ____________________________ [address or description] If the undersigned is not paid for these materials supplies andor equipment it will file a claim against you and your bond andor retainage pursuant to RCW 3908 andor 6028 et seq for payment of any sum that is due and owing to the undersigned

DATED This __ day of _____________ 201_

[Name of Claimant]

By ____________________________________

Its ____________________________________

Address ______________________________

__________________________________________

__________________________________________

[Contractors Registration No if applicable]

(Mail via certified mail return receipt requested or hand deliver and obtain receipt)

CCBA Nuts amp Bolts on Construction Law - 26 of 49

Washington Liens amp Bonds ndash Pertinent Statutes

RCW 1827040 Bond or other security required mdash Actions against mdash Suspension of registration upon impairment (1) Each applicant shall file with the department a surety bond issued by a surety insurer who meets the requirements of chapter 4828 RCW in the sum of twelve thousand dollars if the applicant is a general contractor and six thousand dollars if the applicant is a specialty contractor If no valid bond is already on file with the department at the time the application is filed a bond must accompany the registration application The bond shall have the state of Washington named as obligee with good and sufficient surety in a form to be approved by the department The bond shall be continuous and may be canceled by the surety upon the surety giving written notice to the director A cancellation or revocation of the bond or withdrawal of the surety from the bond automatically suspends the registration issued to the contractor until a new bond or reinstatement notice has been filed and approved as provided in this section The bond shall be conditioned that the applicant will pay all persons performing labor including employee benefits for the contractor will pay all taxes and contributions due to the state of Washington and will pay all persons furnishing material or renting or supplying equipment to the contractor and will pay all amounts that may be adjudged against the contractor by reason of breach of contract including improper work in the conduct of the contracting business A change in the name of a business or a change in the type of business entity shall not impair a bond for the purposes of this section so long as one of the original applicants for such bond maintains partial ownership in the business covered by the bond (2) At the time of initial registration or renewal the contractor shall provide a bond or other security deposit as required by this chapter and comply with all of the other provisions of this chapter before the department shall issue or renew the contractors certificate of registration Any contractor registered as of July 1 2001 who maintains that registration in accordance with this chapter is in compliance with this chapter until the next renewal of the contractors certificate of registration (3) Any person firm or corporation having a claim against the contractor for any of the items referred to in this section may bring suit against the contractor and the bond or deposit in the superior court of the county in which the work was done or of any county in which jurisdiction of the contractor may be had The surety issuing the bond shall be named as a party to any suit upon the bond Action upon the bond or deposit brought by a residential homeowner for breach of contract by a party to the construction contract shall be commenced by filing the summons and complaint with the clerk of the appropriate superior court within two years from the date the claimed contract work was substantially completed or abandoned whichever occurred first Action upon the bond or deposit brought by any other authorized party shall be commenced by filing the summons and complaint with the clerk of the appropriate superior court within one year from the date the claimed labor was performed and benefits accrued taxes and contributions owing the state of Washington became due materials and equipment were furnished or the claimed contract work was substantially completed or abandoned whichever occurred first Service of process in an action filed under this chapter against the contractor and the contractors bond or the deposit shall be exclusively by service upon the department Three

CCBA Nuts amp Bolts on Construction Law - 27 of 49

copies of the summons and complaint and a fee adopted by rule of not less than fifty dollars to cover the costs shall be served by registered or certified mail or other delivery service requiring notice of receipt upon the department at the time suit is started and the department shall maintain a record available for public inspection of all suits so commenced Service is not complete until the department receives the fee and three copies of the summons and complaint The service shall constitute service and confer personal jurisdiction on the contractor and the surety for suit on claimants claim against the contractor and the bond or deposit and the department shall transmit the summons and complaint or a copy thereof to the contractor at the address listed in the contractors application and to the surety within two days after it shall have been received (4) The surety upon the bond shall not be liable in an aggregate amount in excess of the amount named in the bond nor for any monetary penalty assessed pursuant to this chapter for an infraction The liability of the surety shall not cumulate where the bond has been renewed continued reinstated reissued or otherwise extended The surety upon the bond may upon notice to the department and the parties tender to the clerk of the court having jurisdiction of the action an amount equal to the claims thereunder or the amount of the bond less the amount of judgments if any previously satisfied therefrom and to the extent of such tender the surety upon the bond shall be exonerated but if the actions commenced and pending and provided to the department as required in subsection (3) of this section at any one time exceed the amount of the bond then unimpaired claims shall be satisfied from the bond in the following order (a) Employee labor and claims of laborers including employee benefits (b) Claims for breach of contract by a party to the construction contract (c) Registered or licensed subcontractors material and equipment (d) Taxes and contributions due the state of Washington (e) Any court costs interest and attorneys fees plaintiff may be entitled to recover The surety is not liable for any amount in excess of the penal limit of its bond A payment made by the surety in good faith exonerates the bond to the extent of any payment made by the surety (5) The total amount paid from a bond or deposit required of a general contractor by this section to claimants other than residential homeowners must not exceed one-half of the bond amount The total amount paid from a bond or deposit required of a specialty contractor by this section to claimants other than residential homeowners must not exceed one-half of the bond amount or four thousand dollars whichever is greater (6) The prevailing party in an action filed under this section against the contractor and contractors bond or deposit for breach of contract by a party to the construction contract involving a residential homeowner is entitled to costs interest and reasonable attorneys fees The surety upon the bond or deposit is not liable in an aggregate amount in excess of the amount

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named in the bond or deposit nor for any monetary penalty assessed pursuant to this chapter for an infraction (7) If a final judgment impairs the liability of the surety upon the bond or deposit so furnished that there is not in effect a bond or deposit in the full amount prescribed in this section the registration of the contractor is automatically suspended until the bond or deposit liability in the required amount unimpaired by unsatisfied judgment claims is furnished (8) In lieu of the surety bond required by this section the contractor may file with the department an assigned savings account upon forms provided by the department (9) Any person having filed and served a summons and complaint as required by this section having an unsatisfied final judgment against the registrant for any items referred to in this section may execute upon the security held by the department by serving a certified copy of the unsatisfied final judgment by registered or certified mail upon the department within one year of the date of entry of such judgment Upon the receipt of service of such certified copy the department shall pay or order paid from the deposit through the registry of the superior court which rendered judgment towards the amount of the unsatisfied judgment The priority of payment by the department shall be the order of receipt by the department but the department shall have no liability for payment in excess of the amount of the deposit (10) Within ten days after resolution of the case a certified copy of the final judgment and order or any settlement documents where a case is not disposed of by a court trial a certified copy of the dispositive settlement documents must be provided to the department by the prevailing party Failure to provide a copy of the final judgment and order or the dispositive settlement documents to the department within ten days of entry of such an order constitutes a violation of this chapter and a penalty adopted by rule of not less than two hundred fifty dollars may be assessed against the prevailing party (11) The director may require an applicant applying to renew or reinstate a registration or applying for a new registration to file a bond of up to three times the normally required amount if the director determines that an applicant or a previous registration of a corporate officer owner or partner of a current applicant has had in the past five years a total of three final judgments in actions under this chapter involving a residential single-family dwelling on two or more different structures (12) The director may adopt rules necessary for the proper administration of the security RCW 1827114 Disclosure statement required mdash Prerequisite to lien claim

(1) Any contractor agreeing to perform any contracting project (a) For the repair alteration or construction of four or fewer residential units or accessory structures on such residential property when the bid or contract price totals one thousand dollars or more or (b) for the repair alteration or construction of a commercial building when the bid or contract price totals one thousand dollars or more but less than sixty thousand dollars must provide the customer with

CCBA Nuts amp Bolts on Construction Law - 29 of 49

the following disclosure statement in substantially the following form using lower case and upper case twelve-point and bold type where appropriate prior to starting work on the project NOTICE TO CUSTOMER This contractor is registered with the state of Washington registration no and has posted with the state a bond or deposit of for the purpose of satisfying claims against the contractor for breach of contract including negligent or improper work in the conduct of the contractors business The expiration date of this contractors registration is THIS BOND OR DEPOSIT MIGHT NOT BE SUFFICIENT TO COVER A CLAIM THAT MIGHT ARISE FROM THE WORK DONE UNDER YOUR CONTRACT This bond or deposit is not for your exclusive use because it covers all work performed by this contractor The bond or deposit is intended to pay valid claims up to that you and other customers suppliers subcontractors or taxing authorities may have FOR GREATER PROTECTION YOU MAY WITHHOLD A PERCENTAGE OF YOUR CONTRACT You may withhold a contractually defined percentage of your construction contract as retainage for a stated period of time to provide protection to you and help insure that your project will be completed as required by your contract YOUR PROPERTY MAY BE LIENED If a supplier of materials used in your construction project or an employee or subcontractor of your contractor or subcontractors is not paid your property may be liened to force payment and you could pay twice for the same work FOR ADDITIONAL PROTECTION YOU MAY REQUEST THE CONTRACTOR TO PROVIDE YOU WITH ORIGINAL LIEN RELEASE DOCUMENTS FROM EACH SUPPLIER OR SUBCONTRACTOR ON YOUR PROJECT The contractor is required to provide you with further information about lien release documents if you request it General information is also available from the state Department of Labor and Industries I have received a copy of this disclosure statement

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(Signature of customer) (2) The contractor must retain a signed copy of the disclosure statement in his or her files for a minimum of three years and produce a signed or electronic signature copy of the disclosure statement to the department upon request (3) A contractor subject to this section shall notify any consumer to whom notice is required under subsection (1) of this section if the contractors registration has expired or is revoked or suspended by the department prior to completion or other termination of the contract with the consumer (4) No contractor subject to this section may bring or maintain any lien claim under chapter 6004 RCW based on any contract to which this section applies without alleging and proving that the contractor has provided the customer with a copy of the disclosure statement as required in subsection (1) of this section (5) This section does not apply to contracts authorized under chapter 3904 RCW or to contractors contracting with other contractors (6) Failure to comply with this section shall constitute an infraction under the provisions of this chapter (7) The department shall produce model disclosure statements and public service announcements detailing the information needed to assist contractors and contractors customers to comply under this section As necessary the department shall periodically update these education materials RCW 3908010 Bond required mdash Conditions mdash Retention of contract amount in lieu of bond (1)(a) Whenever any board council commission trustees or body acting for the state or any county or municipality or any public body must contract with any person or corporation to do any work for the state county or municipality or other public body city town or district such board council commission trustees or body must require the person or persons with whom such contract is made to make execute and deliver to such board council commission trustees or body a good and sufficient bond with a surety company as surety conditioned that such person or persons must (i) Faithfully perform all the provisions of such contract (ii) Pay all laborers mechanics and subcontractors and material suppliers and all persons who supply such person or persons or subcontractors with provisions and supplies for the carrying on of such work and

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(iii) Pay the taxes increases and penalties incurred on the project under Titles 50 51 and 82 RCW on (A) Projects referred to in RCW 6028011(1)(b) andor (B) projects for which the bond is conditioned on the payment of such taxes increases and penalties (b) The bond in cases of cities and towns must be filed with the clerk or comptroller thereof and any person or persons performing such services or furnishing material to any subcontractor has the same right under the provisions of such bond as if such work services or material was furnished to the original contractor (2) The provisions of RCW 3908010 through 3908030 do not apply to any money loaned or advanced to any such contractor subcontractor or other person in the performance of any such work (3) On contracts of thirty-five thousand dollars or less at the option of the contractor the respective public entity may in lieu of the bond retain fifty percent of the contract amount for a period of thirty days after date of final acceptance or until receipt of all necessary releases from the department of revenue the employment security department and the department of labor and industries and settlement of any liens filed under chapter 6028 RCW whichever is later (4) For contracts of one hundred thousand dollars or less the public entity may accept a full payment and performance bond from an individual surety or sureties (5) The surety must agree to be bound by the laws of the state of Washington and subjected to the jurisdiction of the state of Washington RCW 6004011 Definitions

Unless the context requires otherwise the definitions in this section apply throughout this chapter (1) Construction agent means any registered or licensed contractor registered or licensed subcontractor architect engineer or other person having charge of any improvement to real property who shall be deemed the agent of the owner for the limited purpose of establishing the lien created by this chapter (2) Contract price means the amount agreed upon by the contracting parties or if no amount is agreed upon then the customary and reasonable charge therefor (3) Draws means periodic disbursements of interim or construction financing by a lender (4) Furnishing labor professional services materials or equipment means the performance of any labor or professional services the contribution owed to any employee benefit plan on account of any labor the provision of any supplies or materials and the renting leasing or

CCBA Nuts amp Bolts on Construction Law - 32 of 49

otherwise supplying of equipment for the improvement of real property (5) Improvement means (a) Constructing altering repairing remodeling demolishing clearing grading or filling in of to or upon any real property or street or road in front of or adjoining the same (b) planting of trees vines shrubs plants hedges or lawns or providing other landscaping materials on any real property and (c) providing professional services upon real property or in preparation for or in conjunction with the intended activities in (a) or (b) of this subsection (6) Interim or construction financing means that portion of money secured by a mortgage deed of trust or other encumbrance to finance improvement of or to real property but does not include (a) Funds to acquire real property (b) Funds to pay interest insurance premiums lease deposits taxes assessments or prior encumbrances (c) Funds to pay loan commitment title legal closing recording or appraisal fees (d) Funds to pay other customary fees which pursuant to agreement with the owner or borrower are to be paid by the lender from time to time (e) Funds to acquire personal property for which the potential lien claimant may not claim a lien pursuant to this chapter (7) Labor means exertion of the powers of body or mind performed at the site for compensation Labor includes amounts due and owed to any employee benefit plan on account of such labor performed (8) Mortgagee means a person who has a valid mortgage of record or deed of trust of record securing a loan (9) Owner-occupied means a single-family residence occupied by the owner as his or her principal residence (10) Payment bond means a surety bond issued by a surety licensed to issue surety bonds in the state of Washington that confers upon potential claimants the rights of third party beneficiaries (11) Potential lien claimant means any person or entity entitled to assert lien rights under this chapter who has otherwise complied with the provisions of this chapter and is registered or licensed if required to be licensed or registered by the provisions of the laws of the state of Washington (12) Prime contractor includes all contractors general contractors and specialty

CCBA Nuts amp Bolts on Construction Law - 33 of 49

contractors as defined by chapter 1827 or 1928 RCW or who are otherwise required to be registered or licensed by law who contract directly with a property owner or their common law agent to assume primary responsibility for the creation of an improvement to real property and includes property owners or their common law agents who are contractors general contractors or specialty contractors as defined in chapter 1827 or 1928 RCW or who are otherwise required to be registered or licensed by law who offer to sell their property without occupying or using the structures projects developments or improvements for more than one year (13) Professional services means surveying establishing or marking the boundaries of preparing maps plans or specifications for or inspecting testing or otherwise performing any other architectural or engineering services for the improvement of real property (14) Real property lender means a bank savings bank savings and loan association credit union mortgage company or other corporation association partnership trust or individual that makes loans secured by real property located in the state of Washington (15) Site means the real property which is or is to be improved (16) Subcontractor means a general contractor or specialty contractor as defined by chapter 1827 or 1928 RCW or who is otherwise required to be registered or licensed by law who contracts for the improvement of real property with someone other than the owner of the property or their common law agent

6004021 Lien authorized

Except as provided in RCW 6004031 any person furnishing labor professional services materials or equipment for the improvement of real property shall have a lien upon the improvement for the contract price of labor professional services materials or equipment furnished at the instance of the owner or the agent or construction agent of the owner

6004031 Notices mdash Exceptions

(1) Except as otherwise provided in this section every person furnishing professional services materials or equipment for the improvement of real property shall give the owner or reputed owner notice in writing of the right to claim a lien If the prime contractor is in compliance with the requirements of RCW 1927095 6004230 and 6004261 this notice shall also be given to the prime contractor as described in this subsection unless the potential lien claimant has contracted directly with the prime contractor The notice may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after the date which is sixty days before (a) Mailing the notice by certified or registered mail to the owner or reputed owner or

CCBA Nuts amp Bolts on Construction Law - 34 of 49

(b) Delivering or serving the notice personally upon the owner or reputed owner and obtaining evidence of delivery in the form of a receipt or other acknowledgment signed by the owner or reputed owner or an affidavit of service In the case of new construction of a single-family residence the notice of a right to claim a lien may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after a date which is ten days before the notice is given as described in this subsection (2) Notices of a right to claim a lien shall not be required of (a) Persons who contract directly with the owner or the owners common law agent (b) Laborers whose claim of lien is based solely on performing labor or (c) Subcontractors who contract for the improvement of real property directly with the prime contractor except as provided in subsection (3)(b) of this section (3) Persons who furnish professional services materials or equipment in connection with the repair alteration or remodel of an existing owner-occupied single-family residence or appurtenant garage (a) Who contract directly with the owner-occupier or their common law agent shall not be required to send a written notice of the right to claim a lien and shall have a lien for the full amount due under their contract as provided in RCW 6004021 or (b) Who do not contract directly with the owner-occupier or their common law agent shall give notice of the right to claim a lien to the owner-occupier Liens of persons furnishing professional services materials or equipment who do not contract directly with the owner-occupier or their common law agent may only be satisfied from amounts not yet paid to the prime contractor by the owner at the time the notice described in this section is received regardless of whether amounts not yet paid to the prime contractor are due For the purposes of this subsection received means actual receipt of notice by personal service or registered or certified mail or three days after mailing by registered or certified mail excluding Saturdays Sundays or legal holidays (4) The notice of right to claim a lien described in subsection (1) of this section shall include but not be limited to the following information and shall substantially be in the following form using lower-case and upper-case ten-point type where appropriate

CCBA Nuts amp Bolts on Construction Law - 35 of 49

NOTICE TO OWNER

IMPORTANT READ BOTH SIDES OF THIS NOTICE CAREFULLY

PROTECT YOURSELF FROM PAYING TWICE

To Date

Re (description of property Street address or general location) From AT THE REQUEST OF (Name of person ordering the professional services materials or equipment) THIS IS NOT A LIEN This notice is sent to you to tell you who is providing professional services materials or equipment for the improvement of your property and to advise you of the rights of these persons and your responsibilities Also take note that laborers on your project may claim a lien without sending you a notice

OWNEROCCUPIER OF EXISTING

RESIDENTIAL PROPERTY

Under Washington law those who furnish labor professional services materials or equipment for the repair remodel or alteration of your owner-occupied principal residence and who are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien The law limits the amount that a lien claimant can claim against your property Claims may only be made against that portion of the contract price you have not yet paid to your prime contractor as of the time this notice was given to you or three days after this notice was mailed to you Review the back of this notice for more information and ways to avoid lien claims

COMMERCIAL ANDOR NEW

RESIDENTIAL PROPERTY

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We have or will be providing professional services materials or equipment for the improvement of your commercial or new residential project In the event you or your contractor fail to pay us we may file a lien against your property A lien may be claimed for all professional services materials or equipment furnished after a date that is sixty days before this notice was given to you or mailed to you unless the improvement to your property is the construction of a new single-family residence then ten days before this notice was given to you or mailed to you Sender Address Telephone Brief description of professional services materials or equipment provided or to be provided

IMPORTANT INFORMATION

ON REVERSE SIDE

IMPORTANT INFORMATION

FOR YOUR PROTECTION This notice is sent to inform you that we have or will provide professional services materials or equipment for the improvement of your property We expect to be paid by the person who ordered our services but if we are not paid we have the right to enforce our claim by filing a construction lien against your property LEARN more about the lien laws and the meaning of this notice by discussing them with your contractor suppliers Department of Labor and Industries the firm sending you this notice your lender or your attorney

COMMON METHODS TO AVOID CONSTRUCTION LIENS There are several methods available to protect your property from construction liens The following are two of the more commonly used methods

DUAL PAYCHECKS (Joint Checks) When paying your contractor for services or materials you may make checks payable jointly to the contractor and the firms furnishing you this notice

CCBA Nuts amp Bolts on Construction Law - 37 of 49

LIEN RELEASES You may require your contractor to provide lien releases signed by all the suppliers and subcontractors from whom you have received this notice If they cannot obtain lien releases because you have not paid them you may use the dual payee check method to protect yourself

YOU SHOULD TAKE APPROPRIATE STEPS TO PROTECT YOUR PROPERTY FROM LIENS YOUR PRIME CONTRACTOR AND YOUR CONSTRUCTION LENDER ARE REQUIRED BY LAW TO GIVE YOU WRITTEN INFORMATION ABOUT LIEN CLAIMS IF YOU HAVE NOT RECEIVED IT ASK THEM FOR IT

(5) Every potential lien claimant providing professional services where no improvement as defined in RCW 6004011(5) (a) or (b) has been commenced and the professional services provided are not visible from an inspection of the real property may record in the real property records of the county where the property is located a notice which shall contain the professional service providers name address telephone number legal description of the property the owner or reputed owners name and the general nature of the professional services provided If such notice is not recorded the lien claimed shall be subordinate to the interest of any subsequent mortgagee and invalid as to the interest of any subsequent purchaser if the mortgagee or purchaser acts in good faith and for a valuable consideration acquires an interest in the property prior to the commencement of an improvement as defined in RCW 6004011(5) (a) or (b) without notice of the professional services being provided The notice described in this subsection shall be substantially in the following form

NOTICE OF FURNISHING

PROFESSIONAL SERVICES That on the (day) day of (month and year) (name of provider) began providing professional services upon or for the improvement of real property legally described as follows

[Legal Description is mandatory]

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The general nature of the professional services provided is The owner or reputed owner of the real property is

(Signature)

(Name of Claimant)

(Street Address)

(City State Zip Code)

(Phone Number)

(6) A lien authorized by this chapter shall not be enforced unless the lien claimant has complied with the applicable provisions of this section

6004041 Contractor registration

A contractor or subcontractor required to be registered under chapter 1827 RCW or licensed under chapter 1928 RCW or otherwise required to be registered or licensed by law shall be deemed the construction agent of the owner for the purposes of establishing the lien created by this chapter only if so registered or licensed Persons dealing with contractors or subcontractors may rely for the purposes of this section upon a certificate of registration issued pursuant to chapter 1827 RCW or license issued pursuant to chapter 1928 RCW or other certificate or license issued pursuant to law covering the period when the labor professional services material or equipment shall be furnished and the lien rights shall not be lost by suspension or revocation of registration or license without their knowledge No lien rights described in this

CCBA Nuts amp Bolts on Construction Law - 39 of 49

chapter shall be lost or denied by virtue of the absence suspension or revocation of such registration or license with respect to any contractor or subcontractor not in immediate contractual privity with the lien claimant

6004081 Frivolous claim mdash Procedure

(1) Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who believes the claim of lien to be frivolous and made without reasonable cause or clearly excessive may apply by motion to the superior court for the county where the property or some part thereof is located for an order directing the lien claimant to appear before the court at a time no earlier than six nor later than fifteen days following the date of service of the application and order on the lien claimant and show cause if any he or she has why the relief requested should not be granted The motion shall state the grounds upon which relief is asked and shall be supported by the affidavit of the applicant or his or her attorney setting forth a concise statement of the facts upon which the motion is based (2) The order shall clearly state that if the lien claimant fails to appear at the time and place noted the lien shall be released with prejudice and that the lien claimant shall be ordered to pay the costs requested by the applicant including reasonable attorneys fees (3) If no action to foreclose the lien claim has been filed the clerk of the court shall assign a cause number to the application and obtain from the applicant a filing fee pursuant to RCW 3618016 If an action has been filed to foreclose the lien claim the application shall be made a part of that action (4) If following a hearing on the matter the court determines that the lien is frivolous and made without reasonable cause or clearly excessive the court shall issue an order releasing the lien if frivolous and made without reasonable cause or reducing the lien if clearly excessive and awarding costs and reasonable attorneys fees to the applicant to be paid by the lien claimant If the court determines that the lien is not frivolous and was made with reasonable cause and is not clearly excessive the court shall issue an order so stating and awarding costs and reasonable attorneys fees to the lien claimant to be paid by the applicant (5) Proceedings under this section shall not affect other rights and remedies available to the parties under this chapter or otherwise

6004091 Recording mdash Time mdash Contents of lien

Every person claiming a lien under RCW 6004021 shall file for recording in the county where the subject property is located a notice of claim of lien not later than ninety days after the person

CCBA Nuts amp Bolts on Construction Law - 40 of 49

has ceased to furnish labor professional services materials or equipment or the last date on which employee benefit contributions were due The notice of claim of lien (1) Shall state in substance and effect (a) The name phone number and address of the claimant (b) The first and last date on which the labor professional services materials or equipment was furnished or employee benefit contributions were due (c) The name of the person indebted to the claimant (d) The street address legal description or other description reasonably calculated to identify for a person familiar with the area the location of the real property to be charged with the lien (e) The name of the owner or reputed owner of the property if known and if not known that fact shall be stated and (f) The principal amount for which the lien is claimed (2) Shall be signed by the claimant or some person authorized to act on his or her behalf who shall affirmatively state they have read the notice of claim of lien and believe the notice of claim of lien to be true and correct under penalty of perjury and shall be acknowledged pursuant to chapter 6408 RCW If the lien has been assigned the name of the assignee shall be stated Where an action to foreclose the lien has been commenced such notice of claim of lien may be amended as pleadings may be by order of the court insofar as the interests of third parties are not adversely affected by such amendment A claim of lien substantially in the following form shall be sufficient

CLAIM OF LIEN

claimant vs name of person indebted to claimant

Notice is hereby given that the person named below claims a lien pursuant to chapter 6404 RCW In support of this lien the following information is submitted

1 NAME OF LIEN CLAIMANT

TELEPHONE NUMBER

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ADDRESS

2 DATE ON WHICH THE CLAIMANT BEGAN TO PERFORM LABOR PROVIDE PROFESSIONAL SERVICES SUPPLY MATERIAL OR EQUIPMENT OR THE DATE ON WHICH EMPLOYEE BENEFIT CONTRIBUTIONS BECAME DUE

3 NAME OF PERSON INDEBTED TO THE CLAIMANT

4 DESCRIPTION OF THE PROPERTY AGAINST WHICH A LIEN IS CLAIMED (Street address legal description or other information that will reasonably describe the property)

5 NAME OF THE OWNER OR REPUTED OWNER (If not known state unknown)

6 THE LAST DATE ON WHICH LABOR WAS PERFORMED PROFESSIONAL SERVICES WERE FURNISHED CONTRIBUTIONS TO AN EMPLOYEE BENEFIT PLAN WERE DUE OR MATERIAL OR EQUIPMENT WAS FURNISHED

7 PRINCIPAL AMOUNT FOR WHICH THE LIEN IS CLAIMED IS

8 IF THE CLAIMANT IS THE ASSIGNEE OF THIS CLAIM SO STATE HERE

Claimant

(Phone number address city

CCBA Nuts amp Bolts on Construction Law - 42 of 49

and

state of claimant)

STATE OF WASHINGTON COUNTY OF ss being sworn says I am the claimant (or attorney of the claimant or administrator representative or agent of the trustees of an employee benefit plan) above named I have read or heard the foregoing claim read and know the contents thereof and believe the same to be true and correct and that the claim of lien is not frivolous and is made with reasonable cause and is not clearly excessive under penalty of perjury Subscribed and sworn to before me this day of The period provided for recording the claim of lien is a period of limitation and no action to foreclose a lien shall be maintained unless the claim of lien is filed for recording within the ninety-day period stated The lien claimant shall give a copy of the claim of lien to the owner or reputed owner by mailing it by certified or registered mail or by personal service within fourteen days of the time the claim of lien is filed for recording Failure to do so results in a forfeiture of any right the claimant may have to attorneys fees and costs against the owner under RCW 6004181

6004161 Bond in lieu of claim

Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who disputes the correctness or validity of the claim of lien may record either before or after the commencement of an action to enforce the lien in the office of the county recorder or auditor in the county where the claim of lien was recorded a bond issued by a surety company authorized to issue surety bonds in the state The surety shall be listed in the latest federal department of the treasury list of surety companies acceptable on federal bonds published in the Federal Register as authorized to issue bonds on United States government projects with an underwriting limitation including applicable reinsurance equal to or greater than the amount of the bond to be recorded The bond shall contain a description of the claim of lien and real property involved and be in an amount equal to the greater of five thousand dollars or two times the amount of the lien claimed if it is ten thousand dollars or less and in an amount equal to or greater than one and one-half times the amount of the lien if it is in

CCBA Nuts amp Bolts on Construction Law - 43 of 49

excess of ten thousand dollars If the claim of lien affects more than one parcel of real property and is segregated to each parcel the bond may be segregated the same as in the claim of lien A separate bond shall be required for each claim of lien made by separate claimants However a single bond may be used to guarantee payment of amounts claimed by more than one claim of lien by a single claimant so long as the amount of the bond meets the requirements of this section as applied to the aggregate sum of all claims by such claimant The condition of the bond shall be to guarantee payment of any judgment upon the lien in favor of the lien claimant entered in any action to recover the amount claimed in a claim of lien or on the claim asserted in the claim of lien The effect of recording a bond shall be to release the real property described in the notice of claim of lien from the lien and any action brought to recover the amount claimed Unless otherwise prohibited by law if no action is commenced to recover on a lien within the time specified in RCW 6004141 the surety shall be discharged from liability under the bond If an action is timely commenced then on payment of any judgment entered in the action or on payment of the full amount of the bond to the holder of the judgment whichever is less the surety shall be discharged from liability under the bond Nothing in this section shall in any way prohibit or limit the use of other methods devised by the affected parties to secure the obligation underlying a claim of lien and to obtain a release of real property from a claim of lien

6004181 Rank of lien mdash Application of proceeds mdash Attorneys fees

(1) In every case in which different construction liens are claimed against the same property the court shall declare the rank of such lien or class of liens which liens shall be in the following order (a) Liens for the performance of labor (b) Liens for contributions owed to employee benefit plans (c) Liens for furnishing material supplies or equipment (d) Liens for subcontractors including but not limited to their labor and materials and (e) Liens for prime contractors or for professional services (2) The proceeds of the sale of property must be applied to each lien or class of liens in order of its rank and in an action brought to foreclose a lien pro rata among each claimant in each separate priority class A personal judgment may be rendered against any party personally liable for any debt for which the lien is claimed If the lien is established the judgment shall provide

CCBA Nuts amp Bolts on Construction Law - 44 of 49

for the enforcement thereof upon the property liable as in the case of foreclosure of judgment liens The amount realized by such enforcement of the lien shall be credited upon the proper personal judgment The deficiency if any remaining unsatisfied shall stand as a personal judgment and may be collected by execution against any party liable therefor (3) The court may allow the prevailing party in the action whether plaintiff or defendant as part of the costs of the action the moneys paid for recording the claim of lien costs of title report bond costs and attorneys fees and necessary expenses incurred by the attorney in the superior court court of appeals supreme court or arbitration as the court or arbitrator deems reasonable Such costs shall have the priority of the class of lien to which they are related as established by subsection (1) of this section (4) Real property against which a lien under this chapter is enforced may be ordered sold by the court and the proceeds deposited into the registry of the clerk of the court pending further determination respecting distribution of the proceeds of the sale

6004900 Liberal construction mdash 1991 c 281

RCW 1927095 6004230 and 6004011 through 6004226 and 6004261 are to be liberally construed to provide security for all parties intended to be protected by their provisions

RCW 6028011

Retained percentage mdash Public transportation projects mdash Labor and material lien created mdash Bond in lieu of retained funds mdash Termination before completion mdash Chapter deemed exclusive mdash Release of ferry contract payments mdash Projects of farmers home administration mdash General contractorconstruction manager procedure mdash Definitions

(1)(a) Except as provided in (b) of this subsection public improvement contracts must provide and public bodies must reserve a contract retainage not to exceed five percent of the moneys earned by the contractor as a trust fund for the protection and payment of (i) The claims of any person arising under the contract and (ii) the state with respect to taxes increases and penalties imposed pursuant to Titles 50 51 and 82 RCW which may be due from such contractor (b) Public improvement contracts funded in whole or in part by federal transportation funds must rely upon the contract bond as referred to in chapter 3908 RCW for the protection and payment of (i) The claims of any person or persons arising under the contract to the extent such claims are provided for in RCW 3908010 and (ii) the state with respect to taxes increases and penalties incurred on the public improvement project under Titles 50 51 and 82 RCW which may be due The contract bond must remain in full force and effect until at a minimum all claims filed in compliance with chapter 3908 RCW are resolved

CCBA Nuts amp Bolts on Construction Law - 45 of 49

(2) Every person performing labor or furnishing supplies toward the completion of a public improvement contract has a lien upon moneys reserved by a public body under the provisions of a public improvement contract However the notice of the lien of the claimant must be given within forty-five days of completion of the contract work and in the manner provided in RCW 3908030 (3) The contractor at any time may request the contract retainage be reduced to one hundred percent of the value of the work remaining on the project (a) After completion of all contract work other than landscaping the contractor may request that the public body release and pay in full the amounts retained during the performance of the contract and sixty days thereafter the public body must release and pay in full the amounts retained (other than continuing retention of five percent of the moneys earned for landscaping) subject to the provisions of chapters 3912 and 6028 RCW (b) Sixty days after completion of all contract work the public body must release and pay in full the amounts retained during the performance of the contract subject to the provisions of chapters 3912 and 6028 RCW (4) The moneys reserved by a public body under the provisions of a public improvement contract at the option of the contractor must be (a) Retained in a fund by the public body (b) Deposited by the public body in an interest bearing account in a bank mutual savings bank or savings and loan association Interest on moneys reserved by a public body under the provision of a public improvement contract must be paid to the contractor (c) Placed in escrow with a bank or trust company by the public body When the moneys reserved are placed in escrow the public body must issue a check representing the sum of the moneys reserved payable to the bank or trust company and the contractor jointly This check must be converted into bonds and securities chosen by the contractor and approved by the public body and the bonds and securities must be held in escrow Interest on the bonds and securities must be paid to the contractor as the interest accrues (5) The contractor or subcontractor may withhold payment of not more than five percent from the moneys earned by any subcontractor or sub-subcontractor or supplier contracted with by the contractor to provide labor materials or equipment to the public project Whenever the contractor or subcontractor reserves funds earned by a subcontractor or sub-subcontractor or

CCBA Nuts amp Bolts on Construction Law - 46 of 49

supplier the contractor or subcontractor must pay interest to the subcontractor or sub-subcontractor or supplier at a rate equal to that received by the contractor or subcontractor from reserved funds (6) A contractor may submit a bond for all or any portion of the contract retainage in a form acceptable to the public body and from a bonding company meeting standards established by the public body The public body must accept a bond meeting these requirements unless the public body can demonstrate good cause for refusing to accept it This bond and any proceeds therefrom are subject to all claims and liens and in the same manner and priority as set forth for retained percentages in this chapter The public body must release the bonded portion of the retained funds to the contractor within thirty days of accepting the bond from the contractor Whenever a public body accepts a bond in lieu of retained funds from a contractor the contractor must accept like bonds from any subcontractors or suppliers from which the contractor has retained funds The contractor must then release the funds retained from the subcontractor or supplier to the subcontractor or supplier within thirty days of accepting the bond from the subcontractor or supplier (7) If the public body administering a contract after a substantial portion of the work has been completed finds that an unreasonable delay will occur in the completion of the remaining portion of the contract for any reason not the result of a breach thereof it may if the contractor agrees delete from the contract the remaining work and accept as final the improvement at the stage of completion then attained and make payment in proportion to the amount of the work accomplished and in this case any amounts retained and accumulated under this section must be held for a period of sixty days following the completion In the event that the work is terminated before final completion as provided in this section the public body may thereafter enter into a new contract with the same contractor to perform the remaining work or improvement for an amount equal to or less than the cost of the remaining work as was provided for in the original contract without advertisement or bid The provisions of this chapter are exclusive and supersede all provisions and regulations in conflict herewith (8) Whenever the department of transportation has contracted for the construction of two or more ferry vessels sixty days after completion of all contract work on each ferry vessel the department must release and pay in full the amounts retained in connection with the construction of the vessel subject to the provisions of RCW 6028021 and chapter 3912 RCW However the department of transportation may at its discretion condition the release of funds retained in connection with the completed ferry upon the contractor delivering a good and sufficient bond with two or more sureties or with a surety company in the amount of the retained funds to be released to the contractor conditioned that no taxes may be certified or claims filed for work on the ferry after a period of sixty days following completion of the ferry and if taxes are certified or claims filed recovery may be had on the bond by the department of revenue the employment

CCBA Nuts amp Bolts on Construction Law - 47 of 49

security department the department of labor and industries and the material suppliers and laborers filing claims (9) Except as provided in subsection (1) of this section reservation by a public body for any purpose from the moneys earned by a contractor by fulfilling its responsibilities under public improvement contracts is prohibited (10) Contracts on projects funded in whole or in part by farmers home administration and subject to farmers home administration regulations are not subject to subsections (1) through (9) of this section (11) This subsection applies only to a public body that has contracted for the construction of a facility using the general contractorconstruction manager procedure as defined under RCW 3910210 If the work performed by a subcontractor on the project has been completed within the first half of the time provided in the general contractorconstruction manager contract for completing the work the public body may accept the completion of the subcontract The public body must give public notice of this acceptance After a forty-five day period for giving notice of liens and compliance with the retainage release procedures in RCW 6028021 the public body may release that portion of the retained funds associated with the subcontract Claims against the retained funds after the forty-five day period are not valid (12) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise (a) Contract retainage means an amount reserved by a public body from the moneys earned by a person under a public improvement contract (b) Person means a person or persons mechanic subcontractor or materialperson who performs labor or provides materials for a public improvement contract and any other person who supplies the person with provisions or supplies for the carrying on of a public improvement contract (c) Public body means the state or a county city town district board or other public body (d) Public improvement contract means a contract for public improvements or work other than for professional services or a work order as defined in RCW 3910210

CCBA Nuts amp Bolts on Construction Law - 48 of 49

RCW 6432070 Liens or encumbrances mdash Enforcement mdash Satisfaction

(1) Subsequent to recording the declaration as provided in this chapter and while the property remains subject to this chapter no lien shall thereafter arise or be effective against the property During such period liens or encumbrances shall arise or be created only against each apartment and the percentage of undivided interest in the common areas and facilities and appurtenant to such apartment in the same manner and under the same conditions in every respect as liens or encumbrances may arise or be created upon or against any other separate parcel of real property subject to individual ownership PROVIDED That no labor performed or materials furnished with the consent of or at the request of the owner of any apartment or such owners agent contractor or subcontractor shall be the basis for the filing of a lien against any other apartment or any other property of any other apartment owner not expressly consenting to or requesting the same except that such express consent shall be deemed to be given by any apartment owner in the case of emergency repairs Labor performed or materials furnished for the common areas and facilities if authorized by the association of apartment owners the manager or board of directors shall be deemed to be performed or furnished with the express consent of each apartment owner and shall be the basis for the filing of a lien against each of the apartments and shall be subject to the provisions of subsection (2) of this section (2) In the event a lien against two or more apartments becomes effective the apartment owners of the separate apartments may remove their apartment and the percentage of undivided interest in the common areas and facilities appurtenant to such apartment from the lien by payment of the fractional or proportional amounts attributable to each of the apartments affected Such individual payments shall be computed by reference to the percentages appearing on the declaration Subsequent to any such payment discharge or satisfaction the apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto shall thereafter be free and clear of the liens so paid satisfied or discharged Such partial payment satisfaction or discharge shall not prevent the lienor from proceeding to enforce his or her rights against any apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto not so paid satisfied or discharged

CCBA Nuts amp Bolts on Construction Law - 49 of 49

  • Cover Sheet
  • 20141110 - Washington Lien and Bond CLE
  • LampI Lien Summary
  • Claim of Lien
  • Form Notice to Owner
  • Model Disclosure Statement (Notice to Customer)
  • LampI Facts about Construction Liens
    • What you should know about contracts
    • How to protect your investment
    • For more information
      • Notice of Claim Against Bond and Retained Percentage
      • Preclaim Notice Bond amp Retained Percentage
      • Statute Handout
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(Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false ConvertColors ConvertToCMYK DestinationProfileName () DestinationProfileSelector DocumentCMYK Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles false MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector DocumentCMYK PreserveEditing true UntaggedCMYKHandling LeaveUntagged UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ]gtgt setdistillerparamsltlt HWResolution [2400 2400] PageSize [612000 792000]gtgt setpagedevice

          ltlt ASCII85EncodePages false AllowTransparency false AutoPositionEPSFiles true AutoRotatePages None Binding Left CalGrayProfile (Dot Gain 20) CalRGBProfile (sRGB IEC61966-21) CalCMYKProfile (US Web Coated 050SWOP051 v2) sRGBProfile (sRGB IEC61966-21) CannotEmbedFontPolicy Warning CompatibilityLevel 14 CompressObjects Tags CompressPages true ConvertImagesToIndexed true PassThroughJPEGImages true CreateJDFFile false CreateJobTicket false DefaultRenderingIntent Default DetectBlends true DetectCurves 00000 ColorConversionStrategy LeaveColorUnchanged DoThumbnails false EmbedAllFonts true EmbedOpenType false ParseICCProfilesInComments true EmbedJobOptions true DSCReportingLevel 0 EmitDSCWarnings false EndPage -1 ImageMemory 1048576 LockDistillerParams true MaxSubsetPct 100 Optimize true OPM 1 ParseDSCComments true ParseDSCCommentsForDocInfo true PreserveCopyPage true PreserveDICMYKValues true PreserveEPSInfo true PreserveFlatness true PreserveHalftoneInfo false PreserveOPIComments true PreserveOverprintSettings true StartPage 1 SubsetFonts true TransferFunctionInfo Apply UCRandBGInfo Preserve UsePrologue false ColorSettingsFile () AlwaysEmbed [ true Algerian Arial-Black Arial-BoldItalicMT Arial-BoldMT Arial-ItalicMT ArialMT ArialNarrow ArialNarrow-Bold ArialNarrow-BoldItalic ArialNarrow-Italic BaskOldFace Bauhaus93 BellMT BellMTBold BellMTItalic BerlinSansFB-Bold BerlinSansFBDemi-Bold BerlinSansFB-Reg BernardMT-Condensed BodoniMTPosterCompressed BookAntiqua BookAntiqua-Bold BookAntiqua-BoldItalic BookAntiqua-Italic BookmanOldStyle BookmanOldStyle-Bold BookmanOldStyle-BoldItalic BookmanOldStyle-Italic BookshelfSymbolSeven BritannicBold Broadway BrushScriptMT CalifornianFB-Bold CalifornianFB-Italic CalifornianFB-Reg Centaur CenturyGothic CenturyGothic-Bold CenturyGothic-BoldItalic CenturyGothic-Italic Chiller-Regular ColonnaMT ComicSansMS ComicSansMS-Bold CooperBlack CourierNewPS-BoldItalicMT CourierNewPS-BoldMT CourierNewPS-ItalicMT CourierNewPSMT EstrangeloEdessa EXTRAAPLNew-Regular EXTRAOIANew-Regular FootlightMTLight FranklinGothic-Medium FranklinGothic-MediumItalic FreestyleScript-Regular Garamond Garamond-Bold Garamond-Italic Gautami Georgia Georgia-Bold Georgia-BoldItalic Georgia-Italic HarlowSolid Harrington HighTowerText-Italic HighTowerText-Reg Impact InformalRoman-Regular Jokerman-Regular JuiceITC-Regular Kartika KristenITC-Regular KunstlerScript Latha LatinWide LucidaATTMSpecial LucidaBright LucidaBright-Demi LucidaBright-DemiItalic LucidaBright-Italic LucidaCalligraphy-Italic LucidaConsole LucidaFax LucidaFax-Demi LucidaFax-DemiItalic LucidaFax-Italic LucidaforAttachmate LucidaHandwriting-Italic LucidaSans LucidaSans-Demi LucidaSans-DemiItalic LucidaSans-Italic LucidaSansUnicode Magneto-Bold Mangal-Regular MaturaMTScriptCapitals MicrosoftSansSerif Mistral Modern-Regular Monospace821BT-Roman MonotypeCorsiva MSOutlook MSReferenceSansSerif MSReferenceSpecialty MVBoli NiagaraEngraved-Reg NiagaraSolid-Reg OldEnglishTextMT Onyx PalatinoLinotype-Bold PalatinoLinotype-BoldItalic PalatinoLinotype-Italic PalatinoLinotype-Roman Parchment-Regular Playbill PoorRichard-Regular Raavi Ravie ShowcardGothic-Reg Shruti SnapITC-Regular Stencil Sylfaen SymbolMT Tahoma Tahoma-Bold TempusSansITC TimesNewRomanPS-BoldItalicMT TimesNewRomanPS-BoldMT TimesNewRomanPS-ItalicMT TimesNewRomanPSMT Trebuchet-BoldItalic TrebuchetMS TrebuchetMS-Bold TrebuchetMS-Italic Tunga-Regular Verdana Verdana-Bold Verdana-BoldItalic Verdana-Italic VinerHandITC Vivaldii VladimirScript Vrinda Webdings Wingdings2 Wingdings3 Wingdings-Regular ZWAdobeF ] NeverEmbed [ true ] AntiAliasColorImages false CropColorImages true ColorImageMinResolution 300 ColorImageMinResolutionPolicy OK DownsampleColorImages true ColorImageDownsampleType Bicubic ColorImageResolution 300 ColorImageDepth -1 ColorImageMinDownsampleDepth 1 ColorImageDownsampleThreshold 150000 EncodeColorImages false ColorImageFilter DCTEncode AutoFilterColorImages true ColorImageAutoFilterStrategy JPEG ColorACSImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt ColorImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000ColorACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000ColorImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasGrayImages false CropGrayImages true GrayImageMinResolution 300 GrayImageMinResolutionPolicy OK DownsampleGrayImages true GrayImageDownsampleType Bicubic GrayImageResolution 300 GrayImageDepth -1 GrayImageMinDownsampleDepth 2 GrayImageDownsampleThreshold 150000 EncodeGrayImages false GrayImageFilter DCTEncode AutoFilterGrayImages true GrayImageAutoFilterStrategy JPEG GrayACSImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt GrayImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000GrayACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000GrayImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasMonoImages false CropMonoImages true MonoImageMinResolution 1200 MonoImageMinResolutionPolicy OK DownsampleMonoImages true MonoImageDownsampleType Bicubic MonoImageResolution 1200 MonoImageDepth -1 MonoImageDownsampleThreshold 150000 EncodeMonoImages false MonoImageFilter CCITTFaxEncode MonoImageDict ltlt K -1 gtgt AllowPSXObjects false CheckCompliance [ None ] PDFX1aCheck false PDFX3Check false PDFXCompliantPDFOnly false PDFXNoTrimBoxError true PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile (None) PDFXOutputConditionIdentifier () PDFXOutputCondition () PDFXRegistryName () PDFXTrapped False Description ltlt CHS ltFEFF4f7f75288fd94e9b8bbe5b9a521b5efa7684002000410064006f006200650020005000440046002065876863900275284e8e9ad88d2891cf76845370524d53705237300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200035002e003000204ee553ca66f49ad87248672c676562535f00521b5efa768400200050004400460020658768633002gt CHT ltFEFF4f7f752890194e9b8a2d7f6e5efa7acb7684002000410064006f006200650020005000440046002065874ef69069752865bc9ad854c18cea76845370524d5370523786557406300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200035002e003000204ee553ca66f49ad87248672c4f86958b555f5df25efa7acb76840020005000440046002065874ef63002gt DAN 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 DEU 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 ESP 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 FRA ltFEFF005500740069006c006900730065007a00200063006500730020006f007000740069006f006e00730020006100660069006e00200064006500200063007200e900650072002000640065007300200064006f00630075006d0065006e00740073002000410064006f00620065002000500044004600200070006f0075007200200075006e00650020007100750061006c0069007400e90020006400270069006d007000720065007300730069006f006e00200070007200e9007000720065007300730065002e0020004c0065007300200064006f00630075006d0065006e00740073002000500044004600200063007200e900e90073002000700065007500760065006e0074002000ea0074007200650020006f007500760065007200740073002000640061006e00730020004100630072006f006200610074002c002000610069006e00730069002000710075002700410064006f00620065002000520065006100640065007200200035002e0030002000650074002000760065007200730069006f006e007300200075006c007400e90072006900650075007200650073002egt ITA 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 JPN ltFEFF9ad854c18cea306a30d730ea30d730ec30b951fa529b7528002000410064006f0062006500200050004400460020658766f8306e4f5c6210306b4f7f75283057307e305930023053306e8a2d5b9a30674f5c62103055308c305f0020005000440046002030d530a130a430eb306f3001004100630072006f0062006100740020304a30883073002000410064006f00620065002000520065006100640065007200200035002e003000204ee5964d3067958b304f30533068304c3067304d307e305930023053306e8a2d5b9a306b306f30d530a930f330c8306e57cb30818fbc307f304c5fc59808306730593002gt KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020ace0d488c9c80020c2dcd5d80020c778c1c4c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200035002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor prepress-afdrukken van hoge kwaliteit De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 50 en hoger) NOR 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 PTB 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 SUO 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 SVE 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 ENU (Use these settings to create Adobe PDF documents best suited for high-quality prepress printing Created PDF documents can be opened with Acrobat and Adobe Reader 50 and later) gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false ConvertColors ConvertToCMYK DestinationProfileName () DestinationProfileSelector DocumentCMYK Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles false MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector DocumentCMYK PreserveEditing true UntaggedCMYKHandling LeaveUntagged UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ]gtgt setdistillerparamsltlt HWResolution [2400 2400] PageSize [612000 792000]gtgt setpagedevice

          1. To
          2. Date
          3. Re
          4. From
          5. AT THE REQUEST OF
          6. Sender
          7. Address
          8. Telephone
          9. Brief description of professional services materials or equipment provided or to be provided
          10. 1
          11. 2
          12. 3
          13. reg no
          14. deposit $
          15. expiration date
          16. claims up to $
          17. Reset

11122014

4

Immix Law Group Washington Lien and Bond Claims

Creating a Construction Lien

Who can direct the workbull UnregisteredUnlicensed Contractors (RCW 6004041)

bull A contractor is only responsible for verifying the registration of the contractor with which it is in direct privity (and can be verified by the State)

Immix Law Group Washington Lien and Bond Claims

Creating a Construction Lien

How is a Claim of Lien Createdbull Every person entitled to a claim of lien must take certain steps to

ensure that the lien is enforceable ndash called ldquoperfectingrdquo the lien bull Certain second or third‐tier subcontractors may be required to perform

additional steps to perfect their claim of lien bull There are also additional requirements for residential construction

which lien claimants must perform to ensure that their lien is perfected

Immix Law Group Washington Lien and Bond Claims

Creating a Construction Lien

Basic Steps to Perfecting a Lien (RCW 6004091)bull Claim of Lien

bull Must be recorded no later than 90 (calendar) days after claimantrsquos last day of work or completion or abandonment of the project whichever is earlier

bull Attaches to the property from the first day that work was performed

[NOTE Oregon is 75 days]

CCBA Nuts amp Bolts on Construction Law - 5 of 49

11122014

5

Immix Law Group Washington Lien and Bond Claims

Creating a Construction Lien

Basic Steps to Perfecting a Lien (RCW 6004091)bull Claim of Lien

bull Must be served or sent via certified mail with return receipt to the Owner within 14 days of the lien filing

[NOTE Oregon is 20 days Oregon also requires a ldquoNotice of Intent to Forecloserdquo 10 days before the claimant can foreclose on the Claim of Lien ndash Practice Pointer Include the ldquoNotice of Intent to Forecloserdquo in the same notice as the claim of lien]

Immix Law Group Washington Lien and Bond Claims

Creating a Construction Lien

Basic Steps to Perfecting a Lien (RCW 6004091)bull Contents of the Claim of Lien

bull Claimant name address and phone numberbull First and last day of claimantrsquos workbull Name of person indebtedbull Name of property ownerbull Street address or legal description of the propertybull The principal amount of lien claim

Immix Law Group Washington Lien and Bond Claims

Creating a Construction Lien

Basic Steps to Perfecting a Lien (RCW 6004091)bull Execution

bull ldquoShall be signed by the claimant or some person authorized to act on his or her behalf who shall affirmatively state they have read the notice of claim of lien and believe the notice of claim of lien to be true and correct under penalty of perjury and shall be acknowledged pursuant to chapter 6408 RCWrdquo

CCBA Nuts amp Bolts on Construction Law - 6 of 49

11122014

6

Immix Law Group Washington Lien and Bond Claims

Creating a Construction Lien

Additional Steps for Sub‐Tier Subcontractors Professionals and Suppliersbull ldquoNotice to Ownerrdquo (Preclaim Notice) (RCW 6004031)

bull Professionals material suppliers and equipment suppliers must provide ldquoNotice to Ownerrdquo on all projects

bull The purpose of the Notice is to inform the Owner of the project of the personsentities working on the project even though not present on the project site

Immix Law Group Washington Lien and Bond Claims

Creating a Construction LienAdditional Steps for Lower‐Tier Subs Professionals and Suppliersbull Who is not required to give Notice to Owner

bull Persons who contract directly with the owner or ownerrsquos common law agent

bull Laborers whose lien is based solely upon providing laborbull First‐tier subcontractors who contract directly with the prime

contractorbull Exclusion First‐tier subcontractors who contract directly with the

prime contractor in connection with improvements of an existing owner‐occupied single family residence

Immix Law Group Washington Lien and Bond Claims

Creating a Construction Lien

ldquoNotice to Ownerrdquobull When required

bull Commercial Project = 60 daysbull Residential Project = 10 days

bull Who servedbull Serve both the owner and general contractor via

certified or registered mail with return receipt

CCBA Nuts amp Bolts on Construction Law - 7 of 49

11122014

7

Immix Law Group Washington Lien and Bond Claims

Creating a Construction Lien

ldquoNotice to Customerrdquo (RCW 1827114)bull Must be provided by the prime contractor to the owner on a

project before the start of construction where the project isbull Four or fewer residential units and the contract price is

greater than $1000bull Commercial project where the bidcontract price is

between $1000 and $60000[NOTE In Oregon GCs are required to give several forms]

Practice Pointer Include directly in the construction contract

Immix Law Group Washington Lien and Bond Claims

Foreclosing on a Construction Lien

Lien Foreclosure Lawsuit (RCW 6004171)bull Must be commenced within eight months of the date of

recording the Claim of Lien in the jurisdiction where the real property is locatedbull [NOTE In Oregon the foreclosure suit must be commenced

within 120 days]bull Failure to foreclose invalidates the claim of lienbull Failure to prosecute the foreclosure to judgment within two

years may result in dismissal of the lien foreclosure case

Immix Law Group Washington Lien and Bond Claims

Foreclosing on a Construction Lien

Priority of the Lien (RCW 6004181)bull Not all liens are equal ndash the type of lien is ranked as follows

bull Laborbull Employee benefit plansbull Furnishing material supplies or equipmentbull Subcontractors andbull Prime contractors and professional services

bull Proceeds are applied by rank and pro rata in each class Any mortgagedeed of trust recorded after start of claimantsrsquo work will be ldquosecond in linerdquo

CCBA Nuts amp Bolts on Construction Law - 8 of 49

11122014

8

Immix Law Group Washington Lien and Bond Claims

Foreclosing on a Construction Lien

Amount of the Lienbull Contract price

bull Includes contractual attorneysrsquo fees and interestbull If no contract then reasonable value of the work

performedbull The prevailing party is entitled to their reasonable attorneysrsquo

fees recording fees title report costs etc in pursuing and prosecuting the lien (RCW 6004181)

Immix Law Group Washington Lien and Bond Claims

Foreclosing on a Construction Lien

Bonding ldquoAroundrdquo the Lien (RCW 6004161)bull OwnerPrime can bond around the lien by obtaining a surety

bond under the following requirements bull If disputed amount is over $10000 then 150 of lien

amountbull If disputed amount is under $10000 then $5000 or twice

the amount of the lienbull The lien attaches to the bond and releases the propertybull Foreclosure proceeds as normal however the surety must be

added as a party to the lien foreclosure action

Immix Law Group Washington Lien and Bond Claims

Foreclosing on a Construction Lien

Amendments to Lien (RCW 6004091(2))ldquoWhere an action to foreclose the lien has been commenced such notice of claim of lien may be amended as pleadings may be by order of the court insofar as the interests of third parties are not adversely affected by such amendmentrdquo

[NOTE In Oregon amendments are not expressly allowed by statute] Practice Pointer Before filing a claim of lien verify that your client will not perform any additional work

CCBA Nuts amp Bolts on Construction Law - 9 of 49

11122014

9

Immix Law Group

Property Ownersrsquo Claims Against Contractors

Immix Law Group Washington Lien and Bond Claims

Property Ownersrsquo Claims Against Contractors

Claiming a Frivolous Lien (RCW 6004081)bull Party can request a show cause hearing where applicant must

show that lien is frivolous and ldquomade without reasonable causerdquo or is ldquoclearly excessiverdquo

bull If lien claimant fails to show the lien will be releasedbull High standard for ldquoFrivolousnessrdquo

bull ldquopresents no debatable issue and is so devoid of merit that it has no possibility of successrdquo

bull Prevailing party may get reasonable attorneysrsquo fees and costs

Immix Law Group Washington Lien and Bond Claims

Property Ownersrsquo Claims Against Contractors

Claim Against Contractor Registration Bond (RCW 1827040)bull Contractors are required to obtain registration bonds

bull General contractors = $12000bull Subcontractors = $6000

bull Persons contracting with the contractor can sue against the contractorrsquos registration bond

bull SOLbull Homeowners = 2 yearsbull Everyone else = 1 year

CCBA Nuts amp Bolts on Construction Law - 10 of 49

11122014

10

Immix Law Group Washington Lien and Bond Claims

Property Ownersrsquo Claims Against Contractors

Claim Against Contractor Registration Bond (RCW 1827040)bull Recovery Limitations

bull Residential homeowners entitled to recover entire bond amountbull Other claimants are entitled to frac12 of the bond amount or $4000 if

subcontractor or specialty contractorbull Claimants entitled to attorneysrsquo fees up to amount of bond

Immix Law Group Washington Lien and Bond Claims

Property Ownersrsquo Claims Against Contractors

Claim Against Contractor Registration Bond (RCW 1827040)

bull Service Requirementsbull Service on the bonding company and the contractor must be made

on the Department of Labor amp Industries by serving three copies of the summons and complaint by certified andor registered mail (RCW 1827040(3)) with the filing fee

bull You should also serve the contractor and all other named defendants personally so that the breach of contract claim and other claims are properly served

Immix Law Group

Washington Public Contracts Retainage and Bond Claims

CCBA Nuts amp Bolts on Construction Law - 11 of 49

11122014

11

Immix Law Group Washington Lien and Bond Claims

Public Contracts Retainage ClaimsRetainage Claims (RCW 6028011)bull ldquolsquoContract retainagersquo means an amount reserved by a public body from

the moneys earned by a person under a public improvement contractrdquo bull Usually five percent (5)bull Prime contractor can submit a bond in lieu of retainagebull All persons supplying labor materials equipment services entitled to

claimbull Exception Temporary labor supplier not entitled to claim against retention

because not ldquosubcontractorrdquo Better Financial Solutions Inc v Caicos Corp 117 Wn App 899 (2003)

Immix Law Group Washington Lien and Bond Claims

Public Contracts Retainage Claims

Preclaim Notice of Retainage Claim (RCW 6028011)

bull Sub‐tier subcontractors and suppliers must give preclaimnotice to the public agency within 60 days of furnishing labor material supplies or equipment to the project

bull Relates back 60 days from the date of the noticebull Must be delivered to contracting agency

Immix Law Group Washington Lien and Bond Claims

Public Contracts Retainage Claims

Notice of Retainage Claim (RCW 6028011)

bull All claimants must provide a Notice of Claim within 45 days after ldquocompletion of the contract workrdquo (essentially ldquoproject completionrdquo)

bull The Notice must be delivered to contracting agencybull Hand delivered or certified mail with return receipt

bull Must file the foreclosure suit within 4 months after providing the Notice of Claim

CCBA Nuts amp Bolts on Construction Law - 12 of 49

11122014

12

Immix Law Group Washington Lien and Bond Claims

Public Contracts Bond Claims

Bond Claims ndash Washingtonrsquos Little Miller Act (RCW 3908010)

On Washington Public Works projects in excess of $25000 general contractors must post a payment bond usually in the amount of the contract price

Immix Law Group Washington Lien and Bond Claims

Public Contracts Bond Claims

Preclaim Notice of Bond Claim (RCW 3908010)

bull Lower‐tier subcontractors and material suppliers must give preclaim notice to the prime contractor within 10 days after starting work

Immix Law Group Washington Lien and Bond Claims

Public Contracts Bond Claims

Notice of Bond Claim (RCW 3908010)

bull All claimants must provide a Notice of Claim within 30 days after ldquoacceptance of the workrdquo (different than retention claim)bull ldquoAcceptancerdquo is an affirmative act by the public works owner

bull The Notice must be delivered to public works ownerbull Hand delivered or certified mail with return receipt

bull No deadline provided in the statute ndash foreclose by general statute of limitationsbull 3 years for oral contracts 6 years for written contracts

CCBA Nuts amp Bolts on Construction Law - 13 of 49

11122014

13

Immix Law Group Washington Lien and Bond Claims

Public Contracts Bond amp Retainage Claims

bull Practice Pointer Coordinate the filing of the retention and bond Preclaim Notice and Notice of Claim to ensure that the contractorrsquos claims are protected

bull File the Bond amp Retainage Preclaim Notice within 10 days after starting work

bull File the Bond amp Retainage Notice of Claim within 30 days from project completion

Immix Law Group Washington Lien and Bond Claims

Public Contracts Prompt Pay ActWashingtonrsquos Prompt Pay Act

bull Prime contractors are entitled to payment within 30 days after the public agencyrsquos receipt of the invoice

bull If the public agency intends to withhold payment (all or in part) the agency must notify the contractor in writing within 8 days of receipt stating

bull Why payment (all or part) is being withheld

bull Actions required by contractor in order to receive payment

Immix Law Group Washington Lien and Bond Claims

Public Contracts Prompt Pay ActWashingtonrsquos Prompt Pay Act (contrsquod)

bull Public agency can withhold up to 150 of the disputed amount

bull Failure to comply entitles the contractor to 1 interest per month until paid

bull Subcontractors must be paid within 10 days of prime contractorrsquos receipt of payment

CCBA Nuts amp Bolts on Construction Law - 14 of 49

11122014

14

Immix Law Group

Questions

CCBA Nuts amp Bolts on Construction Law - 15 of 49

SUMMARY OF THE REQUIREMENTS TO BE MET BY A LIEN CLAIMANT ON A WASHINGTON PRIVATE CONSTRUCTION PROJECT

NOTICE TO CUSTOMER

FROM

Prime Contractor working on four or fewer residential units when the contract price is $1000 or more or on a commercial building when the contract price is $1000 or more but less than $60000

TO Owner

WHEN Before starting construction NOTICE OF FURNISHING PROFESSIONAL SERVICES

FROM

Provider of professional services

TO County Recorder

WHEN As soon as professional services are commenced PRECLAIM NOTICE (for all projects except repair and remodeling of owner-occupied single-family residence)

FROM

Provider of professional services materials or equipment except that the following need not provide the notice (1) a provider that contracts directly with the owner or the owners actual agent or (2) a first tier subcontractor

TO Owner and usually also prime contractor

WHEN New single family residence within ten days of first supplying professional services materials or equipment All other projects within 60 days of first supplying professional services materials or equipment

PRECLAIM NOTICE (for repair and remodeling of owner-occupied single-family residence)

FROM

Provider of professional services materials or equipment to anyone other than the owner

TO Owner and usually also prime contractor

WHEN Immediately after agreeing to furnish professional services materials or equipment

FROM

Potential lien claimant to whom payment is five or more days overdue

NOTICE TO REAL PROPERTY LENDER (only applicable where there is not a payment bond of at least 50 of the amount of construction financing)

TO Construction lender owner and prime contractor

WHEN Within 35 days of date payment is due

CLAIM OF LIEN

FROM

Unpaid claimant

TO County Recorder

WHEN Not later than 90 days after the last furnishing of labor professional services materials or equipment or the last date on which employee benefit contributions were due

COPY OF CLAIM OF LIEN

FROM

Unpaid claimant

TO Owner

WHEN Within 14 days of date claim of lien is filed for recording

DEADLINE FOR FILING A LAWSUIT Within eight months of recording claim of lien

F625-055-000 const lien summary 2-96 This summary is intended to generally set forth the requirements applicable to most lien claimants The remainder of the chapter should be consulted for a more detailed discussion

CCBA Nuts amp Bolts on Construction Law - 16 of 49

CLAIM OF LIEN SIGNED BY ATTORNEY

Return Address __________________________ __________________________ __________________________

Document Title Claim of Lien

Reference Number _____________________________

Grantor _____________________________

Grantee _____________________________

Legal Description

Assessors Property Tax Parcel No

CLAIM OF LIEN

________________________ claimant vs _____________________________ name of persons indebted to claimant

Notice is hereby given that the person named below claims a lien pursuant to Chapter 6004 RCW In

support of this lien the following information is submitted

1 NAME OF LIEN CLAIMANT ______________________________________

TELEPHONE NUMBER ______________________________________

ADDRESS ______________________________________

______________________________________

2 DATE ON WHICH THE CLAIMANT BEGAN TO PERFORM LABOR PROVIDE PROFESSIONAL SERVICES SUPPLY MATERIAL OR EQUIPMENT OR THE DATE ON WHICH EMPLOYEE BENEFIT CONTRIBUTIONS BECOMES DUE _________

3 NAME OF PERSON INDEBTED TO THE CLAIMANT _________________

4 DESCRIPTIONOF THE PROPERTY AGAINST WHICH A LIEN IS CLAIMED All fee leasehold and other interests of _______________ and any other owner person or entity in the property commonly known as ___________________________located at _______________________ _________________________ _________________County Washington _______ the legal description of which is believed to be as follows

[Legal Description - andor - The legal description of the underlying real property is described on the attached Exhibit A]

CCBA Nuts amp Bolts on Construction Law - 17 of 49

5 NAME OF THE OWNER OR REPUTED OWNER (if not known state ldquounknownrdquo) ____________________________________________________________________________________________

6 THE LAST DATE ON WHICH LABOR WAS PERFORMED PROFESSIONAL SERVICES WERE FURNISHED CONTRIBUTIONS TO AN EMPLOYEE BENEFIT PLAN WERE DUE OR MATERIAL OR EQUIPMENT WAS FURNISHED _____________________________________________________________

7 PRINCIPAL AMOUNT FOR WHICH THE LIEN IS CLAIMED IS $_______

8 IF THE CLAIMANT IS THE ASSIGNEE OF THIS CLAIM SO STATE HERE ___

___________________ Claimant ___________________________

___________________________ (__)____-______

By ________s________________ Print Name ___________________ Its Attorney

STATE OF WASHINGTON )

SS COUNTYOF ____________ )

________________ being sworn says I am the attorney of the claimant above named I have read or heard the foregoing claim read and know the contents thereof and believe the same to be true and correct and that the claim of lien is not frivolous and is made with reasonable cause and is not clearly excessive under penalty of perjury

__________________________ Print Name _______________

SUBSCRIBED and SWORN to before me this ___day of ___________________ 201_

STATE OF WASHINGTON )

SS COUNTYOF ____________ )

[Seal or Stamp]

__________________________ Print Name _______________ Notary Public in and for the State of Washington residing at________________________________ My Commission Expires __________________

CCBA Nuts amp Bolts on Construction Law - 18 of 49

I certify that I know or have satisfactory evidence that___________________ is the person who appeared before me and said person acknowledged that [heshe] signed this instrument on oath stated that [heshe] was authorized to execute this instrument and acknowledged it as the attorney of___________________ to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument

CCBA Nuts amp Bolts on Construction Law - 19 of 49

F625-054-000 construction lien notice 11-05 IMPORTANT INFORMATION ON PAGE 2

NOTICE TO OWNER IMPORTANT READ BOTH SIDES OF THIS NOTICE CAREFULLY

PROTECT YOURSELF FROM PAYING TWICE

To

Date

Re

From (Description of property street address or general location)

AT THE REQUEST OF Name of person ordering their professional services materials or equipment

THIS IS NOT A LIEN This notice is sent to you to tell you who is providing professional services materials or equipment for the improvement of your property and to advise you of the rights of these persons and your responsibilities Also take notice that laborers on your project may claim a lien without sending you a notice

OWNEROCCUPIER OF EXISTING RESIDENTIAL PROPERTY Under Washington law those who furnish labor professional services materials or equipment for the repair remodel or alteration of you owner-occupied principal residence and who are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien The law limits the amount that a lien claimant can claim against your property Claims may only be made against that portion of the contract price you have not yet paid to your prime contractor as of the time this notice was given to you or three days after this notice was mailed to you Review page 2 of this notice for more information and ways to avoid lien claims

COMMERCIAL ANDOR NEW RESIDENTIAL PROPERTY We have or will be providing professional services materials or equipment for the improvement of your commercial or new residential project In the event you or your contractor fail to pay us we may file a lien against your property A lien may be claimed for all professional services materials or equipment furnished after a date that is sixty days before this notice was given to you or mailed to you unless the improvement to you property is the construction of a new single-family residence then ten days before this notice was given to you or mailed to you

Sender

Address

Telephone

Brief description of professional services materials or equipment provided or to be provided

CCBA Nuts amp Bolts on Construction Law - 20 of 49

F625-054-000 construction lien notice page 2 11-05

Important Information for your Protection

This notice is sent to inform you that we have or will provide professional services materials or equipment for the repair remodel or alteration of you property We expect to be paid by the person who ordered our services but if we are not paid we have the right to enforce our claim by filing a construction lien against your property

LEARN more about the lien laws and the meaning of this notice by

discussing them with our contractor suppliers Department of Labor and Industries the firm sending you this notice your lender or your attorney

COMMON METHODS TO AVOID CONSTRUCTION LIENS

There are several methods available to protect your property from construction liens The following are two of the more commonly used methods

DUAL PAYCHECKS (Joint Checks) When paying your

contractor for services or materials you may make checks payable jointly to the contractor and the firms furnishing you this notice

LIEN RELEASES You may require your contractor to provide

lien releases signed by all the suppliers and subcontractors from whom you have received this notice If they cannot obtain lien releases because you have not paid them you may use the dual payee check method to protect yourself

You should take appropriate steps to protect your property from

liens

Your prime contractor and your construction lender are required by law to give you written information about lien claims If you have not received it ask them for it

CCBA Nuts amp Bolts on Construction Law - 21 of 49

F625-030-000 model disclosure statement notice to customer 09-2007

Department of Labor and Industries Construction Compliance

MODEL DISCLOSURE STATEMENTNOTICE TO CUSTOMER

This contractor is registered with the state of Washington registration no____________________ and has posted with the state a bond or deposit of ______________________ for the purpose of satisfying claims against the contractor for breach of contract including negligent or improper work in the conduct of the contractorrsquos business The expiration date of this contractorrsquos registration is ______________________

THIS BOND OR DEPOSIT MIGHT NOT BE SUFFICIENT TO COVER A CLAIM THAT MIGHT ARISE FROM THE WORK DONE UNDER YOUR CONTRACT This bond or deposit is not for your exclusive use because it covers all work performed by this contractor The bond or deposit is intended to pay valid claims up to ___________________________ that you and other customers suppliers subcontractors or taxing authorities may have FOR GREATER PROTECTION YOU MAY WITHHOLD A PERCENTAGE OF YOUR CONTRACT You may withhold a contractually defined percentage of your construction contract as retainage for a stated period of time to provide protection to you and help insure that your project will be completed as required by your contract

YOUR PROPERTY MAY BE LIENED If a supplier of materials used in your construction project or an employee or subcontractor of your contractor or subcontractors is not paid your property may be liened to force payment and you could pay twice for the same work FOR ADDITIONAL PROTECTION YOU MAY REQUEST THE CONTRACTOR TO PROVIDE YOU WITH ORIGINAL ldquoLIEN RELEASErdquo DOCUMENTS FROM EACH SUPPLIER OR SUBCONTRACTOR AT YOUR PROJECT The contractor is required to provide you with further information about lien release document if you request it General information is also available from the state Department of Labor and Industries I have received a copy of this disclosure statement Dated this _______ day of _______________ of the year __________

_____________________________________________________ Signature of Customer The contractor must retain a signed copy of the disclosure statement in his or her files for a minimum of three years and produce a signed or electronic signature copy of the disclosure statement to the department upon request

CCBA Nuts amp Bolts on Construction Law - 22 of 49

Facts About Construction LiensWhat you should know about contractsIf your contractor fails to pay subcontractors suppliers or laborers or neglects to make other legally required payments those who are owed money can look to your property for payment even if you have paid your contractor in full This is true if you have hired a contractor to build a new home or are buying a newly built home

It is also true when you remodel or improve your property although the amount of your liability may be limited to the amount you owe the prime contractor at the time a lien is filed

Under Washington laws those who work on your property or provide materials and are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien

People who supply materials or labor ordered by your contractor are permitted by law to file a lien only if they do so within 90 days of cessation of performance or delivery of materials The time frame is spelled out in RCW 6004091

If you enter into a contract to buy a newly built home you may not receive a notice of a lien based on a claim by a contractor or material handler Be aware that a lien may be claimed even though you have not received a notice

Before making final payment on the project request a completed lien release form from each contractor and material supplier A sample of this release of lien form is available from the Department of Labor amp Industries Contractor Registration Section

You have final responsibility for seeing that all bills are paid even if you have paid your contractor in full

If you receive a notice to enforce a lien take the notice seriously Let your contractor know you have received the notice Find out what arrangements are being made to pay the sender of the notice

When in doubt or if you need more details consult your attorney When and how to pay your contractor is a decision that requires serious consideration

Reminder Washington laws require contractors to give you a disclosure statement if your contract exceeds $1000 [RCW 1827114(A) or (B)]

CCBA Nuts amp Bolts on Construction Law - 23 of 49

PUBLICATION F625-017-000 [01-2008]

Other formats for persons with disabilities are available on request Call 1-800-647-0982 TDD users call 360-902-5797 LampI is an equal opportunity employer

For more information

How to protect your investment

If you are dealing with a lending institution ask your loan officer what precautions the lending institution takes to verify that subcontractors and material suppliers are being paid when mortgage money is paid to your contractor

Request lender supervision when dealing with a lending institution that provides interim or construction financing

Ask the prime contractor to disclose all potential lien claimants as a condition of payment A lien claimant must mail (by certified or registered mail or by personal service) a copy of the claim of lien to the owner within 14 days of the time the lien is recorded [RCW 6004091(2)] While an action is ongoing an owner may withhold from this prime contractor the amount of money for which a claim is recorded by a subcontractor supplier or laborer [RCW 6004151]

It is recommended that your check be made payable jointly naming the contractor and the subcontractor or supplier as payees

Upon payment and acceptance of the amount due the owner has the right to an executed release of all lien rights by lien claimants [RCW 6004071]

Consider using an escrow agent to protect your interests Find out whether your escrow agent will protect you against liens when disbursing payments If you are interested in this alternative consult your attorney

Request that your contractor post a performance bond in the amount of the project cost That will give you recourse in the event the contractor fails to complete the building agreement

8 On the Web Find more information about hiring a contractor at

wwwLniwagovTradesLicensingContractorsHireCon

Contractor Registration Hotline1-800-647-0982

You may also call your local LampI office See listings under ldquoWashington State ofrdquo in the government section or the white pages of the telephone book

Please note This notice was prepared by the Department of Labor amp Industries Specialty Compliance Services Division for reproduction by lending institutions and contractors for distribution to their clients It explains the basics of the construction lien law to help you protect yourself This information is not a reflection upon the abilities or credit of your contractor

CCBA Nuts amp Bolts on Construction Law - 24 of 49

NOTICE OF CLAIM AGAINST

BOND AND RETAINED PERCENTAGE

RCW 3908030 RCW 6028010

VIA CERTIFIED MAIL ndash RETURN RECEIPT REQUESTED

TO [Public Owner] [Public Ownerrsquos Address]

Project [Project Name amp Address] NOTICE IS HEREBY GIVEN that the undersigned [Claimant] [Claimantrsquos Address] has a claim in the amount of ----- and 00100 Dollars ($XX) (not including attorneysrsquo fees or costs) together with interest at twelve percent (12) against [Public Owner] (ldquoOwnerrdquo) pursuant to RCW 6028 and the payment bond taken from [Prime Contractor] (ldquoContractorrdquo) [Prime Contractorrsquos Address] as principal and [Surety Company] (ldquoSuretyrdquo) [Suretyrsquos Address] as surety Bond No ________ pursuant to RCW 3908 for [describe services material supplies labor furnished] provided on the Project This Notice of Claim Against Bond and Retained Percentage supersedes and replaces previous Notices DATED This ___day of _________ 201_ [Claimant] By ______________________________________ Its ______________________________________ [Claimantrsquos Address]

_________________________________________

[Contractors Registration No if applicable]

(Copies furnished to General Contractor and General Contractorrsquos Bonding Company)

CCBA Nuts amp Bolts on Construction Law - 25 of 49

PRECLAIM NOTICE TO CONTRACTOR BY SUBCONTRACTORS MATERIALMEN OR SUPPLIERS FOR

CLAIM AGAINST BOND AND RETAINED PERCENTAGE

VIA CERTIFIED OR REGISTERED MAIL- RETURN RECEIPT REQUESTED

TO [Name of General Contractor] [Address]

YOU ARE HEREBY NOTIFIED that the undersigned ____________at the request of_________________ commenced to deliver or furnish materials supplies andor equipment for the use in the construction alteration andor repair of that certain project known as____________________ [project name] which is located at ____________________________ [address or description] If the undersigned is not paid for these materials supplies andor equipment it will file a claim against you and your bond andor retainage pursuant to RCW 3908 andor 6028 et seq for payment of any sum that is due and owing to the undersigned

DATED This __ day of _____________ 201_

[Name of Claimant]

By ____________________________________

Its ____________________________________

Address ______________________________

__________________________________________

__________________________________________

[Contractors Registration No if applicable]

(Mail via certified mail return receipt requested or hand deliver and obtain receipt)

CCBA Nuts amp Bolts on Construction Law - 26 of 49

Washington Liens amp Bonds ndash Pertinent Statutes

RCW 1827040 Bond or other security required mdash Actions against mdash Suspension of registration upon impairment (1) Each applicant shall file with the department a surety bond issued by a surety insurer who meets the requirements of chapter 4828 RCW in the sum of twelve thousand dollars if the applicant is a general contractor and six thousand dollars if the applicant is a specialty contractor If no valid bond is already on file with the department at the time the application is filed a bond must accompany the registration application The bond shall have the state of Washington named as obligee with good and sufficient surety in a form to be approved by the department The bond shall be continuous and may be canceled by the surety upon the surety giving written notice to the director A cancellation or revocation of the bond or withdrawal of the surety from the bond automatically suspends the registration issued to the contractor until a new bond or reinstatement notice has been filed and approved as provided in this section The bond shall be conditioned that the applicant will pay all persons performing labor including employee benefits for the contractor will pay all taxes and contributions due to the state of Washington and will pay all persons furnishing material or renting or supplying equipment to the contractor and will pay all amounts that may be adjudged against the contractor by reason of breach of contract including improper work in the conduct of the contracting business A change in the name of a business or a change in the type of business entity shall not impair a bond for the purposes of this section so long as one of the original applicants for such bond maintains partial ownership in the business covered by the bond (2) At the time of initial registration or renewal the contractor shall provide a bond or other security deposit as required by this chapter and comply with all of the other provisions of this chapter before the department shall issue or renew the contractors certificate of registration Any contractor registered as of July 1 2001 who maintains that registration in accordance with this chapter is in compliance with this chapter until the next renewal of the contractors certificate of registration (3) Any person firm or corporation having a claim against the contractor for any of the items referred to in this section may bring suit against the contractor and the bond or deposit in the superior court of the county in which the work was done or of any county in which jurisdiction of the contractor may be had The surety issuing the bond shall be named as a party to any suit upon the bond Action upon the bond or deposit brought by a residential homeowner for breach of contract by a party to the construction contract shall be commenced by filing the summons and complaint with the clerk of the appropriate superior court within two years from the date the claimed contract work was substantially completed or abandoned whichever occurred first Action upon the bond or deposit brought by any other authorized party shall be commenced by filing the summons and complaint with the clerk of the appropriate superior court within one year from the date the claimed labor was performed and benefits accrued taxes and contributions owing the state of Washington became due materials and equipment were furnished or the claimed contract work was substantially completed or abandoned whichever occurred first Service of process in an action filed under this chapter against the contractor and the contractors bond or the deposit shall be exclusively by service upon the department Three

CCBA Nuts amp Bolts on Construction Law - 27 of 49

copies of the summons and complaint and a fee adopted by rule of not less than fifty dollars to cover the costs shall be served by registered or certified mail or other delivery service requiring notice of receipt upon the department at the time suit is started and the department shall maintain a record available for public inspection of all suits so commenced Service is not complete until the department receives the fee and three copies of the summons and complaint The service shall constitute service and confer personal jurisdiction on the contractor and the surety for suit on claimants claim against the contractor and the bond or deposit and the department shall transmit the summons and complaint or a copy thereof to the contractor at the address listed in the contractors application and to the surety within two days after it shall have been received (4) The surety upon the bond shall not be liable in an aggregate amount in excess of the amount named in the bond nor for any monetary penalty assessed pursuant to this chapter for an infraction The liability of the surety shall not cumulate where the bond has been renewed continued reinstated reissued or otherwise extended The surety upon the bond may upon notice to the department and the parties tender to the clerk of the court having jurisdiction of the action an amount equal to the claims thereunder or the amount of the bond less the amount of judgments if any previously satisfied therefrom and to the extent of such tender the surety upon the bond shall be exonerated but if the actions commenced and pending and provided to the department as required in subsection (3) of this section at any one time exceed the amount of the bond then unimpaired claims shall be satisfied from the bond in the following order (a) Employee labor and claims of laborers including employee benefits (b) Claims for breach of contract by a party to the construction contract (c) Registered or licensed subcontractors material and equipment (d) Taxes and contributions due the state of Washington (e) Any court costs interest and attorneys fees plaintiff may be entitled to recover The surety is not liable for any amount in excess of the penal limit of its bond A payment made by the surety in good faith exonerates the bond to the extent of any payment made by the surety (5) The total amount paid from a bond or deposit required of a general contractor by this section to claimants other than residential homeowners must not exceed one-half of the bond amount The total amount paid from a bond or deposit required of a specialty contractor by this section to claimants other than residential homeowners must not exceed one-half of the bond amount or four thousand dollars whichever is greater (6) The prevailing party in an action filed under this section against the contractor and contractors bond or deposit for breach of contract by a party to the construction contract involving a residential homeowner is entitled to costs interest and reasonable attorneys fees The surety upon the bond or deposit is not liable in an aggregate amount in excess of the amount

CCBA Nuts amp Bolts on Construction Law - 28 of 49

named in the bond or deposit nor for any monetary penalty assessed pursuant to this chapter for an infraction (7) If a final judgment impairs the liability of the surety upon the bond or deposit so furnished that there is not in effect a bond or deposit in the full amount prescribed in this section the registration of the contractor is automatically suspended until the bond or deposit liability in the required amount unimpaired by unsatisfied judgment claims is furnished (8) In lieu of the surety bond required by this section the contractor may file with the department an assigned savings account upon forms provided by the department (9) Any person having filed and served a summons and complaint as required by this section having an unsatisfied final judgment against the registrant for any items referred to in this section may execute upon the security held by the department by serving a certified copy of the unsatisfied final judgment by registered or certified mail upon the department within one year of the date of entry of such judgment Upon the receipt of service of such certified copy the department shall pay or order paid from the deposit through the registry of the superior court which rendered judgment towards the amount of the unsatisfied judgment The priority of payment by the department shall be the order of receipt by the department but the department shall have no liability for payment in excess of the amount of the deposit (10) Within ten days after resolution of the case a certified copy of the final judgment and order or any settlement documents where a case is not disposed of by a court trial a certified copy of the dispositive settlement documents must be provided to the department by the prevailing party Failure to provide a copy of the final judgment and order or the dispositive settlement documents to the department within ten days of entry of such an order constitutes a violation of this chapter and a penalty adopted by rule of not less than two hundred fifty dollars may be assessed against the prevailing party (11) The director may require an applicant applying to renew or reinstate a registration or applying for a new registration to file a bond of up to three times the normally required amount if the director determines that an applicant or a previous registration of a corporate officer owner or partner of a current applicant has had in the past five years a total of three final judgments in actions under this chapter involving a residential single-family dwelling on two or more different structures (12) The director may adopt rules necessary for the proper administration of the security RCW 1827114 Disclosure statement required mdash Prerequisite to lien claim

(1) Any contractor agreeing to perform any contracting project (a) For the repair alteration or construction of four or fewer residential units or accessory structures on such residential property when the bid or contract price totals one thousand dollars or more or (b) for the repair alteration or construction of a commercial building when the bid or contract price totals one thousand dollars or more but less than sixty thousand dollars must provide the customer with

CCBA Nuts amp Bolts on Construction Law - 29 of 49

the following disclosure statement in substantially the following form using lower case and upper case twelve-point and bold type where appropriate prior to starting work on the project NOTICE TO CUSTOMER This contractor is registered with the state of Washington registration no and has posted with the state a bond or deposit of for the purpose of satisfying claims against the contractor for breach of contract including negligent or improper work in the conduct of the contractors business The expiration date of this contractors registration is THIS BOND OR DEPOSIT MIGHT NOT BE SUFFICIENT TO COVER A CLAIM THAT MIGHT ARISE FROM THE WORK DONE UNDER YOUR CONTRACT This bond or deposit is not for your exclusive use because it covers all work performed by this contractor The bond or deposit is intended to pay valid claims up to that you and other customers suppliers subcontractors or taxing authorities may have FOR GREATER PROTECTION YOU MAY WITHHOLD A PERCENTAGE OF YOUR CONTRACT You may withhold a contractually defined percentage of your construction contract as retainage for a stated period of time to provide protection to you and help insure that your project will be completed as required by your contract YOUR PROPERTY MAY BE LIENED If a supplier of materials used in your construction project or an employee or subcontractor of your contractor or subcontractors is not paid your property may be liened to force payment and you could pay twice for the same work FOR ADDITIONAL PROTECTION YOU MAY REQUEST THE CONTRACTOR TO PROVIDE YOU WITH ORIGINAL LIEN RELEASE DOCUMENTS FROM EACH SUPPLIER OR SUBCONTRACTOR ON YOUR PROJECT The contractor is required to provide you with further information about lien release documents if you request it General information is also available from the state Department of Labor and Industries I have received a copy of this disclosure statement

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(Signature of customer) (2) The contractor must retain a signed copy of the disclosure statement in his or her files for a minimum of three years and produce a signed or electronic signature copy of the disclosure statement to the department upon request (3) A contractor subject to this section shall notify any consumer to whom notice is required under subsection (1) of this section if the contractors registration has expired or is revoked or suspended by the department prior to completion or other termination of the contract with the consumer (4) No contractor subject to this section may bring or maintain any lien claim under chapter 6004 RCW based on any contract to which this section applies without alleging and proving that the contractor has provided the customer with a copy of the disclosure statement as required in subsection (1) of this section (5) This section does not apply to contracts authorized under chapter 3904 RCW or to contractors contracting with other contractors (6) Failure to comply with this section shall constitute an infraction under the provisions of this chapter (7) The department shall produce model disclosure statements and public service announcements detailing the information needed to assist contractors and contractors customers to comply under this section As necessary the department shall periodically update these education materials RCW 3908010 Bond required mdash Conditions mdash Retention of contract amount in lieu of bond (1)(a) Whenever any board council commission trustees or body acting for the state or any county or municipality or any public body must contract with any person or corporation to do any work for the state county or municipality or other public body city town or district such board council commission trustees or body must require the person or persons with whom such contract is made to make execute and deliver to such board council commission trustees or body a good and sufficient bond with a surety company as surety conditioned that such person or persons must (i) Faithfully perform all the provisions of such contract (ii) Pay all laborers mechanics and subcontractors and material suppliers and all persons who supply such person or persons or subcontractors with provisions and supplies for the carrying on of such work and

CCBA Nuts amp Bolts on Construction Law - 31 of 49

(iii) Pay the taxes increases and penalties incurred on the project under Titles 50 51 and 82 RCW on (A) Projects referred to in RCW 6028011(1)(b) andor (B) projects for which the bond is conditioned on the payment of such taxes increases and penalties (b) The bond in cases of cities and towns must be filed with the clerk or comptroller thereof and any person or persons performing such services or furnishing material to any subcontractor has the same right under the provisions of such bond as if such work services or material was furnished to the original contractor (2) The provisions of RCW 3908010 through 3908030 do not apply to any money loaned or advanced to any such contractor subcontractor or other person in the performance of any such work (3) On contracts of thirty-five thousand dollars or less at the option of the contractor the respective public entity may in lieu of the bond retain fifty percent of the contract amount for a period of thirty days after date of final acceptance or until receipt of all necessary releases from the department of revenue the employment security department and the department of labor and industries and settlement of any liens filed under chapter 6028 RCW whichever is later (4) For contracts of one hundred thousand dollars or less the public entity may accept a full payment and performance bond from an individual surety or sureties (5) The surety must agree to be bound by the laws of the state of Washington and subjected to the jurisdiction of the state of Washington RCW 6004011 Definitions

Unless the context requires otherwise the definitions in this section apply throughout this chapter (1) Construction agent means any registered or licensed contractor registered or licensed subcontractor architect engineer or other person having charge of any improvement to real property who shall be deemed the agent of the owner for the limited purpose of establishing the lien created by this chapter (2) Contract price means the amount agreed upon by the contracting parties or if no amount is agreed upon then the customary and reasonable charge therefor (3) Draws means periodic disbursements of interim or construction financing by a lender (4) Furnishing labor professional services materials or equipment means the performance of any labor or professional services the contribution owed to any employee benefit plan on account of any labor the provision of any supplies or materials and the renting leasing or

CCBA Nuts amp Bolts on Construction Law - 32 of 49

otherwise supplying of equipment for the improvement of real property (5) Improvement means (a) Constructing altering repairing remodeling demolishing clearing grading or filling in of to or upon any real property or street or road in front of or adjoining the same (b) planting of trees vines shrubs plants hedges or lawns or providing other landscaping materials on any real property and (c) providing professional services upon real property or in preparation for or in conjunction with the intended activities in (a) or (b) of this subsection (6) Interim or construction financing means that portion of money secured by a mortgage deed of trust or other encumbrance to finance improvement of or to real property but does not include (a) Funds to acquire real property (b) Funds to pay interest insurance premiums lease deposits taxes assessments or prior encumbrances (c) Funds to pay loan commitment title legal closing recording or appraisal fees (d) Funds to pay other customary fees which pursuant to agreement with the owner or borrower are to be paid by the lender from time to time (e) Funds to acquire personal property for which the potential lien claimant may not claim a lien pursuant to this chapter (7) Labor means exertion of the powers of body or mind performed at the site for compensation Labor includes amounts due and owed to any employee benefit plan on account of such labor performed (8) Mortgagee means a person who has a valid mortgage of record or deed of trust of record securing a loan (9) Owner-occupied means a single-family residence occupied by the owner as his or her principal residence (10) Payment bond means a surety bond issued by a surety licensed to issue surety bonds in the state of Washington that confers upon potential claimants the rights of third party beneficiaries (11) Potential lien claimant means any person or entity entitled to assert lien rights under this chapter who has otherwise complied with the provisions of this chapter and is registered or licensed if required to be licensed or registered by the provisions of the laws of the state of Washington (12) Prime contractor includes all contractors general contractors and specialty

CCBA Nuts amp Bolts on Construction Law - 33 of 49

contractors as defined by chapter 1827 or 1928 RCW or who are otherwise required to be registered or licensed by law who contract directly with a property owner or their common law agent to assume primary responsibility for the creation of an improvement to real property and includes property owners or their common law agents who are contractors general contractors or specialty contractors as defined in chapter 1827 or 1928 RCW or who are otherwise required to be registered or licensed by law who offer to sell their property without occupying or using the structures projects developments or improvements for more than one year (13) Professional services means surveying establishing or marking the boundaries of preparing maps plans or specifications for or inspecting testing or otherwise performing any other architectural or engineering services for the improvement of real property (14) Real property lender means a bank savings bank savings and loan association credit union mortgage company or other corporation association partnership trust or individual that makes loans secured by real property located in the state of Washington (15) Site means the real property which is or is to be improved (16) Subcontractor means a general contractor or specialty contractor as defined by chapter 1827 or 1928 RCW or who is otherwise required to be registered or licensed by law who contracts for the improvement of real property with someone other than the owner of the property or their common law agent

6004021 Lien authorized

Except as provided in RCW 6004031 any person furnishing labor professional services materials or equipment for the improvement of real property shall have a lien upon the improvement for the contract price of labor professional services materials or equipment furnished at the instance of the owner or the agent or construction agent of the owner

6004031 Notices mdash Exceptions

(1) Except as otherwise provided in this section every person furnishing professional services materials or equipment for the improvement of real property shall give the owner or reputed owner notice in writing of the right to claim a lien If the prime contractor is in compliance with the requirements of RCW 1927095 6004230 and 6004261 this notice shall also be given to the prime contractor as described in this subsection unless the potential lien claimant has contracted directly with the prime contractor The notice may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after the date which is sixty days before (a) Mailing the notice by certified or registered mail to the owner or reputed owner or

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(b) Delivering or serving the notice personally upon the owner or reputed owner and obtaining evidence of delivery in the form of a receipt or other acknowledgment signed by the owner or reputed owner or an affidavit of service In the case of new construction of a single-family residence the notice of a right to claim a lien may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after a date which is ten days before the notice is given as described in this subsection (2) Notices of a right to claim a lien shall not be required of (a) Persons who contract directly with the owner or the owners common law agent (b) Laborers whose claim of lien is based solely on performing labor or (c) Subcontractors who contract for the improvement of real property directly with the prime contractor except as provided in subsection (3)(b) of this section (3) Persons who furnish professional services materials or equipment in connection with the repair alteration or remodel of an existing owner-occupied single-family residence or appurtenant garage (a) Who contract directly with the owner-occupier or their common law agent shall not be required to send a written notice of the right to claim a lien and shall have a lien for the full amount due under their contract as provided in RCW 6004021 or (b) Who do not contract directly with the owner-occupier or their common law agent shall give notice of the right to claim a lien to the owner-occupier Liens of persons furnishing professional services materials or equipment who do not contract directly with the owner-occupier or their common law agent may only be satisfied from amounts not yet paid to the prime contractor by the owner at the time the notice described in this section is received regardless of whether amounts not yet paid to the prime contractor are due For the purposes of this subsection received means actual receipt of notice by personal service or registered or certified mail or three days after mailing by registered or certified mail excluding Saturdays Sundays or legal holidays (4) The notice of right to claim a lien described in subsection (1) of this section shall include but not be limited to the following information and shall substantially be in the following form using lower-case and upper-case ten-point type where appropriate

CCBA Nuts amp Bolts on Construction Law - 35 of 49

NOTICE TO OWNER

IMPORTANT READ BOTH SIDES OF THIS NOTICE CAREFULLY

PROTECT YOURSELF FROM PAYING TWICE

To Date

Re (description of property Street address or general location) From AT THE REQUEST OF (Name of person ordering the professional services materials or equipment) THIS IS NOT A LIEN This notice is sent to you to tell you who is providing professional services materials or equipment for the improvement of your property and to advise you of the rights of these persons and your responsibilities Also take note that laborers on your project may claim a lien without sending you a notice

OWNEROCCUPIER OF EXISTING

RESIDENTIAL PROPERTY

Under Washington law those who furnish labor professional services materials or equipment for the repair remodel or alteration of your owner-occupied principal residence and who are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien The law limits the amount that a lien claimant can claim against your property Claims may only be made against that portion of the contract price you have not yet paid to your prime contractor as of the time this notice was given to you or three days after this notice was mailed to you Review the back of this notice for more information and ways to avoid lien claims

COMMERCIAL ANDOR NEW

RESIDENTIAL PROPERTY

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We have or will be providing professional services materials or equipment for the improvement of your commercial or new residential project In the event you or your contractor fail to pay us we may file a lien against your property A lien may be claimed for all professional services materials or equipment furnished after a date that is sixty days before this notice was given to you or mailed to you unless the improvement to your property is the construction of a new single-family residence then ten days before this notice was given to you or mailed to you Sender Address Telephone Brief description of professional services materials or equipment provided or to be provided

IMPORTANT INFORMATION

ON REVERSE SIDE

IMPORTANT INFORMATION

FOR YOUR PROTECTION This notice is sent to inform you that we have or will provide professional services materials or equipment for the improvement of your property We expect to be paid by the person who ordered our services but if we are not paid we have the right to enforce our claim by filing a construction lien against your property LEARN more about the lien laws and the meaning of this notice by discussing them with your contractor suppliers Department of Labor and Industries the firm sending you this notice your lender or your attorney

COMMON METHODS TO AVOID CONSTRUCTION LIENS There are several methods available to protect your property from construction liens The following are two of the more commonly used methods

DUAL PAYCHECKS (Joint Checks) When paying your contractor for services or materials you may make checks payable jointly to the contractor and the firms furnishing you this notice

CCBA Nuts amp Bolts on Construction Law - 37 of 49

LIEN RELEASES You may require your contractor to provide lien releases signed by all the suppliers and subcontractors from whom you have received this notice If they cannot obtain lien releases because you have not paid them you may use the dual payee check method to protect yourself

YOU SHOULD TAKE APPROPRIATE STEPS TO PROTECT YOUR PROPERTY FROM LIENS YOUR PRIME CONTRACTOR AND YOUR CONSTRUCTION LENDER ARE REQUIRED BY LAW TO GIVE YOU WRITTEN INFORMATION ABOUT LIEN CLAIMS IF YOU HAVE NOT RECEIVED IT ASK THEM FOR IT

(5) Every potential lien claimant providing professional services where no improvement as defined in RCW 6004011(5) (a) or (b) has been commenced and the professional services provided are not visible from an inspection of the real property may record in the real property records of the county where the property is located a notice which shall contain the professional service providers name address telephone number legal description of the property the owner or reputed owners name and the general nature of the professional services provided If such notice is not recorded the lien claimed shall be subordinate to the interest of any subsequent mortgagee and invalid as to the interest of any subsequent purchaser if the mortgagee or purchaser acts in good faith and for a valuable consideration acquires an interest in the property prior to the commencement of an improvement as defined in RCW 6004011(5) (a) or (b) without notice of the professional services being provided The notice described in this subsection shall be substantially in the following form

NOTICE OF FURNISHING

PROFESSIONAL SERVICES That on the (day) day of (month and year) (name of provider) began providing professional services upon or for the improvement of real property legally described as follows

[Legal Description is mandatory]

CCBA Nuts amp Bolts on Construction Law - 38 of 49

The general nature of the professional services provided is The owner or reputed owner of the real property is

(Signature)

(Name of Claimant)

(Street Address)

(City State Zip Code)

(Phone Number)

(6) A lien authorized by this chapter shall not be enforced unless the lien claimant has complied with the applicable provisions of this section

6004041 Contractor registration

A contractor or subcontractor required to be registered under chapter 1827 RCW or licensed under chapter 1928 RCW or otherwise required to be registered or licensed by law shall be deemed the construction agent of the owner for the purposes of establishing the lien created by this chapter only if so registered or licensed Persons dealing with contractors or subcontractors may rely for the purposes of this section upon a certificate of registration issued pursuant to chapter 1827 RCW or license issued pursuant to chapter 1928 RCW or other certificate or license issued pursuant to law covering the period when the labor professional services material or equipment shall be furnished and the lien rights shall not be lost by suspension or revocation of registration or license without their knowledge No lien rights described in this

CCBA Nuts amp Bolts on Construction Law - 39 of 49

chapter shall be lost or denied by virtue of the absence suspension or revocation of such registration or license with respect to any contractor or subcontractor not in immediate contractual privity with the lien claimant

6004081 Frivolous claim mdash Procedure

(1) Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who believes the claim of lien to be frivolous and made without reasonable cause or clearly excessive may apply by motion to the superior court for the county where the property or some part thereof is located for an order directing the lien claimant to appear before the court at a time no earlier than six nor later than fifteen days following the date of service of the application and order on the lien claimant and show cause if any he or she has why the relief requested should not be granted The motion shall state the grounds upon which relief is asked and shall be supported by the affidavit of the applicant or his or her attorney setting forth a concise statement of the facts upon which the motion is based (2) The order shall clearly state that if the lien claimant fails to appear at the time and place noted the lien shall be released with prejudice and that the lien claimant shall be ordered to pay the costs requested by the applicant including reasonable attorneys fees (3) If no action to foreclose the lien claim has been filed the clerk of the court shall assign a cause number to the application and obtain from the applicant a filing fee pursuant to RCW 3618016 If an action has been filed to foreclose the lien claim the application shall be made a part of that action (4) If following a hearing on the matter the court determines that the lien is frivolous and made without reasonable cause or clearly excessive the court shall issue an order releasing the lien if frivolous and made without reasonable cause or reducing the lien if clearly excessive and awarding costs and reasonable attorneys fees to the applicant to be paid by the lien claimant If the court determines that the lien is not frivolous and was made with reasonable cause and is not clearly excessive the court shall issue an order so stating and awarding costs and reasonable attorneys fees to the lien claimant to be paid by the applicant (5) Proceedings under this section shall not affect other rights and remedies available to the parties under this chapter or otherwise

6004091 Recording mdash Time mdash Contents of lien

Every person claiming a lien under RCW 6004021 shall file for recording in the county where the subject property is located a notice of claim of lien not later than ninety days after the person

CCBA Nuts amp Bolts on Construction Law - 40 of 49

has ceased to furnish labor professional services materials or equipment or the last date on which employee benefit contributions were due The notice of claim of lien (1) Shall state in substance and effect (a) The name phone number and address of the claimant (b) The first and last date on which the labor professional services materials or equipment was furnished or employee benefit contributions were due (c) The name of the person indebted to the claimant (d) The street address legal description or other description reasonably calculated to identify for a person familiar with the area the location of the real property to be charged with the lien (e) The name of the owner or reputed owner of the property if known and if not known that fact shall be stated and (f) The principal amount for which the lien is claimed (2) Shall be signed by the claimant or some person authorized to act on his or her behalf who shall affirmatively state they have read the notice of claim of lien and believe the notice of claim of lien to be true and correct under penalty of perjury and shall be acknowledged pursuant to chapter 6408 RCW If the lien has been assigned the name of the assignee shall be stated Where an action to foreclose the lien has been commenced such notice of claim of lien may be amended as pleadings may be by order of the court insofar as the interests of third parties are not adversely affected by such amendment A claim of lien substantially in the following form shall be sufficient

CLAIM OF LIEN

claimant vs name of person indebted to claimant

Notice is hereby given that the person named below claims a lien pursuant to chapter 6404 RCW In support of this lien the following information is submitted

1 NAME OF LIEN CLAIMANT

TELEPHONE NUMBER

CCBA Nuts amp Bolts on Construction Law - 41 of 49

ADDRESS

2 DATE ON WHICH THE CLAIMANT BEGAN TO PERFORM LABOR PROVIDE PROFESSIONAL SERVICES SUPPLY MATERIAL OR EQUIPMENT OR THE DATE ON WHICH EMPLOYEE BENEFIT CONTRIBUTIONS BECAME DUE

3 NAME OF PERSON INDEBTED TO THE CLAIMANT

4 DESCRIPTION OF THE PROPERTY AGAINST WHICH A LIEN IS CLAIMED (Street address legal description or other information that will reasonably describe the property)

5 NAME OF THE OWNER OR REPUTED OWNER (If not known state unknown)

6 THE LAST DATE ON WHICH LABOR WAS PERFORMED PROFESSIONAL SERVICES WERE FURNISHED CONTRIBUTIONS TO AN EMPLOYEE BENEFIT PLAN WERE DUE OR MATERIAL OR EQUIPMENT WAS FURNISHED

7 PRINCIPAL AMOUNT FOR WHICH THE LIEN IS CLAIMED IS

8 IF THE CLAIMANT IS THE ASSIGNEE OF THIS CLAIM SO STATE HERE

Claimant

(Phone number address city

CCBA Nuts amp Bolts on Construction Law - 42 of 49

and

state of claimant)

STATE OF WASHINGTON COUNTY OF ss being sworn says I am the claimant (or attorney of the claimant or administrator representative or agent of the trustees of an employee benefit plan) above named I have read or heard the foregoing claim read and know the contents thereof and believe the same to be true and correct and that the claim of lien is not frivolous and is made with reasonable cause and is not clearly excessive under penalty of perjury Subscribed and sworn to before me this day of The period provided for recording the claim of lien is a period of limitation and no action to foreclose a lien shall be maintained unless the claim of lien is filed for recording within the ninety-day period stated The lien claimant shall give a copy of the claim of lien to the owner or reputed owner by mailing it by certified or registered mail or by personal service within fourteen days of the time the claim of lien is filed for recording Failure to do so results in a forfeiture of any right the claimant may have to attorneys fees and costs against the owner under RCW 6004181

6004161 Bond in lieu of claim

Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who disputes the correctness or validity of the claim of lien may record either before or after the commencement of an action to enforce the lien in the office of the county recorder or auditor in the county where the claim of lien was recorded a bond issued by a surety company authorized to issue surety bonds in the state The surety shall be listed in the latest federal department of the treasury list of surety companies acceptable on federal bonds published in the Federal Register as authorized to issue bonds on United States government projects with an underwriting limitation including applicable reinsurance equal to or greater than the amount of the bond to be recorded The bond shall contain a description of the claim of lien and real property involved and be in an amount equal to the greater of five thousand dollars or two times the amount of the lien claimed if it is ten thousand dollars or less and in an amount equal to or greater than one and one-half times the amount of the lien if it is in

CCBA Nuts amp Bolts on Construction Law - 43 of 49

excess of ten thousand dollars If the claim of lien affects more than one parcel of real property and is segregated to each parcel the bond may be segregated the same as in the claim of lien A separate bond shall be required for each claim of lien made by separate claimants However a single bond may be used to guarantee payment of amounts claimed by more than one claim of lien by a single claimant so long as the amount of the bond meets the requirements of this section as applied to the aggregate sum of all claims by such claimant The condition of the bond shall be to guarantee payment of any judgment upon the lien in favor of the lien claimant entered in any action to recover the amount claimed in a claim of lien or on the claim asserted in the claim of lien The effect of recording a bond shall be to release the real property described in the notice of claim of lien from the lien and any action brought to recover the amount claimed Unless otherwise prohibited by law if no action is commenced to recover on a lien within the time specified in RCW 6004141 the surety shall be discharged from liability under the bond If an action is timely commenced then on payment of any judgment entered in the action or on payment of the full amount of the bond to the holder of the judgment whichever is less the surety shall be discharged from liability under the bond Nothing in this section shall in any way prohibit or limit the use of other methods devised by the affected parties to secure the obligation underlying a claim of lien and to obtain a release of real property from a claim of lien

6004181 Rank of lien mdash Application of proceeds mdash Attorneys fees

(1) In every case in which different construction liens are claimed against the same property the court shall declare the rank of such lien or class of liens which liens shall be in the following order (a) Liens for the performance of labor (b) Liens for contributions owed to employee benefit plans (c) Liens for furnishing material supplies or equipment (d) Liens for subcontractors including but not limited to their labor and materials and (e) Liens for prime contractors or for professional services (2) The proceeds of the sale of property must be applied to each lien or class of liens in order of its rank and in an action brought to foreclose a lien pro rata among each claimant in each separate priority class A personal judgment may be rendered against any party personally liable for any debt for which the lien is claimed If the lien is established the judgment shall provide

CCBA Nuts amp Bolts on Construction Law - 44 of 49

for the enforcement thereof upon the property liable as in the case of foreclosure of judgment liens The amount realized by such enforcement of the lien shall be credited upon the proper personal judgment The deficiency if any remaining unsatisfied shall stand as a personal judgment and may be collected by execution against any party liable therefor (3) The court may allow the prevailing party in the action whether plaintiff or defendant as part of the costs of the action the moneys paid for recording the claim of lien costs of title report bond costs and attorneys fees and necessary expenses incurred by the attorney in the superior court court of appeals supreme court or arbitration as the court or arbitrator deems reasonable Such costs shall have the priority of the class of lien to which they are related as established by subsection (1) of this section (4) Real property against which a lien under this chapter is enforced may be ordered sold by the court and the proceeds deposited into the registry of the clerk of the court pending further determination respecting distribution of the proceeds of the sale

6004900 Liberal construction mdash 1991 c 281

RCW 1927095 6004230 and 6004011 through 6004226 and 6004261 are to be liberally construed to provide security for all parties intended to be protected by their provisions

RCW 6028011

Retained percentage mdash Public transportation projects mdash Labor and material lien created mdash Bond in lieu of retained funds mdash Termination before completion mdash Chapter deemed exclusive mdash Release of ferry contract payments mdash Projects of farmers home administration mdash General contractorconstruction manager procedure mdash Definitions

(1)(a) Except as provided in (b) of this subsection public improvement contracts must provide and public bodies must reserve a contract retainage not to exceed five percent of the moneys earned by the contractor as a trust fund for the protection and payment of (i) The claims of any person arising under the contract and (ii) the state with respect to taxes increases and penalties imposed pursuant to Titles 50 51 and 82 RCW which may be due from such contractor (b) Public improvement contracts funded in whole or in part by federal transportation funds must rely upon the contract bond as referred to in chapter 3908 RCW for the protection and payment of (i) The claims of any person or persons arising under the contract to the extent such claims are provided for in RCW 3908010 and (ii) the state with respect to taxes increases and penalties incurred on the public improvement project under Titles 50 51 and 82 RCW which may be due The contract bond must remain in full force and effect until at a minimum all claims filed in compliance with chapter 3908 RCW are resolved

CCBA Nuts amp Bolts on Construction Law - 45 of 49

(2) Every person performing labor or furnishing supplies toward the completion of a public improvement contract has a lien upon moneys reserved by a public body under the provisions of a public improvement contract However the notice of the lien of the claimant must be given within forty-five days of completion of the contract work and in the manner provided in RCW 3908030 (3) The contractor at any time may request the contract retainage be reduced to one hundred percent of the value of the work remaining on the project (a) After completion of all contract work other than landscaping the contractor may request that the public body release and pay in full the amounts retained during the performance of the contract and sixty days thereafter the public body must release and pay in full the amounts retained (other than continuing retention of five percent of the moneys earned for landscaping) subject to the provisions of chapters 3912 and 6028 RCW (b) Sixty days after completion of all contract work the public body must release and pay in full the amounts retained during the performance of the contract subject to the provisions of chapters 3912 and 6028 RCW (4) The moneys reserved by a public body under the provisions of a public improvement contract at the option of the contractor must be (a) Retained in a fund by the public body (b) Deposited by the public body in an interest bearing account in a bank mutual savings bank or savings and loan association Interest on moneys reserved by a public body under the provision of a public improvement contract must be paid to the contractor (c) Placed in escrow with a bank or trust company by the public body When the moneys reserved are placed in escrow the public body must issue a check representing the sum of the moneys reserved payable to the bank or trust company and the contractor jointly This check must be converted into bonds and securities chosen by the contractor and approved by the public body and the bonds and securities must be held in escrow Interest on the bonds and securities must be paid to the contractor as the interest accrues (5) The contractor or subcontractor may withhold payment of not more than five percent from the moneys earned by any subcontractor or sub-subcontractor or supplier contracted with by the contractor to provide labor materials or equipment to the public project Whenever the contractor or subcontractor reserves funds earned by a subcontractor or sub-subcontractor or

CCBA Nuts amp Bolts on Construction Law - 46 of 49

supplier the contractor or subcontractor must pay interest to the subcontractor or sub-subcontractor or supplier at a rate equal to that received by the contractor or subcontractor from reserved funds (6) A contractor may submit a bond for all or any portion of the contract retainage in a form acceptable to the public body and from a bonding company meeting standards established by the public body The public body must accept a bond meeting these requirements unless the public body can demonstrate good cause for refusing to accept it This bond and any proceeds therefrom are subject to all claims and liens and in the same manner and priority as set forth for retained percentages in this chapter The public body must release the bonded portion of the retained funds to the contractor within thirty days of accepting the bond from the contractor Whenever a public body accepts a bond in lieu of retained funds from a contractor the contractor must accept like bonds from any subcontractors or suppliers from which the contractor has retained funds The contractor must then release the funds retained from the subcontractor or supplier to the subcontractor or supplier within thirty days of accepting the bond from the subcontractor or supplier (7) If the public body administering a contract after a substantial portion of the work has been completed finds that an unreasonable delay will occur in the completion of the remaining portion of the contract for any reason not the result of a breach thereof it may if the contractor agrees delete from the contract the remaining work and accept as final the improvement at the stage of completion then attained and make payment in proportion to the amount of the work accomplished and in this case any amounts retained and accumulated under this section must be held for a period of sixty days following the completion In the event that the work is terminated before final completion as provided in this section the public body may thereafter enter into a new contract with the same contractor to perform the remaining work or improvement for an amount equal to or less than the cost of the remaining work as was provided for in the original contract without advertisement or bid The provisions of this chapter are exclusive and supersede all provisions and regulations in conflict herewith (8) Whenever the department of transportation has contracted for the construction of two or more ferry vessels sixty days after completion of all contract work on each ferry vessel the department must release and pay in full the amounts retained in connection with the construction of the vessel subject to the provisions of RCW 6028021 and chapter 3912 RCW However the department of transportation may at its discretion condition the release of funds retained in connection with the completed ferry upon the contractor delivering a good and sufficient bond with two or more sureties or with a surety company in the amount of the retained funds to be released to the contractor conditioned that no taxes may be certified or claims filed for work on the ferry after a period of sixty days following completion of the ferry and if taxes are certified or claims filed recovery may be had on the bond by the department of revenue the employment

CCBA Nuts amp Bolts on Construction Law - 47 of 49

security department the department of labor and industries and the material suppliers and laborers filing claims (9) Except as provided in subsection (1) of this section reservation by a public body for any purpose from the moneys earned by a contractor by fulfilling its responsibilities under public improvement contracts is prohibited (10) Contracts on projects funded in whole or in part by farmers home administration and subject to farmers home administration regulations are not subject to subsections (1) through (9) of this section (11) This subsection applies only to a public body that has contracted for the construction of a facility using the general contractorconstruction manager procedure as defined under RCW 3910210 If the work performed by a subcontractor on the project has been completed within the first half of the time provided in the general contractorconstruction manager contract for completing the work the public body may accept the completion of the subcontract The public body must give public notice of this acceptance After a forty-five day period for giving notice of liens and compliance with the retainage release procedures in RCW 6028021 the public body may release that portion of the retained funds associated with the subcontract Claims against the retained funds after the forty-five day period are not valid (12) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise (a) Contract retainage means an amount reserved by a public body from the moneys earned by a person under a public improvement contract (b) Person means a person or persons mechanic subcontractor or materialperson who performs labor or provides materials for a public improvement contract and any other person who supplies the person with provisions or supplies for the carrying on of a public improvement contract (c) Public body means the state or a county city town district board or other public body (d) Public improvement contract means a contract for public improvements or work other than for professional services or a work order as defined in RCW 3910210

CCBA Nuts amp Bolts on Construction Law - 48 of 49

RCW 6432070 Liens or encumbrances mdash Enforcement mdash Satisfaction

(1) Subsequent to recording the declaration as provided in this chapter and while the property remains subject to this chapter no lien shall thereafter arise or be effective against the property During such period liens or encumbrances shall arise or be created only against each apartment and the percentage of undivided interest in the common areas and facilities and appurtenant to such apartment in the same manner and under the same conditions in every respect as liens or encumbrances may arise or be created upon or against any other separate parcel of real property subject to individual ownership PROVIDED That no labor performed or materials furnished with the consent of or at the request of the owner of any apartment or such owners agent contractor or subcontractor shall be the basis for the filing of a lien against any other apartment or any other property of any other apartment owner not expressly consenting to or requesting the same except that such express consent shall be deemed to be given by any apartment owner in the case of emergency repairs Labor performed or materials furnished for the common areas and facilities if authorized by the association of apartment owners the manager or board of directors shall be deemed to be performed or furnished with the express consent of each apartment owner and shall be the basis for the filing of a lien against each of the apartments and shall be subject to the provisions of subsection (2) of this section (2) In the event a lien against two or more apartments becomes effective the apartment owners of the separate apartments may remove their apartment and the percentage of undivided interest in the common areas and facilities appurtenant to such apartment from the lien by payment of the fractional or proportional amounts attributable to each of the apartments affected Such individual payments shall be computed by reference to the percentages appearing on the declaration Subsequent to any such payment discharge or satisfaction the apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto shall thereafter be free and clear of the liens so paid satisfied or discharged Such partial payment satisfaction or discharge shall not prevent the lienor from proceeding to enforce his or her rights against any apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto not so paid satisfied or discharged

CCBA Nuts amp Bolts on Construction Law - 49 of 49

  • Cover Sheet
  • 20141110 - Washington Lien and Bond CLE
  • LampI Lien Summary
  • Claim of Lien
  • Form Notice to Owner
  • Model Disclosure Statement (Notice to Customer)
  • LampI Facts about Construction Liens
    • What you should know about contracts
    • How to protect your investment
    • For more information
      • Notice of Claim Against Bond and Retained Percentage
      • Preclaim Notice Bond amp Retained Percentage
      • Statute Handout
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(Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false ConvertColors ConvertToCMYK DestinationProfileName () DestinationProfileSelector DocumentCMYK Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles false MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector DocumentCMYK PreserveEditing true UntaggedCMYKHandling LeaveUntagged UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ]gtgt setdistillerparamsltlt HWResolution [2400 2400] PageSize [612000 792000]gtgt setpagedevice

          ltlt ASCII85EncodePages false AllowTransparency false AutoPositionEPSFiles true AutoRotatePages None Binding Left CalGrayProfile (Dot Gain 20) CalRGBProfile (sRGB IEC61966-21) CalCMYKProfile (US Web Coated 050SWOP051 v2) sRGBProfile (sRGB IEC61966-21) CannotEmbedFontPolicy Warning CompatibilityLevel 14 CompressObjects Tags CompressPages true ConvertImagesToIndexed true PassThroughJPEGImages true CreateJDFFile false CreateJobTicket false DefaultRenderingIntent Default DetectBlends true DetectCurves 00000 ColorConversionStrategy LeaveColorUnchanged DoThumbnails false EmbedAllFonts true EmbedOpenType false ParseICCProfilesInComments true EmbedJobOptions true DSCReportingLevel 0 EmitDSCWarnings false EndPage -1 ImageMemory 1048576 LockDistillerParams true MaxSubsetPct 100 Optimize true OPM 1 ParseDSCComments true ParseDSCCommentsForDocInfo true PreserveCopyPage true PreserveDICMYKValues true PreserveEPSInfo true PreserveFlatness true PreserveHalftoneInfo false PreserveOPIComments true PreserveOverprintSettings true StartPage 1 SubsetFonts true TransferFunctionInfo Apply UCRandBGInfo Preserve UsePrologue false ColorSettingsFile () AlwaysEmbed [ true Algerian Arial-Black Arial-BoldItalicMT Arial-BoldMT Arial-ItalicMT ArialMT ArialNarrow ArialNarrow-Bold ArialNarrow-BoldItalic ArialNarrow-Italic BaskOldFace Bauhaus93 BellMT BellMTBold BellMTItalic BerlinSansFB-Bold BerlinSansFBDemi-Bold BerlinSansFB-Reg BernardMT-Condensed BodoniMTPosterCompressed BookAntiqua BookAntiqua-Bold BookAntiqua-BoldItalic BookAntiqua-Italic BookmanOldStyle BookmanOldStyle-Bold BookmanOldStyle-BoldItalic BookmanOldStyle-Italic BookshelfSymbolSeven BritannicBold Broadway BrushScriptMT CalifornianFB-Bold CalifornianFB-Italic CalifornianFB-Reg Centaur CenturyGothic CenturyGothic-Bold CenturyGothic-BoldItalic CenturyGothic-Italic Chiller-Regular ColonnaMT ComicSansMS ComicSansMS-Bold CooperBlack CourierNewPS-BoldItalicMT CourierNewPS-BoldMT CourierNewPS-ItalicMT CourierNewPSMT EstrangeloEdessa EXTRAAPLNew-Regular EXTRAOIANew-Regular FootlightMTLight FranklinGothic-Medium FranklinGothic-MediumItalic FreestyleScript-Regular Garamond Garamond-Bold Garamond-Italic Gautami Georgia Georgia-Bold Georgia-BoldItalic Georgia-Italic HarlowSolid Harrington HighTowerText-Italic HighTowerText-Reg Impact InformalRoman-Regular Jokerman-Regular JuiceITC-Regular Kartika KristenITC-Regular KunstlerScript Latha LatinWide LucidaATTMSpecial LucidaBright LucidaBright-Demi LucidaBright-DemiItalic LucidaBright-Italic LucidaCalligraphy-Italic LucidaConsole LucidaFax LucidaFax-Demi LucidaFax-DemiItalic LucidaFax-Italic LucidaforAttachmate LucidaHandwriting-Italic LucidaSans LucidaSans-Demi LucidaSans-DemiItalic LucidaSans-Italic LucidaSansUnicode Magneto-Bold Mangal-Regular MaturaMTScriptCapitals MicrosoftSansSerif Mistral Modern-Regular Monospace821BT-Roman MonotypeCorsiva MSOutlook MSReferenceSansSerif MSReferenceSpecialty MVBoli NiagaraEngraved-Reg NiagaraSolid-Reg OldEnglishTextMT Onyx PalatinoLinotype-Bold PalatinoLinotype-BoldItalic PalatinoLinotype-Italic PalatinoLinotype-Roman Parchment-Regular Playbill PoorRichard-Regular Raavi Ravie ShowcardGothic-Reg Shruti SnapITC-Regular Stencil Sylfaen SymbolMT Tahoma Tahoma-Bold TempusSansITC TimesNewRomanPS-BoldItalicMT TimesNewRomanPS-BoldMT TimesNewRomanPS-ItalicMT TimesNewRomanPSMT Trebuchet-BoldItalic TrebuchetMS TrebuchetMS-Bold TrebuchetMS-Italic Tunga-Regular Verdana Verdana-Bold Verdana-BoldItalic Verdana-Italic VinerHandITC Vivaldii VladimirScript Vrinda Webdings Wingdings2 Wingdings3 Wingdings-Regular ZWAdobeF ] NeverEmbed [ true ] AntiAliasColorImages false CropColorImages true ColorImageMinResolution 300 ColorImageMinResolutionPolicy OK DownsampleColorImages true ColorImageDownsampleType Bicubic ColorImageResolution 300 ColorImageDepth -1 ColorImageMinDownsampleDepth 1 ColorImageDownsampleThreshold 150000 EncodeColorImages false ColorImageFilter DCTEncode AutoFilterColorImages true ColorImageAutoFilterStrategy JPEG ColorACSImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt ColorImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000ColorACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000ColorImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasGrayImages false CropGrayImages true GrayImageMinResolution 300 GrayImageMinResolutionPolicy OK DownsampleGrayImages true GrayImageDownsampleType Bicubic GrayImageResolution 300 GrayImageDepth -1 GrayImageMinDownsampleDepth 2 GrayImageDownsampleThreshold 150000 EncodeGrayImages false GrayImageFilter DCTEncode AutoFilterGrayImages true GrayImageAutoFilterStrategy JPEG GrayACSImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt GrayImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000GrayACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000GrayImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasMonoImages false CropMonoImages true MonoImageMinResolution 1200 MonoImageMinResolutionPolicy OK DownsampleMonoImages true MonoImageDownsampleType Bicubic MonoImageResolution 1200 MonoImageDepth -1 MonoImageDownsampleThreshold 150000 EncodeMonoImages false MonoImageFilter CCITTFaxEncode MonoImageDict ltlt K -1 gtgt AllowPSXObjects false CheckCompliance [ None ] PDFX1aCheck false PDFX3Check false PDFXCompliantPDFOnly false PDFXNoTrimBoxError true PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile (None) PDFXOutputConditionIdentifier () PDFXOutputCondition () PDFXRegistryName () PDFXTrapped False Description ltlt CHS ltFEFF4f7f75288fd94e9b8bbe5b9a521b5efa7684002000410064006f006200650020005000440046002065876863900275284e8e9ad88d2891cf76845370524d53705237300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200035002e003000204ee553ca66f49ad87248672c676562535f00521b5efa768400200050004400460020658768633002gt CHT ltFEFF4f7f752890194e9b8a2d7f6e5efa7acb7684002000410064006f006200650020005000440046002065874ef69069752865bc9ad854c18cea76845370524d5370523786557406300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200035002e003000204ee553ca66f49ad87248672c4f86958b555f5df25efa7acb76840020005000440046002065874ef63002gt DAN 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 DEU ltFEFF00560065007200770065006e00640065006e0020005300690065002000640069006500730065002000450069006e007300740065006c006c0075006e00670065006e0020007a0075006d002000450072007300740065006c006c0065006e00200076006f006e002000410064006f006200650020005000440046002d0044006f006b0075006d0065006e00740065006e002c00200076006f006e002000640065006e0065006e002000530069006500200068006f006300680077006500720074006900670065002000500072006500700072006500730073002d0044007200750063006b0065002000650072007a0065007500670065006e0020006d00f60063006800740065006e002e002000450072007300740065006c006c007400650020005000440046002d0044006f006b0075006d0065006e007400650020006b00f6006e006e0065006e0020006d006900740020004100630072006f00620061007400200075006e0064002000410064006f00620065002000520065006100640065007200200035002e00300020006f0064006500720020006800f600680065007200200067006500f600660066006e00650074002000770065007200640065006e002egt ESP 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 FRA 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 ITA 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 JPN ltFEFF9ad854c18cea306a30d730ea30d730ec30b951fa529b7528002000410064006f0062006500200050004400460020658766f8306e4f5c6210306b4f7f75283057307e305930023053306e8a2d5b9a30674f5c62103055308c305f0020005000440046002030d530a130a430eb306f3001004100630072006f0062006100740020304a30883073002000410064006f00620065002000520065006100640065007200200035002e003000204ee5964d3067958b304f30533068304c3067304d307e305930023053306e8a2d5b9a306b306f30d530a930f330c8306e57cb30818fbc307f304c5fc59808306730593002gt KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020ace0d488c9c80020c2dcd5d80020c778c1c4c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200035002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor prepress-afdrukken van hoge kwaliteit De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 50 en hoger) NOR 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 PTB ltFEFF005500740069006c0069007a006500200065007300730061007300200063006f006e00660069006700750072006100e700f50065007300200064006500200066006f0072006d00610020006100200063007200690061007200200064006f00630075006d0065006e0074006f0073002000410064006f0062006500200050004400460020006d00610069007300200061006400650071007500610064006f00730020007000610072006100200070007200e9002d0069006d0070007200650073007300f50065007300200064006500200061006c007400610020007100750061006c00690064006100640065002e0020004f007300200064006f00630075006d0065006e0074006f00730020005000440046002000630072006900610064006f007300200070006f00640065006d0020007300650072002000610062006500720074006f007300200063006f006d0020006f0020004100630072006f006200610074002000650020006f002000410064006f00620065002000520065006100640065007200200035002e0030002000650020007600650072007300f50065007300200070006f00730074006500720069006f007200650073002egt SUO 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 SVE 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 ENU (Use these settings to create Adobe PDF documents best suited for high-quality prepress printing Created PDF documents can be opened with Acrobat and Adobe Reader 50 and later) gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false ConvertColors ConvertToCMYK DestinationProfileName () DestinationProfileSelector DocumentCMYK Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles false MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector DocumentCMYK PreserveEditing true UntaggedCMYKHandling LeaveUntagged UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ]gtgt setdistillerparamsltlt HWResolution [2400 2400] PageSize [612000 792000]gtgt setpagedevice

          1. To
          2. Date
          3. Re
          4. From
          5. AT THE REQUEST OF
          6. Sender
          7. Address
          8. Telephone
          9. Brief description of professional services materials or equipment provided or to be provided
          10. 1
          11. 2
          12. 3
          13. reg no
          14. deposit $
          15. expiration date
          16. claims up to $
          17. Reset

11122014

5

Immix Law Group Washington Lien and Bond Claims

Creating a Construction Lien

Basic Steps to Perfecting a Lien (RCW 6004091)bull Claim of Lien

bull Must be served or sent via certified mail with return receipt to the Owner within 14 days of the lien filing

[NOTE Oregon is 20 days Oregon also requires a ldquoNotice of Intent to Forecloserdquo 10 days before the claimant can foreclose on the Claim of Lien ndash Practice Pointer Include the ldquoNotice of Intent to Forecloserdquo in the same notice as the claim of lien]

Immix Law Group Washington Lien and Bond Claims

Creating a Construction Lien

Basic Steps to Perfecting a Lien (RCW 6004091)bull Contents of the Claim of Lien

bull Claimant name address and phone numberbull First and last day of claimantrsquos workbull Name of person indebtedbull Name of property ownerbull Street address or legal description of the propertybull The principal amount of lien claim

Immix Law Group Washington Lien and Bond Claims

Creating a Construction Lien

Basic Steps to Perfecting a Lien (RCW 6004091)bull Execution

bull ldquoShall be signed by the claimant or some person authorized to act on his or her behalf who shall affirmatively state they have read the notice of claim of lien and believe the notice of claim of lien to be true and correct under penalty of perjury and shall be acknowledged pursuant to chapter 6408 RCWrdquo

CCBA Nuts amp Bolts on Construction Law - 6 of 49

11122014

6

Immix Law Group Washington Lien and Bond Claims

Creating a Construction Lien

Additional Steps for Sub‐Tier Subcontractors Professionals and Suppliersbull ldquoNotice to Ownerrdquo (Preclaim Notice) (RCW 6004031)

bull Professionals material suppliers and equipment suppliers must provide ldquoNotice to Ownerrdquo on all projects

bull The purpose of the Notice is to inform the Owner of the project of the personsentities working on the project even though not present on the project site

Immix Law Group Washington Lien and Bond Claims

Creating a Construction LienAdditional Steps for Lower‐Tier Subs Professionals and Suppliersbull Who is not required to give Notice to Owner

bull Persons who contract directly with the owner or ownerrsquos common law agent

bull Laborers whose lien is based solely upon providing laborbull First‐tier subcontractors who contract directly with the prime

contractorbull Exclusion First‐tier subcontractors who contract directly with the

prime contractor in connection with improvements of an existing owner‐occupied single family residence

Immix Law Group Washington Lien and Bond Claims

Creating a Construction Lien

ldquoNotice to Ownerrdquobull When required

bull Commercial Project = 60 daysbull Residential Project = 10 days

bull Who servedbull Serve both the owner and general contractor via

certified or registered mail with return receipt

CCBA Nuts amp Bolts on Construction Law - 7 of 49

11122014

7

Immix Law Group Washington Lien and Bond Claims

Creating a Construction Lien

ldquoNotice to Customerrdquo (RCW 1827114)bull Must be provided by the prime contractor to the owner on a

project before the start of construction where the project isbull Four or fewer residential units and the contract price is

greater than $1000bull Commercial project where the bidcontract price is

between $1000 and $60000[NOTE In Oregon GCs are required to give several forms]

Practice Pointer Include directly in the construction contract

Immix Law Group Washington Lien and Bond Claims

Foreclosing on a Construction Lien

Lien Foreclosure Lawsuit (RCW 6004171)bull Must be commenced within eight months of the date of

recording the Claim of Lien in the jurisdiction where the real property is locatedbull [NOTE In Oregon the foreclosure suit must be commenced

within 120 days]bull Failure to foreclose invalidates the claim of lienbull Failure to prosecute the foreclosure to judgment within two

years may result in dismissal of the lien foreclosure case

Immix Law Group Washington Lien and Bond Claims

Foreclosing on a Construction Lien

Priority of the Lien (RCW 6004181)bull Not all liens are equal ndash the type of lien is ranked as follows

bull Laborbull Employee benefit plansbull Furnishing material supplies or equipmentbull Subcontractors andbull Prime contractors and professional services

bull Proceeds are applied by rank and pro rata in each class Any mortgagedeed of trust recorded after start of claimantsrsquo work will be ldquosecond in linerdquo

CCBA Nuts amp Bolts on Construction Law - 8 of 49

11122014

8

Immix Law Group Washington Lien and Bond Claims

Foreclosing on a Construction Lien

Amount of the Lienbull Contract price

bull Includes contractual attorneysrsquo fees and interestbull If no contract then reasonable value of the work

performedbull The prevailing party is entitled to their reasonable attorneysrsquo

fees recording fees title report costs etc in pursuing and prosecuting the lien (RCW 6004181)

Immix Law Group Washington Lien and Bond Claims

Foreclosing on a Construction Lien

Bonding ldquoAroundrdquo the Lien (RCW 6004161)bull OwnerPrime can bond around the lien by obtaining a surety

bond under the following requirements bull If disputed amount is over $10000 then 150 of lien

amountbull If disputed amount is under $10000 then $5000 or twice

the amount of the lienbull The lien attaches to the bond and releases the propertybull Foreclosure proceeds as normal however the surety must be

added as a party to the lien foreclosure action

Immix Law Group Washington Lien and Bond Claims

Foreclosing on a Construction Lien

Amendments to Lien (RCW 6004091(2))ldquoWhere an action to foreclose the lien has been commenced such notice of claim of lien may be amended as pleadings may be by order of the court insofar as the interests of third parties are not adversely affected by such amendmentrdquo

[NOTE In Oregon amendments are not expressly allowed by statute] Practice Pointer Before filing a claim of lien verify that your client will not perform any additional work

CCBA Nuts amp Bolts on Construction Law - 9 of 49

11122014

9

Immix Law Group

Property Ownersrsquo Claims Against Contractors

Immix Law Group Washington Lien and Bond Claims

Property Ownersrsquo Claims Against Contractors

Claiming a Frivolous Lien (RCW 6004081)bull Party can request a show cause hearing where applicant must

show that lien is frivolous and ldquomade without reasonable causerdquo or is ldquoclearly excessiverdquo

bull If lien claimant fails to show the lien will be releasedbull High standard for ldquoFrivolousnessrdquo

bull ldquopresents no debatable issue and is so devoid of merit that it has no possibility of successrdquo

bull Prevailing party may get reasonable attorneysrsquo fees and costs

Immix Law Group Washington Lien and Bond Claims

Property Ownersrsquo Claims Against Contractors

Claim Against Contractor Registration Bond (RCW 1827040)bull Contractors are required to obtain registration bonds

bull General contractors = $12000bull Subcontractors = $6000

bull Persons contracting with the contractor can sue against the contractorrsquos registration bond

bull SOLbull Homeowners = 2 yearsbull Everyone else = 1 year

CCBA Nuts amp Bolts on Construction Law - 10 of 49

11122014

10

Immix Law Group Washington Lien and Bond Claims

Property Ownersrsquo Claims Against Contractors

Claim Against Contractor Registration Bond (RCW 1827040)bull Recovery Limitations

bull Residential homeowners entitled to recover entire bond amountbull Other claimants are entitled to frac12 of the bond amount or $4000 if

subcontractor or specialty contractorbull Claimants entitled to attorneysrsquo fees up to amount of bond

Immix Law Group Washington Lien and Bond Claims

Property Ownersrsquo Claims Against Contractors

Claim Against Contractor Registration Bond (RCW 1827040)

bull Service Requirementsbull Service on the bonding company and the contractor must be made

on the Department of Labor amp Industries by serving three copies of the summons and complaint by certified andor registered mail (RCW 1827040(3)) with the filing fee

bull You should also serve the contractor and all other named defendants personally so that the breach of contract claim and other claims are properly served

Immix Law Group

Washington Public Contracts Retainage and Bond Claims

CCBA Nuts amp Bolts on Construction Law - 11 of 49

11122014

11

Immix Law Group Washington Lien and Bond Claims

Public Contracts Retainage ClaimsRetainage Claims (RCW 6028011)bull ldquolsquoContract retainagersquo means an amount reserved by a public body from

the moneys earned by a person under a public improvement contractrdquo bull Usually five percent (5)bull Prime contractor can submit a bond in lieu of retainagebull All persons supplying labor materials equipment services entitled to

claimbull Exception Temporary labor supplier not entitled to claim against retention

because not ldquosubcontractorrdquo Better Financial Solutions Inc v Caicos Corp 117 Wn App 899 (2003)

Immix Law Group Washington Lien and Bond Claims

Public Contracts Retainage Claims

Preclaim Notice of Retainage Claim (RCW 6028011)

bull Sub‐tier subcontractors and suppliers must give preclaimnotice to the public agency within 60 days of furnishing labor material supplies or equipment to the project

bull Relates back 60 days from the date of the noticebull Must be delivered to contracting agency

Immix Law Group Washington Lien and Bond Claims

Public Contracts Retainage Claims

Notice of Retainage Claim (RCW 6028011)

bull All claimants must provide a Notice of Claim within 45 days after ldquocompletion of the contract workrdquo (essentially ldquoproject completionrdquo)

bull The Notice must be delivered to contracting agencybull Hand delivered or certified mail with return receipt

bull Must file the foreclosure suit within 4 months after providing the Notice of Claim

CCBA Nuts amp Bolts on Construction Law - 12 of 49

11122014

12

Immix Law Group Washington Lien and Bond Claims

Public Contracts Bond Claims

Bond Claims ndash Washingtonrsquos Little Miller Act (RCW 3908010)

On Washington Public Works projects in excess of $25000 general contractors must post a payment bond usually in the amount of the contract price

Immix Law Group Washington Lien and Bond Claims

Public Contracts Bond Claims

Preclaim Notice of Bond Claim (RCW 3908010)

bull Lower‐tier subcontractors and material suppliers must give preclaim notice to the prime contractor within 10 days after starting work

Immix Law Group Washington Lien and Bond Claims

Public Contracts Bond Claims

Notice of Bond Claim (RCW 3908010)

bull All claimants must provide a Notice of Claim within 30 days after ldquoacceptance of the workrdquo (different than retention claim)bull ldquoAcceptancerdquo is an affirmative act by the public works owner

bull The Notice must be delivered to public works ownerbull Hand delivered or certified mail with return receipt

bull No deadline provided in the statute ndash foreclose by general statute of limitationsbull 3 years for oral contracts 6 years for written contracts

CCBA Nuts amp Bolts on Construction Law - 13 of 49

11122014

13

Immix Law Group Washington Lien and Bond Claims

Public Contracts Bond amp Retainage Claims

bull Practice Pointer Coordinate the filing of the retention and bond Preclaim Notice and Notice of Claim to ensure that the contractorrsquos claims are protected

bull File the Bond amp Retainage Preclaim Notice within 10 days after starting work

bull File the Bond amp Retainage Notice of Claim within 30 days from project completion

Immix Law Group Washington Lien and Bond Claims

Public Contracts Prompt Pay ActWashingtonrsquos Prompt Pay Act

bull Prime contractors are entitled to payment within 30 days after the public agencyrsquos receipt of the invoice

bull If the public agency intends to withhold payment (all or in part) the agency must notify the contractor in writing within 8 days of receipt stating

bull Why payment (all or part) is being withheld

bull Actions required by contractor in order to receive payment

Immix Law Group Washington Lien and Bond Claims

Public Contracts Prompt Pay ActWashingtonrsquos Prompt Pay Act (contrsquod)

bull Public agency can withhold up to 150 of the disputed amount

bull Failure to comply entitles the contractor to 1 interest per month until paid

bull Subcontractors must be paid within 10 days of prime contractorrsquos receipt of payment

CCBA Nuts amp Bolts on Construction Law - 14 of 49

11122014

14

Immix Law Group

Questions

CCBA Nuts amp Bolts on Construction Law - 15 of 49

SUMMARY OF THE REQUIREMENTS TO BE MET BY A LIEN CLAIMANT ON A WASHINGTON PRIVATE CONSTRUCTION PROJECT

NOTICE TO CUSTOMER

FROM

Prime Contractor working on four or fewer residential units when the contract price is $1000 or more or on a commercial building when the contract price is $1000 or more but less than $60000

TO Owner

WHEN Before starting construction NOTICE OF FURNISHING PROFESSIONAL SERVICES

FROM

Provider of professional services

TO County Recorder

WHEN As soon as professional services are commenced PRECLAIM NOTICE (for all projects except repair and remodeling of owner-occupied single-family residence)

FROM

Provider of professional services materials or equipment except that the following need not provide the notice (1) a provider that contracts directly with the owner or the owners actual agent or (2) a first tier subcontractor

TO Owner and usually also prime contractor

WHEN New single family residence within ten days of first supplying professional services materials or equipment All other projects within 60 days of first supplying professional services materials or equipment

PRECLAIM NOTICE (for repair and remodeling of owner-occupied single-family residence)

FROM

Provider of professional services materials or equipment to anyone other than the owner

TO Owner and usually also prime contractor

WHEN Immediately after agreeing to furnish professional services materials or equipment

FROM

Potential lien claimant to whom payment is five or more days overdue

NOTICE TO REAL PROPERTY LENDER (only applicable where there is not a payment bond of at least 50 of the amount of construction financing)

TO Construction lender owner and prime contractor

WHEN Within 35 days of date payment is due

CLAIM OF LIEN

FROM

Unpaid claimant

TO County Recorder

WHEN Not later than 90 days after the last furnishing of labor professional services materials or equipment or the last date on which employee benefit contributions were due

COPY OF CLAIM OF LIEN

FROM

Unpaid claimant

TO Owner

WHEN Within 14 days of date claim of lien is filed for recording

DEADLINE FOR FILING A LAWSUIT Within eight months of recording claim of lien

F625-055-000 const lien summary 2-96 This summary is intended to generally set forth the requirements applicable to most lien claimants The remainder of the chapter should be consulted for a more detailed discussion

CCBA Nuts amp Bolts on Construction Law - 16 of 49

CLAIM OF LIEN SIGNED BY ATTORNEY

Return Address __________________________ __________________________ __________________________

Document Title Claim of Lien

Reference Number _____________________________

Grantor _____________________________

Grantee _____________________________

Legal Description

Assessors Property Tax Parcel No

CLAIM OF LIEN

________________________ claimant vs _____________________________ name of persons indebted to claimant

Notice is hereby given that the person named below claims a lien pursuant to Chapter 6004 RCW In

support of this lien the following information is submitted

1 NAME OF LIEN CLAIMANT ______________________________________

TELEPHONE NUMBER ______________________________________

ADDRESS ______________________________________

______________________________________

2 DATE ON WHICH THE CLAIMANT BEGAN TO PERFORM LABOR PROVIDE PROFESSIONAL SERVICES SUPPLY MATERIAL OR EQUIPMENT OR THE DATE ON WHICH EMPLOYEE BENEFIT CONTRIBUTIONS BECOMES DUE _________

3 NAME OF PERSON INDEBTED TO THE CLAIMANT _________________

4 DESCRIPTIONOF THE PROPERTY AGAINST WHICH A LIEN IS CLAIMED All fee leasehold and other interests of _______________ and any other owner person or entity in the property commonly known as ___________________________located at _______________________ _________________________ _________________County Washington _______ the legal description of which is believed to be as follows

[Legal Description - andor - The legal description of the underlying real property is described on the attached Exhibit A]

CCBA Nuts amp Bolts on Construction Law - 17 of 49

5 NAME OF THE OWNER OR REPUTED OWNER (if not known state ldquounknownrdquo) ____________________________________________________________________________________________

6 THE LAST DATE ON WHICH LABOR WAS PERFORMED PROFESSIONAL SERVICES WERE FURNISHED CONTRIBUTIONS TO AN EMPLOYEE BENEFIT PLAN WERE DUE OR MATERIAL OR EQUIPMENT WAS FURNISHED _____________________________________________________________

7 PRINCIPAL AMOUNT FOR WHICH THE LIEN IS CLAIMED IS $_______

8 IF THE CLAIMANT IS THE ASSIGNEE OF THIS CLAIM SO STATE HERE ___

___________________ Claimant ___________________________

___________________________ (__)____-______

By ________s________________ Print Name ___________________ Its Attorney

STATE OF WASHINGTON )

SS COUNTYOF ____________ )

________________ being sworn says I am the attorney of the claimant above named I have read or heard the foregoing claim read and know the contents thereof and believe the same to be true and correct and that the claim of lien is not frivolous and is made with reasonable cause and is not clearly excessive under penalty of perjury

__________________________ Print Name _______________

SUBSCRIBED and SWORN to before me this ___day of ___________________ 201_

STATE OF WASHINGTON )

SS COUNTYOF ____________ )

[Seal or Stamp]

__________________________ Print Name _______________ Notary Public in and for the State of Washington residing at________________________________ My Commission Expires __________________

CCBA Nuts amp Bolts on Construction Law - 18 of 49

I certify that I know or have satisfactory evidence that___________________ is the person who appeared before me and said person acknowledged that [heshe] signed this instrument on oath stated that [heshe] was authorized to execute this instrument and acknowledged it as the attorney of___________________ to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument

CCBA Nuts amp Bolts on Construction Law - 19 of 49

F625-054-000 construction lien notice 11-05 IMPORTANT INFORMATION ON PAGE 2

NOTICE TO OWNER IMPORTANT READ BOTH SIDES OF THIS NOTICE CAREFULLY

PROTECT YOURSELF FROM PAYING TWICE

To

Date

Re

From (Description of property street address or general location)

AT THE REQUEST OF Name of person ordering their professional services materials or equipment

THIS IS NOT A LIEN This notice is sent to you to tell you who is providing professional services materials or equipment for the improvement of your property and to advise you of the rights of these persons and your responsibilities Also take notice that laborers on your project may claim a lien without sending you a notice

OWNEROCCUPIER OF EXISTING RESIDENTIAL PROPERTY Under Washington law those who furnish labor professional services materials or equipment for the repair remodel or alteration of you owner-occupied principal residence and who are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien The law limits the amount that a lien claimant can claim against your property Claims may only be made against that portion of the contract price you have not yet paid to your prime contractor as of the time this notice was given to you or three days after this notice was mailed to you Review page 2 of this notice for more information and ways to avoid lien claims

COMMERCIAL ANDOR NEW RESIDENTIAL PROPERTY We have or will be providing professional services materials or equipment for the improvement of your commercial or new residential project In the event you or your contractor fail to pay us we may file a lien against your property A lien may be claimed for all professional services materials or equipment furnished after a date that is sixty days before this notice was given to you or mailed to you unless the improvement to you property is the construction of a new single-family residence then ten days before this notice was given to you or mailed to you

Sender

Address

Telephone

Brief description of professional services materials or equipment provided or to be provided

CCBA Nuts amp Bolts on Construction Law - 20 of 49

F625-054-000 construction lien notice page 2 11-05

Important Information for your Protection

This notice is sent to inform you that we have or will provide professional services materials or equipment for the repair remodel or alteration of you property We expect to be paid by the person who ordered our services but if we are not paid we have the right to enforce our claim by filing a construction lien against your property

LEARN more about the lien laws and the meaning of this notice by

discussing them with our contractor suppliers Department of Labor and Industries the firm sending you this notice your lender or your attorney

COMMON METHODS TO AVOID CONSTRUCTION LIENS

There are several methods available to protect your property from construction liens The following are two of the more commonly used methods

DUAL PAYCHECKS (Joint Checks) When paying your

contractor for services or materials you may make checks payable jointly to the contractor and the firms furnishing you this notice

LIEN RELEASES You may require your contractor to provide

lien releases signed by all the suppliers and subcontractors from whom you have received this notice If they cannot obtain lien releases because you have not paid them you may use the dual payee check method to protect yourself

You should take appropriate steps to protect your property from

liens

Your prime contractor and your construction lender are required by law to give you written information about lien claims If you have not received it ask them for it

CCBA Nuts amp Bolts on Construction Law - 21 of 49

F625-030-000 model disclosure statement notice to customer 09-2007

Department of Labor and Industries Construction Compliance

MODEL DISCLOSURE STATEMENTNOTICE TO CUSTOMER

This contractor is registered with the state of Washington registration no____________________ and has posted with the state a bond or deposit of ______________________ for the purpose of satisfying claims against the contractor for breach of contract including negligent or improper work in the conduct of the contractorrsquos business The expiration date of this contractorrsquos registration is ______________________

THIS BOND OR DEPOSIT MIGHT NOT BE SUFFICIENT TO COVER A CLAIM THAT MIGHT ARISE FROM THE WORK DONE UNDER YOUR CONTRACT This bond or deposit is not for your exclusive use because it covers all work performed by this contractor The bond or deposit is intended to pay valid claims up to ___________________________ that you and other customers suppliers subcontractors or taxing authorities may have FOR GREATER PROTECTION YOU MAY WITHHOLD A PERCENTAGE OF YOUR CONTRACT You may withhold a contractually defined percentage of your construction contract as retainage for a stated period of time to provide protection to you and help insure that your project will be completed as required by your contract

YOUR PROPERTY MAY BE LIENED If a supplier of materials used in your construction project or an employee or subcontractor of your contractor or subcontractors is not paid your property may be liened to force payment and you could pay twice for the same work FOR ADDITIONAL PROTECTION YOU MAY REQUEST THE CONTRACTOR TO PROVIDE YOU WITH ORIGINAL ldquoLIEN RELEASErdquo DOCUMENTS FROM EACH SUPPLIER OR SUBCONTRACTOR AT YOUR PROJECT The contractor is required to provide you with further information about lien release document if you request it General information is also available from the state Department of Labor and Industries I have received a copy of this disclosure statement Dated this _______ day of _______________ of the year __________

_____________________________________________________ Signature of Customer The contractor must retain a signed copy of the disclosure statement in his or her files for a minimum of three years and produce a signed or electronic signature copy of the disclosure statement to the department upon request

CCBA Nuts amp Bolts on Construction Law - 22 of 49

Facts About Construction LiensWhat you should know about contractsIf your contractor fails to pay subcontractors suppliers or laborers or neglects to make other legally required payments those who are owed money can look to your property for payment even if you have paid your contractor in full This is true if you have hired a contractor to build a new home or are buying a newly built home

It is also true when you remodel or improve your property although the amount of your liability may be limited to the amount you owe the prime contractor at the time a lien is filed

Under Washington laws those who work on your property or provide materials and are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien

People who supply materials or labor ordered by your contractor are permitted by law to file a lien only if they do so within 90 days of cessation of performance or delivery of materials The time frame is spelled out in RCW 6004091

If you enter into a contract to buy a newly built home you may not receive a notice of a lien based on a claim by a contractor or material handler Be aware that a lien may be claimed even though you have not received a notice

Before making final payment on the project request a completed lien release form from each contractor and material supplier A sample of this release of lien form is available from the Department of Labor amp Industries Contractor Registration Section

You have final responsibility for seeing that all bills are paid even if you have paid your contractor in full

If you receive a notice to enforce a lien take the notice seriously Let your contractor know you have received the notice Find out what arrangements are being made to pay the sender of the notice

When in doubt or if you need more details consult your attorney When and how to pay your contractor is a decision that requires serious consideration

Reminder Washington laws require contractors to give you a disclosure statement if your contract exceeds $1000 [RCW 1827114(A) or (B)]

CCBA Nuts amp Bolts on Construction Law - 23 of 49

PUBLICATION F625-017-000 [01-2008]

Other formats for persons with disabilities are available on request Call 1-800-647-0982 TDD users call 360-902-5797 LampI is an equal opportunity employer

For more information

How to protect your investment

If you are dealing with a lending institution ask your loan officer what precautions the lending institution takes to verify that subcontractors and material suppliers are being paid when mortgage money is paid to your contractor

Request lender supervision when dealing with a lending institution that provides interim or construction financing

Ask the prime contractor to disclose all potential lien claimants as a condition of payment A lien claimant must mail (by certified or registered mail or by personal service) a copy of the claim of lien to the owner within 14 days of the time the lien is recorded [RCW 6004091(2)] While an action is ongoing an owner may withhold from this prime contractor the amount of money for which a claim is recorded by a subcontractor supplier or laborer [RCW 6004151]

It is recommended that your check be made payable jointly naming the contractor and the subcontractor or supplier as payees

Upon payment and acceptance of the amount due the owner has the right to an executed release of all lien rights by lien claimants [RCW 6004071]

Consider using an escrow agent to protect your interests Find out whether your escrow agent will protect you against liens when disbursing payments If you are interested in this alternative consult your attorney

Request that your contractor post a performance bond in the amount of the project cost That will give you recourse in the event the contractor fails to complete the building agreement

8 On the Web Find more information about hiring a contractor at

wwwLniwagovTradesLicensingContractorsHireCon

Contractor Registration Hotline1-800-647-0982

You may also call your local LampI office See listings under ldquoWashington State ofrdquo in the government section or the white pages of the telephone book

Please note This notice was prepared by the Department of Labor amp Industries Specialty Compliance Services Division for reproduction by lending institutions and contractors for distribution to their clients It explains the basics of the construction lien law to help you protect yourself This information is not a reflection upon the abilities or credit of your contractor

CCBA Nuts amp Bolts on Construction Law - 24 of 49

NOTICE OF CLAIM AGAINST

BOND AND RETAINED PERCENTAGE

RCW 3908030 RCW 6028010

VIA CERTIFIED MAIL ndash RETURN RECEIPT REQUESTED

TO [Public Owner] [Public Ownerrsquos Address]

Project [Project Name amp Address] NOTICE IS HEREBY GIVEN that the undersigned [Claimant] [Claimantrsquos Address] has a claim in the amount of ----- and 00100 Dollars ($XX) (not including attorneysrsquo fees or costs) together with interest at twelve percent (12) against [Public Owner] (ldquoOwnerrdquo) pursuant to RCW 6028 and the payment bond taken from [Prime Contractor] (ldquoContractorrdquo) [Prime Contractorrsquos Address] as principal and [Surety Company] (ldquoSuretyrdquo) [Suretyrsquos Address] as surety Bond No ________ pursuant to RCW 3908 for [describe services material supplies labor furnished] provided on the Project This Notice of Claim Against Bond and Retained Percentage supersedes and replaces previous Notices DATED This ___day of _________ 201_ [Claimant] By ______________________________________ Its ______________________________________ [Claimantrsquos Address]

_________________________________________

[Contractors Registration No if applicable]

(Copies furnished to General Contractor and General Contractorrsquos Bonding Company)

CCBA Nuts amp Bolts on Construction Law - 25 of 49

PRECLAIM NOTICE TO CONTRACTOR BY SUBCONTRACTORS MATERIALMEN OR SUPPLIERS FOR

CLAIM AGAINST BOND AND RETAINED PERCENTAGE

VIA CERTIFIED OR REGISTERED MAIL- RETURN RECEIPT REQUESTED

TO [Name of General Contractor] [Address]

YOU ARE HEREBY NOTIFIED that the undersigned ____________at the request of_________________ commenced to deliver or furnish materials supplies andor equipment for the use in the construction alteration andor repair of that certain project known as____________________ [project name] which is located at ____________________________ [address or description] If the undersigned is not paid for these materials supplies andor equipment it will file a claim against you and your bond andor retainage pursuant to RCW 3908 andor 6028 et seq for payment of any sum that is due and owing to the undersigned

DATED This __ day of _____________ 201_

[Name of Claimant]

By ____________________________________

Its ____________________________________

Address ______________________________

__________________________________________

__________________________________________

[Contractors Registration No if applicable]

(Mail via certified mail return receipt requested or hand deliver and obtain receipt)

CCBA Nuts amp Bolts on Construction Law - 26 of 49

Washington Liens amp Bonds ndash Pertinent Statutes

RCW 1827040 Bond or other security required mdash Actions against mdash Suspension of registration upon impairment (1) Each applicant shall file with the department a surety bond issued by a surety insurer who meets the requirements of chapter 4828 RCW in the sum of twelve thousand dollars if the applicant is a general contractor and six thousand dollars if the applicant is a specialty contractor If no valid bond is already on file with the department at the time the application is filed a bond must accompany the registration application The bond shall have the state of Washington named as obligee with good and sufficient surety in a form to be approved by the department The bond shall be continuous and may be canceled by the surety upon the surety giving written notice to the director A cancellation or revocation of the bond or withdrawal of the surety from the bond automatically suspends the registration issued to the contractor until a new bond or reinstatement notice has been filed and approved as provided in this section The bond shall be conditioned that the applicant will pay all persons performing labor including employee benefits for the contractor will pay all taxes and contributions due to the state of Washington and will pay all persons furnishing material or renting or supplying equipment to the contractor and will pay all amounts that may be adjudged against the contractor by reason of breach of contract including improper work in the conduct of the contracting business A change in the name of a business or a change in the type of business entity shall not impair a bond for the purposes of this section so long as one of the original applicants for such bond maintains partial ownership in the business covered by the bond (2) At the time of initial registration or renewal the contractor shall provide a bond or other security deposit as required by this chapter and comply with all of the other provisions of this chapter before the department shall issue or renew the contractors certificate of registration Any contractor registered as of July 1 2001 who maintains that registration in accordance with this chapter is in compliance with this chapter until the next renewal of the contractors certificate of registration (3) Any person firm or corporation having a claim against the contractor for any of the items referred to in this section may bring suit against the contractor and the bond or deposit in the superior court of the county in which the work was done or of any county in which jurisdiction of the contractor may be had The surety issuing the bond shall be named as a party to any suit upon the bond Action upon the bond or deposit brought by a residential homeowner for breach of contract by a party to the construction contract shall be commenced by filing the summons and complaint with the clerk of the appropriate superior court within two years from the date the claimed contract work was substantially completed or abandoned whichever occurred first Action upon the bond or deposit brought by any other authorized party shall be commenced by filing the summons and complaint with the clerk of the appropriate superior court within one year from the date the claimed labor was performed and benefits accrued taxes and contributions owing the state of Washington became due materials and equipment were furnished or the claimed contract work was substantially completed or abandoned whichever occurred first Service of process in an action filed under this chapter against the contractor and the contractors bond or the deposit shall be exclusively by service upon the department Three

CCBA Nuts amp Bolts on Construction Law - 27 of 49

copies of the summons and complaint and a fee adopted by rule of not less than fifty dollars to cover the costs shall be served by registered or certified mail or other delivery service requiring notice of receipt upon the department at the time suit is started and the department shall maintain a record available for public inspection of all suits so commenced Service is not complete until the department receives the fee and three copies of the summons and complaint The service shall constitute service and confer personal jurisdiction on the contractor and the surety for suit on claimants claim against the contractor and the bond or deposit and the department shall transmit the summons and complaint or a copy thereof to the contractor at the address listed in the contractors application and to the surety within two days after it shall have been received (4) The surety upon the bond shall not be liable in an aggregate amount in excess of the amount named in the bond nor for any monetary penalty assessed pursuant to this chapter for an infraction The liability of the surety shall not cumulate where the bond has been renewed continued reinstated reissued or otherwise extended The surety upon the bond may upon notice to the department and the parties tender to the clerk of the court having jurisdiction of the action an amount equal to the claims thereunder or the amount of the bond less the amount of judgments if any previously satisfied therefrom and to the extent of such tender the surety upon the bond shall be exonerated but if the actions commenced and pending and provided to the department as required in subsection (3) of this section at any one time exceed the amount of the bond then unimpaired claims shall be satisfied from the bond in the following order (a) Employee labor and claims of laborers including employee benefits (b) Claims for breach of contract by a party to the construction contract (c) Registered or licensed subcontractors material and equipment (d) Taxes and contributions due the state of Washington (e) Any court costs interest and attorneys fees plaintiff may be entitled to recover The surety is not liable for any amount in excess of the penal limit of its bond A payment made by the surety in good faith exonerates the bond to the extent of any payment made by the surety (5) The total amount paid from a bond or deposit required of a general contractor by this section to claimants other than residential homeowners must not exceed one-half of the bond amount The total amount paid from a bond or deposit required of a specialty contractor by this section to claimants other than residential homeowners must not exceed one-half of the bond amount or four thousand dollars whichever is greater (6) The prevailing party in an action filed under this section against the contractor and contractors bond or deposit for breach of contract by a party to the construction contract involving a residential homeowner is entitled to costs interest and reasonable attorneys fees The surety upon the bond or deposit is not liable in an aggregate amount in excess of the amount

CCBA Nuts amp Bolts on Construction Law - 28 of 49

named in the bond or deposit nor for any monetary penalty assessed pursuant to this chapter for an infraction (7) If a final judgment impairs the liability of the surety upon the bond or deposit so furnished that there is not in effect a bond or deposit in the full amount prescribed in this section the registration of the contractor is automatically suspended until the bond or deposit liability in the required amount unimpaired by unsatisfied judgment claims is furnished (8) In lieu of the surety bond required by this section the contractor may file with the department an assigned savings account upon forms provided by the department (9) Any person having filed and served a summons and complaint as required by this section having an unsatisfied final judgment against the registrant for any items referred to in this section may execute upon the security held by the department by serving a certified copy of the unsatisfied final judgment by registered or certified mail upon the department within one year of the date of entry of such judgment Upon the receipt of service of such certified copy the department shall pay or order paid from the deposit through the registry of the superior court which rendered judgment towards the amount of the unsatisfied judgment The priority of payment by the department shall be the order of receipt by the department but the department shall have no liability for payment in excess of the amount of the deposit (10) Within ten days after resolution of the case a certified copy of the final judgment and order or any settlement documents where a case is not disposed of by a court trial a certified copy of the dispositive settlement documents must be provided to the department by the prevailing party Failure to provide a copy of the final judgment and order or the dispositive settlement documents to the department within ten days of entry of such an order constitutes a violation of this chapter and a penalty adopted by rule of not less than two hundred fifty dollars may be assessed against the prevailing party (11) The director may require an applicant applying to renew or reinstate a registration or applying for a new registration to file a bond of up to three times the normally required amount if the director determines that an applicant or a previous registration of a corporate officer owner or partner of a current applicant has had in the past five years a total of three final judgments in actions under this chapter involving a residential single-family dwelling on two or more different structures (12) The director may adopt rules necessary for the proper administration of the security RCW 1827114 Disclosure statement required mdash Prerequisite to lien claim

(1) Any contractor agreeing to perform any contracting project (a) For the repair alteration or construction of four or fewer residential units or accessory structures on such residential property when the bid or contract price totals one thousand dollars or more or (b) for the repair alteration or construction of a commercial building when the bid or contract price totals one thousand dollars or more but less than sixty thousand dollars must provide the customer with

CCBA Nuts amp Bolts on Construction Law - 29 of 49

the following disclosure statement in substantially the following form using lower case and upper case twelve-point and bold type where appropriate prior to starting work on the project NOTICE TO CUSTOMER This contractor is registered with the state of Washington registration no and has posted with the state a bond or deposit of for the purpose of satisfying claims against the contractor for breach of contract including negligent or improper work in the conduct of the contractors business The expiration date of this contractors registration is THIS BOND OR DEPOSIT MIGHT NOT BE SUFFICIENT TO COVER A CLAIM THAT MIGHT ARISE FROM THE WORK DONE UNDER YOUR CONTRACT This bond or deposit is not for your exclusive use because it covers all work performed by this contractor The bond or deposit is intended to pay valid claims up to that you and other customers suppliers subcontractors or taxing authorities may have FOR GREATER PROTECTION YOU MAY WITHHOLD A PERCENTAGE OF YOUR CONTRACT You may withhold a contractually defined percentage of your construction contract as retainage for a stated period of time to provide protection to you and help insure that your project will be completed as required by your contract YOUR PROPERTY MAY BE LIENED If a supplier of materials used in your construction project or an employee or subcontractor of your contractor or subcontractors is not paid your property may be liened to force payment and you could pay twice for the same work FOR ADDITIONAL PROTECTION YOU MAY REQUEST THE CONTRACTOR TO PROVIDE YOU WITH ORIGINAL LIEN RELEASE DOCUMENTS FROM EACH SUPPLIER OR SUBCONTRACTOR ON YOUR PROJECT The contractor is required to provide you with further information about lien release documents if you request it General information is also available from the state Department of Labor and Industries I have received a copy of this disclosure statement

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(Signature of customer) (2) The contractor must retain a signed copy of the disclosure statement in his or her files for a minimum of three years and produce a signed or electronic signature copy of the disclosure statement to the department upon request (3) A contractor subject to this section shall notify any consumer to whom notice is required under subsection (1) of this section if the contractors registration has expired or is revoked or suspended by the department prior to completion or other termination of the contract with the consumer (4) No contractor subject to this section may bring or maintain any lien claim under chapter 6004 RCW based on any contract to which this section applies without alleging and proving that the contractor has provided the customer with a copy of the disclosure statement as required in subsection (1) of this section (5) This section does not apply to contracts authorized under chapter 3904 RCW or to contractors contracting with other contractors (6) Failure to comply with this section shall constitute an infraction under the provisions of this chapter (7) The department shall produce model disclosure statements and public service announcements detailing the information needed to assist contractors and contractors customers to comply under this section As necessary the department shall periodically update these education materials RCW 3908010 Bond required mdash Conditions mdash Retention of contract amount in lieu of bond (1)(a) Whenever any board council commission trustees or body acting for the state or any county or municipality or any public body must contract with any person or corporation to do any work for the state county or municipality or other public body city town or district such board council commission trustees or body must require the person or persons with whom such contract is made to make execute and deliver to such board council commission trustees or body a good and sufficient bond with a surety company as surety conditioned that such person or persons must (i) Faithfully perform all the provisions of such contract (ii) Pay all laborers mechanics and subcontractors and material suppliers and all persons who supply such person or persons or subcontractors with provisions and supplies for the carrying on of such work and

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(iii) Pay the taxes increases and penalties incurred on the project under Titles 50 51 and 82 RCW on (A) Projects referred to in RCW 6028011(1)(b) andor (B) projects for which the bond is conditioned on the payment of such taxes increases and penalties (b) The bond in cases of cities and towns must be filed with the clerk or comptroller thereof and any person or persons performing such services or furnishing material to any subcontractor has the same right under the provisions of such bond as if such work services or material was furnished to the original contractor (2) The provisions of RCW 3908010 through 3908030 do not apply to any money loaned or advanced to any such contractor subcontractor or other person in the performance of any such work (3) On contracts of thirty-five thousand dollars or less at the option of the contractor the respective public entity may in lieu of the bond retain fifty percent of the contract amount for a period of thirty days after date of final acceptance or until receipt of all necessary releases from the department of revenue the employment security department and the department of labor and industries and settlement of any liens filed under chapter 6028 RCW whichever is later (4) For contracts of one hundred thousand dollars or less the public entity may accept a full payment and performance bond from an individual surety or sureties (5) The surety must agree to be bound by the laws of the state of Washington and subjected to the jurisdiction of the state of Washington RCW 6004011 Definitions

Unless the context requires otherwise the definitions in this section apply throughout this chapter (1) Construction agent means any registered or licensed contractor registered or licensed subcontractor architect engineer or other person having charge of any improvement to real property who shall be deemed the agent of the owner for the limited purpose of establishing the lien created by this chapter (2) Contract price means the amount agreed upon by the contracting parties or if no amount is agreed upon then the customary and reasonable charge therefor (3) Draws means periodic disbursements of interim or construction financing by a lender (4) Furnishing labor professional services materials or equipment means the performance of any labor or professional services the contribution owed to any employee benefit plan on account of any labor the provision of any supplies or materials and the renting leasing or

CCBA Nuts amp Bolts on Construction Law - 32 of 49

otherwise supplying of equipment for the improvement of real property (5) Improvement means (a) Constructing altering repairing remodeling demolishing clearing grading or filling in of to or upon any real property or street or road in front of or adjoining the same (b) planting of trees vines shrubs plants hedges or lawns or providing other landscaping materials on any real property and (c) providing professional services upon real property or in preparation for or in conjunction with the intended activities in (a) or (b) of this subsection (6) Interim or construction financing means that portion of money secured by a mortgage deed of trust or other encumbrance to finance improvement of or to real property but does not include (a) Funds to acquire real property (b) Funds to pay interest insurance premiums lease deposits taxes assessments or prior encumbrances (c) Funds to pay loan commitment title legal closing recording or appraisal fees (d) Funds to pay other customary fees which pursuant to agreement with the owner or borrower are to be paid by the lender from time to time (e) Funds to acquire personal property for which the potential lien claimant may not claim a lien pursuant to this chapter (7) Labor means exertion of the powers of body or mind performed at the site for compensation Labor includes amounts due and owed to any employee benefit plan on account of such labor performed (8) Mortgagee means a person who has a valid mortgage of record or deed of trust of record securing a loan (9) Owner-occupied means a single-family residence occupied by the owner as his or her principal residence (10) Payment bond means a surety bond issued by a surety licensed to issue surety bonds in the state of Washington that confers upon potential claimants the rights of third party beneficiaries (11) Potential lien claimant means any person or entity entitled to assert lien rights under this chapter who has otherwise complied with the provisions of this chapter and is registered or licensed if required to be licensed or registered by the provisions of the laws of the state of Washington (12) Prime contractor includes all contractors general contractors and specialty

CCBA Nuts amp Bolts on Construction Law - 33 of 49

contractors as defined by chapter 1827 or 1928 RCW or who are otherwise required to be registered or licensed by law who contract directly with a property owner or their common law agent to assume primary responsibility for the creation of an improvement to real property and includes property owners or their common law agents who are contractors general contractors or specialty contractors as defined in chapter 1827 or 1928 RCW or who are otherwise required to be registered or licensed by law who offer to sell their property without occupying or using the structures projects developments or improvements for more than one year (13) Professional services means surveying establishing or marking the boundaries of preparing maps plans or specifications for or inspecting testing or otherwise performing any other architectural or engineering services for the improvement of real property (14) Real property lender means a bank savings bank savings and loan association credit union mortgage company or other corporation association partnership trust or individual that makes loans secured by real property located in the state of Washington (15) Site means the real property which is or is to be improved (16) Subcontractor means a general contractor or specialty contractor as defined by chapter 1827 or 1928 RCW or who is otherwise required to be registered or licensed by law who contracts for the improvement of real property with someone other than the owner of the property or their common law agent

6004021 Lien authorized

Except as provided in RCW 6004031 any person furnishing labor professional services materials or equipment for the improvement of real property shall have a lien upon the improvement for the contract price of labor professional services materials or equipment furnished at the instance of the owner or the agent or construction agent of the owner

6004031 Notices mdash Exceptions

(1) Except as otherwise provided in this section every person furnishing professional services materials or equipment for the improvement of real property shall give the owner or reputed owner notice in writing of the right to claim a lien If the prime contractor is in compliance with the requirements of RCW 1927095 6004230 and 6004261 this notice shall also be given to the prime contractor as described in this subsection unless the potential lien claimant has contracted directly with the prime contractor The notice may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after the date which is sixty days before (a) Mailing the notice by certified or registered mail to the owner or reputed owner or

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(b) Delivering or serving the notice personally upon the owner or reputed owner and obtaining evidence of delivery in the form of a receipt or other acknowledgment signed by the owner or reputed owner or an affidavit of service In the case of new construction of a single-family residence the notice of a right to claim a lien may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after a date which is ten days before the notice is given as described in this subsection (2) Notices of a right to claim a lien shall not be required of (a) Persons who contract directly with the owner or the owners common law agent (b) Laborers whose claim of lien is based solely on performing labor or (c) Subcontractors who contract for the improvement of real property directly with the prime contractor except as provided in subsection (3)(b) of this section (3) Persons who furnish professional services materials or equipment in connection with the repair alteration or remodel of an existing owner-occupied single-family residence or appurtenant garage (a) Who contract directly with the owner-occupier or their common law agent shall not be required to send a written notice of the right to claim a lien and shall have a lien for the full amount due under their contract as provided in RCW 6004021 or (b) Who do not contract directly with the owner-occupier or their common law agent shall give notice of the right to claim a lien to the owner-occupier Liens of persons furnishing professional services materials or equipment who do not contract directly with the owner-occupier or their common law agent may only be satisfied from amounts not yet paid to the prime contractor by the owner at the time the notice described in this section is received regardless of whether amounts not yet paid to the prime contractor are due For the purposes of this subsection received means actual receipt of notice by personal service or registered or certified mail or three days after mailing by registered or certified mail excluding Saturdays Sundays or legal holidays (4) The notice of right to claim a lien described in subsection (1) of this section shall include but not be limited to the following information and shall substantially be in the following form using lower-case and upper-case ten-point type where appropriate

CCBA Nuts amp Bolts on Construction Law - 35 of 49

NOTICE TO OWNER

IMPORTANT READ BOTH SIDES OF THIS NOTICE CAREFULLY

PROTECT YOURSELF FROM PAYING TWICE

To Date

Re (description of property Street address or general location) From AT THE REQUEST OF (Name of person ordering the professional services materials or equipment) THIS IS NOT A LIEN This notice is sent to you to tell you who is providing professional services materials or equipment for the improvement of your property and to advise you of the rights of these persons and your responsibilities Also take note that laborers on your project may claim a lien without sending you a notice

OWNEROCCUPIER OF EXISTING

RESIDENTIAL PROPERTY

Under Washington law those who furnish labor professional services materials or equipment for the repair remodel or alteration of your owner-occupied principal residence and who are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien The law limits the amount that a lien claimant can claim against your property Claims may only be made against that portion of the contract price you have not yet paid to your prime contractor as of the time this notice was given to you or three days after this notice was mailed to you Review the back of this notice for more information and ways to avoid lien claims

COMMERCIAL ANDOR NEW

RESIDENTIAL PROPERTY

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We have or will be providing professional services materials or equipment for the improvement of your commercial or new residential project In the event you or your contractor fail to pay us we may file a lien against your property A lien may be claimed for all professional services materials or equipment furnished after a date that is sixty days before this notice was given to you or mailed to you unless the improvement to your property is the construction of a new single-family residence then ten days before this notice was given to you or mailed to you Sender Address Telephone Brief description of professional services materials or equipment provided or to be provided

IMPORTANT INFORMATION

ON REVERSE SIDE

IMPORTANT INFORMATION

FOR YOUR PROTECTION This notice is sent to inform you that we have or will provide professional services materials or equipment for the improvement of your property We expect to be paid by the person who ordered our services but if we are not paid we have the right to enforce our claim by filing a construction lien against your property LEARN more about the lien laws and the meaning of this notice by discussing them with your contractor suppliers Department of Labor and Industries the firm sending you this notice your lender or your attorney

COMMON METHODS TO AVOID CONSTRUCTION LIENS There are several methods available to protect your property from construction liens The following are two of the more commonly used methods

DUAL PAYCHECKS (Joint Checks) When paying your contractor for services or materials you may make checks payable jointly to the contractor and the firms furnishing you this notice

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LIEN RELEASES You may require your contractor to provide lien releases signed by all the suppliers and subcontractors from whom you have received this notice If they cannot obtain lien releases because you have not paid them you may use the dual payee check method to protect yourself

YOU SHOULD TAKE APPROPRIATE STEPS TO PROTECT YOUR PROPERTY FROM LIENS YOUR PRIME CONTRACTOR AND YOUR CONSTRUCTION LENDER ARE REQUIRED BY LAW TO GIVE YOU WRITTEN INFORMATION ABOUT LIEN CLAIMS IF YOU HAVE NOT RECEIVED IT ASK THEM FOR IT

(5) Every potential lien claimant providing professional services where no improvement as defined in RCW 6004011(5) (a) or (b) has been commenced and the professional services provided are not visible from an inspection of the real property may record in the real property records of the county where the property is located a notice which shall contain the professional service providers name address telephone number legal description of the property the owner or reputed owners name and the general nature of the professional services provided If such notice is not recorded the lien claimed shall be subordinate to the interest of any subsequent mortgagee and invalid as to the interest of any subsequent purchaser if the mortgagee or purchaser acts in good faith and for a valuable consideration acquires an interest in the property prior to the commencement of an improvement as defined in RCW 6004011(5) (a) or (b) without notice of the professional services being provided The notice described in this subsection shall be substantially in the following form

NOTICE OF FURNISHING

PROFESSIONAL SERVICES That on the (day) day of (month and year) (name of provider) began providing professional services upon or for the improvement of real property legally described as follows

[Legal Description is mandatory]

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The general nature of the professional services provided is The owner or reputed owner of the real property is

(Signature)

(Name of Claimant)

(Street Address)

(City State Zip Code)

(Phone Number)

(6) A lien authorized by this chapter shall not be enforced unless the lien claimant has complied with the applicable provisions of this section

6004041 Contractor registration

A contractor or subcontractor required to be registered under chapter 1827 RCW or licensed under chapter 1928 RCW or otherwise required to be registered or licensed by law shall be deemed the construction agent of the owner for the purposes of establishing the lien created by this chapter only if so registered or licensed Persons dealing with contractors or subcontractors may rely for the purposes of this section upon a certificate of registration issued pursuant to chapter 1827 RCW or license issued pursuant to chapter 1928 RCW or other certificate or license issued pursuant to law covering the period when the labor professional services material or equipment shall be furnished and the lien rights shall not be lost by suspension or revocation of registration or license without their knowledge No lien rights described in this

CCBA Nuts amp Bolts on Construction Law - 39 of 49

chapter shall be lost or denied by virtue of the absence suspension or revocation of such registration or license with respect to any contractor or subcontractor not in immediate contractual privity with the lien claimant

6004081 Frivolous claim mdash Procedure

(1) Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who believes the claim of lien to be frivolous and made without reasonable cause or clearly excessive may apply by motion to the superior court for the county where the property or some part thereof is located for an order directing the lien claimant to appear before the court at a time no earlier than six nor later than fifteen days following the date of service of the application and order on the lien claimant and show cause if any he or she has why the relief requested should not be granted The motion shall state the grounds upon which relief is asked and shall be supported by the affidavit of the applicant or his or her attorney setting forth a concise statement of the facts upon which the motion is based (2) The order shall clearly state that if the lien claimant fails to appear at the time and place noted the lien shall be released with prejudice and that the lien claimant shall be ordered to pay the costs requested by the applicant including reasonable attorneys fees (3) If no action to foreclose the lien claim has been filed the clerk of the court shall assign a cause number to the application and obtain from the applicant a filing fee pursuant to RCW 3618016 If an action has been filed to foreclose the lien claim the application shall be made a part of that action (4) If following a hearing on the matter the court determines that the lien is frivolous and made without reasonable cause or clearly excessive the court shall issue an order releasing the lien if frivolous and made without reasonable cause or reducing the lien if clearly excessive and awarding costs and reasonable attorneys fees to the applicant to be paid by the lien claimant If the court determines that the lien is not frivolous and was made with reasonable cause and is not clearly excessive the court shall issue an order so stating and awarding costs and reasonable attorneys fees to the lien claimant to be paid by the applicant (5) Proceedings under this section shall not affect other rights and remedies available to the parties under this chapter or otherwise

6004091 Recording mdash Time mdash Contents of lien

Every person claiming a lien under RCW 6004021 shall file for recording in the county where the subject property is located a notice of claim of lien not later than ninety days after the person

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has ceased to furnish labor professional services materials or equipment or the last date on which employee benefit contributions were due The notice of claim of lien (1) Shall state in substance and effect (a) The name phone number and address of the claimant (b) The first and last date on which the labor professional services materials or equipment was furnished or employee benefit contributions were due (c) The name of the person indebted to the claimant (d) The street address legal description or other description reasonably calculated to identify for a person familiar with the area the location of the real property to be charged with the lien (e) The name of the owner or reputed owner of the property if known and if not known that fact shall be stated and (f) The principal amount for which the lien is claimed (2) Shall be signed by the claimant or some person authorized to act on his or her behalf who shall affirmatively state they have read the notice of claim of lien and believe the notice of claim of lien to be true and correct under penalty of perjury and shall be acknowledged pursuant to chapter 6408 RCW If the lien has been assigned the name of the assignee shall be stated Where an action to foreclose the lien has been commenced such notice of claim of lien may be amended as pleadings may be by order of the court insofar as the interests of third parties are not adversely affected by such amendment A claim of lien substantially in the following form shall be sufficient

CLAIM OF LIEN

claimant vs name of person indebted to claimant

Notice is hereby given that the person named below claims a lien pursuant to chapter 6404 RCW In support of this lien the following information is submitted

1 NAME OF LIEN CLAIMANT

TELEPHONE NUMBER

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ADDRESS

2 DATE ON WHICH THE CLAIMANT BEGAN TO PERFORM LABOR PROVIDE PROFESSIONAL SERVICES SUPPLY MATERIAL OR EQUIPMENT OR THE DATE ON WHICH EMPLOYEE BENEFIT CONTRIBUTIONS BECAME DUE

3 NAME OF PERSON INDEBTED TO THE CLAIMANT

4 DESCRIPTION OF THE PROPERTY AGAINST WHICH A LIEN IS CLAIMED (Street address legal description or other information that will reasonably describe the property)

5 NAME OF THE OWNER OR REPUTED OWNER (If not known state unknown)

6 THE LAST DATE ON WHICH LABOR WAS PERFORMED PROFESSIONAL SERVICES WERE FURNISHED CONTRIBUTIONS TO AN EMPLOYEE BENEFIT PLAN WERE DUE OR MATERIAL OR EQUIPMENT WAS FURNISHED

7 PRINCIPAL AMOUNT FOR WHICH THE LIEN IS CLAIMED IS

8 IF THE CLAIMANT IS THE ASSIGNEE OF THIS CLAIM SO STATE HERE

Claimant

(Phone number address city

CCBA Nuts amp Bolts on Construction Law - 42 of 49

and

state of claimant)

STATE OF WASHINGTON COUNTY OF ss being sworn says I am the claimant (or attorney of the claimant or administrator representative or agent of the trustees of an employee benefit plan) above named I have read or heard the foregoing claim read and know the contents thereof and believe the same to be true and correct and that the claim of lien is not frivolous and is made with reasonable cause and is not clearly excessive under penalty of perjury Subscribed and sworn to before me this day of The period provided for recording the claim of lien is a period of limitation and no action to foreclose a lien shall be maintained unless the claim of lien is filed for recording within the ninety-day period stated The lien claimant shall give a copy of the claim of lien to the owner or reputed owner by mailing it by certified or registered mail or by personal service within fourteen days of the time the claim of lien is filed for recording Failure to do so results in a forfeiture of any right the claimant may have to attorneys fees and costs against the owner under RCW 6004181

6004161 Bond in lieu of claim

Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who disputes the correctness or validity of the claim of lien may record either before or after the commencement of an action to enforce the lien in the office of the county recorder or auditor in the county where the claim of lien was recorded a bond issued by a surety company authorized to issue surety bonds in the state The surety shall be listed in the latest federal department of the treasury list of surety companies acceptable on federal bonds published in the Federal Register as authorized to issue bonds on United States government projects with an underwriting limitation including applicable reinsurance equal to or greater than the amount of the bond to be recorded The bond shall contain a description of the claim of lien and real property involved and be in an amount equal to the greater of five thousand dollars or two times the amount of the lien claimed if it is ten thousand dollars or less and in an amount equal to or greater than one and one-half times the amount of the lien if it is in

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excess of ten thousand dollars If the claim of lien affects more than one parcel of real property and is segregated to each parcel the bond may be segregated the same as in the claim of lien A separate bond shall be required for each claim of lien made by separate claimants However a single bond may be used to guarantee payment of amounts claimed by more than one claim of lien by a single claimant so long as the amount of the bond meets the requirements of this section as applied to the aggregate sum of all claims by such claimant The condition of the bond shall be to guarantee payment of any judgment upon the lien in favor of the lien claimant entered in any action to recover the amount claimed in a claim of lien or on the claim asserted in the claim of lien The effect of recording a bond shall be to release the real property described in the notice of claim of lien from the lien and any action brought to recover the amount claimed Unless otherwise prohibited by law if no action is commenced to recover on a lien within the time specified in RCW 6004141 the surety shall be discharged from liability under the bond If an action is timely commenced then on payment of any judgment entered in the action or on payment of the full amount of the bond to the holder of the judgment whichever is less the surety shall be discharged from liability under the bond Nothing in this section shall in any way prohibit or limit the use of other methods devised by the affected parties to secure the obligation underlying a claim of lien and to obtain a release of real property from a claim of lien

6004181 Rank of lien mdash Application of proceeds mdash Attorneys fees

(1) In every case in which different construction liens are claimed against the same property the court shall declare the rank of such lien or class of liens which liens shall be in the following order (a) Liens for the performance of labor (b) Liens for contributions owed to employee benefit plans (c) Liens for furnishing material supplies or equipment (d) Liens for subcontractors including but not limited to their labor and materials and (e) Liens for prime contractors or for professional services (2) The proceeds of the sale of property must be applied to each lien or class of liens in order of its rank and in an action brought to foreclose a lien pro rata among each claimant in each separate priority class A personal judgment may be rendered against any party personally liable for any debt for which the lien is claimed If the lien is established the judgment shall provide

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for the enforcement thereof upon the property liable as in the case of foreclosure of judgment liens The amount realized by such enforcement of the lien shall be credited upon the proper personal judgment The deficiency if any remaining unsatisfied shall stand as a personal judgment and may be collected by execution against any party liable therefor (3) The court may allow the prevailing party in the action whether plaintiff or defendant as part of the costs of the action the moneys paid for recording the claim of lien costs of title report bond costs and attorneys fees and necessary expenses incurred by the attorney in the superior court court of appeals supreme court or arbitration as the court or arbitrator deems reasonable Such costs shall have the priority of the class of lien to which they are related as established by subsection (1) of this section (4) Real property against which a lien under this chapter is enforced may be ordered sold by the court and the proceeds deposited into the registry of the clerk of the court pending further determination respecting distribution of the proceeds of the sale

6004900 Liberal construction mdash 1991 c 281

RCW 1927095 6004230 and 6004011 through 6004226 and 6004261 are to be liberally construed to provide security for all parties intended to be protected by their provisions

RCW 6028011

Retained percentage mdash Public transportation projects mdash Labor and material lien created mdash Bond in lieu of retained funds mdash Termination before completion mdash Chapter deemed exclusive mdash Release of ferry contract payments mdash Projects of farmers home administration mdash General contractorconstruction manager procedure mdash Definitions

(1)(a) Except as provided in (b) of this subsection public improvement contracts must provide and public bodies must reserve a contract retainage not to exceed five percent of the moneys earned by the contractor as a trust fund for the protection and payment of (i) The claims of any person arising under the contract and (ii) the state with respect to taxes increases and penalties imposed pursuant to Titles 50 51 and 82 RCW which may be due from such contractor (b) Public improvement contracts funded in whole or in part by federal transportation funds must rely upon the contract bond as referred to in chapter 3908 RCW for the protection and payment of (i) The claims of any person or persons arising under the contract to the extent such claims are provided for in RCW 3908010 and (ii) the state with respect to taxes increases and penalties incurred on the public improvement project under Titles 50 51 and 82 RCW which may be due The contract bond must remain in full force and effect until at a minimum all claims filed in compliance with chapter 3908 RCW are resolved

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(2) Every person performing labor or furnishing supplies toward the completion of a public improvement contract has a lien upon moneys reserved by a public body under the provisions of a public improvement contract However the notice of the lien of the claimant must be given within forty-five days of completion of the contract work and in the manner provided in RCW 3908030 (3) The contractor at any time may request the contract retainage be reduced to one hundred percent of the value of the work remaining on the project (a) After completion of all contract work other than landscaping the contractor may request that the public body release and pay in full the amounts retained during the performance of the contract and sixty days thereafter the public body must release and pay in full the amounts retained (other than continuing retention of five percent of the moneys earned for landscaping) subject to the provisions of chapters 3912 and 6028 RCW (b) Sixty days after completion of all contract work the public body must release and pay in full the amounts retained during the performance of the contract subject to the provisions of chapters 3912 and 6028 RCW (4) The moneys reserved by a public body under the provisions of a public improvement contract at the option of the contractor must be (a) Retained in a fund by the public body (b) Deposited by the public body in an interest bearing account in a bank mutual savings bank or savings and loan association Interest on moneys reserved by a public body under the provision of a public improvement contract must be paid to the contractor (c) Placed in escrow with a bank or trust company by the public body When the moneys reserved are placed in escrow the public body must issue a check representing the sum of the moneys reserved payable to the bank or trust company and the contractor jointly This check must be converted into bonds and securities chosen by the contractor and approved by the public body and the bonds and securities must be held in escrow Interest on the bonds and securities must be paid to the contractor as the interest accrues (5) The contractor or subcontractor may withhold payment of not more than five percent from the moneys earned by any subcontractor or sub-subcontractor or supplier contracted with by the contractor to provide labor materials or equipment to the public project Whenever the contractor or subcontractor reserves funds earned by a subcontractor or sub-subcontractor or

CCBA Nuts amp Bolts on Construction Law - 46 of 49

supplier the contractor or subcontractor must pay interest to the subcontractor or sub-subcontractor or supplier at a rate equal to that received by the contractor or subcontractor from reserved funds (6) A contractor may submit a bond for all or any portion of the contract retainage in a form acceptable to the public body and from a bonding company meeting standards established by the public body The public body must accept a bond meeting these requirements unless the public body can demonstrate good cause for refusing to accept it This bond and any proceeds therefrom are subject to all claims and liens and in the same manner and priority as set forth for retained percentages in this chapter The public body must release the bonded portion of the retained funds to the contractor within thirty days of accepting the bond from the contractor Whenever a public body accepts a bond in lieu of retained funds from a contractor the contractor must accept like bonds from any subcontractors or suppliers from which the contractor has retained funds The contractor must then release the funds retained from the subcontractor or supplier to the subcontractor or supplier within thirty days of accepting the bond from the subcontractor or supplier (7) If the public body administering a contract after a substantial portion of the work has been completed finds that an unreasonable delay will occur in the completion of the remaining portion of the contract for any reason not the result of a breach thereof it may if the contractor agrees delete from the contract the remaining work and accept as final the improvement at the stage of completion then attained and make payment in proportion to the amount of the work accomplished and in this case any amounts retained and accumulated under this section must be held for a period of sixty days following the completion In the event that the work is terminated before final completion as provided in this section the public body may thereafter enter into a new contract with the same contractor to perform the remaining work or improvement for an amount equal to or less than the cost of the remaining work as was provided for in the original contract without advertisement or bid The provisions of this chapter are exclusive and supersede all provisions and regulations in conflict herewith (8) Whenever the department of transportation has contracted for the construction of two or more ferry vessels sixty days after completion of all contract work on each ferry vessel the department must release and pay in full the amounts retained in connection with the construction of the vessel subject to the provisions of RCW 6028021 and chapter 3912 RCW However the department of transportation may at its discretion condition the release of funds retained in connection with the completed ferry upon the contractor delivering a good and sufficient bond with two or more sureties or with a surety company in the amount of the retained funds to be released to the contractor conditioned that no taxes may be certified or claims filed for work on the ferry after a period of sixty days following completion of the ferry and if taxes are certified or claims filed recovery may be had on the bond by the department of revenue the employment

CCBA Nuts amp Bolts on Construction Law - 47 of 49

security department the department of labor and industries and the material suppliers and laborers filing claims (9) Except as provided in subsection (1) of this section reservation by a public body for any purpose from the moneys earned by a contractor by fulfilling its responsibilities under public improvement contracts is prohibited (10) Contracts on projects funded in whole or in part by farmers home administration and subject to farmers home administration regulations are not subject to subsections (1) through (9) of this section (11) This subsection applies only to a public body that has contracted for the construction of a facility using the general contractorconstruction manager procedure as defined under RCW 3910210 If the work performed by a subcontractor on the project has been completed within the first half of the time provided in the general contractorconstruction manager contract for completing the work the public body may accept the completion of the subcontract The public body must give public notice of this acceptance After a forty-five day period for giving notice of liens and compliance with the retainage release procedures in RCW 6028021 the public body may release that portion of the retained funds associated with the subcontract Claims against the retained funds after the forty-five day period are not valid (12) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise (a) Contract retainage means an amount reserved by a public body from the moneys earned by a person under a public improvement contract (b) Person means a person or persons mechanic subcontractor or materialperson who performs labor or provides materials for a public improvement contract and any other person who supplies the person with provisions or supplies for the carrying on of a public improvement contract (c) Public body means the state or a county city town district board or other public body (d) Public improvement contract means a contract for public improvements or work other than for professional services or a work order as defined in RCW 3910210

CCBA Nuts amp Bolts on Construction Law - 48 of 49

RCW 6432070 Liens or encumbrances mdash Enforcement mdash Satisfaction

(1) Subsequent to recording the declaration as provided in this chapter and while the property remains subject to this chapter no lien shall thereafter arise or be effective against the property During such period liens or encumbrances shall arise or be created only against each apartment and the percentage of undivided interest in the common areas and facilities and appurtenant to such apartment in the same manner and under the same conditions in every respect as liens or encumbrances may arise or be created upon or against any other separate parcel of real property subject to individual ownership PROVIDED That no labor performed or materials furnished with the consent of or at the request of the owner of any apartment or such owners agent contractor or subcontractor shall be the basis for the filing of a lien against any other apartment or any other property of any other apartment owner not expressly consenting to or requesting the same except that such express consent shall be deemed to be given by any apartment owner in the case of emergency repairs Labor performed or materials furnished for the common areas and facilities if authorized by the association of apartment owners the manager or board of directors shall be deemed to be performed or furnished with the express consent of each apartment owner and shall be the basis for the filing of a lien against each of the apartments and shall be subject to the provisions of subsection (2) of this section (2) In the event a lien against two or more apartments becomes effective the apartment owners of the separate apartments may remove their apartment and the percentage of undivided interest in the common areas and facilities appurtenant to such apartment from the lien by payment of the fractional or proportional amounts attributable to each of the apartments affected Such individual payments shall be computed by reference to the percentages appearing on the declaration Subsequent to any such payment discharge or satisfaction the apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto shall thereafter be free and clear of the liens so paid satisfied or discharged Such partial payment satisfaction or discharge shall not prevent the lienor from proceeding to enforce his or her rights against any apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto not so paid satisfied or discharged

CCBA Nuts amp Bolts on Construction Law - 49 of 49

  • Cover Sheet
  • 20141110 - Washington Lien and Bond CLE
  • LampI Lien Summary
  • Claim of Lien
  • Form Notice to Owner
  • Model Disclosure Statement (Notice to Customer)
  • LampI Facts about Construction Liens
    • What you should know about contracts
    • How to protect your investment
    • For more information
      • Notice of Claim Against Bond and Retained Percentage
      • Preclaim Notice Bond amp Retained Percentage
      • Statute Handout
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Quality 30 gtgt AntiAliasMonoImages false CropMonoImages true MonoImageMinResolution 1200 MonoImageMinResolutionPolicy OK DownsampleMonoImages true MonoImageDownsampleType Bicubic MonoImageResolution 1200 MonoImageDepth -1 MonoImageDownsampleThreshold 150000 EncodeMonoImages false MonoImageFilter CCITTFaxEncode MonoImageDict ltlt K -1 gtgt AllowPSXObjects false CheckCompliance [ None ] PDFX1aCheck false PDFX3Check false PDFXCompliantPDFOnly false PDFXNoTrimBoxError true PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile (None) PDFXOutputConditionIdentifier () PDFXOutputCondition () PDFXRegistryName () PDFXTrapped False Description ltlt CHS 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 DEU 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 ESP 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 FRA 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ltFEFF9ad854c18cea306a30d730ea30d730ec30b951fa529b7528002000410064006f0062006500200050004400460020658766f8306e4f5c6210306b4f7f75283057307e305930023053306e8a2d5b9a30674f5c62103055308c305f0020005000440046002030d530a130a430eb306f3001004100630072006f0062006100740020304a30883073002000410064006f00620065002000520065006100640065007200200035002e003000204ee5964d3067958b304f30533068304c3067304d307e305930023053306e8a2d5b9a306b306f30d530a930f330c8306e57cb30818fbc307f304c5fc59808306730593002gt KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020ace0d488c9c80020c2dcd5d80020c778c1c4c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200035002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor prepress-afdrukken van hoge kwaliteit De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 50 en hoger) NOR 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 PTB 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 SUO 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 SVE ltFEFF0041006e007600e4006e00640020006400650020006800e4007200200069006e0073007400e4006c006c006e0069006e006700610072006e00610020006f006d002000640075002000760069006c006c00200073006b006100700061002000410064006f006200650020005000440046002d0064006f006b0075006d0065006e007400200073006f006d002000e400720020006c00e4006d0070006c0069006700610020006600f60072002000700072006500700072006500730073002d007500740073006b00720069006600740020006d006500640020006800f600670020006b00760061006c0069007400650074002e002000200053006b006100700061006400650020005000440046002d0064006f006b0075006d0065006e00740020006b0061006e002000f600700070006e00610073002000690020004100630072006f0062006100740020006f00630068002000410064006f00620065002000520065006100640065007200200035002e00300020006f00630068002000730065006e006100720065002egt ENU (Use these settings to create Adobe PDF documents best suited for high-quality prepress printing Created PDF documents can be opened with Acrobat and Adobe Reader 50 and later) gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false ConvertColors ConvertToCMYK DestinationProfileName () DestinationProfileSelector DocumentCMYK Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles false MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector DocumentCMYK PreserveEditing true UntaggedCMYKHandling LeaveUntagged UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ]gtgt setdistillerparamsltlt HWResolution [2400 2400] PageSize [612000 792000]gtgt setpagedevice

          1. To
          2. Date
          3. Re
          4. From
          5. AT THE REQUEST OF
          6. Sender
          7. Address
          8. Telephone
          9. Brief description of professional services materials or equipment provided or to be provided
          10. 1
          11. 2
          12. 3
          13. reg no
          14. deposit $
          15. expiration date
          16. claims up to $
          17. Reset

11122014

6

Immix Law Group Washington Lien and Bond Claims

Creating a Construction Lien

Additional Steps for Sub‐Tier Subcontractors Professionals and Suppliersbull ldquoNotice to Ownerrdquo (Preclaim Notice) (RCW 6004031)

bull Professionals material suppliers and equipment suppliers must provide ldquoNotice to Ownerrdquo on all projects

bull The purpose of the Notice is to inform the Owner of the project of the personsentities working on the project even though not present on the project site

Immix Law Group Washington Lien and Bond Claims

Creating a Construction LienAdditional Steps for Lower‐Tier Subs Professionals and Suppliersbull Who is not required to give Notice to Owner

bull Persons who contract directly with the owner or ownerrsquos common law agent

bull Laborers whose lien is based solely upon providing laborbull First‐tier subcontractors who contract directly with the prime

contractorbull Exclusion First‐tier subcontractors who contract directly with the

prime contractor in connection with improvements of an existing owner‐occupied single family residence

Immix Law Group Washington Lien and Bond Claims

Creating a Construction Lien

ldquoNotice to Ownerrdquobull When required

bull Commercial Project = 60 daysbull Residential Project = 10 days

bull Who servedbull Serve both the owner and general contractor via

certified or registered mail with return receipt

CCBA Nuts amp Bolts on Construction Law - 7 of 49

11122014

7

Immix Law Group Washington Lien and Bond Claims

Creating a Construction Lien

ldquoNotice to Customerrdquo (RCW 1827114)bull Must be provided by the prime contractor to the owner on a

project before the start of construction where the project isbull Four or fewer residential units and the contract price is

greater than $1000bull Commercial project where the bidcontract price is

between $1000 and $60000[NOTE In Oregon GCs are required to give several forms]

Practice Pointer Include directly in the construction contract

Immix Law Group Washington Lien and Bond Claims

Foreclosing on a Construction Lien

Lien Foreclosure Lawsuit (RCW 6004171)bull Must be commenced within eight months of the date of

recording the Claim of Lien in the jurisdiction where the real property is locatedbull [NOTE In Oregon the foreclosure suit must be commenced

within 120 days]bull Failure to foreclose invalidates the claim of lienbull Failure to prosecute the foreclosure to judgment within two

years may result in dismissal of the lien foreclosure case

Immix Law Group Washington Lien and Bond Claims

Foreclosing on a Construction Lien

Priority of the Lien (RCW 6004181)bull Not all liens are equal ndash the type of lien is ranked as follows

bull Laborbull Employee benefit plansbull Furnishing material supplies or equipmentbull Subcontractors andbull Prime contractors and professional services

bull Proceeds are applied by rank and pro rata in each class Any mortgagedeed of trust recorded after start of claimantsrsquo work will be ldquosecond in linerdquo

CCBA Nuts amp Bolts on Construction Law - 8 of 49

11122014

8

Immix Law Group Washington Lien and Bond Claims

Foreclosing on a Construction Lien

Amount of the Lienbull Contract price

bull Includes contractual attorneysrsquo fees and interestbull If no contract then reasonable value of the work

performedbull The prevailing party is entitled to their reasonable attorneysrsquo

fees recording fees title report costs etc in pursuing and prosecuting the lien (RCW 6004181)

Immix Law Group Washington Lien and Bond Claims

Foreclosing on a Construction Lien

Bonding ldquoAroundrdquo the Lien (RCW 6004161)bull OwnerPrime can bond around the lien by obtaining a surety

bond under the following requirements bull If disputed amount is over $10000 then 150 of lien

amountbull If disputed amount is under $10000 then $5000 or twice

the amount of the lienbull The lien attaches to the bond and releases the propertybull Foreclosure proceeds as normal however the surety must be

added as a party to the lien foreclosure action

Immix Law Group Washington Lien and Bond Claims

Foreclosing on a Construction Lien

Amendments to Lien (RCW 6004091(2))ldquoWhere an action to foreclose the lien has been commenced such notice of claim of lien may be amended as pleadings may be by order of the court insofar as the interests of third parties are not adversely affected by such amendmentrdquo

[NOTE In Oregon amendments are not expressly allowed by statute] Practice Pointer Before filing a claim of lien verify that your client will not perform any additional work

CCBA Nuts amp Bolts on Construction Law - 9 of 49

11122014

9

Immix Law Group

Property Ownersrsquo Claims Against Contractors

Immix Law Group Washington Lien and Bond Claims

Property Ownersrsquo Claims Against Contractors

Claiming a Frivolous Lien (RCW 6004081)bull Party can request a show cause hearing where applicant must

show that lien is frivolous and ldquomade without reasonable causerdquo or is ldquoclearly excessiverdquo

bull If lien claimant fails to show the lien will be releasedbull High standard for ldquoFrivolousnessrdquo

bull ldquopresents no debatable issue and is so devoid of merit that it has no possibility of successrdquo

bull Prevailing party may get reasonable attorneysrsquo fees and costs

Immix Law Group Washington Lien and Bond Claims

Property Ownersrsquo Claims Against Contractors

Claim Against Contractor Registration Bond (RCW 1827040)bull Contractors are required to obtain registration bonds

bull General contractors = $12000bull Subcontractors = $6000

bull Persons contracting with the contractor can sue against the contractorrsquos registration bond

bull SOLbull Homeowners = 2 yearsbull Everyone else = 1 year

CCBA Nuts amp Bolts on Construction Law - 10 of 49

11122014

10

Immix Law Group Washington Lien and Bond Claims

Property Ownersrsquo Claims Against Contractors

Claim Against Contractor Registration Bond (RCW 1827040)bull Recovery Limitations

bull Residential homeowners entitled to recover entire bond amountbull Other claimants are entitled to frac12 of the bond amount or $4000 if

subcontractor or specialty contractorbull Claimants entitled to attorneysrsquo fees up to amount of bond

Immix Law Group Washington Lien and Bond Claims

Property Ownersrsquo Claims Against Contractors

Claim Against Contractor Registration Bond (RCW 1827040)

bull Service Requirementsbull Service on the bonding company and the contractor must be made

on the Department of Labor amp Industries by serving three copies of the summons and complaint by certified andor registered mail (RCW 1827040(3)) with the filing fee

bull You should also serve the contractor and all other named defendants personally so that the breach of contract claim and other claims are properly served

Immix Law Group

Washington Public Contracts Retainage and Bond Claims

CCBA Nuts amp Bolts on Construction Law - 11 of 49

11122014

11

Immix Law Group Washington Lien and Bond Claims

Public Contracts Retainage ClaimsRetainage Claims (RCW 6028011)bull ldquolsquoContract retainagersquo means an amount reserved by a public body from

the moneys earned by a person under a public improvement contractrdquo bull Usually five percent (5)bull Prime contractor can submit a bond in lieu of retainagebull All persons supplying labor materials equipment services entitled to

claimbull Exception Temporary labor supplier not entitled to claim against retention

because not ldquosubcontractorrdquo Better Financial Solutions Inc v Caicos Corp 117 Wn App 899 (2003)

Immix Law Group Washington Lien and Bond Claims

Public Contracts Retainage Claims

Preclaim Notice of Retainage Claim (RCW 6028011)

bull Sub‐tier subcontractors and suppliers must give preclaimnotice to the public agency within 60 days of furnishing labor material supplies or equipment to the project

bull Relates back 60 days from the date of the noticebull Must be delivered to contracting agency

Immix Law Group Washington Lien and Bond Claims

Public Contracts Retainage Claims

Notice of Retainage Claim (RCW 6028011)

bull All claimants must provide a Notice of Claim within 45 days after ldquocompletion of the contract workrdquo (essentially ldquoproject completionrdquo)

bull The Notice must be delivered to contracting agencybull Hand delivered or certified mail with return receipt

bull Must file the foreclosure suit within 4 months after providing the Notice of Claim

CCBA Nuts amp Bolts on Construction Law - 12 of 49

11122014

12

Immix Law Group Washington Lien and Bond Claims

Public Contracts Bond Claims

Bond Claims ndash Washingtonrsquos Little Miller Act (RCW 3908010)

On Washington Public Works projects in excess of $25000 general contractors must post a payment bond usually in the amount of the contract price

Immix Law Group Washington Lien and Bond Claims

Public Contracts Bond Claims

Preclaim Notice of Bond Claim (RCW 3908010)

bull Lower‐tier subcontractors and material suppliers must give preclaim notice to the prime contractor within 10 days after starting work

Immix Law Group Washington Lien and Bond Claims

Public Contracts Bond Claims

Notice of Bond Claim (RCW 3908010)

bull All claimants must provide a Notice of Claim within 30 days after ldquoacceptance of the workrdquo (different than retention claim)bull ldquoAcceptancerdquo is an affirmative act by the public works owner

bull The Notice must be delivered to public works ownerbull Hand delivered or certified mail with return receipt

bull No deadline provided in the statute ndash foreclose by general statute of limitationsbull 3 years for oral contracts 6 years for written contracts

CCBA Nuts amp Bolts on Construction Law - 13 of 49

11122014

13

Immix Law Group Washington Lien and Bond Claims

Public Contracts Bond amp Retainage Claims

bull Practice Pointer Coordinate the filing of the retention and bond Preclaim Notice and Notice of Claim to ensure that the contractorrsquos claims are protected

bull File the Bond amp Retainage Preclaim Notice within 10 days after starting work

bull File the Bond amp Retainage Notice of Claim within 30 days from project completion

Immix Law Group Washington Lien and Bond Claims

Public Contracts Prompt Pay ActWashingtonrsquos Prompt Pay Act

bull Prime contractors are entitled to payment within 30 days after the public agencyrsquos receipt of the invoice

bull If the public agency intends to withhold payment (all or in part) the agency must notify the contractor in writing within 8 days of receipt stating

bull Why payment (all or part) is being withheld

bull Actions required by contractor in order to receive payment

Immix Law Group Washington Lien and Bond Claims

Public Contracts Prompt Pay ActWashingtonrsquos Prompt Pay Act (contrsquod)

bull Public agency can withhold up to 150 of the disputed amount

bull Failure to comply entitles the contractor to 1 interest per month until paid

bull Subcontractors must be paid within 10 days of prime contractorrsquos receipt of payment

CCBA Nuts amp Bolts on Construction Law - 14 of 49

11122014

14

Immix Law Group

Questions

CCBA Nuts amp Bolts on Construction Law - 15 of 49

SUMMARY OF THE REQUIREMENTS TO BE MET BY A LIEN CLAIMANT ON A WASHINGTON PRIVATE CONSTRUCTION PROJECT

NOTICE TO CUSTOMER

FROM

Prime Contractor working on four or fewer residential units when the contract price is $1000 or more or on a commercial building when the contract price is $1000 or more but less than $60000

TO Owner

WHEN Before starting construction NOTICE OF FURNISHING PROFESSIONAL SERVICES

FROM

Provider of professional services

TO County Recorder

WHEN As soon as professional services are commenced PRECLAIM NOTICE (for all projects except repair and remodeling of owner-occupied single-family residence)

FROM

Provider of professional services materials or equipment except that the following need not provide the notice (1) a provider that contracts directly with the owner or the owners actual agent or (2) a first tier subcontractor

TO Owner and usually also prime contractor

WHEN New single family residence within ten days of first supplying professional services materials or equipment All other projects within 60 days of first supplying professional services materials or equipment

PRECLAIM NOTICE (for repair and remodeling of owner-occupied single-family residence)

FROM

Provider of professional services materials or equipment to anyone other than the owner

TO Owner and usually also prime contractor

WHEN Immediately after agreeing to furnish professional services materials or equipment

FROM

Potential lien claimant to whom payment is five or more days overdue

NOTICE TO REAL PROPERTY LENDER (only applicable where there is not a payment bond of at least 50 of the amount of construction financing)

TO Construction lender owner and prime contractor

WHEN Within 35 days of date payment is due

CLAIM OF LIEN

FROM

Unpaid claimant

TO County Recorder

WHEN Not later than 90 days after the last furnishing of labor professional services materials or equipment or the last date on which employee benefit contributions were due

COPY OF CLAIM OF LIEN

FROM

Unpaid claimant

TO Owner

WHEN Within 14 days of date claim of lien is filed for recording

DEADLINE FOR FILING A LAWSUIT Within eight months of recording claim of lien

F625-055-000 const lien summary 2-96 This summary is intended to generally set forth the requirements applicable to most lien claimants The remainder of the chapter should be consulted for a more detailed discussion

CCBA Nuts amp Bolts on Construction Law - 16 of 49

CLAIM OF LIEN SIGNED BY ATTORNEY

Return Address __________________________ __________________________ __________________________

Document Title Claim of Lien

Reference Number _____________________________

Grantor _____________________________

Grantee _____________________________

Legal Description

Assessors Property Tax Parcel No

CLAIM OF LIEN

________________________ claimant vs _____________________________ name of persons indebted to claimant

Notice is hereby given that the person named below claims a lien pursuant to Chapter 6004 RCW In

support of this lien the following information is submitted

1 NAME OF LIEN CLAIMANT ______________________________________

TELEPHONE NUMBER ______________________________________

ADDRESS ______________________________________

______________________________________

2 DATE ON WHICH THE CLAIMANT BEGAN TO PERFORM LABOR PROVIDE PROFESSIONAL SERVICES SUPPLY MATERIAL OR EQUIPMENT OR THE DATE ON WHICH EMPLOYEE BENEFIT CONTRIBUTIONS BECOMES DUE _________

3 NAME OF PERSON INDEBTED TO THE CLAIMANT _________________

4 DESCRIPTIONOF THE PROPERTY AGAINST WHICH A LIEN IS CLAIMED All fee leasehold and other interests of _______________ and any other owner person or entity in the property commonly known as ___________________________located at _______________________ _________________________ _________________County Washington _______ the legal description of which is believed to be as follows

[Legal Description - andor - The legal description of the underlying real property is described on the attached Exhibit A]

CCBA Nuts amp Bolts on Construction Law - 17 of 49

5 NAME OF THE OWNER OR REPUTED OWNER (if not known state ldquounknownrdquo) ____________________________________________________________________________________________

6 THE LAST DATE ON WHICH LABOR WAS PERFORMED PROFESSIONAL SERVICES WERE FURNISHED CONTRIBUTIONS TO AN EMPLOYEE BENEFIT PLAN WERE DUE OR MATERIAL OR EQUIPMENT WAS FURNISHED _____________________________________________________________

7 PRINCIPAL AMOUNT FOR WHICH THE LIEN IS CLAIMED IS $_______

8 IF THE CLAIMANT IS THE ASSIGNEE OF THIS CLAIM SO STATE HERE ___

___________________ Claimant ___________________________

___________________________ (__)____-______

By ________s________________ Print Name ___________________ Its Attorney

STATE OF WASHINGTON )

SS COUNTYOF ____________ )

________________ being sworn says I am the attorney of the claimant above named I have read or heard the foregoing claim read and know the contents thereof and believe the same to be true and correct and that the claim of lien is not frivolous and is made with reasonable cause and is not clearly excessive under penalty of perjury

__________________________ Print Name _______________

SUBSCRIBED and SWORN to before me this ___day of ___________________ 201_

STATE OF WASHINGTON )

SS COUNTYOF ____________ )

[Seal or Stamp]

__________________________ Print Name _______________ Notary Public in and for the State of Washington residing at________________________________ My Commission Expires __________________

CCBA Nuts amp Bolts on Construction Law - 18 of 49

I certify that I know or have satisfactory evidence that___________________ is the person who appeared before me and said person acknowledged that [heshe] signed this instrument on oath stated that [heshe] was authorized to execute this instrument and acknowledged it as the attorney of___________________ to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument

CCBA Nuts amp Bolts on Construction Law - 19 of 49

F625-054-000 construction lien notice 11-05 IMPORTANT INFORMATION ON PAGE 2

NOTICE TO OWNER IMPORTANT READ BOTH SIDES OF THIS NOTICE CAREFULLY

PROTECT YOURSELF FROM PAYING TWICE

To

Date

Re

From (Description of property street address or general location)

AT THE REQUEST OF Name of person ordering their professional services materials or equipment

THIS IS NOT A LIEN This notice is sent to you to tell you who is providing professional services materials or equipment for the improvement of your property and to advise you of the rights of these persons and your responsibilities Also take notice that laborers on your project may claim a lien without sending you a notice

OWNEROCCUPIER OF EXISTING RESIDENTIAL PROPERTY Under Washington law those who furnish labor professional services materials or equipment for the repair remodel or alteration of you owner-occupied principal residence and who are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien The law limits the amount that a lien claimant can claim against your property Claims may only be made against that portion of the contract price you have not yet paid to your prime contractor as of the time this notice was given to you or three days after this notice was mailed to you Review page 2 of this notice for more information and ways to avoid lien claims

COMMERCIAL ANDOR NEW RESIDENTIAL PROPERTY We have or will be providing professional services materials or equipment for the improvement of your commercial or new residential project In the event you or your contractor fail to pay us we may file a lien against your property A lien may be claimed for all professional services materials or equipment furnished after a date that is sixty days before this notice was given to you or mailed to you unless the improvement to you property is the construction of a new single-family residence then ten days before this notice was given to you or mailed to you

Sender

Address

Telephone

Brief description of professional services materials or equipment provided or to be provided

CCBA Nuts amp Bolts on Construction Law - 20 of 49

F625-054-000 construction lien notice page 2 11-05

Important Information for your Protection

This notice is sent to inform you that we have or will provide professional services materials or equipment for the repair remodel or alteration of you property We expect to be paid by the person who ordered our services but if we are not paid we have the right to enforce our claim by filing a construction lien against your property

LEARN more about the lien laws and the meaning of this notice by

discussing them with our contractor suppliers Department of Labor and Industries the firm sending you this notice your lender or your attorney

COMMON METHODS TO AVOID CONSTRUCTION LIENS

There are several methods available to protect your property from construction liens The following are two of the more commonly used methods

DUAL PAYCHECKS (Joint Checks) When paying your

contractor for services or materials you may make checks payable jointly to the contractor and the firms furnishing you this notice

LIEN RELEASES You may require your contractor to provide

lien releases signed by all the suppliers and subcontractors from whom you have received this notice If they cannot obtain lien releases because you have not paid them you may use the dual payee check method to protect yourself

You should take appropriate steps to protect your property from

liens

Your prime contractor and your construction lender are required by law to give you written information about lien claims If you have not received it ask them for it

CCBA Nuts amp Bolts on Construction Law - 21 of 49

F625-030-000 model disclosure statement notice to customer 09-2007

Department of Labor and Industries Construction Compliance

MODEL DISCLOSURE STATEMENTNOTICE TO CUSTOMER

This contractor is registered with the state of Washington registration no____________________ and has posted with the state a bond or deposit of ______________________ for the purpose of satisfying claims against the contractor for breach of contract including negligent or improper work in the conduct of the contractorrsquos business The expiration date of this contractorrsquos registration is ______________________

THIS BOND OR DEPOSIT MIGHT NOT BE SUFFICIENT TO COVER A CLAIM THAT MIGHT ARISE FROM THE WORK DONE UNDER YOUR CONTRACT This bond or deposit is not for your exclusive use because it covers all work performed by this contractor The bond or deposit is intended to pay valid claims up to ___________________________ that you and other customers suppliers subcontractors or taxing authorities may have FOR GREATER PROTECTION YOU MAY WITHHOLD A PERCENTAGE OF YOUR CONTRACT You may withhold a contractually defined percentage of your construction contract as retainage for a stated period of time to provide protection to you and help insure that your project will be completed as required by your contract

YOUR PROPERTY MAY BE LIENED If a supplier of materials used in your construction project or an employee or subcontractor of your contractor or subcontractors is not paid your property may be liened to force payment and you could pay twice for the same work FOR ADDITIONAL PROTECTION YOU MAY REQUEST THE CONTRACTOR TO PROVIDE YOU WITH ORIGINAL ldquoLIEN RELEASErdquo DOCUMENTS FROM EACH SUPPLIER OR SUBCONTRACTOR AT YOUR PROJECT The contractor is required to provide you with further information about lien release document if you request it General information is also available from the state Department of Labor and Industries I have received a copy of this disclosure statement Dated this _______ day of _______________ of the year __________

_____________________________________________________ Signature of Customer The contractor must retain a signed copy of the disclosure statement in his or her files for a minimum of three years and produce a signed or electronic signature copy of the disclosure statement to the department upon request

CCBA Nuts amp Bolts on Construction Law - 22 of 49

Facts About Construction LiensWhat you should know about contractsIf your contractor fails to pay subcontractors suppliers or laborers or neglects to make other legally required payments those who are owed money can look to your property for payment even if you have paid your contractor in full This is true if you have hired a contractor to build a new home or are buying a newly built home

It is also true when you remodel or improve your property although the amount of your liability may be limited to the amount you owe the prime contractor at the time a lien is filed

Under Washington laws those who work on your property or provide materials and are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien

People who supply materials or labor ordered by your contractor are permitted by law to file a lien only if they do so within 90 days of cessation of performance or delivery of materials The time frame is spelled out in RCW 6004091

If you enter into a contract to buy a newly built home you may not receive a notice of a lien based on a claim by a contractor or material handler Be aware that a lien may be claimed even though you have not received a notice

Before making final payment on the project request a completed lien release form from each contractor and material supplier A sample of this release of lien form is available from the Department of Labor amp Industries Contractor Registration Section

You have final responsibility for seeing that all bills are paid even if you have paid your contractor in full

If you receive a notice to enforce a lien take the notice seriously Let your contractor know you have received the notice Find out what arrangements are being made to pay the sender of the notice

When in doubt or if you need more details consult your attorney When and how to pay your contractor is a decision that requires serious consideration

Reminder Washington laws require contractors to give you a disclosure statement if your contract exceeds $1000 [RCW 1827114(A) or (B)]

CCBA Nuts amp Bolts on Construction Law - 23 of 49

PUBLICATION F625-017-000 [01-2008]

Other formats for persons with disabilities are available on request Call 1-800-647-0982 TDD users call 360-902-5797 LampI is an equal opportunity employer

For more information

How to protect your investment

If you are dealing with a lending institution ask your loan officer what precautions the lending institution takes to verify that subcontractors and material suppliers are being paid when mortgage money is paid to your contractor

Request lender supervision when dealing with a lending institution that provides interim or construction financing

Ask the prime contractor to disclose all potential lien claimants as a condition of payment A lien claimant must mail (by certified or registered mail or by personal service) a copy of the claim of lien to the owner within 14 days of the time the lien is recorded [RCW 6004091(2)] While an action is ongoing an owner may withhold from this prime contractor the amount of money for which a claim is recorded by a subcontractor supplier or laborer [RCW 6004151]

It is recommended that your check be made payable jointly naming the contractor and the subcontractor or supplier as payees

Upon payment and acceptance of the amount due the owner has the right to an executed release of all lien rights by lien claimants [RCW 6004071]

Consider using an escrow agent to protect your interests Find out whether your escrow agent will protect you against liens when disbursing payments If you are interested in this alternative consult your attorney

Request that your contractor post a performance bond in the amount of the project cost That will give you recourse in the event the contractor fails to complete the building agreement

8 On the Web Find more information about hiring a contractor at

wwwLniwagovTradesLicensingContractorsHireCon

Contractor Registration Hotline1-800-647-0982

You may also call your local LampI office See listings under ldquoWashington State ofrdquo in the government section or the white pages of the telephone book

Please note This notice was prepared by the Department of Labor amp Industries Specialty Compliance Services Division for reproduction by lending institutions and contractors for distribution to their clients It explains the basics of the construction lien law to help you protect yourself This information is not a reflection upon the abilities or credit of your contractor

CCBA Nuts amp Bolts on Construction Law - 24 of 49

NOTICE OF CLAIM AGAINST

BOND AND RETAINED PERCENTAGE

RCW 3908030 RCW 6028010

VIA CERTIFIED MAIL ndash RETURN RECEIPT REQUESTED

TO [Public Owner] [Public Ownerrsquos Address]

Project [Project Name amp Address] NOTICE IS HEREBY GIVEN that the undersigned [Claimant] [Claimantrsquos Address] has a claim in the amount of ----- and 00100 Dollars ($XX) (not including attorneysrsquo fees or costs) together with interest at twelve percent (12) against [Public Owner] (ldquoOwnerrdquo) pursuant to RCW 6028 and the payment bond taken from [Prime Contractor] (ldquoContractorrdquo) [Prime Contractorrsquos Address] as principal and [Surety Company] (ldquoSuretyrdquo) [Suretyrsquos Address] as surety Bond No ________ pursuant to RCW 3908 for [describe services material supplies labor furnished] provided on the Project This Notice of Claim Against Bond and Retained Percentage supersedes and replaces previous Notices DATED This ___day of _________ 201_ [Claimant] By ______________________________________ Its ______________________________________ [Claimantrsquos Address]

_________________________________________

[Contractors Registration No if applicable]

(Copies furnished to General Contractor and General Contractorrsquos Bonding Company)

CCBA Nuts amp Bolts on Construction Law - 25 of 49

PRECLAIM NOTICE TO CONTRACTOR BY SUBCONTRACTORS MATERIALMEN OR SUPPLIERS FOR

CLAIM AGAINST BOND AND RETAINED PERCENTAGE

VIA CERTIFIED OR REGISTERED MAIL- RETURN RECEIPT REQUESTED

TO [Name of General Contractor] [Address]

YOU ARE HEREBY NOTIFIED that the undersigned ____________at the request of_________________ commenced to deliver or furnish materials supplies andor equipment for the use in the construction alteration andor repair of that certain project known as____________________ [project name] which is located at ____________________________ [address or description] If the undersigned is not paid for these materials supplies andor equipment it will file a claim against you and your bond andor retainage pursuant to RCW 3908 andor 6028 et seq for payment of any sum that is due and owing to the undersigned

DATED This __ day of _____________ 201_

[Name of Claimant]

By ____________________________________

Its ____________________________________

Address ______________________________

__________________________________________

__________________________________________

[Contractors Registration No if applicable]

(Mail via certified mail return receipt requested or hand deliver and obtain receipt)

CCBA Nuts amp Bolts on Construction Law - 26 of 49

Washington Liens amp Bonds ndash Pertinent Statutes

RCW 1827040 Bond or other security required mdash Actions against mdash Suspension of registration upon impairment (1) Each applicant shall file with the department a surety bond issued by a surety insurer who meets the requirements of chapter 4828 RCW in the sum of twelve thousand dollars if the applicant is a general contractor and six thousand dollars if the applicant is a specialty contractor If no valid bond is already on file with the department at the time the application is filed a bond must accompany the registration application The bond shall have the state of Washington named as obligee with good and sufficient surety in a form to be approved by the department The bond shall be continuous and may be canceled by the surety upon the surety giving written notice to the director A cancellation or revocation of the bond or withdrawal of the surety from the bond automatically suspends the registration issued to the contractor until a new bond or reinstatement notice has been filed and approved as provided in this section The bond shall be conditioned that the applicant will pay all persons performing labor including employee benefits for the contractor will pay all taxes and contributions due to the state of Washington and will pay all persons furnishing material or renting or supplying equipment to the contractor and will pay all amounts that may be adjudged against the contractor by reason of breach of contract including improper work in the conduct of the contracting business A change in the name of a business or a change in the type of business entity shall not impair a bond for the purposes of this section so long as one of the original applicants for such bond maintains partial ownership in the business covered by the bond (2) At the time of initial registration or renewal the contractor shall provide a bond or other security deposit as required by this chapter and comply with all of the other provisions of this chapter before the department shall issue or renew the contractors certificate of registration Any contractor registered as of July 1 2001 who maintains that registration in accordance with this chapter is in compliance with this chapter until the next renewal of the contractors certificate of registration (3) Any person firm or corporation having a claim against the contractor for any of the items referred to in this section may bring suit against the contractor and the bond or deposit in the superior court of the county in which the work was done or of any county in which jurisdiction of the contractor may be had The surety issuing the bond shall be named as a party to any suit upon the bond Action upon the bond or deposit brought by a residential homeowner for breach of contract by a party to the construction contract shall be commenced by filing the summons and complaint with the clerk of the appropriate superior court within two years from the date the claimed contract work was substantially completed or abandoned whichever occurred first Action upon the bond or deposit brought by any other authorized party shall be commenced by filing the summons and complaint with the clerk of the appropriate superior court within one year from the date the claimed labor was performed and benefits accrued taxes and contributions owing the state of Washington became due materials and equipment were furnished or the claimed contract work was substantially completed or abandoned whichever occurred first Service of process in an action filed under this chapter against the contractor and the contractors bond or the deposit shall be exclusively by service upon the department Three

CCBA Nuts amp Bolts on Construction Law - 27 of 49

copies of the summons and complaint and a fee adopted by rule of not less than fifty dollars to cover the costs shall be served by registered or certified mail or other delivery service requiring notice of receipt upon the department at the time suit is started and the department shall maintain a record available for public inspection of all suits so commenced Service is not complete until the department receives the fee and three copies of the summons and complaint The service shall constitute service and confer personal jurisdiction on the contractor and the surety for suit on claimants claim against the contractor and the bond or deposit and the department shall transmit the summons and complaint or a copy thereof to the contractor at the address listed in the contractors application and to the surety within two days after it shall have been received (4) The surety upon the bond shall not be liable in an aggregate amount in excess of the amount named in the bond nor for any monetary penalty assessed pursuant to this chapter for an infraction The liability of the surety shall not cumulate where the bond has been renewed continued reinstated reissued or otherwise extended The surety upon the bond may upon notice to the department and the parties tender to the clerk of the court having jurisdiction of the action an amount equal to the claims thereunder or the amount of the bond less the amount of judgments if any previously satisfied therefrom and to the extent of such tender the surety upon the bond shall be exonerated but if the actions commenced and pending and provided to the department as required in subsection (3) of this section at any one time exceed the amount of the bond then unimpaired claims shall be satisfied from the bond in the following order (a) Employee labor and claims of laborers including employee benefits (b) Claims for breach of contract by a party to the construction contract (c) Registered or licensed subcontractors material and equipment (d) Taxes and contributions due the state of Washington (e) Any court costs interest and attorneys fees plaintiff may be entitled to recover The surety is not liable for any amount in excess of the penal limit of its bond A payment made by the surety in good faith exonerates the bond to the extent of any payment made by the surety (5) The total amount paid from a bond or deposit required of a general contractor by this section to claimants other than residential homeowners must not exceed one-half of the bond amount The total amount paid from a bond or deposit required of a specialty contractor by this section to claimants other than residential homeowners must not exceed one-half of the bond amount or four thousand dollars whichever is greater (6) The prevailing party in an action filed under this section against the contractor and contractors bond or deposit for breach of contract by a party to the construction contract involving a residential homeowner is entitled to costs interest and reasonable attorneys fees The surety upon the bond or deposit is not liable in an aggregate amount in excess of the amount

CCBA Nuts amp Bolts on Construction Law - 28 of 49

named in the bond or deposit nor for any monetary penalty assessed pursuant to this chapter for an infraction (7) If a final judgment impairs the liability of the surety upon the bond or deposit so furnished that there is not in effect a bond or deposit in the full amount prescribed in this section the registration of the contractor is automatically suspended until the bond or deposit liability in the required amount unimpaired by unsatisfied judgment claims is furnished (8) In lieu of the surety bond required by this section the contractor may file with the department an assigned savings account upon forms provided by the department (9) Any person having filed and served a summons and complaint as required by this section having an unsatisfied final judgment against the registrant for any items referred to in this section may execute upon the security held by the department by serving a certified copy of the unsatisfied final judgment by registered or certified mail upon the department within one year of the date of entry of such judgment Upon the receipt of service of such certified copy the department shall pay or order paid from the deposit through the registry of the superior court which rendered judgment towards the amount of the unsatisfied judgment The priority of payment by the department shall be the order of receipt by the department but the department shall have no liability for payment in excess of the amount of the deposit (10) Within ten days after resolution of the case a certified copy of the final judgment and order or any settlement documents where a case is not disposed of by a court trial a certified copy of the dispositive settlement documents must be provided to the department by the prevailing party Failure to provide a copy of the final judgment and order or the dispositive settlement documents to the department within ten days of entry of such an order constitutes a violation of this chapter and a penalty adopted by rule of not less than two hundred fifty dollars may be assessed against the prevailing party (11) The director may require an applicant applying to renew or reinstate a registration or applying for a new registration to file a bond of up to three times the normally required amount if the director determines that an applicant or a previous registration of a corporate officer owner or partner of a current applicant has had in the past five years a total of three final judgments in actions under this chapter involving a residential single-family dwelling on two or more different structures (12) The director may adopt rules necessary for the proper administration of the security RCW 1827114 Disclosure statement required mdash Prerequisite to lien claim

(1) Any contractor agreeing to perform any contracting project (a) For the repair alteration or construction of four or fewer residential units or accessory structures on such residential property when the bid or contract price totals one thousand dollars or more or (b) for the repair alteration or construction of a commercial building when the bid or contract price totals one thousand dollars or more but less than sixty thousand dollars must provide the customer with

CCBA Nuts amp Bolts on Construction Law - 29 of 49

the following disclosure statement in substantially the following form using lower case and upper case twelve-point and bold type where appropriate prior to starting work on the project NOTICE TO CUSTOMER This contractor is registered with the state of Washington registration no and has posted with the state a bond or deposit of for the purpose of satisfying claims against the contractor for breach of contract including negligent or improper work in the conduct of the contractors business The expiration date of this contractors registration is THIS BOND OR DEPOSIT MIGHT NOT BE SUFFICIENT TO COVER A CLAIM THAT MIGHT ARISE FROM THE WORK DONE UNDER YOUR CONTRACT This bond or deposit is not for your exclusive use because it covers all work performed by this contractor The bond or deposit is intended to pay valid claims up to that you and other customers suppliers subcontractors or taxing authorities may have FOR GREATER PROTECTION YOU MAY WITHHOLD A PERCENTAGE OF YOUR CONTRACT You may withhold a contractually defined percentage of your construction contract as retainage for a stated period of time to provide protection to you and help insure that your project will be completed as required by your contract YOUR PROPERTY MAY BE LIENED If a supplier of materials used in your construction project or an employee or subcontractor of your contractor or subcontractors is not paid your property may be liened to force payment and you could pay twice for the same work FOR ADDITIONAL PROTECTION YOU MAY REQUEST THE CONTRACTOR TO PROVIDE YOU WITH ORIGINAL LIEN RELEASE DOCUMENTS FROM EACH SUPPLIER OR SUBCONTRACTOR ON YOUR PROJECT The contractor is required to provide you with further information about lien release documents if you request it General information is also available from the state Department of Labor and Industries I have received a copy of this disclosure statement

CCBA Nuts amp Bolts on Construction Law - 30 of 49

(Signature of customer) (2) The contractor must retain a signed copy of the disclosure statement in his or her files for a minimum of three years and produce a signed or electronic signature copy of the disclosure statement to the department upon request (3) A contractor subject to this section shall notify any consumer to whom notice is required under subsection (1) of this section if the contractors registration has expired or is revoked or suspended by the department prior to completion or other termination of the contract with the consumer (4) No contractor subject to this section may bring or maintain any lien claim under chapter 6004 RCW based on any contract to which this section applies without alleging and proving that the contractor has provided the customer with a copy of the disclosure statement as required in subsection (1) of this section (5) This section does not apply to contracts authorized under chapter 3904 RCW or to contractors contracting with other contractors (6) Failure to comply with this section shall constitute an infraction under the provisions of this chapter (7) The department shall produce model disclosure statements and public service announcements detailing the information needed to assist contractors and contractors customers to comply under this section As necessary the department shall periodically update these education materials RCW 3908010 Bond required mdash Conditions mdash Retention of contract amount in lieu of bond (1)(a) Whenever any board council commission trustees or body acting for the state or any county or municipality or any public body must contract with any person or corporation to do any work for the state county or municipality or other public body city town or district such board council commission trustees or body must require the person or persons with whom such contract is made to make execute and deliver to such board council commission trustees or body a good and sufficient bond with a surety company as surety conditioned that such person or persons must (i) Faithfully perform all the provisions of such contract (ii) Pay all laborers mechanics and subcontractors and material suppliers and all persons who supply such person or persons or subcontractors with provisions and supplies for the carrying on of such work and

CCBA Nuts amp Bolts on Construction Law - 31 of 49

(iii) Pay the taxes increases and penalties incurred on the project under Titles 50 51 and 82 RCW on (A) Projects referred to in RCW 6028011(1)(b) andor (B) projects for which the bond is conditioned on the payment of such taxes increases and penalties (b) The bond in cases of cities and towns must be filed with the clerk or comptroller thereof and any person or persons performing such services or furnishing material to any subcontractor has the same right under the provisions of such bond as if such work services or material was furnished to the original contractor (2) The provisions of RCW 3908010 through 3908030 do not apply to any money loaned or advanced to any such contractor subcontractor or other person in the performance of any such work (3) On contracts of thirty-five thousand dollars or less at the option of the contractor the respective public entity may in lieu of the bond retain fifty percent of the contract amount for a period of thirty days after date of final acceptance or until receipt of all necessary releases from the department of revenue the employment security department and the department of labor and industries and settlement of any liens filed under chapter 6028 RCW whichever is later (4) For contracts of one hundred thousand dollars or less the public entity may accept a full payment and performance bond from an individual surety or sureties (5) The surety must agree to be bound by the laws of the state of Washington and subjected to the jurisdiction of the state of Washington RCW 6004011 Definitions

Unless the context requires otherwise the definitions in this section apply throughout this chapter (1) Construction agent means any registered or licensed contractor registered or licensed subcontractor architect engineer or other person having charge of any improvement to real property who shall be deemed the agent of the owner for the limited purpose of establishing the lien created by this chapter (2) Contract price means the amount agreed upon by the contracting parties or if no amount is agreed upon then the customary and reasonable charge therefor (3) Draws means periodic disbursements of interim or construction financing by a lender (4) Furnishing labor professional services materials or equipment means the performance of any labor or professional services the contribution owed to any employee benefit plan on account of any labor the provision of any supplies or materials and the renting leasing or

CCBA Nuts amp Bolts on Construction Law - 32 of 49

otherwise supplying of equipment for the improvement of real property (5) Improvement means (a) Constructing altering repairing remodeling demolishing clearing grading or filling in of to or upon any real property or street or road in front of or adjoining the same (b) planting of trees vines shrubs plants hedges or lawns or providing other landscaping materials on any real property and (c) providing professional services upon real property or in preparation for or in conjunction with the intended activities in (a) or (b) of this subsection (6) Interim or construction financing means that portion of money secured by a mortgage deed of trust or other encumbrance to finance improvement of or to real property but does not include (a) Funds to acquire real property (b) Funds to pay interest insurance premiums lease deposits taxes assessments or prior encumbrances (c) Funds to pay loan commitment title legal closing recording or appraisal fees (d) Funds to pay other customary fees which pursuant to agreement with the owner or borrower are to be paid by the lender from time to time (e) Funds to acquire personal property for which the potential lien claimant may not claim a lien pursuant to this chapter (7) Labor means exertion of the powers of body or mind performed at the site for compensation Labor includes amounts due and owed to any employee benefit plan on account of such labor performed (8) Mortgagee means a person who has a valid mortgage of record or deed of trust of record securing a loan (9) Owner-occupied means a single-family residence occupied by the owner as his or her principal residence (10) Payment bond means a surety bond issued by a surety licensed to issue surety bonds in the state of Washington that confers upon potential claimants the rights of third party beneficiaries (11) Potential lien claimant means any person or entity entitled to assert lien rights under this chapter who has otherwise complied with the provisions of this chapter and is registered or licensed if required to be licensed or registered by the provisions of the laws of the state of Washington (12) Prime contractor includes all contractors general contractors and specialty

CCBA Nuts amp Bolts on Construction Law - 33 of 49

contractors as defined by chapter 1827 or 1928 RCW or who are otherwise required to be registered or licensed by law who contract directly with a property owner or their common law agent to assume primary responsibility for the creation of an improvement to real property and includes property owners or their common law agents who are contractors general contractors or specialty contractors as defined in chapter 1827 or 1928 RCW or who are otherwise required to be registered or licensed by law who offer to sell their property without occupying or using the structures projects developments or improvements for more than one year (13) Professional services means surveying establishing or marking the boundaries of preparing maps plans or specifications for or inspecting testing or otherwise performing any other architectural or engineering services for the improvement of real property (14) Real property lender means a bank savings bank savings and loan association credit union mortgage company or other corporation association partnership trust or individual that makes loans secured by real property located in the state of Washington (15) Site means the real property which is or is to be improved (16) Subcontractor means a general contractor or specialty contractor as defined by chapter 1827 or 1928 RCW or who is otherwise required to be registered or licensed by law who contracts for the improvement of real property with someone other than the owner of the property or their common law agent

6004021 Lien authorized

Except as provided in RCW 6004031 any person furnishing labor professional services materials or equipment for the improvement of real property shall have a lien upon the improvement for the contract price of labor professional services materials or equipment furnished at the instance of the owner or the agent or construction agent of the owner

6004031 Notices mdash Exceptions

(1) Except as otherwise provided in this section every person furnishing professional services materials or equipment for the improvement of real property shall give the owner or reputed owner notice in writing of the right to claim a lien If the prime contractor is in compliance with the requirements of RCW 1927095 6004230 and 6004261 this notice shall also be given to the prime contractor as described in this subsection unless the potential lien claimant has contracted directly with the prime contractor The notice may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after the date which is sixty days before (a) Mailing the notice by certified or registered mail to the owner or reputed owner or

CCBA Nuts amp Bolts on Construction Law - 34 of 49

(b) Delivering or serving the notice personally upon the owner or reputed owner and obtaining evidence of delivery in the form of a receipt or other acknowledgment signed by the owner or reputed owner or an affidavit of service In the case of new construction of a single-family residence the notice of a right to claim a lien may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after a date which is ten days before the notice is given as described in this subsection (2) Notices of a right to claim a lien shall not be required of (a) Persons who contract directly with the owner or the owners common law agent (b) Laborers whose claim of lien is based solely on performing labor or (c) Subcontractors who contract for the improvement of real property directly with the prime contractor except as provided in subsection (3)(b) of this section (3) Persons who furnish professional services materials or equipment in connection with the repair alteration or remodel of an existing owner-occupied single-family residence or appurtenant garage (a) Who contract directly with the owner-occupier or their common law agent shall not be required to send a written notice of the right to claim a lien and shall have a lien for the full amount due under their contract as provided in RCW 6004021 or (b) Who do not contract directly with the owner-occupier or their common law agent shall give notice of the right to claim a lien to the owner-occupier Liens of persons furnishing professional services materials or equipment who do not contract directly with the owner-occupier or their common law agent may only be satisfied from amounts not yet paid to the prime contractor by the owner at the time the notice described in this section is received regardless of whether amounts not yet paid to the prime contractor are due For the purposes of this subsection received means actual receipt of notice by personal service or registered or certified mail or three days after mailing by registered or certified mail excluding Saturdays Sundays or legal holidays (4) The notice of right to claim a lien described in subsection (1) of this section shall include but not be limited to the following information and shall substantially be in the following form using lower-case and upper-case ten-point type where appropriate

CCBA Nuts amp Bolts on Construction Law - 35 of 49

NOTICE TO OWNER

IMPORTANT READ BOTH SIDES OF THIS NOTICE CAREFULLY

PROTECT YOURSELF FROM PAYING TWICE

To Date

Re (description of property Street address or general location) From AT THE REQUEST OF (Name of person ordering the professional services materials or equipment) THIS IS NOT A LIEN This notice is sent to you to tell you who is providing professional services materials or equipment for the improvement of your property and to advise you of the rights of these persons and your responsibilities Also take note that laborers on your project may claim a lien without sending you a notice

OWNEROCCUPIER OF EXISTING

RESIDENTIAL PROPERTY

Under Washington law those who furnish labor professional services materials or equipment for the repair remodel or alteration of your owner-occupied principal residence and who are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien The law limits the amount that a lien claimant can claim against your property Claims may only be made against that portion of the contract price you have not yet paid to your prime contractor as of the time this notice was given to you or three days after this notice was mailed to you Review the back of this notice for more information and ways to avoid lien claims

COMMERCIAL ANDOR NEW

RESIDENTIAL PROPERTY

CCBA Nuts amp Bolts on Construction Law - 36 of 49

We have or will be providing professional services materials or equipment for the improvement of your commercial or new residential project In the event you or your contractor fail to pay us we may file a lien against your property A lien may be claimed for all professional services materials or equipment furnished after a date that is sixty days before this notice was given to you or mailed to you unless the improvement to your property is the construction of a new single-family residence then ten days before this notice was given to you or mailed to you Sender Address Telephone Brief description of professional services materials or equipment provided or to be provided

IMPORTANT INFORMATION

ON REVERSE SIDE

IMPORTANT INFORMATION

FOR YOUR PROTECTION This notice is sent to inform you that we have or will provide professional services materials or equipment for the improvement of your property We expect to be paid by the person who ordered our services but if we are not paid we have the right to enforce our claim by filing a construction lien against your property LEARN more about the lien laws and the meaning of this notice by discussing them with your contractor suppliers Department of Labor and Industries the firm sending you this notice your lender or your attorney

COMMON METHODS TO AVOID CONSTRUCTION LIENS There are several methods available to protect your property from construction liens The following are two of the more commonly used methods

DUAL PAYCHECKS (Joint Checks) When paying your contractor for services or materials you may make checks payable jointly to the contractor and the firms furnishing you this notice

CCBA Nuts amp Bolts on Construction Law - 37 of 49

LIEN RELEASES You may require your contractor to provide lien releases signed by all the suppliers and subcontractors from whom you have received this notice If they cannot obtain lien releases because you have not paid them you may use the dual payee check method to protect yourself

YOU SHOULD TAKE APPROPRIATE STEPS TO PROTECT YOUR PROPERTY FROM LIENS YOUR PRIME CONTRACTOR AND YOUR CONSTRUCTION LENDER ARE REQUIRED BY LAW TO GIVE YOU WRITTEN INFORMATION ABOUT LIEN CLAIMS IF YOU HAVE NOT RECEIVED IT ASK THEM FOR IT

(5) Every potential lien claimant providing professional services where no improvement as defined in RCW 6004011(5) (a) or (b) has been commenced and the professional services provided are not visible from an inspection of the real property may record in the real property records of the county where the property is located a notice which shall contain the professional service providers name address telephone number legal description of the property the owner or reputed owners name and the general nature of the professional services provided If such notice is not recorded the lien claimed shall be subordinate to the interest of any subsequent mortgagee and invalid as to the interest of any subsequent purchaser if the mortgagee or purchaser acts in good faith and for a valuable consideration acquires an interest in the property prior to the commencement of an improvement as defined in RCW 6004011(5) (a) or (b) without notice of the professional services being provided The notice described in this subsection shall be substantially in the following form

NOTICE OF FURNISHING

PROFESSIONAL SERVICES That on the (day) day of (month and year) (name of provider) began providing professional services upon or for the improvement of real property legally described as follows

[Legal Description is mandatory]

CCBA Nuts amp Bolts on Construction Law - 38 of 49

The general nature of the professional services provided is The owner or reputed owner of the real property is

(Signature)

(Name of Claimant)

(Street Address)

(City State Zip Code)

(Phone Number)

(6) A lien authorized by this chapter shall not be enforced unless the lien claimant has complied with the applicable provisions of this section

6004041 Contractor registration

A contractor or subcontractor required to be registered under chapter 1827 RCW or licensed under chapter 1928 RCW or otherwise required to be registered or licensed by law shall be deemed the construction agent of the owner for the purposes of establishing the lien created by this chapter only if so registered or licensed Persons dealing with contractors or subcontractors may rely for the purposes of this section upon a certificate of registration issued pursuant to chapter 1827 RCW or license issued pursuant to chapter 1928 RCW or other certificate or license issued pursuant to law covering the period when the labor professional services material or equipment shall be furnished and the lien rights shall not be lost by suspension or revocation of registration or license without their knowledge No lien rights described in this

CCBA Nuts amp Bolts on Construction Law - 39 of 49

chapter shall be lost or denied by virtue of the absence suspension or revocation of such registration or license with respect to any contractor or subcontractor not in immediate contractual privity with the lien claimant

6004081 Frivolous claim mdash Procedure

(1) Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who believes the claim of lien to be frivolous and made without reasonable cause or clearly excessive may apply by motion to the superior court for the county where the property or some part thereof is located for an order directing the lien claimant to appear before the court at a time no earlier than six nor later than fifteen days following the date of service of the application and order on the lien claimant and show cause if any he or she has why the relief requested should not be granted The motion shall state the grounds upon which relief is asked and shall be supported by the affidavit of the applicant or his or her attorney setting forth a concise statement of the facts upon which the motion is based (2) The order shall clearly state that if the lien claimant fails to appear at the time and place noted the lien shall be released with prejudice and that the lien claimant shall be ordered to pay the costs requested by the applicant including reasonable attorneys fees (3) If no action to foreclose the lien claim has been filed the clerk of the court shall assign a cause number to the application and obtain from the applicant a filing fee pursuant to RCW 3618016 If an action has been filed to foreclose the lien claim the application shall be made a part of that action (4) If following a hearing on the matter the court determines that the lien is frivolous and made without reasonable cause or clearly excessive the court shall issue an order releasing the lien if frivolous and made without reasonable cause or reducing the lien if clearly excessive and awarding costs and reasonable attorneys fees to the applicant to be paid by the lien claimant If the court determines that the lien is not frivolous and was made with reasonable cause and is not clearly excessive the court shall issue an order so stating and awarding costs and reasonable attorneys fees to the lien claimant to be paid by the applicant (5) Proceedings under this section shall not affect other rights and remedies available to the parties under this chapter or otherwise

6004091 Recording mdash Time mdash Contents of lien

Every person claiming a lien under RCW 6004021 shall file for recording in the county where the subject property is located a notice of claim of lien not later than ninety days after the person

CCBA Nuts amp Bolts on Construction Law - 40 of 49

has ceased to furnish labor professional services materials or equipment or the last date on which employee benefit contributions were due The notice of claim of lien (1) Shall state in substance and effect (a) The name phone number and address of the claimant (b) The first and last date on which the labor professional services materials or equipment was furnished or employee benefit contributions were due (c) The name of the person indebted to the claimant (d) The street address legal description or other description reasonably calculated to identify for a person familiar with the area the location of the real property to be charged with the lien (e) The name of the owner or reputed owner of the property if known and if not known that fact shall be stated and (f) The principal amount for which the lien is claimed (2) Shall be signed by the claimant or some person authorized to act on his or her behalf who shall affirmatively state they have read the notice of claim of lien and believe the notice of claim of lien to be true and correct under penalty of perjury and shall be acknowledged pursuant to chapter 6408 RCW If the lien has been assigned the name of the assignee shall be stated Where an action to foreclose the lien has been commenced such notice of claim of lien may be amended as pleadings may be by order of the court insofar as the interests of third parties are not adversely affected by such amendment A claim of lien substantially in the following form shall be sufficient

CLAIM OF LIEN

claimant vs name of person indebted to claimant

Notice is hereby given that the person named below claims a lien pursuant to chapter 6404 RCW In support of this lien the following information is submitted

1 NAME OF LIEN CLAIMANT

TELEPHONE NUMBER

CCBA Nuts amp Bolts on Construction Law - 41 of 49

ADDRESS

2 DATE ON WHICH THE CLAIMANT BEGAN TO PERFORM LABOR PROVIDE PROFESSIONAL SERVICES SUPPLY MATERIAL OR EQUIPMENT OR THE DATE ON WHICH EMPLOYEE BENEFIT CONTRIBUTIONS BECAME DUE

3 NAME OF PERSON INDEBTED TO THE CLAIMANT

4 DESCRIPTION OF THE PROPERTY AGAINST WHICH A LIEN IS CLAIMED (Street address legal description or other information that will reasonably describe the property)

5 NAME OF THE OWNER OR REPUTED OWNER (If not known state unknown)

6 THE LAST DATE ON WHICH LABOR WAS PERFORMED PROFESSIONAL SERVICES WERE FURNISHED CONTRIBUTIONS TO AN EMPLOYEE BENEFIT PLAN WERE DUE OR MATERIAL OR EQUIPMENT WAS FURNISHED

7 PRINCIPAL AMOUNT FOR WHICH THE LIEN IS CLAIMED IS

8 IF THE CLAIMANT IS THE ASSIGNEE OF THIS CLAIM SO STATE HERE

Claimant

(Phone number address city

CCBA Nuts amp Bolts on Construction Law - 42 of 49

and

state of claimant)

STATE OF WASHINGTON COUNTY OF ss being sworn says I am the claimant (or attorney of the claimant or administrator representative or agent of the trustees of an employee benefit plan) above named I have read or heard the foregoing claim read and know the contents thereof and believe the same to be true and correct and that the claim of lien is not frivolous and is made with reasonable cause and is not clearly excessive under penalty of perjury Subscribed and sworn to before me this day of The period provided for recording the claim of lien is a period of limitation and no action to foreclose a lien shall be maintained unless the claim of lien is filed for recording within the ninety-day period stated The lien claimant shall give a copy of the claim of lien to the owner or reputed owner by mailing it by certified or registered mail or by personal service within fourteen days of the time the claim of lien is filed for recording Failure to do so results in a forfeiture of any right the claimant may have to attorneys fees and costs against the owner under RCW 6004181

6004161 Bond in lieu of claim

Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who disputes the correctness or validity of the claim of lien may record either before or after the commencement of an action to enforce the lien in the office of the county recorder or auditor in the county where the claim of lien was recorded a bond issued by a surety company authorized to issue surety bonds in the state The surety shall be listed in the latest federal department of the treasury list of surety companies acceptable on federal bonds published in the Federal Register as authorized to issue bonds on United States government projects with an underwriting limitation including applicable reinsurance equal to or greater than the amount of the bond to be recorded The bond shall contain a description of the claim of lien and real property involved and be in an amount equal to the greater of five thousand dollars or two times the amount of the lien claimed if it is ten thousand dollars or less and in an amount equal to or greater than one and one-half times the amount of the lien if it is in

CCBA Nuts amp Bolts on Construction Law - 43 of 49

excess of ten thousand dollars If the claim of lien affects more than one parcel of real property and is segregated to each parcel the bond may be segregated the same as in the claim of lien A separate bond shall be required for each claim of lien made by separate claimants However a single bond may be used to guarantee payment of amounts claimed by more than one claim of lien by a single claimant so long as the amount of the bond meets the requirements of this section as applied to the aggregate sum of all claims by such claimant The condition of the bond shall be to guarantee payment of any judgment upon the lien in favor of the lien claimant entered in any action to recover the amount claimed in a claim of lien or on the claim asserted in the claim of lien The effect of recording a bond shall be to release the real property described in the notice of claim of lien from the lien and any action brought to recover the amount claimed Unless otherwise prohibited by law if no action is commenced to recover on a lien within the time specified in RCW 6004141 the surety shall be discharged from liability under the bond If an action is timely commenced then on payment of any judgment entered in the action or on payment of the full amount of the bond to the holder of the judgment whichever is less the surety shall be discharged from liability under the bond Nothing in this section shall in any way prohibit or limit the use of other methods devised by the affected parties to secure the obligation underlying a claim of lien and to obtain a release of real property from a claim of lien

6004181 Rank of lien mdash Application of proceeds mdash Attorneys fees

(1) In every case in which different construction liens are claimed against the same property the court shall declare the rank of such lien or class of liens which liens shall be in the following order (a) Liens for the performance of labor (b) Liens for contributions owed to employee benefit plans (c) Liens for furnishing material supplies or equipment (d) Liens for subcontractors including but not limited to their labor and materials and (e) Liens for prime contractors or for professional services (2) The proceeds of the sale of property must be applied to each lien or class of liens in order of its rank and in an action brought to foreclose a lien pro rata among each claimant in each separate priority class A personal judgment may be rendered against any party personally liable for any debt for which the lien is claimed If the lien is established the judgment shall provide

CCBA Nuts amp Bolts on Construction Law - 44 of 49

for the enforcement thereof upon the property liable as in the case of foreclosure of judgment liens The amount realized by such enforcement of the lien shall be credited upon the proper personal judgment The deficiency if any remaining unsatisfied shall stand as a personal judgment and may be collected by execution against any party liable therefor (3) The court may allow the prevailing party in the action whether plaintiff or defendant as part of the costs of the action the moneys paid for recording the claim of lien costs of title report bond costs and attorneys fees and necessary expenses incurred by the attorney in the superior court court of appeals supreme court or arbitration as the court or arbitrator deems reasonable Such costs shall have the priority of the class of lien to which they are related as established by subsection (1) of this section (4) Real property against which a lien under this chapter is enforced may be ordered sold by the court and the proceeds deposited into the registry of the clerk of the court pending further determination respecting distribution of the proceeds of the sale

6004900 Liberal construction mdash 1991 c 281

RCW 1927095 6004230 and 6004011 through 6004226 and 6004261 are to be liberally construed to provide security for all parties intended to be protected by their provisions

RCW 6028011

Retained percentage mdash Public transportation projects mdash Labor and material lien created mdash Bond in lieu of retained funds mdash Termination before completion mdash Chapter deemed exclusive mdash Release of ferry contract payments mdash Projects of farmers home administration mdash General contractorconstruction manager procedure mdash Definitions

(1)(a) Except as provided in (b) of this subsection public improvement contracts must provide and public bodies must reserve a contract retainage not to exceed five percent of the moneys earned by the contractor as a trust fund for the protection and payment of (i) The claims of any person arising under the contract and (ii) the state with respect to taxes increases and penalties imposed pursuant to Titles 50 51 and 82 RCW which may be due from such contractor (b) Public improvement contracts funded in whole or in part by federal transportation funds must rely upon the contract bond as referred to in chapter 3908 RCW for the protection and payment of (i) The claims of any person or persons arising under the contract to the extent such claims are provided for in RCW 3908010 and (ii) the state with respect to taxes increases and penalties incurred on the public improvement project under Titles 50 51 and 82 RCW which may be due The contract bond must remain in full force and effect until at a minimum all claims filed in compliance with chapter 3908 RCW are resolved

CCBA Nuts amp Bolts on Construction Law - 45 of 49

(2) Every person performing labor or furnishing supplies toward the completion of a public improvement contract has a lien upon moneys reserved by a public body under the provisions of a public improvement contract However the notice of the lien of the claimant must be given within forty-five days of completion of the contract work and in the manner provided in RCW 3908030 (3) The contractor at any time may request the contract retainage be reduced to one hundred percent of the value of the work remaining on the project (a) After completion of all contract work other than landscaping the contractor may request that the public body release and pay in full the amounts retained during the performance of the contract and sixty days thereafter the public body must release and pay in full the amounts retained (other than continuing retention of five percent of the moneys earned for landscaping) subject to the provisions of chapters 3912 and 6028 RCW (b) Sixty days after completion of all contract work the public body must release and pay in full the amounts retained during the performance of the contract subject to the provisions of chapters 3912 and 6028 RCW (4) The moneys reserved by a public body under the provisions of a public improvement contract at the option of the contractor must be (a) Retained in a fund by the public body (b) Deposited by the public body in an interest bearing account in a bank mutual savings bank or savings and loan association Interest on moneys reserved by a public body under the provision of a public improvement contract must be paid to the contractor (c) Placed in escrow with a bank or trust company by the public body When the moneys reserved are placed in escrow the public body must issue a check representing the sum of the moneys reserved payable to the bank or trust company and the contractor jointly This check must be converted into bonds and securities chosen by the contractor and approved by the public body and the bonds and securities must be held in escrow Interest on the bonds and securities must be paid to the contractor as the interest accrues (5) The contractor or subcontractor may withhold payment of not more than five percent from the moneys earned by any subcontractor or sub-subcontractor or supplier contracted with by the contractor to provide labor materials or equipment to the public project Whenever the contractor or subcontractor reserves funds earned by a subcontractor or sub-subcontractor or

CCBA Nuts amp Bolts on Construction Law - 46 of 49

supplier the contractor or subcontractor must pay interest to the subcontractor or sub-subcontractor or supplier at a rate equal to that received by the contractor or subcontractor from reserved funds (6) A contractor may submit a bond for all or any portion of the contract retainage in a form acceptable to the public body and from a bonding company meeting standards established by the public body The public body must accept a bond meeting these requirements unless the public body can demonstrate good cause for refusing to accept it This bond and any proceeds therefrom are subject to all claims and liens and in the same manner and priority as set forth for retained percentages in this chapter The public body must release the bonded portion of the retained funds to the contractor within thirty days of accepting the bond from the contractor Whenever a public body accepts a bond in lieu of retained funds from a contractor the contractor must accept like bonds from any subcontractors or suppliers from which the contractor has retained funds The contractor must then release the funds retained from the subcontractor or supplier to the subcontractor or supplier within thirty days of accepting the bond from the subcontractor or supplier (7) If the public body administering a contract after a substantial portion of the work has been completed finds that an unreasonable delay will occur in the completion of the remaining portion of the contract for any reason not the result of a breach thereof it may if the contractor agrees delete from the contract the remaining work and accept as final the improvement at the stage of completion then attained and make payment in proportion to the amount of the work accomplished and in this case any amounts retained and accumulated under this section must be held for a period of sixty days following the completion In the event that the work is terminated before final completion as provided in this section the public body may thereafter enter into a new contract with the same contractor to perform the remaining work or improvement for an amount equal to or less than the cost of the remaining work as was provided for in the original contract without advertisement or bid The provisions of this chapter are exclusive and supersede all provisions and regulations in conflict herewith (8) Whenever the department of transportation has contracted for the construction of two or more ferry vessels sixty days after completion of all contract work on each ferry vessel the department must release and pay in full the amounts retained in connection with the construction of the vessel subject to the provisions of RCW 6028021 and chapter 3912 RCW However the department of transportation may at its discretion condition the release of funds retained in connection with the completed ferry upon the contractor delivering a good and sufficient bond with two or more sureties or with a surety company in the amount of the retained funds to be released to the contractor conditioned that no taxes may be certified or claims filed for work on the ferry after a period of sixty days following completion of the ferry and if taxes are certified or claims filed recovery may be had on the bond by the department of revenue the employment

CCBA Nuts amp Bolts on Construction Law - 47 of 49

security department the department of labor and industries and the material suppliers and laborers filing claims (9) Except as provided in subsection (1) of this section reservation by a public body for any purpose from the moneys earned by a contractor by fulfilling its responsibilities under public improvement contracts is prohibited (10) Contracts on projects funded in whole or in part by farmers home administration and subject to farmers home administration regulations are not subject to subsections (1) through (9) of this section (11) This subsection applies only to a public body that has contracted for the construction of a facility using the general contractorconstruction manager procedure as defined under RCW 3910210 If the work performed by a subcontractor on the project has been completed within the first half of the time provided in the general contractorconstruction manager contract for completing the work the public body may accept the completion of the subcontract The public body must give public notice of this acceptance After a forty-five day period for giving notice of liens and compliance with the retainage release procedures in RCW 6028021 the public body may release that portion of the retained funds associated with the subcontract Claims against the retained funds after the forty-five day period are not valid (12) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise (a) Contract retainage means an amount reserved by a public body from the moneys earned by a person under a public improvement contract (b) Person means a person or persons mechanic subcontractor or materialperson who performs labor or provides materials for a public improvement contract and any other person who supplies the person with provisions or supplies for the carrying on of a public improvement contract (c) Public body means the state or a county city town district board or other public body (d) Public improvement contract means a contract for public improvements or work other than for professional services or a work order as defined in RCW 3910210

CCBA Nuts amp Bolts on Construction Law - 48 of 49

RCW 6432070 Liens or encumbrances mdash Enforcement mdash Satisfaction

(1) Subsequent to recording the declaration as provided in this chapter and while the property remains subject to this chapter no lien shall thereafter arise or be effective against the property During such period liens or encumbrances shall arise or be created only against each apartment and the percentage of undivided interest in the common areas and facilities and appurtenant to such apartment in the same manner and under the same conditions in every respect as liens or encumbrances may arise or be created upon or against any other separate parcel of real property subject to individual ownership PROVIDED That no labor performed or materials furnished with the consent of or at the request of the owner of any apartment or such owners agent contractor or subcontractor shall be the basis for the filing of a lien against any other apartment or any other property of any other apartment owner not expressly consenting to or requesting the same except that such express consent shall be deemed to be given by any apartment owner in the case of emergency repairs Labor performed or materials furnished for the common areas and facilities if authorized by the association of apartment owners the manager or board of directors shall be deemed to be performed or furnished with the express consent of each apartment owner and shall be the basis for the filing of a lien against each of the apartments and shall be subject to the provisions of subsection (2) of this section (2) In the event a lien against two or more apartments becomes effective the apartment owners of the separate apartments may remove their apartment and the percentage of undivided interest in the common areas and facilities appurtenant to such apartment from the lien by payment of the fractional or proportional amounts attributable to each of the apartments affected Such individual payments shall be computed by reference to the percentages appearing on the declaration Subsequent to any such payment discharge or satisfaction the apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto shall thereafter be free and clear of the liens so paid satisfied or discharged Such partial payment satisfaction or discharge shall not prevent the lienor from proceeding to enforce his or her rights against any apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto not so paid satisfied or discharged

CCBA Nuts amp Bolts on Construction Law - 49 of 49

  • Cover Sheet
  • 20141110 - Washington Lien and Bond CLE
  • LampI Lien Summary
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  • Form Notice to Owner
  • Model Disclosure Statement (Notice to Customer)
  • LampI Facts about Construction Liens
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    • For more information
      • Notice of Claim Against Bond and Retained Percentage
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      • Statute Handout
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Quality 30 gtgt AntiAliasMonoImages false CropMonoImages true MonoImageMinResolution 1200 MonoImageMinResolutionPolicy OK DownsampleMonoImages true MonoImageDownsampleType Bicubic MonoImageResolution 1200 MonoImageDepth -1 MonoImageDownsampleThreshold 150000 EncodeMonoImages false MonoImageFilter CCITTFaxEncode MonoImageDict ltlt K -1 gtgt AllowPSXObjects false CheckCompliance [ None ] PDFX1aCheck false PDFX3Check false PDFXCompliantPDFOnly false PDFXNoTrimBoxError true PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile (None) PDFXOutputConditionIdentifier () PDFXOutputCondition () PDFXRegistryName () PDFXTrapped False Description ltlt CHS 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 DEU 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 ESP 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 FRA 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 ITA ltFEFF005500740069006c0069007a007a006100720065002000710075006500730074006500200069006d0070006f007300740061007a0069006f006e00690020007000650072002000630072006500610072006500200064006f00630075006d0065006e00740069002000410064006f00620065002000500044004600200070006900f900200061006400610074007400690020006100200075006e00610020007000720065007300740061006d0070006100200064006900200061006c007400610020007100750061006c0069007400e0002e0020004900200064006f00630075006d0065006e007400690020005000440046002000630072006500610074006900200070006f00730073006f006e006f0020006500730073006500720065002000610070006500720074006900200063006f006e0020004100630072006f00620061007400200065002000410064006f00620065002000520065006100640065007200200035002e003000200065002000760065007200730069006f006e006900200073007500630063006500730073006900760065002egt JPN ltFEFF9ad854c18cea306a30d730ea30d730ec30b951fa529b7528002000410064006f0062006500200050004400460020658766f8306e4f5c6210306b4f7f75283057307e305930023053306e8a2d5b9a30674f5c62103055308c305f0020005000440046002030d530a130a430eb306f3001004100630072006f0062006100740020304a30883073002000410064006f00620065002000520065006100640065007200200035002e003000204ee5964d3067958b304f30533068304c3067304d307e305930023053306e8a2d5b9a306b306f30d530a930f330c8306e57cb30818fbc307f304c5fc59808306730593002gt KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020ace0d488c9c80020c2dcd5d80020c778c1c4c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200035002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor prepress-afdrukken van hoge kwaliteit De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 50 en hoger) NOR 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 PTB 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 SUO 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 SVE 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 ENU (Use these settings to create Adobe PDF documents best suited for high-quality prepress printing Created PDF documents can be opened with Acrobat and Adobe Reader 50 and later) gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false ConvertColors ConvertToCMYK DestinationProfileName () DestinationProfileSelector DocumentCMYK Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles false MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector DocumentCMYK PreserveEditing true UntaggedCMYKHandling LeaveUntagged UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ]gtgt setdistillerparamsltlt HWResolution [2400 2400] PageSize [612000 792000]gtgt setpagedevice

          1. To
          2. Date
          3. Re
          4. From
          5. AT THE REQUEST OF
          6. Sender
          7. Address
          8. Telephone
          9. Brief description of professional services materials or equipment provided or to be provided
          10. 1
          11. 2
          12. 3
          13. reg no
          14. deposit $
          15. expiration date
          16. claims up to $
          17. Reset

11122014

7

Immix Law Group Washington Lien and Bond Claims

Creating a Construction Lien

ldquoNotice to Customerrdquo (RCW 1827114)bull Must be provided by the prime contractor to the owner on a

project before the start of construction where the project isbull Four or fewer residential units and the contract price is

greater than $1000bull Commercial project where the bidcontract price is

between $1000 and $60000[NOTE In Oregon GCs are required to give several forms]

Practice Pointer Include directly in the construction contract

Immix Law Group Washington Lien and Bond Claims

Foreclosing on a Construction Lien

Lien Foreclosure Lawsuit (RCW 6004171)bull Must be commenced within eight months of the date of

recording the Claim of Lien in the jurisdiction where the real property is locatedbull [NOTE In Oregon the foreclosure suit must be commenced

within 120 days]bull Failure to foreclose invalidates the claim of lienbull Failure to prosecute the foreclosure to judgment within two

years may result in dismissal of the lien foreclosure case

Immix Law Group Washington Lien and Bond Claims

Foreclosing on a Construction Lien

Priority of the Lien (RCW 6004181)bull Not all liens are equal ndash the type of lien is ranked as follows

bull Laborbull Employee benefit plansbull Furnishing material supplies or equipmentbull Subcontractors andbull Prime contractors and professional services

bull Proceeds are applied by rank and pro rata in each class Any mortgagedeed of trust recorded after start of claimantsrsquo work will be ldquosecond in linerdquo

CCBA Nuts amp Bolts on Construction Law - 8 of 49

11122014

8

Immix Law Group Washington Lien and Bond Claims

Foreclosing on a Construction Lien

Amount of the Lienbull Contract price

bull Includes contractual attorneysrsquo fees and interestbull If no contract then reasonable value of the work

performedbull The prevailing party is entitled to their reasonable attorneysrsquo

fees recording fees title report costs etc in pursuing and prosecuting the lien (RCW 6004181)

Immix Law Group Washington Lien and Bond Claims

Foreclosing on a Construction Lien

Bonding ldquoAroundrdquo the Lien (RCW 6004161)bull OwnerPrime can bond around the lien by obtaining a surety

bond under the following requirements bull If disputed amount is over $10000 then 150 of lien

amountbull If disputed amount is under $10000 then $5000 or twice

the amount of the lienbull The lien attaches to the bond and releases the propertybull Foreclosure proceeds as normal however the surety must be

added as a party to the lien foreclosure action

Immix Law Group Washington Lien and Bond Claims

Foreclosing on a Construction Lien

Amendments to Lien (RCW 6004091(2))ldquoWhere an action to foreclose the lien has been commenced such notice of claim of lien may be amended as pleadings may be by order of the court insofar as the interests of third parties are not adversely affected by such amendmentrdquo

[NOTE In Oregon amendments are not expressly allowed by statute] Practice Pointer Before filing a claim of lien verify that your client will not perform any additional work

CCBA Nuts amp Bolts on Construction Law - 9 of 49

11122014

9

Immix Law Group

Property Ownersrsquo Claims Against Contractors

Immix Law Group Washington Lien and Bond Claims

Property Ownersrsquo Claims Against Contractors

Claiming a Frivolous Lien (RCW 6004081)bull Party can request a show cause hearing where applicant must

show that lien is frivolous and ldquomade without reasonable causerdquo or is ldquoclearly excessiverdquo

bull If lien claimant fails to show the lien will be releasedbull High standard for ldquoFrivolousnessrdquo

bull ldquopresents no debatable issue and is so devoid of merit that it has no possibility of successrdquo

bull Prevailing party may get reasonable attorneysrsquo fees and costs

Immix Law Group Washington Lien and Bond Claims

Property Ownersrsquo Claims Against Contractors

Claim Against Contractor Registration Bond (RCW 1827040)bull Contractors are required to obtain registration bonds

bull General contractors = $12000bull Subcontractors = $6000

bull Persons contracting with the contractor can sue against the contractorrsquos registration bond

bull SOLbull Homeowners = 2 yearsbull Everyone else = 1 year

CCBA Nuts amp Bolts on Construction Law - 10 of 49

11122014

10

Immix Law Group Washington Lien and Bond Claims

Property Ownersrsquo Claims Against Contractors

Claim Against Contractor Registration Bond (RCW 1827040)bull Recovery Limitations

bull Residential homeowners entitled to recover entire bond amountbull Other claimants are entitled to frac12 of the bond amount or $4000 if

subcontractor or specialty contractorbull Claimants entitled to attorneysrsquo fees up to amount of bond

Immix Law Group Washington Lien and Bond Claims

Property Ownersrsquo Claims Against Contractors

Claim Against Contractor Registration Bond (RCW 1827040)

bull Service Requirementsbull Service on the bonding company and the contractor must be made

on the Department of Labor amp Industries by serving three copies of the summons and complaint by certified andor registered mail (RCW 1827040(3)) with the filing fee

bull You should also serve the contractor and all other named defendants personally so that the breach of contract claim and other claims are properly served

Immix Law Group

Washington Public Contracts Retainage and Bond Claims

CCBA Nuts amp Bolts on Construction Law - 11 of 49

11122014

11

Immix Law Group Washington Lien and Bond Claims

Public Contracts Retainage ClaimsRetainage Claims (RCW 6028011)bull ldquolsquoContract retainagersquo means an amount reserved by a public body from

the moneys earned by a person under a public improvement contractrdquo bull Usually five percent (5)bull Prime contractor can submit a bond in lieu of retainagebull All persons supplying labor materials equipment services entitled to

claimbull Exception Temporary labor supplier not entitled to claim against retention

because not ldquosubcontractorrdquo Better Financial Solutions Inc v Caicos Corp 117 Wn App 899 (2003)

Immix Law Group Washington Lien and Bond Claims

Public Contracts Retainage Claims

Preclaim Notice of Retainage Claim (RCW 6028011)

bull Sub‐tier subcontractors and suppliers must give preclaimnotice to the public agency within 60 days of furnishing labor material supplies or equipment to the project

bull Relates back 60 days from the date of the noticebull Must be delivered to contracting agency

Immix Law Group Washington Lien and Bond Claims

Public Contracts Retainage Claims

Notice of Retainage Claim (RCW 6028011)

bull All claimants must provide a Notice of Claim within 45 days after ldquocompletion of the contract workrdquo (essentially ldquoproject completionrdquo)

bull The Notice must be delivered to contracting agencybull Hand delivered or certified mail with return receipt

bull Must file the foreclosure suit within 4 months after providing the Notice of Claim

CCBA Nuts amp Bolts on Construction Law - 12 of 49

11122014

12

Immix Law Group Washington Lien and Bond Claims

Public Contracts Bond Claims

Bond Claims ndash Washingtonrsquos Little Miller Act (RCW 3908010)

On Washington Public Works projects in excess of $25000 general contractors must post a payment bond usually in the amount of the contract price

Immix Law Group Washington Lien and Bond Claims

Public Contracts Bond Claims

Preclaim Notice of Bond Claim (RCW 3908010)

bull Lower‐tier subcontractors and material suppliers must give preclaim notice to the prime contractor within 10 days after starting work

Immix Law Group Washington Lien and Bond Claims

Public Contracts Bond Claims

Notice of Bond Claim (RCW 3908010)

bull All claimants must provide a Notice of Claim within 30 days after ldquoacceptance of the workrdquo (different than retention claim)bull ldquoAcceptancerdquo is an affirmative act by the public works owner

bull The Notice must be delivered to public works ownerbull Hand delivered or certified mail with return receipt

bull No deadline provided in the statute ndash foreclose by general statute of limitationsbull 3 years for oral contracts 6 years for written contracts

CCBA Nuts amp Bolts on Construction Law - 13 of 49

11122014

13

Immix Law Group Washington Lien and Bond Claims

Public Contracts Bond amp Retainage Claims

bull Practice Pointer Coordinate the filing of the retention and bond Preclaim Notice and Notice of Claim to ensure that the contractorrsquos claims are protected

bull File the Bond amp Retainage Preclaim Notice within 10 days after starting work

bull File the Bond amp Retainage Notice of Claim within 30 days from project completion

Immix Law Group Washington Lien and Bond Claims

Public Contracts Prompt Pay ActWashingtonrsquos Prompt Pay Act

bull Prime contractors are entitled to payment within 30 days after the public agencyrsquos receipt of the invoice

bull If the public agency intends to withhold payment (all or in part) the agency must notify the contractor in writing within 8 days of receipt stating

bull Why payment (all or part) is being withheld

bull Actions required by contractor in order to receive payment

Immix Law Group Washington Lien and Bond Claims

Public Contracts Prompt Pay ActWashingtonrsquos Prompt Pay Act (contrsquod)

bull Public agency can withhold up to 150 of the disputed amount

bull Failure to comply entitles the contractor to 1 interest per month until paid

bull Subcontractors must be paid within 10 days of prime contractorrsquos receipt of payment

CCBA Nuts amp Bolts on Construction Law - 14 of 49

11122014

14

Immix Law Group

Questions

CCBA Nuts amp Bolts on Construction Law - 15 of 49

SUMMARY OF THE REQUIREMENTS TO BE MET BY A LIEN CLAIMANT ON A WASHINGTON PRIVATE CONSTRUCTION PROJECT

NOTICE TO CUSTOMER

FROM

Prime Contractor working on four or fewer residential units when the contract price is $1000 or more or on a commercial building when the contract price is $1000 or more but less than $60000

TO Owner

WHEN Before starting construction NOTICE OF FURNISHING PROFESSIONAL SERVICES

FROM

Provider of professional services

TO County Recorder

WHEN As soon as professional services are commenced PRECLAIM NOTICE (for all projects except repair and remodeling of owner-occupied single-family residence)

FROM

Provider of professional services materials or equipment except that the following need not provide the notice (1) a provider that contracts directly with the owner or the owners actual agent or (2) a first tier subcontractor

TO Owner and usually also prime contractor

WHEN New single family residence within ten days of first supplying professional services materials or equipment All other projects within 60 days of first supplying professional services materials or equipment

PRECLAIM NOTICE (for repair and remodeling of owner-occupied single-family residence)

FROM

Provider of professional services materials or equipment to anyone other than the owner

TO Owner and usually also prime contractor

WHEN Immediately after agreeing to furnish professional services materials or equipment

FROM

Potential lien claimant to whom payment is five or more days overdue

NOTICE TO REAL PROPERTY LENDER (only applicable where there is not a payment bond of at least 50 of the amount of construction financing)

TO Construction lender owner and prime contractor

WHEN Within 35 days of date payment is due

CLAIM OF LIEN

FROM

Unpaid claimant

TO County Recorder

WHEN Not later than 90 days after the last furnishing of labor professional services materials or equipment or the last date on which employee benefit contributions were due

COPY OF CLAIM OF LIEN

FROM

Unpaid claimant

TO Owner

WHEN Within 14 days of date claim of lien is filed for recording

DEADLINE FOR FILING A LAWSUIT Within eight months of recording claim of lien

F625-055-000 const lien summary 2-96 This summary is intended to generally set forth the requirements applicable to most lien claimants The remainder of the chapter should be consulted for a more detailed discussion

CCBA Nuts amp Bolts on Construction Law - 16 of 49

CLAIM OF LIEN SIGNED BY ATTORNEY

Return Address __________________________ __________________________ __________________________

Document Title Claim of Lien

Reference Number _____________________________

Grantor _____________________________

Grantee _____________________________

Legal Description

Assessors Property Tax Parcel No

CLAIM OF LIEN

________________________ claimant vs _____________________________ name of persons indebted to claimant

Notice is hereby given that the person named below claims a lien pursuant to Chapter 6004 RCW In

support of this lien the following information is submitted

1 NAME OF LIEN CLAIMANT ______________________________________

TELEPHONE NUMBER ______________________________________

ADDRESS ______________________________________

______________________________________

2 DATE ON WHICH THE CLAIMANT BEGAN TO PERFORM LABOR PROVIDE PROFESSIONAL SERVICES SUPPLY MATERIAL OR EQUIPMENT OR THE DATE ON WHICH EMPLOYEE BENEFIT CONTRIBUTIONS BECOMES DUE _________

3 NAME OF PERSON INDEBTED TO THE CLAIMANT _________________

4 DESCRIPTIONOF THE PROPERTY AGAINST WHICH A LIEN IS CLAIMED All fee leasehold and other interests of _______________ and any other owner person or entity in the property commonly known as ___________________________located at _______________________ _________________________ _________________County Washington _______ the legal description of which is believed to be as follows

[Legal Description - andor - The legal description of the underlying real property is described on the attached Exhibit A]

CCBA Nuts amp Bolts on Construction Law - 17 of 49

5 NAME OF THE OWNER OR REPUTED OWNER (if not known state ldquounknownrdquo) ____________________________________________________________________________________________

6 THE LAST DATE ON WHICH LABOR WAS PERFORMED PROFESSIONAL SERVICES WERE FURNISHED CONTRIBUTIONS TO AN EMPLOYEE BENEFIT PLAN WERE DUE OR MATERIAL OR EQUIPMENT WAS FURNISHED _____________________________________________________________

7 PRINCIPAL AMOUNT FOR WHICH THE LIEN IS CLAIMED IS $_______

8 IF THE CLAIMANT IS THE ASSIGNEE OF THIS CLAIM SO STATE HERE ___

___________________ Claimant ___________________________

___________________________ (__)____-______

By ________s________________ Print Name ___________________ Its Attorney

STATE OF WASHINGTON )

SS COUNTYOF ____________ )

________________ being sworn says I am the attorney of the claimant above named I have read or heard the foregoing claim read and know the contents thereof and believe the same to be true and correct and that the claim of lien is not frivolous and is made with reasonable cause and is not clearly excessive under penalty of perjury

__________________________ Print Name _______________

SUBSCRIBED and SWORN to before me this ___day of ___________________ 201_

STATE OF WASHINGTON )

SS COUNTYOF ____________ )

[Seal or Stamp]

__________________________ Print Name _______________ Notary Public in and for the State of Washington residing at________________________________ My Commission Expires __________________

CCBA Nuts amp Bolts on Construction Law - 18 of 49

I certify that I know or have satisfactory evidence that___________________ is the person who appeared before me and said person acknowledged that [heshe] signed this instrument on oath stated that [heshe] was authorized to execute this instrument and acknowledged it as the attorney of___________________ to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument

CCBA Nuts amp Bolts on Construction Law - 19 of 49

F625-054-000 construction lien notice 11-05 IMPORTANT INFORMATION ON PAGE 2

NOTICE TO OWNER IMPORTANT READ BOTH SIDES OF THIS NOTICE CAREFULLY

PROTECT YOURSELF FROM PAYING TWICE

To

Date

Re

From (Description of property street address or general location)

AT THE REQUEST OF Name of person ordering their professional services materials or equipment

THIS IS NOT A LIEN This notice is sent to you to tell you who is providing professional services materials or equipment for the improvement of your property and to advise you of the rights of these persons and your responsibilities Also take notice that laborers on your project may claim a lien without sending you a notice

OWNEROCCUPIER OF EXISTING RESIDENTIAL PROPERTY Under Washington law those who furnish labor professional services materials or equipment for the repair remodel or alteration of you owner-occupied principal residence and who are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien The law limits the amount that a lien claimant can claim against your property Claims may only be made against that portion of the contract price you have not yet paid to your prime contractor as of the time this notice was given to you or three days after this notice was mailed to you Review page 2 of this notice for more information and ways to avoid lien claims

COMMERCIAL ANDOR NEW RESIDENTIAL PROPERTY We have or will be providing professional services materials or equipment for the improvement of your commercial or new residential project In the event you or your contractor fail to pay us we may file a lien against your property A lien may be claimed for all professional services materials or equipment furnished after a date that is sixty days before this notice was given to you or mailed to you unless the improvement to you property is the construction of a new single-family residence then ten days before this notice was given to you or mailed to you

Sender

Address

Telephone

Brief description of professional services materials or equipment provided or to be provided

CCBA Nuts amp Bolts on Construction Law - 20 of 49

F625-054-000 construction lien notice page 2 11-05

Important Information for your Protection

This notice is sent to inform you that we have or will provide professional services materials or equipment for the repair remodel or alteration of you property We expect to be paid by the person who ordered our services but if we are not paid we have the right to enforce our claim by filing a construction lien against your property

LEARN more about the lien laws and the meaning of this notice by

discussing them with our contractor suppliers Department of Labor and Industries the firm sending you this notice your lender or your attorney

COMMON METHODS TO AVOID CONSTRUCTION LIENS

There are several methods available to protect your property from construction liens The following are two of the more commonly used methods

DUAL PAYCHECKS (Joint Checks) When paying your

contractor for services or materials you may make checks payable jointly to the contractor and the firms furnishing you this notice

LIEN RELEASES You may require your contractor to provide

lien releases signed by all the suppliers and subcontractors from whom you have received this notice If they cannot obtain lien releases because you have not paid them you may use the dual payee check method to protect yourself

You should take appropriate steps to protect your property from

liens

Your prime contractor and your construction lender are required by law to give you written information about lien claims If you have not received it ask them for it

CCBA Nuts amp Bolts on Construction Law - 21 of 49

F625-030-000 model disclosure statement notice to customer 09-2007

Department of Labor and Industries Construction Compliance

MODEL DISCLOSURE STATEMENTNOTICE TO CUSTOMER

This contractor is registered with the state of Washington registration no____________________ and has posted with the state a bond or deposit of ______________________ for the purpose of satisfying claims against the contractor for breach of contract including negligent or improper work in the conduct of the contractorrsquos business The expiration date of this contractorrsquos registration is ______________________

THIS BOND OR DEPOSIT MIGHT NOT BE SUFFICIENT TO COVER A CLAIM THAT MIGHT ARISE FROM THE WORK DONE UNDER YOUR CONTRACT This bond or deposit is not for your exclusive use because it covers all work performed by this contractor The bond or deposit is intended to pay valid claims up to ___________________________ that you and other customers suppliers subcontractors or taxing authorities may have FOR GREATER PROTECTION YOU MAY WITHHOLD A PERCENTAGE OF YOUR CONTRACT You may withhold a contractually defined percentage of your construction contract as retainage for a stated period of time to provide protection to you and help insure that your project will be completed as required by your contract

YOUR PROPERTY MAY BE LIENED If a supplier of materials used in your construction project or an employee or subcontractor of your contractor or subcontractors is not paid your property may be liened to force payment and you could pay twice for the same work FOR ADDITIONAL PROTECTION YOU MAY REQUEST THE CONTRACTOR TO PROVIDE YOU WITH ORIGINAL ldquoLIEN RELEASErdquo DOCUMENTS FROM EACH SUPPLIER OR SUBCONTRACTOR AT YOUR PROJECT The contractor is required to provide you with further information about lien release document if you request it General information is also available from the state Department of Labor and Industries I have received a copy of this disclosure statement Dated this _______ day of _______________ of the year __________

_____________________________________________________ Signature of Customer The contractor must retain a signed copy of the disclosure statement in his or her files for a minimum of three years and produce a signed or electronic signature copy of the disclosure statement to the department upon request

CCBA Nuts amp Bolts on Construction Law - 22 of 49

Facts About Construction LiensWhat you should know about contractsIf your contractor fails to pay subcontractors suppliers or laborers or neglects to make other legally required payments those who are owed money can look to your property for payment even if you have paid your contractor in full This is true if you have hired a contractor to build a new home or are buying a newly built home

It is also true when you remodel or improve your property although the amount of your liability may be limited to the amount you owe the prime contractor at the time a lien is filed

Under Washington laws those who work on your property or provide materials and are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien

People who supply materials or labor ordered by your contractor are permitted by law to file a lien only if they do so within 90 days of cessation of performance or delivery of materials The time frame is spelled out in RCW 6004091

If you enter into a contract to buy a newly built home you may not receive a notice of a lien based on a claim by a contractor or material handler Be aware that a lien may be claimed even though you have not received a notice

Before making final payment on the project request a completed lien release form from each contractor and material supplier A sample of this release of lien form is available from the Department of Labor amp Industries Contractor Registration Section

You have final responsibility for seeing that all bills are paid even if you have paid your contractor in full

If you receive a notice to enforce a lien take the notice seriously Let your contractor know you have received the notice Find out what arrangements are being made to pay the sender of the notice

When in doubt or if you need more details consult your attorney When and how to pay your contractor is a decision that requires serious consideration

Reminder Washington laws require contractors to give you a disclosure statement if your contract exceeds $1000 [RCW 1827114(A) or (B)]

CCBA Nuts amp Bolts on Construction Law - 23 of 49

PUBLICATION F625-017-000 [01-2008]

Other formats for persons with disabilities are available on request Call 1-800-647-0982 TDD users call 360-902-5797 LampI is an equal opportunity employer

For more information

How to protect your investment

If you are dealing with a lending institution ask your loan officer what precautions the lending institution takes to verify that subcontractors and material suppliers are being paid when mortgage money is paid to your contractor

Request lender supervision when dealing with a lending institution that provides interim or construction financing

Ask the prime contractor to disclose all potential lien claimants as a condition of payment A lien claimant must mail (by certified or registered mail or by personal service) a copy of the claim of lien to the owner within 14 days of the time the lien is recorded [RCW 6004091(2)] While an action is ongoing an owner may withhold from this prime contractor the amount of money for which a claim is recorded by a subcontractor supplier or laborer [RCW 6004151]

It is recommended that your check be made payable jointly naming the contractor and the subcontractor or supplier as payees

Upon payment and acceptance of the amount due the owner has the right to an executed release of all lien rights by lien claimants [RCW 6004071]

Consider using an escrow agent to protect your interests Find out whether your escrow agent will protect you against liens when disbursing payments If you are interested in this alternative consult your attorney

Request that your contractor post a performance bond in the amount of the project cost That will give you recourse in the event the contractor fails to complete the building agreement

8 On the Web Find more information about hiring a contractor at

wwwLniwagovTradesLicensingContractorsHireCon

Contractor Registration Hotline1-800-647-0982

You may also call your local LampI office See listings under ldquoWashington State ofrdquo in the government section or the white pages of the telephone book

Please note This notice was prepared by the Department of Labor amp Industries Specialty Compliance Services Division for reproduction by lending institutions and contractors for distribution to their clients It explains the basics of the construction lien law to help you protect yourself This information is not a reflection upon the abilities or credit of your contractor

CCBA Nuts amp Bolts on Construction Law - 24 of 49

NOTICE OF CLAIM AGAINST

BOND AND RETAINED PERCENTAGE

RCW 3908030 RCW 6028010

VIA CERTIFIED MAIL ndash RETURN RECEIPT REQUESTED

TO [Public Owner] [Public Ownerrsquos Address]

Project [Project Name amp Address] NOTICE IS HEREBY GIVEN that the undersigned [Claimant] [Claimantrsquos Address] has a claim in the amount of ----- and 00100 Dollars ($XX) (not including attorneysrsquo fees or costs) together with interest at twelve percent (12) against [Public Owner] (ldquoOwnerrdquo) pursuant to RCW 6028 and the payment bond taken from [Prime Contractor] (ldquoContractorrdquo) [Prime Contractorrsquos Address] as principal and [Surety Company] (ldquoSuretyrdquo) [Suretyrsquos Address] as surety Bond No ________ pursuant to RCW 3908 for [describe services material supplies labor furnished] provided on the Project This Notice of Claim Against Bond and Retained Percentage supersedes and replaces previous Notices DATED This ___day of _________ 201_ [Claimant] By ______________________________________ Its ______________________________________ [Claimantrsquos Address]

_________________________________________

[Contractors Registration No if applicable]

(Copies furnished to General Contractor and General Contractorrsquos Bonding Company)

CCBA Nuts amp Bolts on Construction Law - 25 of 49

PRECLAIM NOTICE TO CONTRACTOR BY SUBCONTRACTORS MATERIALMEN OR SUPPLIERS FOR

CLAIM AGAINST BOND AND RETAINED PERCENTAGE

VIA CERTIFIED OR REGISTERED MAIL- RETURN RECEIPT REQUESTED

TO [Name of General Contractor] [Address]

YOU ARE HEREBY NOTIFIED that the undersigned ____________at the request of_________________ commenced to deliver or furnish materials supplies andor equipment for the use in the construction alteration andor repair of that certain project known as____________________ [project name] which is located at ____________________________ [address or description] If the undersigned is not paid for these materials supplies andor equipment it will file a claim against you and your bond andor retainage pursuant to RCW 3908 andor 6028 et seq for payment of any sum that is due and owing to the undersigned

DATED This __ day of _____________ 201_

[Name of Claimant]

By ____________________________________

Its ____________________________________

Address ______________________________

__________________________________________

__________________________________________

[Contractors Registration No if applicable]

(Mail via certified mail return receipt requested or hand deliver and obtain receipt)

CCBA Nuts amp Bolts on Construction Law - 26 of 49

Washington Liens amp Bonds ndash Pertinent Statutes

RCW 1827040 Bond or other security required mdash Actions against mdash Suspension of registration upon impairment (1) Each applicant shall file with the department a surety bond issued by a surety insurer who meets the requirements of chapter 4828 RCW in the sum of twelve thousand dollars if the applicant is a general contractor and six thousand dollars if the applicant is a specialty contractor If no valid bond is already on file with the department at the time the application is filed a bond must accompany the registration application The bond shall have the state of Washington named as obligee with good and sufficient surety in a form to be approved by the department The bond shall be continuous and may be canceled by the surety upon the surety giving written notice to the director A cancellation or revocation of the bond or withdrawal of the surety from the bond automatically suspends the registration issued to the contractor until a new bond or reinstatement notice has been filed and approved as provided in this section The bond shall be conditioned that the applicant will pay all persons performing labor including employee benefits for the contractor will pay all taxes and contributions due to the state of Washington and will pay all persons furnishing material or renting or supplying equipment to the contractor and will pay all amounts that may be adjudged against the contractor by reason of breach of contract including improper work in the conduct of the contracting business A change in the name of a business or a change in the type of business entity shall not impair a bond for the purposes of this section so long as one of the original applicants for such bond maintains partial ownership in the business covered by the bond (2) At the time of initial registration or renewal the contractor shall provide a bond or other security deposit as required by this chapter and comply with all of the other provisions of this chapter before the department shall issue or renew the contractors certificate of registration Any contractor registered as of July 1 2001 who maintains that registration in accordance with this chapter is in compliance with this chapter until the next renewal of the contractors certificate of registration (3) Any person firm or corporation having a claim against the contractor for any of the items referred to in this section may bring suit against the contractor and the bond or deposit in the superior court of the county in which the work was done or of any county in which jurisdiction of the contractor may be had The surety issuing the bond shall be named as a party to any suit upon the bond Action upon the bond or deposit brought by a residential homeowner for breach of contract by a party to the construction contract shall be commenced by filing the summons and complaint with the clerk of the appropriate superior court within two years from the date the claimed contract work was substantially completed or abandoned whichever occurred first Action upon the bond or deposit brought by any other authorized party shall be commenced by filing the summons and complaint with the clerk of the appropriate superior court within one year from the date the claimed labor was performed and benefits accrued taxes and contributions owing the state of Washington became due materials and equipment were furnished or the claimed contract work was substantially completed or abandoned whichever occurred first Service of process in an action filed under this chapter against the contractor and the contractors bond or the deposit shall be exclusively by service upon the department Three

CCBA Nuts amp Bolts on Construction Law - 27 of 49

copies of the summons and complaint and a fee adopted by rule of not less than fifty dollars to cover the costs shall be served by registered or certified mail or other delivery service requiring notice of receipt upon the department at the time suit is started and the department shall maintain a record available for public inspection of all suits so commenced Service is not complete until the department receives the fee and three copies of the summons and complaint The service shall constitute service and confer personal jurisdiction on the contractor and the surety for suit on claimants claim against the contractor and the bond or deposit and the department shall transmit the summons and complaint or a copy thereof to the contractor at the address listed in the contractors application and to the surety within two days after it shall have been received (4) The surety upon the bond shall not be liable in an aggregate amount in excess of the amount named in the bond nor for any monetary penalty assessed pursuant to this chapter for an infraction The liability of the surety shall not cumulate where the bond has been renewed continued reinstated reissued or otherwise extended The surety upon the bond may upon notice to the department and the parties tender to the clerk of the court having jurisdiction of the action an amount equal to the claims thereunder or the amount of the bond less the amount of judgments if any previously satisfied therefrom and to the extent of such tender the surety upon the bond shall be exonerated but if the actions commenced and pending and provided to the department as required in subsection (3) of this section at any one time exceed the amount of the bond then unimpaired claims shall be satisfied from the bond in the following order (a) Employee labor and claims of laborers including employee benefits (b) Claims for breach of contract by a party to the construction contract (c) Registered or licensed subcontractors material and equipment (d) Taxes and contributions due the state of Washington (e) Any court costs interest and attorneys fees plaintiff may be entitled to recover The surety is not liable for any amount in excess of the penal limit of its bond A payment made by the surety in good faith exonerates the bond to the extent of any payment made by the surety (5) The total amount paid from a bond or deposit required of a general contractor by this section to claimants other than residential homeowners must not exceed one-half of the bond amount The total amount paid from a bond or deposit required of a specialty contractor by this section to claimants other than residential homeowners must not exceed one-half of the bond amount or four thousand dollars whichever is greater (6) The prevailing party in an action filed under this section against the contractor and contractors bond or deposit for breach of contract by a party to the construction contract involving a residential homeowner is entitled to costs interest and reasonable attorneys fees The surety upon the bond or deposit is not liable in an aggregate amount in excess of the amount

CCBA Nuts amp Bolts on Construction Law - 28 of 49

named in the bond or deposit nor for any monetary penalty assessed pursuant to this chapter for an infraction (7) If a final judgment impairs the liability of the surety upon the bond or deposit so furnished that there is not in effect a bond or deposit in the full amount prescribed in this section the registration of the contractor is automatically suspended until the bond or deposit liability in the required amount unimpaired by unsatisfied judgment claims is furnished (8) In lieu of the surety bond required by this section the contractor may file with the department an assigned savings account upon forms provided by the department (9) Any person having filed and served a summons and complaint as required by this section having an unsatisfied final judgment against the registrant for any items referred to in this section may execute upon the security held by the department by serving a certified copy of the unsatisfied final judgment by registered or certified mail upon the department within one year of the date of entry of such judgment Upon the receipt of service of such certified copy the department shall pay or order paid from the deposit through the registry of the superior court which rendered judgment towards the amount of the unsatisfied judgment The priority of payment by the department shall be the order of receipt by the department but the department shall have no liability for payment in excess of the amount of the deposit (10) Within ten days after resolution of the case a certified copy of the final judgment and order or any settlement documents where a case is not disposed of by a court trial a certified copy of the dispositive settlement documents must be provided to the department by the prevailing party Failure to provide a copy of the final judgment and order or the dispositive settlement documents to the department within ten days of entry of such an order constitutes a violation of this chapter and a penalty adopted by rule of not less than two hundred fifty dollars may be assessed against the prevailing party (11) The director may require an applicant applying to renew or reinstate a registration or applying for a new registration to file a bond of up to three times the normally required amount if the director determines that an applicant or a previous registration of a corporate officer owner or partner of a current applicant has had in the past five years a total of three final judgments in actions under this chapter involving a residential single-family dwelling on two or more different structures (12) The director may adopt rules necessary for the proper administration of the security RCW 1827114 Disclosure statement required mdash Prerequisite to lien claim

(1) Any contractor agreeing to perform any contracting project (a) For the repair alteration or construction of four or fewer residential units or accessory structures on such residential property when the bid or contract price totals one thousand dollars or more or (b) for the repair alteration or construction of a commercial building when the bid or contract price totals one thousand dollars or more but less than sixty thousand dollars must provide the customer with

CCBA Nuts amp Bolts on Construction Law - 29 of 49

the following disclosure statement in substantially the following form using lower case and upper case twelve-point and bold type where appropriate prior to starting work on the project NOTICE TO CUSTOMER This contractor is registered with the state of Washington registration no and has posted with the state a bond or deposit of for the purpose of satisfying claims against the contractor for breach of contract including negligent or improper work in the conduct of the contractors business The expiration date of this contractors registration is THIS BOND OR DEPOSIT MIGHT NOT BE SUFFICIENT TO COVER A CLAIM THAT MIGHT ARISE FROM THE WORK DONE UNDER YOUR CONTRACT This bond or deposit is not for your exclusive use because it covers all work performed by this contractor The bond or deposit is intended to pay valid claims up to that you and other customers suppliers subcontractors or taxing authorities may have FOR GREATER PROTECTION YOU MAY WITHHOLD A PERCENTAGE OF YOUR CONTRACT You may withhold a contractually defined percentage of your construction contract as retainage for a stated period of time to provide protection to you and help insure that your project will be completed as required by your contract YOUR PROPERTY MAY BE LIENED If a supplier of materials used in your construction project or an employee or subcontractor of your contractor or subcontractors is not paid your property may be liened to force payment and you could pay twice for the same work FOR ADDITIONAL PROTECTION YOU MAY REQUEST THE CONTRACTOR TO PROVIDE YOU WITH ORIGINAL LIEN RELEASE DOCUMENTS FROM EACH SUPPLIER OR SUBCONTRACTOR ON YOUR PROJECT The contractor is required to provide you with further information about lien release documents if you request it General information is also available from the state Department of Labor and Industries I have received a copy of this disclosure statement

CCBA Nuts amp Bolts on Construction Law - 30 of 49

(Signature of customer) (2) The contractor must retain a signed copy of the disclosure statement in his or her files for a minimum of three years and produce a signed or electronic signature copy of the disclosure statement to the department upon request (3) A contractor subject to this section shall notify any consumer to whom notice is required under subsection (1) of this section if the contractors registration has expired or is revoked or suspended by the department prior to completion or other termination of the contract with the consumer (4) No contractor subject to this section may bring or maintain any lien claim under chapter 6004 RCW based on any contract to which this section applies without alleging and proving that the contractor has provided the customer with a copy of the disclosure statement as required in subsection (1) of this section (5) This section does not apply to contracts authorized under chapter 3904 RCW or to contractors contracting with other contractors (6) Failure to comply with this section shall constitute an infraction under the provisions of this chapter (7) The department shall produce model disclosure statements and public service announcements detailing the information needed to assist contractors and contractors customers to comply under this section As necessary the department shall periodically update these education materials RCW 3908010 Bond required mdash Conditions mdash Retention of contract amount in lieu of bond (1)(a) Whenever any board council commission trustees or body acting for the state or any county or municipality or any public body must contract with any person or corporation to do any work for the state county or municipality or other public body city town or district such board council commission trustees or body must require the person or persons with whom such contract is made to make execute and deliver to such board council commission trustees or body a good and sufficient bond with a surety company as surety conditioned that such person or persons must (i) Faithfully perform all the provisions of such contract (ii) Pay all laborers mechanics and subcontractors and material suppliers and all persons who supply such person or persons or subcontractors with provisions and supplies for the carrying on of such work and

CCBA Nuts amp Bolts on Construction Law - 31 of 49

(iii) Pay the taxes increases and penalties incurred on the project under Titles 50 51 and 82 RCW on (A) Projects referred to in RCW 6028011(1)(b) andor (B) projects for which the bond is conditioned on the payment of such taxes increases and penalties (b) The bond in cases of cities and towns must be filed with the clerk or comptroller thereof and any person or persons performing such services or furnishing material to any subcontractor has the same right under the provisions of such bond as if such work services or material was furnished to the original contractor (2) The provisions of RCW 3908010 through 3908030 do not apply to any money loaned or advanced to any such contractor subcontractor or other person in the performance of any such work (3) On contracts of thirty-five thousand dollars or less at the option of the contractor the respective public entity may in lieu of the bond retain fifty percent of the contract amount for a period of thirty days after date of final acceptance or until receipt of all necessary releases from the department of revenue the employment security department and the department of labor and industries and settlement of any liens filed under chapter 6028 RCW whichever is later (4) For contracts of one hundred thousand dollars or less the public entity may accept a full payment and performance bond from an individual surety or sureties (5) The surety must agree to be bound by the laws of the state of Washington and subjected to the jurisdiction of the state of Washington RCW 6004011 Definitions

Unless the context requires otherwise the definitions in this section apply throughout this chapter (1) Construction agent means any registered or licensed contractor registered or licensed subcontractor architect engineer or other person having charge of any improvement to real property who shall be deemed the agent of the owner for the limited purpose of establishing the lien created by this chapter (2) Contract price means the amount agreed upon by the contracting parties or if no amount is agreed upon then the customary and reasonable charge therefor (3) Draws means periodic disbursements of interim or construction financing by a lender (4) Furnishing labor professional services materials or equipment means the performance of any labor or professional services the contribution owed to any employee benefit plan on account of any labor the provision of any supplies or materials and the renting leasing or

CCBA Nuts amp Bolts on Construction Law - 32 of 49

otherwise supplying of equipment for the improvement of real property (5) Improvement means (a) Constructing altering repairing remodeling demolishing clearing grading or filling in of to or upon any real property or street or road in front of or adjoining the same (b) planting of trees vines shrubs plants hedges or lawns or providing other landscaping materials on any real property and (c) providing professional services upon real property or in preparation for or in conjunction with the intended activities in (a) or (b) of this subsection (6) Interim or construction financing means that portion of money secured by a mortgage deed of trust or other encumbrance to finance improvement of or to real property but does not include (a) Funds to acquire real property (b) Funds to pay interest insurance premiums lease deposits taxes assessments or prior encumbrances (c) Funds to pay loan commitment title legal closing recording or appraisal fees (d) Funds to pay other customary fees which pursuant to agreement with the owner or borrower are to be paid by the lender from time to time (e) Funds to acquire personal property for which the potential lien claimant may not claim a lien pursuant to this chapter (7) Labor means exertion of the powers of body or mind performed at the site for compensation Labor includes amounts due and owed to any employee benefit plan on account of such labor performed (8) Mortgagee means a person who has a valid mortgage of record or deed of trust of record securing a loan (9) Owner-occupied means a single-family residence occupied by the owner as his or her principal residence (10) Payment bond means a surety bond issued by a surety licensed to issue surety bonds in the state of Washington that confers upon potential claimants the rights of third party beneficiaries (11) Potential lien claimant means any person or entity entitled to assert lien rights under this chapter who has otherwise complied with the provisions of this chapter and is registered or licensed if required to be licensed or registered by the provisions of the laws of the state of Washington (12) Prime contractor includes all contractors general contractors and specialty

CCBA Nuts amp Bolts on Construction Law - 33 of 49

contractors as defined by chapter 1827 or 1928 RCW or who are otherwise required to be registered or licensed by law who contract directly with a property owner or their common law agent to assume primary responsibility for the creation of an improvement to real property and includes property owners or their common law agents who are contractors general contractors or specialty contractors as defined in chapter 1827 or 1928 RCW or who are otherwise required to be registered or licensed by law who offer to sell their property without occupying or using the structures projects developments or improvements for more than one year (13) Professional services means surveying establishing or marking the boundaries of preparing maps plans or specifications for or inspecting testing or otherwise performing any other architectural or engineering services for the improvement of real property (14) Real property lender means a bank savings bank savings and loan association credit union mortgage company or other corporation association partnership trust or individual that makes loans secured by real property located in the state of Washington (15) Site means the real property which is or is to be improved (16) Subcontractor means a general contractor or specialty contractor as defined by chapter 1827 or 1928 RCW or who is otherwise required to be registered or licensed by law who contracts for the improvement of real property with someone other than the owner of the property or their common law agent

6004021 Lien authorized

Except as provided in RCW 6004031 any person furnishing labor professional services materials or equipment for the improvement of real property shall have a lien upon the improvement for the contract price of labor professional services materials or equipment furnished at the instance of the owner or the agent or construction agent of the owner

6004031 Notices mdash Exceptions

(1) Except as otherwise provided in this section every person furnishing professional services materials or equipment for the improvement of real property shall give the owner or reputed owner notice in writing of the right to claim a lien If the prime contractor is in compliance with the requirements of RCW 1927095 6004230 and 6004261 this notice shall also be given to the prime contractor as described in this subsection unless the potential lien claimant has contracted directly with the prime contractor The notice may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after the date which is sixty days before (a) Mailing the notice by certified or registered mail to the owner or reputed owner or

CCBA Nuts amp Bolts on Construction Law - 34 of 49

(b) Delivering or serving the notice personally upon the owner or reputed owner and obtaining evidence of delivery in the form of a receipt or other acknowledgment signed by the owner or reputed owner or an affidavit of service In the case of new construction of a single-family residence the notice of a right to claim a lien may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after a date which is ten days before the notice is given as described in this subsection (2) Notices of a right to claim a lien shall not be required of (a) Persons who contract directly with the owner or the owners common law agent (b) Laborers whose claim of lien is based solely on performing labor or (c) Subcontractors who contract for the improvement of real property directly with the prime contractor except as provided in subsection (3)(b) of this section (3) Persons who furnish professional services materials or equipment in connection with the repair alteration or remodel of an existing owner-occupied single-family residence or appurtenant garage (a) Who contract directly with the owner-occupier or their common law agent shall not be required to send a written notice of the right to claim a lien and shall have a lien for the full amount due under their contract as provided in RCW 6004021 or (b) Who do not contract directly with the owner-occupier or their common law agent shall give notice of the right to claim a lien to the owner-occupier Liens of persons furnishing professional services materials or equipment who do not contract directly with the owner-occupier or their common law agent may only be satisfied from amounts not yet paid to the prime contractor by the owner at the time the notice described in this section is received regardless of whether amounts not yet paid to the prime contractor are due For the purposes of this subsection received means actual receipt of notice by personal service or registered or certified mail or three days after mailing by registered or certified mail excluding Saturdays Sundays or legal holidays (4) The notice of right to claim a lien described in subsection (1) of this section shall include but not be limited to the following information and shall substantially be in the following form using lower-case and upper-case ten-point type where appropriate

CCBA Nuts amp Bolts on Construction Law - 35 of 49

NOTICE TO OWNER

IMPORTANT READ BOTH SIDES OF THIS NOTICE CAREFULLY

PROTECT YOURSELF FROM PAYING TWICE

To Date

Re (description of property Street address or general location) From AT THE REQUEST OF (Name of person ordering the professional services materials or equipment) THIS IS NOT A LIEN This notice is sent to you to tell you who is providing professional services materials or equipment for the improvement of your property and to advise you of the rights of these persons and your responsibilities Also take note that laborers on your project may claim a lien without sending you a notice

OWNEROCCUPIER OF EXISTING

RESIDENTIAL PROPERTY

Under Washington law those who furnish labor professional services materials or equipment for the repair remodel or alteration of your owner-occupied principal residence and who are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien The law limits the amount that a lien claimant can claim against your property Claims may only be made against that portion of the contract price you have not yet paid to your prime contractor as of the time this notice was given to you or three days after this notice was mailed to you Review the back of this notice for more information and ways to avoid lien claims

COMMERCIAL ANDOR NEW

RESIDENTIAL PROPERTY

CCBA Nuts amp Bolts on Construction Law - 36 of 49

We have or will be providing professional services materials or equipment for the improvement of your commercial or new residential project In the event you or your contractor fail to pay us we may file a lien against your property A lien may be claimed for all professional services materials or equipment furnished after a date that is sixty days before this notice was given to you or mailed to you unless the improvement to your property is the construction of a new single-family residence then ten days before this notice was given to you or mailed to you Sender Address Telephone Brief description of professional services materials or equipment provided or to be provided

IMPORTANT INFORMATION

ON REVERSE SIDE

IMPORTANT INFORMATION

FOR YOUR PROTECTION This notice is sent to inform you that we have or will provide professional services materials or equipment for the improvement of your property We expect to be paid by the person who ordered our services but if we are not paid we have the right to enforce our claim by filing a construction lien against your property LEARN more about the lien laws and the meaning of this notice by discussing them with your contractor suppliers Department of Labor and Industries the firm sending you this notice your lender or your attorney

COMMON METHODS TO AVOID CONSTRUCTION LIENS There are several methods available to protect your property from construction liens The following are two of the more commonly used methods

DUAL PAYCHECKS (Joint Checks) When paying your contractor for services or materials you may make checks payable jointly to the contractor and the firms furnishing you this notice

CCBA Nuts amp Bolts on Construction Law - 37 of 49

LIEN RELEASES You may require your contractor to provide lien releases signed by all the suppliers and subcontractors from whom you have received this notice If they cannot obtain lien releases because you have not paid them you may use the dual payee check method to protect yourself

YOU SHOULD TAKE APPROPRIATE STEPS TO PROTECT YOUR PROPERTY FROM LIENS YOUR PRIME CONTRACTOR AND YOUR CONSTRUCTION LENDER ARE REQUIRED BY LAW TO GIVE YOU WRITTEN INFORMATION ABOUT LIEN CLAIMS IF YOU HAVE NOT RECEIVED IT ASK THEM FOR IT

(5) Every potential lien claimant providing professional services where no improvement as defined in RCW 6004011(5) (a) or (b) has been commenced and the professional services provided are not visible from an inspection of the real property may record in the real property records of the county where the property is located a notice which shall contain the professional service providers name address telephone number legal description of the property the owner or reputed owners name and the general nature of the professional services provided If such notice is not recorded the lien claimed shall be subordinate to the interest of any subsequent mortgagee and invalid as to the interest of any subsequent purchaser if the mortgagee or purchaser acts in good faith and for a valuable consideration acquires an interest in the property prior to the commencement of an improvement as defined in RCW 6004011(5) (a) or (b) without notice of the professional services being provided The notice described in this subsection shall be substantially in the following form

NOTICE OF FURNISHING

PROFESSIONAL SERVICES That on the (day) day of (month and year) (name of provider) began providing professional services upon or for the improvement of real property legally described as follows

[Legal Description is mandatory]

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The general nature of the professional services provided is The owner or reputed owner of the real property is

(Signature)

(Name of Claimant)

(Street Address)

(City State Zip Code)

(Phone Number)

(6) A lien authorized by this chapter shall not be enforced unless the lien claimant has complied with the applicable provisions of this section

6004041 Contractor registration

A contractor or subcontractor required to be registered under chapter 1827 RCW or licensed under chapter 1928 RCW or otherwise required to be registered or licensed by law shall be deemed the construction agent of the owner for the purposes of establishing the lien created by this chapter only if so registered or licensed Persons dealing with contractors or subcontractors may rely for the purposes of this section upon a certificate of registration issued pursuant to chapter 1827 RCW or license issued pursuant to chapter 1928 RCW or other certificate or license issued pursuant to law covering the period when the labor professional services material or equipment shall be furnished and the lien rights shall not be lost by suspension or revocation of registration or license without their knowledge No lien rights described in this

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chapter shall be lost or denied by virtue of the absence suspension or revocation of such registration or license with respect to any contractor or subcontractor not in immediate contractual privity with the lien claimant

6004081 Frivolous claim mdash Procedure

(1) Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who believes the claim of lien to be frivolous and made without reasonable cause or clearly excessive may apply by motion to the superior court for the county where the property or some part thereof is located for an order directing the lien claimant to appear before the court at a time no earlier than six nor later than fifteen days following the date of service of the application and order on the lien claimant and show cause if any he or she has why the relief requested should not be granted The motion shall state the grounds upon which relief is asked and shall be supported by the affidavit of the applicant or his or her attorney setting forth a concise statement of the facts upon which the motion is based (2) The order shall clearly state that if the lien claimant fails to appear at the time and place noted the lien shall be released with prejudice and that the lien claimant shall be ordered to pay the costs requested by the applicant including reasonable attorneys fees (3) If no action to foreclose the lien claim has been filed the clerk of the court shall assign a cause number to the application and obtain from the applicant a filing fee pursuant to RCW 3618016 If an action has been filed to foreclose the lien claim the application shall be made a part of that action (4) If following a hearing on the matter the court determines that the lien is frivolous and made without reasonable cause or clearly excessive the court shall issue an order releasing the lien if frivolous and made without reasonable cause or reducing the lien if clearly excessive and awarding costs and reasonable attorneys fees to the applicant to be paid by the lien claimant If the court determines that the lien is not frivolous and was made with reasonable cause and is not clearly excessive the court shall issue an order so stating and awarding costs and reasonable attorneys fees to the lien claimant to be paid by the applicant (5) Proceedings under this section shall not affect other rights and remedies available to the parties under this chapter or otherwise

6004091 Recording mdash Time mdash Contents of lien

Every person claiming a lien under RCW 6004021 shall file for recording in the county where the subject property is located a notice of claim of lien not later than ninety days after the person

CCBA Nuts amp Bolts on Construction Law - 40 of 49

has ceased to furnish labor professional services materials or equipment or the last date on which employee benefit contributions were due The notice of claim of lien (1) Shall state in substance and effect (a) The name phone number and address of the claimant (b) The first and last date on which the labor professional services materials or equipment was furnished or employee benefit contributions were due (c) The name of the person indebted to the claimant (d) The street address legal description or other description reasonably calculated to identify for a person familiar with the area the location of the real property to be charged with the lien (e) The name of the owner or reputed owner of the property if known and if not known that fact shall be stated and (f) The principal amount for which the lien is claimed (2) Shall be signed by the claimant or some person authorized to act on his or her behalf who shall affirmatively state they have read the notice of claim of lien and believe the notice of claim of lien to be true and correct under penalty of perjury and shall be acknowledged pursuant to chapter 6408 RCW If the lien has been assigned the name of the assignee shall be stated Where an action to foreclose the lien has been commenced such notice of claim of lien may be amended as pleadings may be by order of the court insofar as the interests of third parties are not adversely affected by such amendment A claim of lien substantially in the following form shall be sufficient

CLAIM OF LIEN

claimant vs name of person indebted to claimant

Notice is hereby given that the person named below claims a lien pursuant to chapter 6404 RCW In support of this lien the following information is submitted

1 NAME OF LIEN CLAIMANT

TELEPHONE NUMBER

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ADDRESS

2 DATE ON WHICH THE CLAIMANT BEGAN TO PERFORM LABOR PROVIDE PROFESSIONAL SERVICES SUPPLY MATERIAL OR EQUIPMENT OR THE DATE ON WHICH EMPLOYEE BENEFIT CONTRIBUTIONS BECAME DUE

3 NAME OF PERSON INDEBTED TO THE CLAIMANT

4 DESCRIPTION OF THE PROPERTY AGAINST WHICH A LIEN IS CLAIMED (Street address legal description or other information that will reasonably describe the property)

5 NAME OF THE OWNER OR REPUTED OWNER (If not known state unknown)

6 THE LAST DATE ON WHICH LABOR WAS PERFORMED PROFESSIONAL SERVICES WERE FURNISHED CONTRIBUTIONS TO AN EMPLOYEE BENEFIT PLAN WERE DUE OR MATERIAL OR EQUIPMENT WAS FURNISHED

7 PRINCIPAL AMOUNT FOR WHICH THE LIEN IS CLAIMED IS

8 IF THE CLAIMANT IS THE ASSIGNEE OF THIS CLAIM SO STATE HERE

Claimant

(Phone number address city

CCBA Nuts amp Bolts on Construction Law - 42 of 49

and

state of claimant)

STATE OF WASHINGTON COUNTY OF ss being sworn says I am the claimant (or attorney of the claimant or administrator representative or agent of the trustees of an employee benefit plan) above named I have read or heard the foregoing claim read and know the contents thereof and believe the same to be true and correct and that the claim of lien is not frivolous and is made with reasonable cause and is not clearly excessive under penalty of perjury Subscribed and sworn to before me this day of The period provided for recording the claim of lien is a period of limitation and no action to foreclose a lien shall be maintained unless the claim of lien is filed for recording within the ninety-day period stated The lien claimant shall give a copy of the claim of lien to the owner or reputed owner by mailing it by certified or registered mail or by personal service within fourteen days of the time the claim of lien is filed for recording Failure to do so results in a forfeiture of any right the claimant may have to attorneys fees and costs against the owner under RCW 6004181

6004161 Bond in lieu of claim

Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who disputes the correctness or validity of the claim of lien may record either before or after the commencement of an action to enforce the lien in the office of the county recorder or auditor in the county where the claim of lien was recorded a bond issued by a surety company authorized to issue surety bonds in the state The surety shall be listed in the latest federal department of the treasury list of surety companies acceptable on federal bonds published in the Federal Register as authorized to issue bonds on United States government projects with an underwriting limitation including applicable reinsurance equal to or greater than the amount of the bond to be recorded The bond shall contain a description of the claim of lien and real property involved and be in an amount equal to the greater of five thousand dollars or two times the amount of the lien claimed if it is ten thousand dollars or less and in an amount equal to or greater than one and one-half times the amount of the lien if it is in

CCBA Nuts amp Bolts on Construction Law - 43 of 49

excess of ten thousand dollars If the claim of lien affects more than one parcel of real property and is segregated to each parcel the bond may be segregated the same as in the claim of lien A separate bond shall be required for each claim of lien made by separate claimants However a single bond may be used to guarantee payment of amounts claimed by more than one claim of lien by a single claimant so long as the amount of the bond meets the requirements of this section as applied to the aggregate sum of all claims by such claimant The condition of the bond shall be to guarantee payment of any judgment upon the lien in favor of the lien claimant entered in any action to recover the amount claimed in a claim of lien or on the claim asserted in the claim of lien The effect of recording a bond shall be to release the real property described in the notice of claim of lien from the lien and any action brought to recover the amount claimed Unless otherwise prohibited by law if no action is commenced to recover on a lien within the time specified in RCW 6004141 the surety shall be discharged from liability under the bond If an action is timely commenced then on payment of any judgment entered in the action or on payment of the full amount of the bond to the holder of the judgment whichever is less the surety shall be discharged from liability under the bond Nothing in this section shall in any way prohibit or limit the use of other methods devised by the affected parties to secure the obligation underlying a claim of lien and to obtain a release of real property from a claim of lien

6004181 Rank of lien mdash Application of proceeds mdash Attorneys fees

(1) In every case in which different construction liens are claimed against the same property the court shall declare the rank of such lien or class of liens which liens shall be in the following order (a) Liens for the performance of labor (b) Liens for contributions owed to employee benefit plans (c) Liens for furnishing material supplies or equipment (d) Liens for subcontractors including but not limited to their labor and materials and (e) Liens for prime contractors or for professional services (2) The proceeds of the sale of property must be applied to each lien or class of liens in order of its rank and in an action brought to foreclose a lien pro rata among each claimant in each separate priority class A personal judgment may be rendered against any party personally liable for any debt for which the lien is claimed If the lien is established the judgment shall provide

CCBA Nuts amp Bolts on Construction Law - 44 of 49

for the enforcement thereof upon the property liable as in the case of foreclosure of judgment liens The amount realized by such enforcement of the lien shall be credited upon the proper personal judgment The deficiency if any remaining unsatisfied shall stand as a personal judgment and may be collected by execution against any party liable therefor (3) The court may allow the prevailing party in the action whether plaintiff or defendant as part of the costs of the action the moneys paid for recording the claim of lien costs of title report bond costs and attorneys fees and necessary expenses incurred by the attorney in the superior court court of appeals supreme court or arbitration as the court or arbitrator deems reasonable Such costs shall have the priority of the class of lien to which they are related as established by subsection (1) of this section (4) Real property against which a lien under this chapter is enforced may be ordered sold by the court and the proceeds deposited into the registry of the clerk of the court pending further determination respecting distribution of the proceeds of the sale

6004900 Liberal construction mdash 1991 c 281

RCW 1927095 6004230 and 6004011 through 6004226 and 6004261 are to be liberally construed to provide security for all parties intended to be protected by their provisions

RCW 6028011

Retained percentage mdash Public transportation projects mdash Labor and material lien created mdash Bond in lieu of retained funds mdash Termination before completion mdash Chapter deemed exclusive mdash Release of ferry contract payments mdash Projects of farmers home administration mdash General contractorconstruction manager procedure mdash Definitions

(1)(a) Except as provided in (b) of this subsection public improvement contracts must provide and public bodies must reserve a contract retainage not to exceed five percent of the moneys earned by the contractor as a trust fund for the protection and payment of (i) The claims of any person arising under the contract and (ii) the state with respect to taxes increases and penalties imposed pursuant to Titles 50 51 and 82 RCW which may be due from such contractor (b) Public improvement contracts funded in whole or in part by federal transportation funds must rely upon the contract bond as referred to in chapter 3908 RCW for the protection and payment of (i) The claims of any person or persons arising under the contract to the extent such claims are provided for in RCW 3908010 and (ii) the state with respect to taxes increases and penalties incurred on the public improvement project under Titles 50 51 and 82 RCW which may be due The contract bond must remain in full force and effect until at a minimum all claims filed in compliance with chapter 3908 RCW are resolved

CCBA Nuts amp Bolts on Construction Law - 45 of 49

(2) Every person performing labor or furnishing supplies toward the completion of a public improvement contract has a lien upon moneys reserved by a public body under the provisions of a public improvement contract However the notice of the lien of the claimant must be given within forty-five days of completion of the contract work and in the manner provided in RCW 3908030 (3) The contractor at any time may request the contract retainage be reduced to one hundred percent of the value of the work remaining on the project (a) After completion of all contract work other than landscaping the contractor may request that the public body release and pay in full the amounts retained during the performance of the contract and sixty days thereafter the public body must release and pay in full the amounts retained (other than continuing retention of five percent of the moneys earned for landscaping) subject to the provisions of chapters 3912 and 6028 RCW (b) Sixty days after completion of all contract work the public body must release and pay in full the amounts retained during the performance of the contract subject to the provisions of chapters 3912 and 6028 RCW (4) The moneys reserved by a public body under the provisions of a public improvement contract at the option of the contractor must be (a) Retained in a fund by the public body (b) Deposited by the public body in an interest bearing account in a bank mutual savings bank or savings and loan association Interest on moneys reserved by a public body under the provision of a public improvement contract must be paid to the contractor (c) Placed in escrow with a bank or trust company by the public body When the moneys reserved are placed in escrow the public body must issue a check representing the sum of the moneys reserved payable to the bank or trust company and the contractor jointly This check must be converted into bonds and securities chosen by the contractor and approved by the public body and the bonds and securities must be held in escrow Interest on the bonds and securities must be paid to the contractor as the interest accrues (5) The contractor or subcontractor may withhold payment of not more than five percent from the moneys earned by any subcontractor or sub-subcontractor or supplier contracted with by the contractor to provide labor materials or equipment to the public project Whenever the contractor or subcontractor reserves funds earned by a subcontractor or sub-subcontractor or

CCBA Nuts amp Bolts on Construction Law - 46 of 49

supplier the contractor or subcontractor must pay interest to the subcontractor or sub-subcontractor or supplier at a rate equal to that received by the contractor or subcontractor from reserved funds (6) A contractor may submit a bond for all or any portion of the contract retainage in a form acceptable to the public body and from a bonding company meeting standards established by the public body The public body must accept a bond meeting these requirements unless the public body can demonstrate good cause for refusing to accept it This bond and any proceeds therefrom are subject to all claims and liens and in the same manner and priority as set forth for retained percentages in this chapter The public body must release the bonded portion of the retained funds to the contractor within thirty days of accepting the bond from the contractor Whenever a public body accepts a bond in lieu of retained funds from a contractor the contractor must accept like bonds from any subcontractors or suppliers from which the contractor has retained funds The contractor must then release the funds retained from the subcontractor or supplier to the subcontractor or supplier within thirty days of accepting the bond from the subcontractor or supplier (7) If the public body administering a contract after a substantial portion of the work has been completed finds that an unreasonable delay will occur in the completion of the remaining portion of the contract for any reason not the result of a breach thereof it may if the contractor agrees delete from the contract the remaining work and accept as final the improvement at the stage of completion then attained and make payment in proportion to the amount of the work accomplished and in this case any amounts retained and accumulated under this section must be held for a period of sixty days following the completion In the event that the work is terminated before final completion as provided in this section the public body may thereafter enter into a new contract with the same contractor to perform the remaining work or improvement for an amount equal to or less than the cost of the remaining work as was provided for in the original contract without advertisement or bid The provisions of this chapter are exclusive and supersede all provisions and regulations in conflict herewith (8) Whenever the department of transportation has contracted for the construction of two or more ferry vessels sixty days after completion of all contract work on each ferry vessel the department must release and pay in full the amounts retained in connection with the construction of the vessel subject to the provisions of RCW 6028021 and chapter 3912 RCW However the department of transportation may at its discretion condition the release of funds retained in connection with the completed ferry upon the contractor delivering a good and sufficient bond with two or more sureties or with a surety company in the amount of the retained funds to be released to the contractor conditioned that no taxes may be certified or claims filed for work on the ferry after a period of sixty days following completion of the ferry and if taxes are certified or claims filed recovery may be had on the bond by the department of revenue the employment

CCBA Nuts amp Bolts on Construction Law - 47 of 49

security department the department of labor and industries and the material suppliers and laborers filing claims (9) Except as provided in subsection (1) of this section reservation by a public body for any purpose from the moneys earned by a contractor by fulfilling its responsibilities under public improvement contracts is prohibited (10) Contracts on projects funded in whole or in part by farmers home administration and subject to farmers home administration regulations are not subject to subsections (1) through (9) of this section (11) This subsection applies only to a public body that has contracted for the construction of a facility using the general contractorconstruction manager procedure as defined under RCW 3910210 If the work performed by a subcontractor on the project has been completed within the first half of the time provided in the general contractorconstruction manager contract for completing the work the public body may accept the completion of the subcontract The public body must give public notice of this acceptance After a forty-five day period for giving notice of liens and compliance with the retainage release procedures in RCW 6028021 the public body may release that portion of the retained funds associated with the subcontract Claims against the retained funds after the forty-five day period are not valid (12) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise (a) Contract retainage means an amount reserved by a public body from the moneys earned by a person under a public improvement contract (b) Person means a person or persons mechanic subcontractor or materialperson who performs labor or provides materials for a public improvement contract and any other person who supplies the person with provisions or supplies for the carrying on of a public improvement contract (c) Public body means the state or a county city town district board or other public body (d) Public improvement contract means a contract for public improvements or work other than for professional services or a work order as defined in RCW 3910210

CCBA Nuts amp Bolts on Construction Law - 48 of 49

RCW 6432070 Liens or encumbrances mdash Enforcement mdash Satisfaction

(1) Subsequent to recording the declaration as provided in this chapter and while the property remains subject to this chapter no lien shall thereafter arise or be effective against the property During such period liens or encumbrances shall arise or be created only against each apartment and the percentage of undivided interest in the common areas and facilities and appurtenant to such apartment in the same manner and under the same conditions in every respect as liens or encumbrances may arise or be created upon or against any other separate parcel of real property subject to individual ownership PROVIDED That no labor performed or materials furnished with the consent of or at the request of the owner of any apartment or such owners agent contractor or subcontractor shall be the basis for the filing of a lien against any other apartment or any other property of any other apartment owner not expressly consenting to or requesting the same except that such express consent shall be deemed to be given by any apartment owner in the case of emergency repairs Labor performed or materials furnished for the common areas and facilities if authorized by the association of apartment owners the manager or board of directors shall be deemed to be performed or furnished with the express consent of each apartment owner and shall be the basis for the filing of a lien against each of the apartments and shall be subject to the provisions of subsection (2) of this section (2) In the event a lien against two or more apartments becomes effective the apartment owners of the separate apartments may remove their apartment and the percentage of undivided interest in the common areas and facilities appurtenant to such apartment from the lien by payment of the fractional or proportional amounts attributable to each of the apartments affected Such individual payments shall be computed by reference to the percentages appearing on the declaration Subsequent to any such payment discharge or satisfaction the apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto shall thereafter be free and clear of the liens so paid satisfied or discharged Such partial payment satisfaction or discharge shall not prevent the lienor from proceeding to enforce his or her rights against any apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto not so paid satisfied or discharged

CCBA Nuts amp Bolts on Construction Law - 49 of 49

  • Cover Sheet
  • 20141110 - Washington Lien and Bond CLE
  • LampI Lien Summary
  • Claim of Lien
  • Form Notice to Owner
  • Model Disclosure Statement (Notice to Customer)
  • LampI Facts about Construction Liens
    • What you should know about contracts
    • How to protect your investment
    • For more information
      • Notice of Claim Against Bond and Retained Percentage
      • Preclaim Notice Bond amp Retained Percentage
      • Statute Handout
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 ESP 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 FRA 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 ITA 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 JPN ltFEFF9ad854c18cea306a30d730ea30d730ec30b951fa529b7528002000410064006f0062006500200050004400460020658766f8306e4f5c6210306b4f7f75283057307e305930023053306e8a2d5b9a30674f5c62103055308c305f0020005000440046002030d530a130a430eb306f3001004100630072006f0062006100740020304a30883073002000410064006f00620065002000520065006100640065007200200035002e003000204ee5964d3067958b304f30533068304c3067304d307e305930023053306e8a2d5b9a306b306f30d530a930f330c8306e57cb30818fbc307f304c5fc59808306730593002gt KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020ace0d488c9c80020c2dcd5d80020c778c1c4c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200035002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor prepress-afdrukken van hoge kwaliteit De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 50 en hoger) NOR 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 PTB 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 SUO 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 SVE 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 ENU (Use these settings to create Adobe PDF documents best suited for high-quality prepress printing Created PDF documents can be opened with Acrobat and Adobe Reader 50 and later) gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false ConvertColors ConvertToCMYK DestinationProfileName () DestinationProfileSelector DocumentCMYK Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles false MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector DocumentCMYK PreserveEditing true UntaggedCMYKHandling LeaveUntagged UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ]gtgt setdistillerparamsltlt HWResolution [2400 2400] PageSize [612000 792000]gtgt setpagedevice

          ltlt ASCII85EncodePages false AllowTransparency false AutoPositionEPSFiles true AutoRotatePages None Binding Left CalGrayProfile (Dot Gain 20) CalRGBProfile (sRGB IEC61966-21) CalCMYKProfile (US Web Coated 050SWOP051 v2) sRGBProfile (sRGB IEC61966-21) CannotEmbedFontPolicy Warning CompatibilityLevel 14 CompressObjects Tags CompressPages true ConvertImagesToIndexed true PassThroughJPEGImages true CreateJDFFile false CreateJobTicket false DefaultRenderingIntent Default DetectBlends true DetectCurves 00000 ColorConversionStrategy LeaveColorUnchanged DoThumbnails false EmbedAllFonts true EmbedOpenType false ParseICCProfilesInComments true EmbedJobOptions true DSCReportingLevel 0 EmitDSCWarnings false EndPage -1 ImageMemory 1048576 LockDistillerParams true MaxSubsetPct 100 Optimize true OPM 1 ParseDSCComments true ParseDSCCommentsForDocInfo true PreserveCopyPage true PreserveDICMYKValues true PreserveEPSInfo true PreserveFlatness true PreserveHalftoneInfo false PreserveOPIComments true PreserveOverprintSettings true StartPage 1 SubsetFonts true TransferFunctionInfo Apply UCRandBGInfo Preserve UsePrologue false ColorSettingsFile () AlwaysEmbed [ true Algerian Arial-Black Arial-BoldItalicMT Arial-BoldMT Arial-ItalicMT ArialMT ArialNarrow ArialNarrow-Bold ArialNarrow-BoldItalic ArialNarrow-Italic BaskOldFace Bauhaus93 BellMT BellMTBold BellMTItalic BerlinSansFB-Bold BerlinSansFBDemi-Bold BerlinSansFB-Reg BernardMT-Condensed BodoniMTPosterCompressed BookAntiqua BookAntiqua-Bold BookAntiqua-BoldItalic BookAntiqua-Italic BookmanOldStyle BookmanOldStyle-Bold BookmanOldStyle-BoldItalic BookmanOldStyle-Italic BookshelfSymbolSeven BritannicBold Broadway BrushScriptMT CalifornianFB-Bold CalifornianFB-Italic CalifornianFB-Reg Centaur CenturyGothic CenturyGothic-Bold CenturyGothic-BoldItalic CenturyGothic-Italic Chiller-Regular ColonnaMT ComicSansMS ComicSansMS-Bold CooperBlack CourierNewPS-BoldItalicMT CourierNewPS-BoldMT CourierNewPS-ItalicMT CourierNewPSMT EstrangeloEdessa EXTRAAPLNew-Regular EXTRAOIANew-Regular FootlightMTLight FranklinGothic-Medium FranklinGothic-MediumItalic FreestyleScript-Regular Garamond Garamond-Bold Garamond-Italic Gautami Georgia Georgia-Bold Georgia-BoldItalic Georgia-Italic HarlowSolid Harrington HighTowerText-Italic HighTowerText-Reg Impact InformalRoman-Regular Jokerman-Regular JuiceITC-Regular Kartika KristenITC-Regular KunstlerScript Latha LatinWide LucidaATTMSpecial LucidaBright LucidaBright-Demi LucidaBright-DemiItalic LucidaBright-Italic LucidaCalligraphy-Italic LucidaConsole LucidaFax LucidaFax-Demi LucidaFax-DemiItalic LucidaFax-Italic LucidaforAttachmate LucidaHandwriting-Italic LucidaSans LucidaSans-Demi LucidaSans-DemiItalic LucidaSans-Italic LucidaSansUnicode Magneto-Bold Mangal-Regular MaturaMTScriptCapitals MicrosoftSansSerif Mistral Modern-Regular Monospace821BT-Roman MonotypeCorsiva MSOutlook MSReferenceSansSerif MSReferenceSpecialty MVBoli NiagaraEngraved-Reg NiagaraSolid-Reg OldEnglishTextMT Onyx PalatinoLinotype-Bold PalatinoLinotype-BoldItalic PalatinoLinotype-Italic PalatinoLinotype-Roman Parchment-Regular Playbill PoorRichard-Regular Raavi Ravie ShowcardGothic-Reg Shruti SnapITC-Regular Stencil Sylfaen SymbolMT Tahoma Tahoma-Bold TempusSansITC TimesNewRomanPS-BoldItalicMT TimesNewRomanPS-BoldMT TimesNewRomanPS-ItalicMT TimesNewRomanPSMT Trebuchet-BoldItalic TrebuchetMS TrebuchetMS-Bold TrebuchetMS-Italic Tunga-Regular Verdana Verdana-Bold Verdana-BoldItalic Verdana-Italic VinerHandITC Vivaldii VladimirScript Vrinda Webdings Wingdings2 Wingdings3 Wingdings-Regular ZWAdobeF ] NeverEmbed [ true ] AntiAliasColorImages false CropColorImages true ColorImageMinResolution 300 ColorImageMinResolutionPolicy OK DownsampleColorImages true ColorImageDownsampleType Bicubic ColorImageResolution 300 ColorImageDepth -1 ColorImageMinDownsampleDepth 1 ColorImageDownsampleThreshold 150000 EncodeColorImages false ColorImageFilter DCTEncode AutoFilterColorImages true ColorImageAutoFilterStrategy JPEG ColorACSImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt ColorImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000ColorACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000ColorImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasGrayImages false CropGrayImages true GrayImageMinResolution 300 GrayImageMinResolutionPolicy OK DownsampleGrayImages true GrayImageDownsampleType Bicubic GrayImageResolution 300 GrayImageDepth -1 GrayImageMinDownsampleDepth 2 GrayImageDownsampleThreshold 150000 EncodeGrayImages false GrayImageFilter DCTEncode AutoFilterGrayImages true GrayImageAutoFilterStrategy JPEG GrayACSImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt GrayImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000GrayACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000GrayImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasMonoImages false CropMonoImages true MonoImageMinResolution 1200 MonoImageMinResolutionPolicy OK DownsampleMonoImages true MonoImageDownsampleType Bicubic MonoImageResolution 1200 MonoImageDepth -1 MonoImageDownsampleThreshold 150000 EncodeMonoImages false MonoImageFilter CCITTFaxEncode MonoImageDict ltlt K -1 gtgt AllowPSXObjects false CheckCompliance [ None ] PDFX1aCheck false PDFX3Check false PDFXCompliantPDFOnly false PDFXNoTrimBoxError true PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile (None) PDFXOutputConditionIdentifier () PDFXOutputCondition () PDFXRegistryName () PDFXTrapped False Description ltlt CHS ltFEFF4f7f75288fd94e9b8bbe5b9a521b5efa7684002000410064006f006200650020005000440046002065876863900275284e8e9ad88d2891cf76845370524d53705237300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200035002e003000204ee553ca66f49ad87248672c676562535f00521b5efa768400200050004400460020658768633002gt CHT ltFEFF4f7f752890194e9b8a2d7f6e5efa7acb7684002000410064006f006200650020005000440046002065874ef69069752865bc9ad854c18cea76845370524d5370523786557406300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200035002e003000204ee553ca66f49ad87248672c4f86958b555f5df25efa7acb76840020005000440046002065874ef63002gt DAN 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 DEU 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 ESP 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 FRA ltFEFF005500740069006c006900730065007a00200063006500730020006f007000740069006f006e00730020006100660069006e00200064006500200063007200e900650072002000640065007300200064006f00630075006d0065006e00740073002000410064006f00620065002000500044004600200070006f0075007200200075006e00650020007100750061006c0069007400e90020006400270069006d007000720065007300730069006f006e00200070007200e9007000720065007300730065002e0020004c0065007300200064006f00630075006d0065006e00740073002000500044004600200063007200e900e90073002000700065007500760065006e0074002000ea0074007200650020006f007500760065007200740073002000640061006e00730020004100630072006f006200610074002c002000610069006e00730069002000710075002700410064006f00620065002000520065006100640065007200200035002e0030002000650074002000760065007200730069006f006e007300200075006c007400e90072006900650075007200650073002egt ITA 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 JPN ltFEFF9ad854c18cea306a30d730ea30d730ec30b951fa529b7528002000410064006f0062006500200050004400460020658766f8306e4f5c6210306b4f7f75283057307e305930023053306e8a2d5b9a30674f5c62103055308c305f0020005000440046002030d530a130a430eb306f3001004100630072006f0062006100740020304a30883073002000410064006f00620065002000520065006100640065007200200035002e003000204ee5964d3067958b304f30533068304c3067304d307e305930023053306e8a2d5b9a306b306f30d530a930f330c8306e57cb30818fbc307f304c5fc59808306730593002gt KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020ace0d488c9c80020c2dcd5d80020c778c1c4c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200035002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor prepress-afdrukken van hoge kwaliteit De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 50 en hoger) NOR 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 PTB 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 SUO ltFEFF004b00e40079007400e40020006e00e40069007400e4002000610073006500740075006b007300690061002c0020006b0075006e0020006c0075006f00740020006c00e400680069006e006e00e4002000760061006100740069007600610061006e0020007000610069006e006100740075006b00730065006e002000760061006c006d0069007300740065006c00750074007900f6006800f6006e00200073006f00700069007600690061002000410064006f0062006500200050004400460020002d0064006f006b0075006d0065006e007400740065006a0061002e0020004c0075006f0064007500740020005000440046002d0064006f006b0075006d0065006e00740069007400200076006f0069006400610061006e0020006100760061007400610020004100630072006f0062006100740069006c006c00610020006a0061002000410064006f00620065002000520065006100640065007200200035002e0030003a006c006c00610020006a006100200075007500640065006d006d0069006c006c0061002egt SVE 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 ENU (Use these settings to create Adobe PDF documents best suited for high-quality prepress printing Created PDF documents can be opened with Acrobat and Adobe Reader 50 and later) gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false ConvertColors ConvertToCMYK DestinationProfileName () DestinationProfileSelector DocumentCMYK Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles false MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector DocumentCMYK PreserveEditing true UntaggedCMYKHandling LeaveUntagged UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ]gtgt setdistillerparamsltlt HWResolution [2400 2400] PageSize [612000 792000]gtgt setpagedevice

          1. To
          2. Date
          3. Re
          4. From
          5. AT THE REQUEST OF
          6. Sender
          7. Address
          8. Telephone
          9. Brief description of professional services materials or equipment provided or to be provided
          10. 1
          11. 2
          12. 3
          13. reg no
          14. deposit $
          15. expiration date
          16. claims up to $
          17. Reset

11122014

8

Immix Law Group Washington Lien and Bond Claims

Foreclosing on a Construction Lien

Amount of the Lienbull Contract price

bull Includes contractual attorneysrsquo fees and interestbull If no contract then reasonable value of the work

performedbull The prevailing party is entitled to their reasonable attorneysrsquo

fees recording fees title report costs etc in pursuing and prosecuting the lien (RCW 6004181)

Immix Law Group Washington Lien and Bond Claims

Foreclosing on a Construction Lien

Bonding ldquoAroundrdquo the Lien (RCW 6004161)bull OwnerPrime can bond around the lien by obtaining a surety

bond under the following requirements bull If disputed amount is over $10000 then 150 of lien

amountbull If disputed amount is under $10000 then $5000 or twice

the amount of the lienbull The lien attaches to the bond and releases the propertybull Foreclosure proceeds as normal however the surety must be

added as a party to the lien foreclosure action

Immix Law Group Washington Lien and Bond Claims

Foreclosing on a Construction Lien

Amendments to Lien (RCW 6004091(2))ldquoWhere an action to foreclose the lien has been commenced such notice of claim of lien may be amended as pleadings may be by order of the court insofar as the interests of third parties are not adversely affected by such amendmentrdquo

[NOTE In Oregon amendments are not expressly allowed by statute] Practice Pointer Before filing a claim of lien verify that your client will not perform any additional work

CCBA Nuts amp Bolts on Construction Law - 9 of 49

11122014

9

Immix Law Group

Property Ownersrsquo Claims Against Contractors

Immix Law Group Washington Lien and Bond Claims

Property Ownersrsquo Claims Against Contractors

Claiming a Frivolous Lien (RCW 6004081)bull Party can request a show cause hearing where applicant must

show that lien is frivolous and ldquomade without reasonable causerdquo or is ldquoclearly excessiverdquo

bull If lien claimant fails to show the lien will be releasedbull High standard for ldquoFrivolousnessrdquo

bull ldquopresents no debatable issue and is so devoid of merit that it has no possibility of successrdquo

bull Prevailing party may get reasonable attorneysrsquo fees and costs

Immix Law Group Washington Lien and Bond Claims

Property Ownersrsquo Claims Against Contractors

Claim Against Contractor Registration Bond (RCW 1827040)bull Contractors are required to obtain registration bonds

bull General contractors = $12000bull Subcontractors = $6000

bull Persons contracting with the contractor can sue against the contractorrsquos registration bond

bull SOLbull Homeowners = 2 yearsbull Everyone else = 1 year

CCBA Nuts amp Bolts on Construction Law - 10 of 49

11122014

10

Immix Law Group Washington Lien and Bond Claims

Property Ownersrsquo Claims Against Contractors

Claim Against Contractor Registration Bond (RCW 1827040)bull Recovery Limitations

bull Residential homeowners entitled to recover entire bond amountbull Other claimants are entitled to frac12 of the bond amount or $4000 if

subcontractor or specialty contractorbull Claimants entitled to attorneysrsquo fees up to amount of bond

Immix Law Group Washington Lien and Bond Claims

Property Ownersrsquo Claims Against Contractors

Claim Against Contractor Registration Bond (RCW 1827040)

bull Service Requirementsbull Service on the bonding company and the contractor must be made

on the Department of Labor amp Industries by serving three copies of the summons and complaint by certified andor registered mail (RCW 1827040(3)) with the filing fee

bull You should also serve the contractor and all other named defendants personally so that the breach of contract claim and other claims are properly served

Immix Law Group

Washington Public Contracts Retainage and Bond Claims

CCBA Nuts amp Bolts on Construction Law - 11 of 49

11122014

11

Immix Law Group Washington Lien and Bond Claims

Public Contracts Retainage ClaimsRetainage Claims (RCW 6028011)bull ldquolsquoContract retainagersquo means an amount reserved by a public body from

the moneys earned by a person under a public improvement contractrdquo bull Usually five percent (5)bull Prime contractor can submit a bond in lieu of retainagebull All persons supplying labor materials equipment services entitled to

claimbull Exception Temporary labor supplier not entitled to claim against retention

because not ldquosubcontractorrdquo Better Financial Solutions Inc v Caicos Corp 117 Wn App 899 (2003)

Immix Law Group Washington Lien and Bond Claims

Public Contracts Retainage Claims

Preclaim Notice of Retainage Claim (RCW 6028011)

bull Sub‐tier subcontractors and suppliers must give preclaimnotice to the public agency within 60 days of furnishing labor material supplies or equipment to the project

bull Relates back 60 days from the date of the noticebull Must be delivered to contracting agency

Immix Law Group Washington Lien and Bond Claims

Public Contracts Retainage Claims

Notice of Retainage Claim (RCW 6028011)

bull All claimants must provide a Notice of Claim within 45 days after ldquocompletion of the contract workrdquo (essentially ldquoproject completionrdquo)

bull The Notice must be delivered to contracting agencybull Hand delivered or certified mail with return receipt

bull Must file the foreclosure suit within 4 months after providing the Notice of Claim

CCBA Nuts amp Bolts on Construction Law - 12 of 49

11122014

12

Immix Law Group Washington Lien and Bond Claims

Public Contracts Bond Claims

Bond Claims ndash Washingtonrsquos Little Miller Act (RCW 3908010)

On Washington Public Works projects in excess of $25000 general contractors must post a payment bond usually in the amount of the contract price

Immix Law Group Washington Lien and Bond Claims

Public Contracts Bond Claims

Preclaim Notice of Bond Claim (RCW 3908010)

bull Lower‐tier subcontractors and material suppliers must give preclaim notice to the prime contractor within 10 days after starting work

Immix Law Group Washington Lien and Bond Claims

Public Contracts Bond Claims

Notice of Bond Claim (RCW 3908010)

bull All claimants must provide a Notice of Claim within 30 days after ldquoacceptance of the workrdquo (different than retention claim)bull ldquoAcceptancerdquo is an affirmative act by the public works owner

bull The Notice must be delivered to public works ownerbull Hand delivered or certified mail with return receipt

bull No deadline provided in the statute ndash foreclose by general statute of limitationsbull 3 years for oral contracts 6 years for written contracts

CCBA Nuts amp Bolts on Construction Law - 13 of 49

11122014

13

Immix Law Group Washington Lien and Bond Claims

Public Contracts Bond amp Retainage Claims

bull Practice Pointer Coordinate the filing of the retention and bond Preclaim Notice and Notice of Claim to ensure that the contractorrsquos claims are protected

bull File the Bond amp Retainage Preclaim Notice within 10 days after starting work

bull File the Bond amp Retainage Notice of Claim within 30 days from project completion

Immix Law Group Washington Lien and Bond Claims

Public Contracts Prompt Pay ActWashingtonrsquos Prompt Pay Act

bull Prime contractors are entitled to payment within 30 days after the public agencyrsquos receipt of the invoice

bull If the public agency intends to withhold payment (all or in part) the agency must notify the contractor in writing within 8 days of receipt stating

bull Why payment (all or part) is being withheld

bull Actions required by contractor in order to receive payment

Immix Law Group Washington Lien and Bond Claims

Public Contracts Prompt Pay ActWashingtonrsquos Prompt Pay Act (contrsquod)

bull Public agency can withhold up to 150 of the disputed amount

bull Failure to comply entitles the contractor to 1 interest per month until paid

bull Subcontractors must be paid within 10 days of prime contractorrsquos receipt of payment

CCBA Nuts amp Bolts on Construction Law - 14 of 49

11122014

14

Immix Law Group

Questions

CCBA Nuts amp Bolts on Construction Law - 15 of 49

SUMMARY OF THE REQUIREMENTS TO BE MET BY A LIEN CLAIMANT ON A WASHINGTON PRIVATE CONSTRUCTION PROJECT

NOTICE TO CUSTOMER

FROM

Prime Contractor working on four or fewer residential units when the contract price is $1000 or more or on a commercial building when the contract price is $1000 or more but less than $60000

TO Owner

WHEN Before starting construction NOTICE OF FURNISHING PROFESSIONAL SERVICES

FROM

Provider of professional services

TO County Recorder

WHEN As soon as professional services are commenced PRECLAIM NOTICE (for all projects except repair and remodeling of owner-occupied single-family residence)

FROM

Provider of professional services materials or equipment except that the following need not provide the notice (1) a provider that contracts directly with the owner or the owners actual agent or (2) a first tier subcontractor

TO Owner and usually also prime contractor

WHEN New single family residence within ten days of first supplying professional services materials or equipment All other projects within 60 days of first supplying professional services materials or equipment

PRECLAIM NOTICE (for repair and remodeling of owner-occupied single-family residence)

FROM

Provider of professional services materials or equipment to anyone other than the owner

TO Owner and usually also prime contractor

WHEN Immediately after agreeing to furnish professional services materials or equipment

FROM

Potential lien claimant to whom payment is five or more days overdue

NOTICE TO REAL PROPERTY LENDER (only applicable where there is not a payment bond of at least 50 of the amount of construction financing)

TO Construction lender owner and prime contractor

WHEN Within 35 days of date payment is due

CLAIM OF LIEN

FROM

Unpaid claimant

TO County Recorder

WHEN Not later than 90 days after the last furnishing of labor professional services materials or equipment or the last date on which employee benefit contributions were due

COPY OF CLAIM OF LIEN

FROM

Unpaid claimant

TO Owner

WHEN Within 14 days of date claim of lien is filed for recording

DEADLINE FOR FILING A LAWSUIT Within eight months of recording claim of lien

F625-055-000 const lien summary 2-96 This summary is intended to generally set forth the requirements applicable to most lien claimants The remainder of the chapter should be consulted for a more detailed discussion

CCBA Nuts amp Bolts on Construction Law - 16 of 49

CLAIM OF LIEN SIGNED BY ATTORNEY

Return Address __________________________ __________________________ __________________________

Document Title Claim of Lien

Reference Number _____________________________

Grantor _____________________________

Grantee _____________________________

Legal Description

Assessors Property Tax Parcel No

CLAIM OF LIEN

________________________ claimant vs _____________________________ name of persons indebted to claimant

Notice is hereby given that the person named below claims a lien pursuant to Chapter 6004 RCW In

support of this lien the following information is submitted

1 NAME OF LIEN CLAIMANT ______________________________________

TELEPHONE NUMBER ______________________________________

ADDRESS ______________________________________

______________________________________

2 DATE ON WHICH THE CLAIMANT BEGAN TO PERFORM LABOR PROVIDE PROFESSIONAL SERVICES SUPPLY MATERIAL OR EQUIPMENT OR THE DATE ON WHICH EMPLOYEE BENEFIT CONTRIBUTIONS BECOMES DUE _________

3 NAME OF PERSON INDEBTED TO THE CLAIMANT _________________

4 DESCRIPTIONOF THE PROPERTY AGAINST WHICH A LIEN IS CLAIMED All fee leasehold and other interests of _______________ and any other owner person or entity in the property commonly known as ___________________________located at _______________________ _________________________ _________________County Washington _______ the legal description of which is believed to be as follows

[Legal Description - andor - The legal description of the underlying real property is described on the attached Exhibit A]

CCBA Nuts amp Bolts on Construction Law - 17 of 49

5 NAME OF THE OWNER OR REPUTED OWNER (if not known state ldquounknownrdquo) ____________________________________________________________________________________________

6 THE LAST DATE ON WHICH LABOR WAS PERFORMED PROFESSIONAL SERVICES WERE FURNISHED CONTRIBUTIONS TO AN EMPLOYEE BENEFIT PLAN WERE DUE OR MATERIAL OR EQUIPMENT WAS FURNISHED _____________________________________________________________

7 PRINCIPAL AMOUNT FOR WHICH THE LIEN IS CLAIMED IS $_______

8 IF THE CLAIMANT IS THE ASSIGNEE OF THIS CLAIM SO STATE HERE ___

___________________ Claimant ___________________________

___________________________ (__)____-______

By ________s________________ Print Name ___________________ Its Attorney

STATE OF WASHINGTON )

SS COUNTYOF ____________ )

________________ being sworn says I am the attorney of the claimant above named I have read or heard the foregoing claim read and know the contents thereof and believe the same to be true and correct and that the claim of lien is not frivolous and is made with reasonable cause and is not clearly excessive under penalty of perjury

__________________________ Print Name _______________

SUBSCRIBED and SWORN to before me this ___day of ___________________ 201_

STATE OF WASHINGTON )

SS COUNTYOF ____________ )

[Seal or Stamp]

__________________________ Print Name _______________ Notary Public in and for the State of Washington residing at________________________________ My Commission Expires __________________

CCBA Nuts amp Bolts on Construction Law - 18 of 49

I certify that I know or have satisfactory evidence that___________________ is the person who appeared before me and said person acknowledged that [heshe] signed this instrument on oath stated that [heshe] was authorized to execute this instrument and acknowledged it as the attorney of___________________ to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument

CCBA Nuts amp Bolts on Construction Law - 19 of 49

F625-054-000 construction lien notice 11-05 IMPORTANT INFORMATION ON PAGE 2

NOTICE TO OWNER IMPORTANT READ BOTH SIDES OF THIS NOTICE CAREFULLY

PROTECT YOURSELF FROM PAYING TWICE

To

Date

Re

From (Description of property street address or general location)

AT THE REQUEST OF Name of person ordering their professional services materials or equipment

THIS IS NOT A LIEN This notice is sent to you to tell you who is providing professional services materials or equipment for the improvement of your property and to advise you of the rights of these persons and your responsibilities Also take notice that laborers on your project may claim a lien without sending you a notice

OWNEROCCUPIER OF EXISTING RESIDENTIAL PROPERTY Under Washington law those who furnish labor professional services materials or equipment for the repair remodel or alteration of you owner-occupied principal residence and who are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien The law limits the amount that a lien claimant can claim against your property Claims may only be made against that portion of the contract price you have not yet paid to your prime contractor as of the time this notice was given to you or three days after this notice was mailed to you Review page 2 of this notice for more information and ways to avoid lien claims

COMMERCIAL ANDOR NEW RESIDENTIAL PROPERTY We have or will be providing professional services materials or equipment for the improvement of your commercial or new residential project In the event you or your contractor fail to pay us we may file a lien against your property A lien may be claimed for all professional services materials or equipment furnished after a date that is sixty days before this notice was given to you or mailed to you unless the improvement to you property is the construction of a new single-family residence then ten days before this notice was given to you or mailed to you

Sender

Address

Telephone

Brief description of professional services materials or equipment provided or to be provided

CCBA Nuts amp Bolts on Construction Law - 20 of 49

F625-054-000 construction lien notice page 2 11-05

Important Information for your Protection

This notice is sent to inform you that we have or will provide professional services materials or equipment for the repair remodel or alteration of you property We expect to be paid by the person who ordered our services but if we are not paid we have the right to enforce our claim by filing a construction lien against your property

LEARN more about the lien laws and the meaning of this notice by

discussing them with our contractor suppliers Department of Labor and Industries the firm sending you this notice your lender or your attorney

COMMON METHODS TO AVOID CONSTRUCTION LIENS

There are several methods available to protect your property from construction liens The following are two of the more commonly used methods

DUAL PAYCHECKS (Joint Checks) When paying your

contractor for services or materials you may make checks payable jointly to the contractor and the firms furnishing you this notice

LIEN RELEASES You may require your contractor to provide

lien releases signed by all the suppliers and subcontractors from whom you have received this notice If they cannot obtain lien releases because you have not paid them you may use the dual payee check method to protect yourself

You should take appropriate steps to protect your property from

liens

Your prime contractor and your construction lender are required by law to give you written information about lien claims If you have not received it ask them for it

CCBA Nuts amp Bolts on Construction Law - 21 of 49

F625-030-000 model disclosure statement notice to customer 09-2007

Department of Labor and Industries Construction Compliance

MODEL DISCLOSURE STATEMENTNOTICE TO CUSTOMER

This contractor is registered with the state of Washington registration no____________________ and has posted with the state a bond or deposit of ______________________ for the purpose of satisfying claims against the contractor for breach of contract including negligent or improper work in the conduct of the contractorrsquos business The expiration date of this contractorrsquos registration is ______________________

THIS BOND OR DEPOSIT MIGHT NOT BE SUFFICIENT TO COVER A CLAIM THAT MIGHT ARISE FROM THE WORK DONE UNDER YOUR CONTRACT This bond or deposit is not for your exclusive use because it covers all work performed by this contractor The bond or deposit is intended to pay valid claims up to ___________________________ that you and other customers suppliers subcontractors or taxing authorities may have FOR GREATER PROTECTION YOU MAY WITHHOLD A PERCENTAGE OF YOUR CONTRACT You may withhold a contractually defined percentage of your construction contract as retainage for a stated period of time to provide protection to you and help insure that your project will be completed as required by your contract

YOUR PROPERTY MAY BE LIENED If a supplier of materials used in your construction project or an employee or subcontractor of your contractor or subcontractors is not paid your property may be liened to force payment and you could pay twice for the same work FOR ADDITIONAL PROTECTION YOU MAY REQUEST THE CONTRACTOR TO PROVIDE YOU WITH ORIGINAL ldquoLIEN RELEASErdquo DOCUMENTS FROM EACH SUPPLIER OR SUBCONTRACTOR AT YOUR PROJECT The contractor is required to provide you with further information about lien release document if you request it General information is also available from the state Department of Labor and Industries I have received a copy of this disclosure statement Dated this _______ day of _______________ of the year __________

_____________________________________________________ Signature of Customer The contractor must retain a signed copy of the disclosure statement in his or her files for a minimum of three years and produce a signed or electronic signature copy of the disclosure statement to the department upon request

CCBA Nuts amp Bolts on Construction Law - 22 of 49

Facts About Construction LiensWhat you should know about contractsIf your contractor fails to pay subcontractors suppliers or laborers or neglects to make other legally required payments those who are owed money can look to your property for payment even if you have paid your contractor in full This is true if you have hired a contractor to build a new home or are buying a newly built home

It is also true when you remodel or improve your property although the amount of your liability may be limited to the amount you owe the prime contractor at the time a lien is filed

Under Washington laws those who work on your property or provide materials and are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien

People who supply materials or labor ordered by your contractor are permitted by law to file a lien only if they do so within 90 days of cessation of performance or delivery of materials The time frame is spelled out in RCW 6004091

If you enter into a contract to buy a newly built home you may not receive a notice of a lien based on a claim by a contractor or material handler Be aware that a lien may be claimed even though you have not received a notice

Before making final payment on the project request a completed lien release form from each contractor and material supplier A sample of this release of lien form is available from the Department of Labor amp Industries Contractor Registration Section

You have final responsibility for seeing that all bills are paid even if you have paid your contractor in full

If you receive a notice to enforce a lien take the notice seriously Let your contractor know you have received the notice Find out what arrangements are being made to pay the sender of the notice

When in doubt or if you need more details consult your attorney When and how to pay your contractor is a decision that requires serious consideration

Reminder Washington laws require contractors to give you a disclosure statement if your contract exceeds $1000 [RCW 1827114(A) or (B)]

CCBA Nuts amp Bolts on Construction Law - 23 of 49

PUBLICATION F625-017-000 [01-2008]

Other formats for persons with disabilities are available on request Call 1-800-647-0982 TDD users call 360-902-5797 LampI is an equal opportunity employer

For more information

How to protect your investment

If you are dealing with a lending institution ask your loan officer what precautions the lending institution takes to verify that subcontractors and material suppliers are being paid when mortgage money is paid to your contractor

Request lender supervision when dealing with a lending institution that provides interim or construction financing

Ask the prime contractor to disclose all potential lien claimants as a condition of payment A lien claimant must mail (by certified or registered mail or by personal service) a copy of the claim of lien to the owner within 14 days of the time the lien is recorded [RCW 6004091(2)] While an action is ongoing an owner may withhold from this prime contractor the amount of money for which a claim is recorded by a subcontractor supplier or laborer [RCW 6004151]

It is recommended that your check be made payable jointly naming the contractor and the subcontractor or supplier as payees

Upon payment and acceptance of the amount due the owner has the right to an executed release of all lien rights by lien claimants [RCW 6004071]

Consider using an escrow agent to protect your interests Find out whether your escrow agent will protect you against liens when disbursing payments If you are interested in this alternative consult your attorney

Request that your contractor post a performance bond in the amount of the project cost That will give you recourse in the event the contractor fails to complete the building agreement

8 On the Web Find more information about hiring a contractor at

wwwLniwagovTradesLicensingContractorsHireCon

Contractor Registration Hotline1-800-647-0982

You may also call your local LampI office See listings under ldquoWashington State ofrdquo in the government section or the white pages of the telephone book

Please note This notice was prepared by the Department of Labor amp Industries Specialty Compliance Services Division for reproduction by lending institutions and contractors for distribution to their clients It explains the basics of the construction lien law to help you protect yourself This information is not a reflection upon the abilities or credit of your contractor

CCBA Nuts amp Bolts on Construction Law - 24 of 49

NOTICE OF CLAIM AGAINST

BOND AND RETAINED PERCENTAGE

RCW 3908030 RCW 6028010

VIA CERTIFIED MAIL ndash RETURN RECEIPT REQUESTED

TO [Public Owner] [Public Ownerrsquos Address]

Project [Project Name amp Address] NOTICE IS HEREBY GIVEN that the undersigned [Claimant] [Claimantrsquos Address] has a claim in the amount of ----- and 00100 Dollars ($XX) (not including attorneysrsquo fees or costs) together with interest at twelve percent (12) against [Public Owner] (ldquoOwnerrdquo) pursuant to RCW 6028 and the payment bond taken from [Prime Contractor] (ldquoContractorrdquo) [Prime Contractorrsquos Address] as principal and [Surety Company] (ldquoSuretyrdquo) [Suretyrsquos Address] as surety Bond No ________ pursuant to RCW 3908 for [describe services material supplies labor furnished] provided on the Project This Notice of Claim Against Bond and Retained Percentage supersedes and replaces previous Notices DATED This ___day of _________ 201_ [Claimant] By ______________________________________ Its ______________________________________ [Claimantrsquos Address]

_________________________________________

[Contractors Registration No if applicable]

(Copies furnished to General Contractor and General Contractorrsquos Bonding Company)

CCBA Nuts amp Bolts on Construction Law - 25 of 49

PRECLAIM NOTICE TO CONTRACTOR BY SUBCONTRACTORS MATERIALMEN OR SUPPLIERS FOR

CLAIM AGAINST BOND AND RETAINED PERCENTAGE

VIA CERTIFIED OR REGISTERED MAIL- RETURN RECEIPT REQUESTED

TO [Name of General Contractor] [Address]

YOU ARE HEREBY NOTIFIED that the undersigned ____________at the request of_________________ commenced to deliver or furnish materials supplies andor equipment for the use in the construction alteration andor repair of that certain project known as____________________ [project name] which is located at ____________________________ [address or description] If the undersigned is not paid for these materials supplies andor equipment it will file a claim against you and your bond andor retainage pursuant to RCW 3908 andor 6028 et seq for payment of any sum that is due and owing to the undersigned

DATED This __ day of _____________ 201_

[Name of Claimant]

By ____________________________________

Its ____________________________________

Address ______________________________

__________________________________________

__________________________________________

[Contractors Registration No if applicable]

(Mail via certified mail return receipt requested or hand deliver and obtain receipt)

CCBA Nuts amp Bolts on Construction Law - 26 of 49

Washington Liens amp Bonds ndash Pertinent Statutes

RCW 1827040 Bond or other security required mdash Actions against mdash Suspension of registration upon impairment (1) Each applicant shall file with the department a surety bond issued by a surety insurer who meets the requirements of chapter 4828 RCW in the sum of twelve thousand dollars if the applicant is a general contractor and six thousand dollars if the applicant is a specialty contractor If no valid bond is already on file with the department at the time the application is filed a bond must accompany the registration application The bond shall have the state of Washington named as obligee with good and sufficient surety in a form to be approved by the department The bond shall be continuous and may be canceled by the surety upon the surety giving written notice to the director A cancellation or revocation of the bond or withdrawal of the surety from the bond automatically suspends the registration issued to the contractor until a new bond or reinstatement notice has been filed and approved as provided in this section The bond shall be conditioned that the applicant will pay all persons performing labor including employee benefits for the contractor will pay all taxes and contributions due to the state of Washington and will pay all persons furnishing material or renting or supplying equipment to the contractor and will pay all amounts that may be adjudged against the contractor by reason of breach of contract including improper work in the conduct of the contracting business A change in the name of a business or a change in the type of business entity shall not impair a bond for the purposes of this section so long as one of the original applicants for such bond maintains partial ownership in the business covered by the bond (2) At the time of initial registration or renewal the contractor shall provide a bond or other security deposit as required by this chapter and comply with all of the other provisions of this chapter before the department shall issue or renew the contractors certificate of registration Any contractor registered as of July 1 2001 who maintains that registration in accordance with this chapter is in compliance with this chapter until the next renewal of the contractors certificate of registration (3) Any person firm or corporation having a claim against the contractor for any of the items referred to in this section may bring suit against the contractor and the bond or deposit in the superior court of the county in which the work was done or of any county in which jurisdiction of the contractor may be had The surety issuing the bond shall be named as a party to any suit upon the bond Action upon the bond or deposit brought by a residential homeowner for breach of contract by a party to the construction contract shall be commenced by filing the summons and complaint with the clerk of the appropriate superior court within two years from the date the claimed contract work was substantially completed or abandoned whichever occurred first Action upon the bond or deposit brought by any other authorized party shall be commenced by filing the summons and complaint with the clerk of the appropriate superior court within one year from the date the claimed labor was performed and benefits accrued taxes and contributions owing the state of Washington became due materials and equipment were furnished or the claimed contract work was substantially completed or abandoned whichever occurred first Service of process in an action filed under this chapter against the contractor and the contractors bond or the deposit shall be exclusively by service upon the department Three

CCBA Nuts amp Bolts on Construction Law - 27 of 49

copies of the summons and complaint and a fee adopted by rule of not less than fifty dollars to cover the costs shall be served by registered or certified mail or other delivery service requiring notice of receipt upon the department at the time suit is started and the department shall maintain a record available for public inspection of all suits so commenced Service is not complete until the department receives the fee and three copies of the summons and complaint The service shall constitute service and confer personal jurisdiction on the contractor and the surety for suit on claimants claim against the contractor and the bond or deposit and the department shall transmit the summons and complaint or a copy thereof to the contractor at the address listed in the contractors application and to the surety within two days after it shall have been received (4) The surety upon the bond shall not be liable in an aggregate amount in excess of the amount named in the bond nor for any monetary penalty assessed pursuant to this chapter for an infraction The liability of the surety shall not cumulate where the bond has been renewed continued reinstated reissued or otherwise extended The surety upon the bond may upon notice to the department and the parties tender to the clerk of the court having jurisdiction of the action an amount equal to the claims thereunder or the amount of the bond less the amount of judgments if any previously satisfied therefrom and to the extent of such tender the surety upon the bond shall be exonerated but if the actions commenced and pending and provided to the department as required in subsection (3) of this section at any one time exceed the amount of the bond then unimpaired claims shall be satisfied from the bond in the following order (a) Employee labor and claims of laborers including employee benefits (b) Claims for breach of contract by a party to the construction contract (c) Registered or licensed subcontractors material and equipment (d) Taxes and contributions due the state of Washington (e) Any court costs interest and attorneys fees plaintiff may be entitled to recover The surety is not liable for any amount in excess of the penal limit of its bond A payment made by the surety in good faith exonerates the bond to the extent of any payment made by the surety (5) The total amount paid from a bond or deposit required of a general contractor by this section to claimants other than residential homeowners must not exceed one-half of the bond amount The total amount paid from a bond or deposit required of a specialty contractor by this section to claimants other than residential homeowners must not exceed one-half of the bond amount or four thousand dollars whichever is greater (6) The prevailing party in an action filed under this section against the contractor and contractors bond or deposit for breach of contract by a party to the construction contract involving a residential homeowner is entitled to costs interest and reasonable attorneys fees The surety upon the bond or deposit is not liable in an aggregate amount in excess of the amount

CCBA Nuts amp Bolts on Construction Law - 28 of 49

named in the bond or deposit nor for any monetary penalty assessed pursuant to this chapter for an infraction (7) If a final judgment impairs the liability of the surety upon the bond or deposit so furnished that there is not in effect a bond or deposit in the full amount prescribed in this section the registration of the contractor is automatically suspended until the bond or deposit liability in the required amount unimpaired by unsatisfied judgment claims is furnished (8) In lieu of the surety bond required by this section the contractor may file with the department an assigned savings account upon forms provided by the department (9) Any person having filed and served a summons and complaint as required by this section having an unsatisfied final judgment against the registrant for any items referred to in this section may execute upon the security held by the department by serving a certified copy of the unsatisfied final judgment by registered or certified mail upon the department within one year of the date of entry of such judgment Upon the receipt of service of such certified copy the department shall pay or order paid from the deposit through the registry of the superior court which rendered judgment towards the amount of the unsatisfied judgment The priority of payment by the department shall be the order of receipt by the department but the department shall have no liability for payment in excess of the amount of the deposit (10) Within ten days after resolution of the case a certified copy of the final judgment and order or any settlement documents where a case is not disposed of by a court trial a certified copy of the dispositive settlement documents must be provided to the department by the prevailing party Failure to provide a copy of the final judgment and order or the dispositive settlement documents to the department within ten days of entry of such an order constitutes a violation of this chapter and a penalty adopted by rule of not less than two hundred fifty dollars may be assessed against the prevailing party (11) The director may require an applicant applying to renew or reinstate a registration or applying for a new registration to file a bond of up to three times the normally required amount if the director determines that an applicant or a previous registration of a corporate officer owner or partner of a current applicant has had in the past five years a total of three final judgments in actions under this chapter involving a residential single-family dwelling on two or more different structures (12) The director may adopt rules necessary for the proper administration of the security RCW 1827114 Disclosure statement required mdash Prerequisite to lien claim

(1) Any contractor agreeing to perform any contracting project (a) For the repair alteration or construction of four or fewer residential units or accessory structures on such residential property when the bid or contract price totals one thousand dollars or more or (b) for the repair alteration or construction of a commercial building when the bid or contract price totals one thousand dollars or more but less than sixty thousand dollars must provide the customer with

CCBA Nuts amp Bolts on Construction Law - 29 of 49

the following disclosure statement in substantially the following form using lower case and upper case twelve-point and bold type where appropriate prior to starting work on the project NOTICE TO CUSTOMER This contractor is registered with the state of Washington registration no and has posted with the state a bond or deposit of for the purpose of satisfying claims against the contractor for breach of contract including negligent or improper work in the conduct of the contractors business The expiration date of this contractors registration is THIS BOND OR DEPOSIT MIGHT NOT BE SUFFICIENT TO COVER A CLAIM THAT MIGHT ARISE FROM THE WORK DONE UNDER YOUR CONTRACT This bond or deposit is not for your exclusive use because it covers all work performed by this contractor The bond or deposit is intended to pay valid claims up to that you and other customers suppliers subcontractors or taxing authorities may have FOR GREATER PROTECTION YOU MAY WITHHOLD A PERCENTAGE OF YOUR CONTRACT You may withhold a contractually defined percentage of your construction contract as retainage for a stated period of time to provide protection to you and help insure that your project will be completed as required by your contract YOUR PROPERTY MAY BE LIENED If a supplier of materials used in your construction project or an employee or subcontractor of your contractor or subcontractors is not paid your property may be liened to force payment and you could pay twice for the same work FOR ADDITIONAL PROTECTION YOU MAY REQUEST THE CONTRACTOR TO PROVIDE YOU WITH ORIGINAL LIEN RELEASE DOCUMENTS FROM EACH SUPPLIER OR SUBCONTRACTOR ON YOUR PROJECT The contractor is required to provide you with further information about lien release documents if you request it General information is also available from the state Department of Labor and Industries I have received a copy of this disclosure statement

CCBA Nuts amp Bolts on Construction Law - 30 of 49

(Signature of customer) (2) The contractor must retain a signed copy of the disclosure statement in his or her files for a minimum of three years and produce a signed or electronic signature copy of the disclosure statement to the department upon request (3) A contractor subject to this section shall notify any consumer to whom notice is required under subsection (1) of this section if the contractors registration has expired or is revoked or suspended by the department prior to completion or other termination of the contract with the consumer (4) No contractor subject to this section may bring or maintain any lien claim under chapter 6004 RCW based on any contract to which this section applies without alleging and proving that the contractor has provided the customer with a copy of the disclosure statement as required in subsection (1) of this section (5) This section does not apply to contracts authorized under chapter 3904 RCW or to contractors contracting with other contractors (6) Failure to comply with this section shall constitute an infraction under the provisions of this chapter (7) The department shall produce model disclosure statements and public service announcements detailing the information needed to assist contractors and contractors customers to comply under this section As necessary the department shall periodically update these education materials RCW 3908010 Bond required mdash Conditions mdash Retention of contract amount in lieu of bond (1)(a) Whenever any board council commission trustees or body acting for the state or any county or municipality or any public body must contract with any person or corporation to do any work for the state county or municipality or other public body city town or district such board council commission trustees or body must require the person or persons with whom such contract is made to make execute and deliver to such board council commission trustees or body a good and sufficient bond with a surety company as surety conditioned that such person or persons must (i) Faithfully perform all the provisions of such contract (ii) Pay all laborers mechanics and subcontractors and material suppliers and all persons who supply such person or persons or subcontractors with provisions and supplies for the carrying on of such work and

CCBA Nuts amp Bolts on Construction Law - 31 of 49

(iii) Pay the taxes increases and penalties incurred on the project under Titles 50 51 and 82 RCW on (A) Projects referred to in RCW 6028011(1)(b) andor (B) projects for which the bond is conditioned on the payment of such taxes increases and penalties (b) The bond in cases of cities and towns must be filed with the clerk or comptroller thereof and any person or persons performing such services or furnishing material to any subcontractor has the same right under the provisions of such bond as if such work services or material was furnished to the original contractor (2) The provisions of RCW 3908010 through 3908030 do not apply to any money loaned or advanced to any such contractor subcontractor or other person in the performance of any such work (3) On contracts of thirty-five thousand dollars or less at the option of the contractor the respective public entity may in lieu of the bond retain fifty percent of the contract amount for a period of thirty days after date of final acceptance or until receipt of all necessary releases from the department of revenue the employment security department and the department of labor and industries and settlement of any liens filed under chapter 6028 RCW whichever is later (4) For contracts of one hundred thousand dollars or less the public entity may accept a full payment and performance bond from an individual surety or sureties (5) The surety must agree to be bound by the laws of the state of Washington and subjected to the jurisdiction of the state of Washington RCW 6004011 Definitions

Unless the context requires otherwise the definitions in this section apply throughout this chapter (1) Construction agent means any registered or licensed contractor registered or licensed subcontractor architect engineer or other person having charge of any improvement to real property who shall be deemed the agent of the owner for the limited purpose of establishing the lien created by this chapter (2) Contract price means the amount agreed upon by the contracting parties or if no amount is agreed upon then the customary and reasonable charge therefor (3) Draws means periodic disbursements of interim or construction financing by a lender (4) Furnishing labor professional services materials or equipment means the performance of any labor or professional services the contribution owed to any employee benefit plan on account of any labor the provision of any supplies or materials and the renting leasing or

CCBA Nuts amp Bolts on Construction Law - 32 of 49

otherwise supplying of equipment for the improvement of real property (5) Improvement means (a) Constructing altering repairing remodeling demolishing clearing grading or filling in of to or upon any real property or street or road in front of or adjoining the same (b) planting of trees vines shrubs plants hedges or lawns or providing other landscaping materials on any real property and (c) providing professional services upon real property or in preparation for or in conjunction with the intended activities in (a) or (b) of this subsection (6) Interim or construction financing means that portion of money secured by a mortgage deed of trust or other encumbrance to finance improvement of or to real property but does not include (a) Funds to acquire real property (b) Funds to pay interest insurance premiums lease deposits taxes assessments or prior encumbrances (c) Funds to pay loan commitment title legal closing recording or appraisal fees (d) Funds to pay other customary fees which pursuant to agreement with the owner or borrower are to be paid by the lender from time to time (e) Funds to acquire personal property for which the potential lien claimant may not claim a lien pursuant to this chapter (7) Labor means exertion of the powers of body or mind performed at the site for compensation Labor includes amounts due and owed to any employee benefit plan on account of such labor performed (8) Mortgagee means a person who has a valid mortgage of record or deed of trust of record securing a loan (9) Owner-occupied means a single-family residence occupied by the owner as his or her principal residence (10) Payment bond means a surety bond issued by a surety licensed to issue surety bonds in the state of Washington that confers upon potential claimants the rights of third party beneficiaries (11) Potential lien claimant means any person or entity entitled to assert lien rights under this chapter who has otherwise complied with the provisions of this chapter and is registered or licensed if required to be licensed or registered by the provisions of the laws of the state of Washington (12) Prime contractor includes all contractors general contractors and specialty

CCBA Nuts amp Bolts on Construction Law - 33 of 49

contractors as defined by chapter 1827 or 1928 RCW or who are otherwise required to be registered or licensed by law who contract directly with a property owner or their common law agent to assume primary responsibility for the creation of an improvement to real property and includes property owners or their common law agents who are contractors general contractors or specialty contractors as defined in chapter 1827 or 1928 RCW or who are otherwise required to be registered or licensed by law who offer to sell their property without occupying or using the structures projects developments or improvements for more than one year (13) Professional services means surveying establishing or marking the boundaries of preparing maps plans or specifications for or inspecting testing or otherwise performing any other architectural or engineering services for the improvement of real property (14) Real property lender means a bank savings bank savings and loan association credit union mortgage company or other corporation association partnership trust or individual that makes loans secured by real property located in the state of Washington (15) Site means the real property which is or is to be improved (16) Subcontractor means a general contractor or specialty contractor as defined by chapter 1827 or 1928 RCW or who is otherwise required to be registered or licensed by law who contracts for the improvement of real property with someone other than the owner of the property or their common law agent

6004021 Lien authorized

Except as provided in RCW 6004031 any person furnishing labor professional services materials or equipment for the improvement of real property shall have a lien upon the improvement for the contract price of labor professional services materials or equipment furnished at the instance of the owner or the agent or construction agent of the owner

6004031 Notices mdash Exceptions

(1) Except as otherwise provided in this section every person furnishing professional services materials or equipment for the improvement of real property shall give the owner or reputed owner notice in writing of the right to claim a lien If the prime contractor is in compliance with the requirements of RCW 1927095 6004230 and 6004261 this notice shall also be given to the prime contractor as described in this subsection unless the potential lien claimant has contracted directly with the prime contractor The notice may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after the date which is sixty days before (a) Mailing the notice by certified or registered mail to the owner or reputed owner or

CCBA Nuts amp Bolts on Construction Law - 34 of 49

(b) Delivering or serving the notice personally upon the owner or reputed owner and obtaining evidence of delivery in the form of a receipt or other acknowledgment signed by the owner or reputed owner or an affidavit of service In the case of new construction of a single-family residence the notice of a right to claim a lien may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after a date which is ten days before the notice is given as described in this subsection (2) Notices of a right to claim a lien shall not be required of (a) Persons who contract directly with the owner or the owners common law agent (b) Laborers whose claim of lien is based solely on performing labor or (c) Subcontractors who contract for the improvement of real property directly with the prime contractor except as provided in subsection (3)(b) of this section (3) Persons who furnish professional services materials or equipment in connection with the repair alteration or remodel of an existing owner-occupied single-family residence or appurtenant garage (a) Who contract directly with the owner-occupier or their common law agent shall not be required to send a written notice of the right to claim a lien and shall have a lien for the full amount due under their contract as provided in RCW 6004021 or (b) Who do not contract directly with the owner-occupier or their common law agent shall give notice of the right to claim a lien to the owner-occupier Liens of persons furnishing professional services materials or equipment who do not contract directly with the owner-occupier or their common law agent may only be satisfied from amounts not yet paid to the prime contractor by the owner at the time the notice described in this section is received regardless of whether amounts not yet paid to the prime contractor are due For the purposes of this subsection received means actual receipt of notice by personal service or registered or certified mail or three days after mailing by registered or certified mail excluding Saturdays Sundays or legal holidays (4) The notice of right to claim a lien described in subsection (1) of this section shall include but not be limited to the following information and shall substantially be in the following form using lower-case and upper-case ten-point type where appropriate

CCBA Nuts amp Bolts on Construction Law - 35 of 49

NOTICE TO OWNER

IMPORTANT READ BOTH SIDES OF THIS NOTICE CAREFULLY

PROTECT YOURSELF FROM PAYING TWICE

To Date

Re (description of property Street address or general location) From AT THE REQUEST OF (Name of person ordering the professional services materials or equipment) THIS IS NOT A LIEN This notice is sent to you to tell you who is providing professional services materials or equipment for the improvement of your property and to advise you of the rights of these persons and your responsibilities Also take note that laborers on your project may claim a lien without sending you a notice

OWNEROCCUPIER OF EXISTING

RESIDENTIAL PROPERTY

Under Washington law those who furnish labor professional services materials or equipment for the repair remodel or alteration of your owner-occupied principal residence and who are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien The law limits the amount that a lien claimant can claim against your property Claims may only be made against that portion of the contract price you have not yet paid to your prime contractor as of the time this notice was given to you or three days after this notice was mailed to you Review the back of this notice for more information and ways to avoid lien claims

COMMERCIAL ANDOR NEW

RESIDENTIAL PROPERTY

CCBA Nuts amp Bolts on Construction Law - 36 of 49

We have or will be providing professional services materials or equipment for the improvement of your commercial or new residential project In the event you or your contractor fail to pay us we may file a lien against your property A lien may be claimed for all professional services materials or equipment furnished after a date that is sixty days before this notice was given to you or mailed to you unless the improvement to your property is the construction of a new single-family residence then ten days before this notice was given to you or mailed to you Sender Address Telephone Brief description of professional services materials or equipment provided or to be provided

IMPORTANT INFORMATION

ON REVERSE SIDE

IMPORTANT INFORMATION

FOR YOUR PROTECTION This notice is sent to inform you that we have or will provide professional services materials or equipment for the improvement of your property We expect to be paid by the person who ordered our services but if we are not paid we have the right to enforce our claim by filing a construction lien against your property LEARN more about the lien laws and the meaning of this notice by discussing them with your contractor suppliers Department of Labor and Industries the firm sending you this notice your lender or your attorney

COMMON METHODS TO AVOID CONSTRUCTION LIENS There are several methods available to protect your property from construction liens The following are two of the more commonly used methods

DUAL PAYCHECKS (Joint Checks) When paying your contractor for services or materials you may make checks payable jointly to the contractor and the firms furnishing you this notice

CCBA Nuts amp Bolts on Construction Law - 37 of 49

LIEN RELEASES You may require your contractor to provide lien releases signed by all the suppliers and subcontractors from whom you have received this notice If they cannot obtain lien releases because you have not paid them you may use the dual payee check method to protect yourself

YOU SHOULD TAKE APPROPRIATE STEPS TO PROTECT YOUR PROPERTY FROM LIENS YOUR PRIME CONTRACTOR AND YOUR CONSTRUCTION LENDER ARE REQUIRED BY LAW TO GIVE YOU WRITTEN INFORMATION ABOUT LIEN CLAIMS IF YOU HAVE NOT RECEIVED IT ASK THEM FOR IT

(5) Every potential lien claimant providing professional services where no improvement as defined in RCW 6004011(5) (a) or (b) has been commenced and the professional services provided are not visible from an inspection of the real property may record in the real property records of the county where the property is located a notice which shall contain the professional service providers name address telephone number legal description of the property the owner or reputed owners name and the general nature of the professional services provided If such notice is not recorded the lien claimed shall be subordinate to the interest of any subsequent mortgagee and invalid as to the interest of any subsequent purchaser if the mortgagee or purchaser acts in good faith and for a valuable consideration acquires an interest in the property prior to the commencement of an improvement as defined in RCW 6004011(5) (a) or (b) without notice of the professional services being provided The notice described in this subsection shall be substantially in the following form

NOTICE OF FURNISHING

PROFESSIONAL SERVICES That on the (day) day of (month and year) (name of provider) began providing professional services upon or for the improvement of real property legally described as follows

[Legal Description is mandatory]

CCBA Nuts amp Bolts on Construction Law - 38 of 49

The general nature of the professional services provided is The owner or reputed owner of the real property is

(Signature)

(Name of Claimant)

(Street Address)

(City State Zip Code)

(Phone Number)

(6) A lien authorized by this chapter shall not be enforced unless the lien claimant has complied with the applicable provisions of this section

6004041 Contractor registration

A contractor or subcontractor required to be registered under chapter 1827 RCW or licensed under chapter 1928 RCW or otherwise required to be registered or licensed by law shall be deemed the construction agent of the owner for the purposes of establishing the lien created by this chapter only if so registered or licensed Persons dealing with contractors or subcontractors may rely for the purposes of this section upon a certificate of registration issued pursuant to chapter 1827 RCW or license issued pursuant to chapter 1928 RCW or other certificate or license issued pursuant to law covering the period when the labor professional services material or equipment shall be furnished and the lien rights shall not be lost by suspension or revocation of registration or license without their knowledge No lien rights described in this

CCBA Nuts amp Bolts on Construction Law - 39 of 49

chapter shall be lost or denied by virtue of the absence suspension or revocation of such registration or license with respect to any contractor or subcontractor not in immediate contractual privity with the lien claimant

6004081 Frivolous claim mdash Procedure

(1) Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who believes the claim of lien to be frivolous and made without reasonable cause or clearly excessive may apply by motion to the superior court for the county where the property or some part thereof is located for an order directing the lien claimant to appear before the court at a time no earlier than six nor later than fifteen days following the date of service of the application and order on the lien claimant and show cause if any he or she has why the relief requested should not be granted The motion shall state the grounds upon which relief is asked and shall be supported by the affidavit of the applicant or his or her attorney setting forth a concise statement of the facts upon which the motion is based (2) The order shall clearly state that if the lien claimant fails to appear at the time and place noted the lien shall be released with prejudice and that the lien claimant shall be ordered to pay the costs requested by the applicant including reasonable attorneys fees (3) If no action to foreclose the lien claim has been filed the clerk of the court shall assign a cause number to the application and obtain from the applicant a filing fee pursuant to RCW 3618016 If an action has been filed to foreclose the lien claim the application shall be made a part of that action (4) If following a hearing on the matter the court determines that the lien is frivolous and made without reasonable cause or clearly excessive the court shall issue an order releasing the lien if frivolous and made without reasonable cause or reducing the lien if clearly excessive and awarding costs and reasonable attorneys fees to the applicant to be paid by the lien claimant If the court determines that the lien is not frivolous and was made with reasonable cause and is not clearly excessive the court shall issue an order so stating and awarding costs and reasonable attorneys fees to the lien claimant to be paid by the applicant (5) Proceedings under this section shall not affect other rights and remedies available to the parties under this chapter or otherwise

6004091 Recording mdash Time mdash Contents of lien

Every person claiming a lien under RCW 6004021 shall file for recording in the county where the subject property is located a notice of claim of lien not later than ninety days after the person

CCBA Nuts amp Bolts on Construction Law - 40 of 49

has ceased to furnish labor professional services materials or equipment or the last date on which employee benefit contributions were due The notice of claim of lien (1) Shall state in substance and effect (a) The name phone number and address of the claimant (b) The first and last date on which the labor professional services materials or equipment was furnished or employee benefit contributions were due (c) The name of the person indebted to the claimant (d) The street address legal description or other description reasonably calculated to identify for a person familiar with the area the location of the real property to be charged with the lien (e) The name of the owner or reputed owner of the property if known and if not known that fact shall be stated and (f) The principal amount for which the lien is claimed (2) Shall be signed by the claimant or some person authorized to act on his or her behalf who shall affirmatively state they have read the notice of claim of lien and believe the notice of claim of lien to be true and correct under penalty of perjury and shall be acknowledged pursuant to chapter 6408 RCW If the lien has been assigned the name of the assignee shall be stated Where an action to foreclose the lien has been commenced such notice of claim of lien may be amended as pleadings may be by order of the court insofar as the interests of third parties are not adversely affected by such amendment A claim of lien substantially in the following form shall be sufficient

CLAIM OF LIEN

claimant vs name of person indebted to claimant

Notice is hereby given that the person named below claims a lien pursuant to chapter 6404 RCW In support of this lien the following information is submitted

1 NAME OF LIEN CLAIMANT

TELEPHONE NUMBER

CCBA Nuts amp Bolts on Construction Law - 41 of 49

ADDRESS

2 DATE ON WHICH THE CLAIMANT BEGAN TO PERFORM LABOR PROVIDE PROFESSIONAL SERVICES SUPPLY MATERIAL OR EQUIPMENT OR THE DATE ON WHICH EMPLOYEE BENEFIT CONTRIBUTIONS BECAME DUE

3 NAME OF PERSON INDEBTED TO THE CLAIMANT

4 DESCRIPTION OF THE PROPERTY AGAINST WHICH A LIEN IS CLAIMED (Street address legal description or other information that will reasonably describe the property)

5 NAME OF THE OWNER OR REPUTED OWNER (If not known state unknown)

6 THE LAST DATE ON WHICH LABOR WAS PERFORMED PROFESSIONAL SERVICES WERE FURNISHED CONTRIBUTIONS TO AN EMPLOYEE BENEFIT PLAN WERE DUE OR MATERIAL OR EQUIPMENT WAS FURNISHED

7 PRINCIPAL AMOUNT FOR WHICH THE LIEN IS CLAIMED IS

8 IF THE CLAIMANT IS THE ASSIGNEE OF THIS CLAIM SO STATE HERE

Claimant

(Phone number address city

CCBA Nuts amp Bolts on Construction Law - 42 of 49

and

state of claimant)

STATE OF WASHINGTON COUNTY OF ss being sworn says I am the claimant (or attorney of the claimant or administrator representative or agent of the trustees of an employee benefit plan) above named I have read or heard the foregoing claim read and know the contents thereof and believe the same to be true and correct and that the claim of lien is not frivolous and is made with reasonable cause and is not clearly excessive under penalty of perjury Subscribed and sworn to before me this day of The period provided for recording the claim of lien is a period of limitation and no action to foreclose a lien shall be maintained unless the claim of lien is filed for recording within the ninety-day period stated The lien claimant shall give a copy of the claim of lien to the owner or reputed owner by mailing it by certified or registered mail or by personal service within fourteen days of the time the claim of lien is filed for recording Failure to do so results in a forfeiture of any right the claimant may have to attorneys fees and costs against the owner under RCW 6004181

6004161 Bond in lieu of claim

Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who disputes the correctness or validity of the claim of lien may record either before or after the commencement of an action to enforce the lien in the office of the county recorder or auditor in the county where the claim of lien was recorded a bond issued by a surety company authorized to issue surety bonds in the state The surety shall be listed in the latest federal department of the treasury list of surety companies acceptable on federal bonds published in the Federal Register as authorized to issue bonds on United States government projects with an underwriting limitation including applicable reinsurance equal to or greater than the amount of the bond to be recorded The bond shall contain a description of the claim of lien and real property involved and be in an amount equal to the greater of five thousand dollars or two times the amount of the lien claimed if it is ten thousand dollars or less and in an amount equal to or greater than one and one-half times the amount of the lien if it is in

CCBA Nuts amp Bolts on Construction Law - 43 of 49

excess of ten thousand dollars If the claim of lien affects more than one parcel of real property and is segregated to each parcel the bond may be segregated the same as in the claim of lien A separate bond shall be required for each claim of lien made by separate claimants However a single bond may be used to guarantee payment of amounts claimed by more than one claim of lien by a single claimant so long as the amount of the bond meets the requirements of this section as applied to the aggregate sum of all claims by such claimant The condition of the bond shall be to guarantee payment of any judgment upon the lien in favor of the lien claimant entered in any action to recover the amount claimed in a claim of lien or on the claim asserted in the claim of lien The effect of recording a bond shall be to release the real property described in the notice of claim of lien from the lien and any action brought to recover the amount claimed Unless otherwise prohibited by law if no action is commenced to recover on a lien within the time specified in RCW 6004141 the surety shall be discharged from liability under the bond If an action is timely commenced then on payment of any judgment entered in the action or on payment of the full amount of the bond to the holder of the judgment whichever is less the surety shall be discharged from liability under the bond Nothing in this section shall in any way prohibit or limit the use of other methods devised by the affected parties to secure the obligation underlying a claim of lien and to obtain a release of real property from a claim of lien

6004181 Rank of lien mdash Application of proceeds mdash Attorneys fees

(1) In every case in which different construction liens are claimed against the same property the court shall declare the rank of such lien or class of liens which liens shall be in the following order (a) Liens for the performance of labor (b) Liens for contributions owed to employee benefit plans (c) Liens for furnishing material supplies or equipment (d) Liens for subcontractors including but not limited to their labor and materials and (e) Liens for prime contractors or for professional services (2) The proceeds of the sale of property must be applied to each lien or class of liens in order of its rank and in an action brought to foreclose a lien pro rata among each claimant in each separate priority class A personal judgment may be rendered against any party personally liable for any debt for which the lien is claimed If the lien is established the judgment shall provide

CCBA Nuts amp Bolts on Construction Law - 44 of 49

for the enforcement thereof upon the property liable as in the case of foreclosure of judgment liens The amount realized by such enforcement of the lien shall be credited upon the proper personal judgment The deficiency if any remaining unsatisfied shall stand as a personal judgment and may be collected by execution against any party liable therefor (3) The court may allow the prevailing party in the action whether plaintiff or defendant as part of the costs of the action the moneys paid for recording the claim of lien costs of title report bond costs and attorneys fees and necessary expenses incurred by the attorney in the superior court court of appeals supreme court or arbitration as the court or arbitrator deems reasonable Such costs shall have the priority of the class of lien to which they are related as established by subsection (1) of this section (4) Real property against which a lien under this chapter is enforced may be ordered sold by the court and the proceeds deposited into the registry of the clerk of the court pending further determination respecting distribution of the proceeds of the sale

6004900 Liberal construction mdash 1991 c 281

RCW 1927095 6004230 and 6004011 through 6004226 and 6004261 are to be liberally construed to provide security for all parties intended to be protected by their provisions

RCW 6028011

Retained percentage mdash Public transportation projects mdash Labor and material lien created mdash Bond in lieu of retained funds mdash Termination before completion mdash Chapter deemed exclusive mdash Release of ferry contract payments mdash Projects of farmers home administration mdash General contractorconstruction manager procedure mdash Definitions

(1)(a) Except as provided in (b) of this subsection public improvement contracts must provide and public bodies must reserve a contract retainage not to exceed five percent of the moneys earned by the contractor as a trust fund for the protection and payment of (i) The claims of any person arising under the contract and (ii) the state with respect to taxes increases and penalties imposed pursuant to Titles 50 51 and 82 RCW which may be due from such contractor (b) Public improvement contracts funded in whole or in part by federal transportation funds must rely upon the contract bond as referred to in chapter 3908 RCW for the protection and payment of (i) The claims of any person or persons arising under the contract to the extent such claims are provided for in RCW 3908010 and (ii) the state with respect to taxes increases and penalties incurred on the public improvement project under Titles 50 51 and 82 RCW which may be due The contract bond must remain in full force and effect until at a minimum all claims filed in compliance with chapter 3908 RCW are resolved

CCBA Nuts amp Bolts on Construction Law - 45 of 49

(2) Every person performing labor or furnishing supplies toward the completion of a public improvement contract has a lien upon moneys reserved by a public body under the provisions of a public improvement contract However the notice of the lien of the claimant must be given within forty-five days of completion of the contract work and in the manner provided in RCW 3908030 (3) The contractor at any time may request the contract retainage be reduced to one hundred percent of the value of the work remaining on the project (a) After completion of all contract work other than landscaping the contractor may request that the public body release and pay in full the amounts retained during the performance of the contract and sixty days thereafter the public body must release and pay in full the amounts retained (other than continuing retention of five percent of the moneys earned for landscaping) subject to the provisions of chapters 3912 and 6028 RCW (b) Sixty days after completion of all contract work the public body must release and pay in full the amounts retained during the performance of the contract subject to the provisions of chapters 3912 and 6028 RCW (4) The moneys reserved by a public body under the provisions of a public improvement contract at the option of the contractor must be (a) Retained in a fund by the public body (b) Deposited by the public body in an interest bearing account in a bank mutual savings bank or savings and loan association Interest on moneys reserved by a public body under the provision of a public improvement contract must be paid to the contractor (c) Placed in escrow with a bank or trust company by the public body When the moneys reserved are placed in escrow the public body must issue a check representing the sum of the moneys reserved payable to the bank or trust company and the contractor jointly This check must be converted into bonds and securities chosen by the contractor and approved by the public body and the bonds and securities must be held in escrow Interest on the bonds and securities must be paid to the contractor as the interest accrues (5) The contractor or subcontractor may withhold payment of not more than five percent from the moneys earned by any subcontractor or sub-subcontractor or supplier contracted with by the contractor to provide labor materials or equipment to the public project Whenever the contractor or subcontractor reserves funds earned by a subcontractor or sub-subcontractor or

CCBA Nuts amp Bolts on Construction Law - 46 of 49

supplier the contractor or subcontractor must pay interest to the subcontractor or sub-subcontractor or supplier at a rate equal to that received by the contractor or subcontractor from reserved funds (6) A contractor may submit a bond for all or any portion of the contract retainage in a form acceptable to the public body and from a bonding company meeting standards established by the public body The public body must accept a bond meeting these requirements unless the public body can demonstrate good cause for refusing to accept it This bond and any proceeds therefrom are subject to all claims and liens and in the same manner and priority as set forth for retained percentages in this chapter The public body must release the bonded portion of the retained funds to the contractor within thirty days of accepting the bond from the contractor Whenever a public body accepts a bond in lieu of retained funds from a contractor the contractor must accept like bonds from any subcontractors or suppliers from which the contractor has retained funds The contractor must then release the funds retained from the subcontractor or supplier to the subcontractor or supplier within thirty days of accepting the bond from the subcontractor or supplier (7) If the public body administering a contract after a substantial portion of the work has been completed finds that an unreasonable delay will occur in the completion of the remaining portion of the contract for any reason not the result of a breach thereof it may if the contractor agrees delete from the contract the remaining work and accept as final the improvement at the stage of completion then attained and make payment in proportion to the amount of the work accomplished and in this case any amounts retained and accumulated under this section must be held for a period of sixty days following the completion In the event that the work is terminated before final completion as provided in this section the public body may thereafter enter into a new contract with the same contractor to perform the remaining work or improvement for an amount equal to or less than the cost of the remaining work as was provided for in the original contract without advertisement or bid The provisions of this chapter are exclusive and supersede all provisions and regulations in conflict herewith (8) Whenever the department of transportation has contracted for the construction of two or more ferry vessels sixty days after completion of all contract work on each ferry vessel the department must release and pay in full the amounts retained in connection with the construction of the vessel subject to the provisions of RCW 6028021 and chapter 3912 RCW However the department of transportation may at its discretion condition the release of funds retained in connection with the completed ferry upon the contractor delivering a good and sufficient bond with two or more sureties or with a surety company in the amount of the retained funds to be released to the contractor conditioned that no taxes may be certified or claims filed for work on the ferry after a period of sixty days following completion of the ferry and if taxes are certified or claims filed recovery may be had on the bond by the department of revenue the employment

CCBA Nuts amp Bolts on Construction Law - 47 of 49

security department the department of labor and industries and the material suppliers and laborers filing claims (9) Except as provided in subsection (1) of this section reservation by a public body for any purpose from the moneys earned by a contractor by fulfilling its responsibilities under public improvement contracts is prohibited (10) Contracts on projects funded in whole or in part by farmers home administration and subject to farmers home administration regulations are not subject to subsections (1) through (9) of this section (11) This subsection applies only to a public body that has contracted for the construction of a facility using the general contractorconstruction manager procedure as defined under RCW 3910210 If the work performed by a subcontractor on the project has been completed within the first half of the time provided in the general contractorconstruction manager contract for completing the work the public body may accept the completion of the subcontract The public body must give public notice of this acceptance After a forty-five day period for giving notice of liens and compliance with the retainage release procedures in RCW 6028021 the public body may release that portion of the retained funds associated with the subcontract Claims against the retained funds after the forty-five day period are not valid (12) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise (a) Contract retainage means an amount reserved by a public body from the moneys earned by a person under a public improvement contract (b) Person means a person or persons mechanic subcontractor or materialperson who performs labor or provides materials for a public improvement contract and any other person who supplies the person with provisions or supplies for the carrying on of a public improvement contract (c) Public body means the state or a county city town district board or other public body (d) Public improvement contract means a contract for public improvements or work other than for professional services or a work order as defined in RCW 3910210

CCBA Nuts amp Bolts on Construction Law - 48 of 49

RCW 6432070 Liens or encumbrances mdash Enforcement mdash Satisfaction

(1) Subsequent to recording the declaration as provided in this chapter and while the property remains subject to this chapter no lien shall thereafter arise or be effective against the property During such period liens or encumbrances shall arise or be created only against each apartment and the percentage of undivided interest in the common areas and facilities and appurtenant to such apartment in the same manner and under the same conditions in every respect as liens or encumbrances may arise or be created upon or against any other separate parcel of real property subject to individual ownership PROVIDED That no labor performed or materials furnished with the consent of or at the request of the owner of any apartment or such owners agent contractor or subcontractor shall be the basis for the filing of a lien against any other apartment or any other property of any other apartment owner not expressly consenting to or requesting the same except that such express consent shall be deemed to be given by any apartment owner in the case of emergency repairs Labor performed or materials furnished for the common areas and facilities if authorized by the association of apartment owners the manager or board of directors shall be deemed to be performed or furnished with the express consent of each apartment owner and shall be the basis for the filing of a lien against each of the apartments and shall be subject to the provisions of subsection (2) of this section (2) In the event a lien against two or more apartments becomes effective the apartment owners of the separate apartments may remove their apartment and the percentage of undivided interest in the common areas and facilities appurtenant to such apartment from the lien by payment of the fractional or proportional amounts attributable to each of the apartments affected Such individual payments shall be computed by reference to the percentages appearing on the declaration Subsequent to any such payment discharge or satisfaction the apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto shall thereafter be free and clear of the liens so paid satisfied or discharged Such partial payment satisfaction or discharge shall not prevent the lienor from proceeding to enforce his or her rights against any apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto not so paid satisfied or discharged

CCBA Nuts amp Bolts on Construction Law - 49 of 49

  • Cover Sheet
  • 20141110 - Washington Lien and Bond CLE
  • LampI Lien Summary
  • Claim of Lien
  • Form Notice to Owner
  • Model Disclosure Statement (Notice to Customer)
  • LampI Facts about Construction Liens
    • What you should know about contracts
    • How to protect your investment
    • For more information
      • Notice of Claim Against Bond and Retained Percentage
      • Preclaim Notice Bond amp Retained Percentage
      • Statute Handout
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 SUO 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 ENU (Use these settings to create Adobe PDF documents best suited for high-quality prepress printing Created PDF documents can be opened with Acrobat and Adobe Reader 50 and later) gtgt Namespace [ 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 DEU 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 ESP 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 FRA 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 ITA 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 JPN ltFEFF9ad854c18cea306a30d730ea30d730ec30b951fa529b7528002000410064006f0062006500200050004400460020658766f8306e4f5c6210306b4f7f75283057307e305930023053306e8a2d5b9a30674f5c62103055308c305f0020005000440046002030d530a130a430eb306f3001004100630072006f0062006100740020304a30883073002000410064006f00620065002000520065006100640065007200200035002e003000204ee5964d3067958b304f30533068304c3067304d307e305930023053306e8a2d5b9a306b306f30d530a930f330c8306e57cb30818fbc307f304c5fc59808306730593002gt KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020ace0d488c9c80020c2dcd5d80020c778c1c4c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200035002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor prepress-afdrukken van hoge kwaliteit De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 50 en hoger) NOR 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 PTB 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 SUO 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 SVE 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 ENU (Use these settings to create Adobe PDF documents best suited for high-quality prepress printing Created PDF documents can be opened with Acrobat and Adobe Reader 50 and later) gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false ConvertColors ConvertToCMYK DestinationProfileName () DestinationProfileSelector DocumentCMYK Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles false MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector DocumentCMYK PreserveEditing true UntaggedCMYKHandling LeaveUntagged UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ]gtgt setdistillerparamsltlt HWResolution [2400 2400] PageSize [612000 792000]gtgt setpagedevice

          1. To
          2. Date
          3. Re
          4. From
          5. AT THE REQUEST OF
          6. Sender
          7. Address
          8. Telephone
          9. Brief description of professional services materials or equipment provided or to be provided
          10. 1
          11. 2
          12. 3
          13. reg no
          14. deposit $
          15. expiration date
          16. claims up to $
          17. Reset

11122014

9

Immix Law Group

Property Ownersrsquo Claims Against Contractors

Immix Law Group Washington Lien and Bond Claims

Property Ownersrsquo Claims Against Contractors

Claiming a Frivolous Lien (RCW 6004081)bull Party can request a show cause hearing where applicant must

show that lien is frivolous and ldquomade without reasonable causerdquo or is ldquoclearly excessiverdquo

bull If lien claimant fails to show the lien will be releasedbull High standard for ldquoFrivolousnessrdquo

bull ldquopresents no debatable issue and is so devoid of merit that it has no possibility of successrdquo

bull Prevailing party may get reasonable attorneysrsquo fees and costs

Immix Law Group Washington Lien and Bond Claims

Property Ownersrsquo Claims Against Contractors

Claim Against Contractor Registration Bond (RCW 1827040)bull Contractors are required to obtain registration bonds

bull General contractors = $12000bull Subcontractors = $6000

bull Persons contracting with the contractor can sue against the contractorrsquos registration bond

bull SOLbull Homeowners = 2 yearsbull Everyone else = 1 year

CCBA Nuts amp Bolts on Construction Law - 10 of 49

11122014

10

Immix Law Group Washington Lien and Bond Claims

Property Ownersrsquo Claims Against Contractors

Claim Against Contractor Registration Bond (RCW 1827040)bull Recovery Limitations

bull Residential homeowners entitled to recover entire bond amountbull Other claimants are entitled to frac12 of the bond amount or $4000 if

subcontractor or specialty contractorbull Claimants entitled to attorneysrsquo fees up to amount of bond

Immix Law Group Washington Lien and Bond Claims

Property Ownersrsquo Claims Against Contractors

Claim Against Contractor Registration Bond (RCW 1827040)

bull Service Requirementsbull Service on the bonding company and the contractor must be made

on the Department of Labor amp Industries by serving three copies of the summons and complaint by certified andor registered mail (RCW 1827040(3)) with the filing fee

bull You should also serve the contractor and all other named defendants personally so that the breach of contract claim and other claims are properly served

Immix Law Group

Washington Public Contracts Retainage and Bond Claims

CCBA Nuts amp Bolts on Construction Law - 11 of 49

11122014

11

Immix Law Group Washington Lien and Bond Claims

Public Contracts Retainage ClaimsRetainage Claims (RCW 6028011)bull ldquolsquoContract retainagersquo means an amount reserved by a public body from

the moneys earned by a person under a public improvement contractrdquo bull Usually five percent (5)bull Prime contractor can submit a bond in lieu of retainagebull All persons supplying labor materials equipment services entitled to

claimbull Exception Temporary labor supplier not entitled to claim against retention

because not ldquosubcontractorrdquo Better Financial Solutions Inc v Caicos Corp 117 Wn App 899 (2003)

Immix Law Group Washington Lien and Bond Claims

Public Contracts Retainage Claims

Preclaim Notice of Retainage Claim (RCW 6028011)

bull Sub‐tier subcontractors and suppliers must give preclaimnotice to the public agency within 60 days of furnishing labor material supplies or equipment to the project

bull Relates back 60 days from the date of the noticebull Must be delivered to contracting agency

Immix Law Group Washington Lien and Bond Claims

Public Contracts Retainage Claims

Notice of Retainage Claim (RCW 6028011)

bull All claimants must provide a Notice of Claim within 45 days after ldquocompletion of the contract workrdquo (essentially ldquoproject completionrdquo)

bull The Notice must be delivered to contracting agencybull Hand delivered or certified mail with return receipt

bull Must file the foreclosure suit within 4 months after providing the Notice of Claim

CCBA Nuts amp Bolts on Construction Law - 12 of 49

11122014

12

Immix Law Group Washington Lien and Bond Claims

Public Contracts Bond Claims

Bond Claims ndash Washingtonrsquos Little Miller Act (RCW 3908010)

On Washington Public Works projects in excess of $25000 general contractors must post a payment bond usually in the amount of the contract price

Immix Law Group Washington Lien and Bond Claims

Public Contracts Bond Claims

Preclaim Notice of Bond Claim (RCW 3908010)

bull Lower‐tier subcontractors and material suppliers must give preclaim notice to the prime contractor within 10 days after starting work

Immix Law Group Washington Lien and Bond Claims

Public Contracts Bond Claims

Notice of Bond Claim (RCW 3908010)

bull All claimants must provide a Notice of Claim within 30 days after ldquoacceptance of the workrdquo (different than retention claim)bull ldquoAcceptancerdquo is an affirmative act by the public works owner

bull The Notice must be delivered to public works ownerbull Hand delivered or certified mail with return receipt

bull No deadline provided in the statute ndash foreclose by general statute of limitationsbull 3 years for oral contracts 6 years for written contracts

CCBA Nuts amp Bolts on Construction Law - 13 of 49

11122014

13

Immix Law Group Washington Lien and Bond Claims

Public Contracts Bond amp Retainage Claims

bull Practice Pointer Coordinate the filing of the retention and bond Preclaim Notice and Notice of Claim to ensure that the contractorrsquos claims are protected

bull File the Bond amp Retainage Preclaim Notice within 10 days after starting work

bull File the Bond amp Retainage Notice of Claim within 30 days from project completion

Immix Law Group Washington Lien and Bond Claims

Public Contracts Prompt Pay ActWashingtonrsquos Prompt Pay Act

bull Prime contractors are entitled to payment within 30 days after the public agencyrsquos receipt of the invoice

bull If the public agency intends to withhold payment (all or in part) the agency must notify the contractor in writing within 8 days of receipt stating

bull Why payment (all or part) is being withheld

bull Actions required by contractor in order to receive payment

Immix Law Group Washington Lien and Bond Claims

Public Contracts Prompt Pay ActWashingtonrsquos Prompt Pay Act (contrsquod)

bull Public agency can withhold up to 150 of the disputed amount

bull Failure to comply entitles the contractor to 1 interest per month until paid

bull Subcontractors must be paid within 10 days of prime contractorrsquos receipt of payment

CCBA Nuts amp Bolts on Construction Law - 14 of 49

11122014

14

Immix Law Group

Questions

CCBA Nuts amp Bolts on Construction Law - 15 of 49

SUMMARY OF THE REQUIREMENTS TO BE MET BY A LIEN CLAIMANT ON A WASHINGTON PRIVATE CONSTRUCTION PROJECT

NOTICE TO CUSTOMER

FROM

Prime Contractor working on four or fewer residential units when the contract price is $1000 or more or on a commercial building when the contract price is $1000 or more but less than $60000

TO Owner

WHEN Before starting construction NOTICE OF FURNISHING PROFESSIONAL SERVICES

FROM

Provider of professional services

TO County Recorder

WHEN As soon as professional services are commenced PRECLAIM NOTICE (for all projects except repair and remodeling of owner-occupied single-family residence)

FROM

Provider of professional services materials or equipment except that the following need not provide the notice (1) a provider that contracts directly with the owner or the owners actual agent or (2) a first tier subcontractor

TO Owner and usually also prime contractor

WHEN New single family residence within ten days of first supplying professional services materials or equipment All other projects within 60 days of first supplying professional services materials or equipment

PRECLAIM NOTICE (for repair and remodeling of owner-occupied single-family residence)

FROM

Provider of professional services materials or equipment to anyone other than the owner

TO Owner and usually also prime contractor

WHEN Immediately after agreeing to furnish professional services materials or equipment

FROM

Potential lien claimant to whom payment is five or more days overdue

NOTICE TO REAL PROPERTY LENDER (only applicable where there is not a payment bond of at least 50 of the amount of construction financing)

TO Construction lender owner and prime contractor

WHEN Within 35 days of date payment is due

CLAIM OF LIEN

FROM

Unpaid claimant

TO County Recorder

WHEN Not later than 90 days after the last furnishing of labor professional services materials or equipment or the last date on which employee benefit contributions were due

COPY OF CLAIM OF LIEN

FROM

Unpaid claimant

TO Owner

WHEN Within 14 days of date claim of lien is filed for recording

DEADLINE FOR FILING A LAWSUIT Within eight months of recording claim of lien

F625-055-000 const lien summary 2-96 This summary is intended to generally set forth the requirements applicable to most lien claimants The remainder of the chapter should be consulted for a more detailed discussion

CCBA Nuts amp Bolts on Construction Law - 16 of 49

CLAIM OF LIEN SIGNED BY ATTORNEY

Return Address __________________________ __________________________ __________________________

Document Title Claim of Lien

Reference Number _____________________________

Grantor _____________________________

Grantee _____________________________

Legal Description

Assessors Property Tax Parcel No

CLAIM OF LIEN

________________________ claimant vs _____________________________ name of persons indebted to claimant

Notice is hereby given that the person named below claims a lien pursuant to Chapter 6004 RCW In

support of this lien the following information is submitted

1 NAME OF LIEN CLAIMANT ______________________________________

TELEPHONE NUMBER ______________________________________

ADDRESS ______________________________________

______________________________________

2 DATE ON WHICH THE CLAIMANT BEGAN TO PERFORM LABOR PROVIDE PROFESSIONAL SERVICES SUPPLY MATERIAL OR EQUIPMENT OR THE DATE ON WHICH EMPLOYEE BENEFIT CONTRIBUTIONS BECOMES DUE _________

3 NAME OF PERSON INDEBTED TO THE CLAIMANT _________________

4 DESCRIPTIONOF THE PROPERTY AGAINST WHICH A LIEN IS CLAIMED All fee leasehold and other interests of _______________ and any other owner person or entity in the property commonly known as ___________________________located at _______________________ _________________________ _________________County Washington _______ the legal description of which is believed to be as follows

[Legal Description - andor - The legal description of the underlying real property is described on the attached Exhibit A]

CCBA Nuts amp Bolts on Construction Law - 17 of 49

5 NAME OF THE OWNER OR REPUTED OWNER (if not known state ldquounknownrdquo) ____________________________________________________________________________________________

6 THE LAST DATE ON WHICH LABOR WAS PERFORMED PROFESSIONAL SERVICES WERE FURNISHED CONTRIBUTIONS TO AN EMPLOYEE BENEFIT PLAN WERE DUE OR MATERIAL OR EQUIPMENT WAS FURNISHED _____________________________________________________________

7 PRINCIPAL AMOUNT FOR WHICH THE LIEN IS CLAIMED IS $_______

8 IF THE CLAIMANT IS THE ASSIGNEE OF THIS CLAIM SO STATE HERE ___

___________________ Claimant ___________________________

___________________________ (__)____-______

By ________s________________ Print Name ___________________ Its Attorney

STATE OF WASHINGTON )

SS COUNTYOF ____________ )

________________ being sworn says I am the attorney of the claimant above named I have read or heard the foregoing claim read and know the contents thereof and believe the same to be true and correct and that the claim of lien is not frivolous and is made with reasonable cause and is not clearly excessive under penalty of perjury

__________________________ Print Name _______________

SUBSCRIBED and SWORN to before me this ___day of ___________________ 201_

STATE OF WASHINGTON )

SS COUNTYOF ____________ )

[Seal or Stamp]

__________________________ Print Name _______________ Notary Public in and for the State of Washington residing at________________________________ My Commission Expires __________________

CCBA Nuts amp Bolts on Construction Law - 18 of 49

I certify that I know or have satisfactory evidence that___________________ is the person who appeared before me and said person acknowledged that [heshe] signed this instrument on oath stated that [heshe] was authorized to execute this instrument and acknowledged it as the attorney of___________________ to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument

CCBA Nuts amp Bolts on Construction Law - 19 of 49

F625-054-000 construction lien notice 11-05 IMPORTANT INFORMATION ON PAGE 2

NOTICE TO OWNER IMPORTANT READ BOTH SIDES OF THIS NOTICE CAREFULLY

PROTECT YOURSELF FROM PAYING TWICE

To

Date

Re

From (Description of property street address or general location)

AT THE REQUEST OF Name of person ordering their professional services materials or equipment

THIS IS NOT A LIEN This notice is sent to you to tell you who is providing professional services materials or equipment for the improvement of your property and to advise you of the rights of these persons and your responsibilities Also take notice that laborers on your project may claim a lien without sending you a notice

OWNEROCCUPIER OF EXISTING RESIDENTIAL PROPERTY Under Washington law those who furnish labor professional services materials or equipment for the repair remodel or alteration of you owner-occupied principal residence and who are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien The law limits the amount that a lien claimant can claim against your property Claims may only be made against that portion of the contract price you have not yet paid to your prime contractor as of the time this notice was given to you or three days after this notice was mailed to you Review page 2 of this notice for more information and ways to avoid lien claims

COMMERCIAL ANDOR NEW RESIDENTIAL PROPERTY We have or will be providing professional services materials or equipment for the improvement of your commercial or new residential project In the event you or your contractor fail to pay us we may file a lien against your property A lien may be claimed for all professional services materials or equipment furnished after a date that is sixty days before this notice was given to you or mailed to you unless the improvement to you property is the construction of a new single-family residence then ten days before this notice was given to you or mailed to you

Sender

Address

Telephone

Brief description of professional services materials or equipment provided or to be provided

CCBA Nuts amp Bolts on Construction Law - 20 of 49

F625-054-000 construction lien notice page 2 11-05

Important Information for your Protection

This notice is sent to inform you that we have or will provide professional services materials or equipment for the repair remodel or alteration of you property We expect to be paid by the person who ordered our services but if we are not paid we have the right to enforce our claim by filing a construction lien against your property

LEARN more about the lien laws and the meaning of this notice by

discussing them with our contractor suppliers Department of Labor and Industries the firm sending you this notice your lender or your attorney

COMMON METHODS TO AVOID CONSTRUCTION LIENS

There are several methods available to protect your property from construction liens The following are two of the more commonly used methods

DUAL PAYCHECKS (Joint Checks) When paying your

contractor for services or materials you may make checks payable jointly to the contractor and the firms furnishing you this notice

LIEN RELEASES You may require your contractor to provide

lien releases signed by all the suppliers and subcontractors from whom you have received this notice If they cannot obtain lien releases because you have not paid them you may use the dual payee check method to protect yourself

You should take appropriate steps to protect your property from

liens

Your prime contractor and your construction lender are required by law to give you written information about lien claims If you have not received it ask them for it

CCBA Nuts amp Bolts on Construction Law - 21 of 49

F625-030-000 model disclosure statement notice to customer 09-2007

Department of Labor and Industries Construction Compliance

MODEL DISCLOSURE STATEMENTNOTICE TO CUSTOMER

This contractor is registered with the state of Washington registration no____________________ and has posted with the state a bond or deposit of ______________________ for the purpose of satisfying claims against the contractor for breach of contract including negligent or improper work in the conduct of the contractorrsquos business The expiration date of this contractorrsquos registration is ______________________

THIS BOND OR DEPOSIT MIGHT NOT BE SUFFICIENT TO COVER A CLAIM THAT MIGHT ARISE FROM THE WORK DONE UNDER YOUR CONTRACT This bond or deposit is not for your exclusive use because it covers all work performed by this contractor The bond or deposit is intended to pay valid claims up to ___________________________ that you and other customers suppliers subcontractors or taxing authorities may have FOR GREATER PROTECTION YOU MAY WITHHOLD A PERCENTAGE OF YOUR CONTRACT You may withhold a contractually defined percentage of your construction contract as retainage for a stated period of time to provide protection to you and help insure that your project will be completed as required by your contract

YOUR PROPERTY MAY BE LIENED If a supplier of materials used in your construction project or an employee or subcontractor of your contractor or subcontractors is not paid your property may be liened to force payment and you could pay twice for the same work FOR ADDITIONAL PROTECTION YOU MAY REQUEST THE CONTRACTOR TO PROVIDE YOU WITH ORIGINAL ldquoLIEN RELEASErdquo DOCUMENTS FROM EACH SUPPLIER OR SUBCONTRACTOR AT YOUR PROJECT The contractor is required to provide you with further information about lien release document if you request it General information is also available from the state Department of Labor and Industries I have received a copy of this disclosure statement Dated this _______ day of _______________ of the year __________

_____________________________________________________ Signature of Customer The contractor must retain a signed copy of the disclosure statement in his or her files for a minimum of three years and produce a signed or electronic signature copy of the disclosure statement to the department upon request

CCBA Nuts amp Bolts on Construction Law - 22 of 49

Facts About Construction LiensWhat you should know about contractsIf your contractor fails to pay subcontractors suppliers or laborers or neglects to make other legally required payments those who are owed money can look to your property for payment even if you have paid your contractor in full This is true if you have hired a contractor to build a new home or are buying a newly built home

It is also true when you remodel or improve your property although the amount of your liability may be limited to the amount you owe the prime contractor at the time a lien is filed

Under Washington laws those who work on your property or provide materials and are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien

People who supply materials or labor ordered by your contractor are permitted by law to file a lien only if they do so within 90 days of cessation of performance or delivery of materials The time frame is spelled out in RCW 6004091

If you enter into a contract to buy a newly built home you may not receive a notice of a lien based on a claim by a contractor or material handler Be aware that a lien may be claimed even though you have not received a notice

Before making final payment on the project request a completed lien release form from each contractor and material supplier A sample of this release of lien form is available from the Department of Labor amp Industries Contractor Registration Section

You have final responsibility for seeing that all bills are paid even if you have paid your contractor in full

If you receive a notice to enforce a lien take the notice seriously Let your contractor know you have received the notice Find out what arrangements are being made to pay the sender of the notice

When in doubt or if you need more details consult your attorney When and how to pay your contractor is a decision that requires serious consideration

Reminder Washington laws require contractors to give you a disclosure statement if your contract exceeds $1000 [RCW 1827114(A) or (B)]

CCBA Nuts amp Bolts on Construction Law - 23 of 49

PUBLICATION F625-017-000 [01-2008]

Other formats for persons with disabilities are available on request Call 1-800-647-0982 TDD users call 360-902-5797 LampI is an equal opportunity employer

For more information

How to protect your investment

If you are dealing with a lending institution ask your loan officer what precautions the lending institution takes to verify that subcontractors and material suppliers are being paid when mortgage money is paid to your contractor

Request lender supervision when dealing with a lending institution that provides interim or construction financing

Ask the prime contractor to disclose all potential lien claimants as a condition of payment A lien claimant must mail (by certified or registered mail or by personal service) a copy of the claim of lien to the owner within 14 days of the time the lien is recorded [RCW 6004091(2)] While an action is ongoing an owner may withhold from this prime contractor the amount of money for which a claim is recorded by a subcontractor supplier or laborer [RCW 6004151]

It is recommended that your check be made payable jointly naming the contractor and the subcontractor or supplier as payees

Upon payment and acceptance of the amount due the owner has the right to an executed release of all lien rights by lien claimants [RCW 6004071]

Consider using an escrow agent to protect your interests Find out whether your escrow agent will protect you against liens when disbursing payments If you are interested in this alternative consult your attorney

Request that your contractor post a performance bond in the amount of the project cost That will give you recourse in the event the contractor fails to complete the building agreement

8 On the Web Find more information about hiring a contractor at

wwwLniwagovTradesLicensingContractorsHireCon

Contractor Registration Hotline1-800-647-0982

You may also call your local LampI office See listings under ldquoWashington State ofrdquo in the government section or the white pages of the telephone book

Please note This notice was prepared by the Department of Labor amp Industries Specialty Compliance Services Division for reproduction by lending institutions and contractors for distribution to their clients It explains the basics of the construction lien law to help you protect yourself This information is not a reflection upon the abilities or credit of your contractor

CCBA Nuts amp Bolts on Construction Law - 24 of 49

NOTICE OF CLAIM AGAINST

BOND AND RETAINED PERCENTAGE

RCW 3908030 RCW 6028010

VIA CERTIFIED MAIL ndash RETURN RECEIPT REQUESTED

TO [Public Owner] [Public Ownerrsquos Address]

Project [Project Name amp Address] NOTICE IS HEREBY GIVEN that the undersigned [Claimant] [Claimantrsquos Address] has a claim in the amount of ----- and 00100 Dollars ($XX) (not including attorneysrsquo fees or costs) together with interest at twelve percent (12) against [Public Owner] (ldquoOwnerrdquo) pursuant to RCW 6028 and the payment bond taken from [Prime Contractor] (ldquoContractorrdquo) [Prime Contractorrsquos Address] as principal and [Surety Company] (ldquoSuretyrdquo) [Suretyrsquos Address] as surety Bond No ________ pursuant to RCW 3908 for [describe services material supplies labor furnished] provided on the Project This Notice of Claim Against Bond and Retained Percentage supersedes and replaces previous Notices DATED This ___day of _________ 201_ [Claimant] By ______________________________________ Its ______________________________________ [Claimantrsquos Address]

_________________________________________

[Contractors Registration No if applicable]

(Copies furnished to General Contractor and General Contractorrsquos Bonding Company)

CCBA Nuts amp Bolts on Construction Law - 25 of 49

PRECLAIM NOTICE TO CONTRACTOR BY SUBCONTRACTORS MATERIALMEN OR SUPPLIERS FOR

CLAIM AGAINST BOND AND RETAINED PERCENTAGE

VIA CERTIFIED OR REGISTERED MAIL- RETURN RECEIPT REQUESTED

TO [Name of General Contractor] [Address]

YOU ARE HEREBY NOTIFIED that the undersigned ____________at the request of_________________ commenced to deliver or furnish materials supplies andor equipment for the use in the construction alteration andor repair of that certain project known as____________________ [project name] which is located at ____________________________ [address or description] If the undersigned is not paid for these materials supplies andor equipment it will file a claim against you and your bond andor retainage pursuant to RCW 3908 andor 6028 et seq for payment of any sum that is due and owing to the undersigned

DATED This __ day of _____________ 201_

[Name of Claimant]

By ____________________________________

Its ____________________________________

Address ______________________________

__________________________________________

__________________________________________

[Contractors Registration No if applicable]

(Mail via certified mail return receipt requested or hand deliver and obtain receipt)

CCBA Nuts amp Bolts on Construction Law - 26 of 49

Washington Liens amp Bonds ndash Pertinent Statutes

RCW 1827040 Bond or other security required mdash Actions against mdash Suspension of registration upon impairment (1) Each applicant shall file with the department a surety bond issued by a surety insurer who meets the requirements of chapter 4828 RCW in the sum of twelve thousand dollars if the applicant is a general contractor and six thousand dollars if the applicant is a specialty contractor If no valid bond is already on file with the department at the time the application is filed a bond must accompany the registration application The bond shall have the state of Washington named as obligee with good and sufficient surety in a form to be approved by the department The bond shall be continuous and may be canceled by the surety upon the surety giving written notice to the director A cancellation or revocation of the bond or withdrawal of the surety from the bond automatically suspends the registration issued to the contractor until a new bond or reinstatement notice has been filed and approved as provided in this section The bond shall be conditioned that the applicant will pay all persons performing labor including employee benefits for the contractor will pay all taxes and contributions due to the state of Washington and will pay all persons furnishing material or renting or supplying equipment to the contractor and will pay all amounts that may be adjudged against the contractor by reason of breach of contract including improper work in the conduct of the contracting business A change in the name of a business or a change in the type of business entity shall not impair a bond for the purposes of this section so long as one of the original applicants for such bond maintains partial ownership in the business covered by the bond (2) At the time of initial registration or renewal the contractor shall provide a bond or other security deposit as required by this chapter and comply with all of the other provisions of this chapter before the department shall issue or renew the contractors certificate of registration Any contractor registered as of July 1 2001 who maintains that registration in accordance with this chapter is in compliance with this chapter until the next renewal of the contractors certificate of registration (3) Any person firm or corporation having a claim against the contractor for any of the items referred to in this section may bring suit against the contractor and the bond or deposit in the superior court of the county in which the work was done or of any county in which jurisdiction of the contractor may be had The surety issuing the bond shall be named as a party to any suit upon the bond Action upon the bond or deposit brought by a residential homeowner for breach of contract by a party to the construction contract shall be commenced by filing the summons and complaint with the clerk of the appropriate superior court within two years from the date the claimed contract work was substantially completed or abandoned whichever occurred first Action upon the bond or deposit brought by any other authorized party shall be commenced by filing the summons and complaint with the clerk of the appropriate superior court within one year from the date the claimed labor was performed and benefits accrued taxes and contributions owing the state of Washington became due materials and equipment were furnished or the claimed contract work was substantially completed or abandoned whichever occurred first Service of process in an action filed under this chapter against the contractor and the contractors bond or the deposit shall be exclusively by service upon the department Three

CCBA Nuts amp Bolts on Construction Law - 27 of 49

copies of the summons and complaint and a fee adopted by rule of not less than fifty dollars to cover the costs shall be served by registered or certified mail or other delivery service requiring notice of receipt upon the department at the time suit is started and the department shall maintain a record available for public inspection of all suits so commenced Service is not complete until the department receives the fee and three copies of the summons and complaint The service shall constitute service and confer personal jurisdiction on the contractor and the surety for suit on claimants claim against the contractor and the bond or deposit and the department shall transmit the summons and complaint or a copy thereof to the contractor at the address listed in the contractors application and to the surety within two days after it shall have been received (4) The surety upon the bond shall not be liable in an aggregate amount in excess of the amount named in the bond nor for any monetary penalty assessed pursuant to this chapter for an infraction The liability of the surety shall not cumulate where the bond has been renewed continued reinstated reissued or otherwise extended The surety upon the bond may upon notice to the department and the parties tender to the clerk of the court having jurisdiction of the action an amount equal to the claims thereunder or the amount of the bond less the amount of judgments if any previously satisfied therefrom and to the extent of such tender the surety upon the bond shall be exonerated but if the actions commenced and pending and provided to the department as required in subsection (3) of this section at any one time exceed the amount of the bond then unimpaired claims shall be satisfied from the bond in the following order (a) Employee labor and claims of laborers including employee benefits (b) Claims for breach of contract by a party to the construction contract (c) Registered or licensed subcontractors material and equipment (d) Taxes and contributions due the state of Washington (e) Any court costs interest and attorneys fees plaintiff may be entitled to recover The surety is not liable for any amount in excess of the penal limit of its bond A payment made by the surety in good faith exonerates the bond to the extent of any payment made by the surety (5) The total amount paid from a bond or deposit required of a general contractor by this section to claimants other than residential homeowners must not exceed one-half of the bond amount The total amount paid from a bond or deposit required of a specialty contractor by this section to claimants other than residential homeowners must not exceed one-half of the bond amount or four thousand dollars whichever is greater (6) The prevailing party in an action filed under this section against the contractor and contractors bond or deposit for breach of contract by a party to the construction contract involving a residential homeowner is entitled to costs interest and reasonable attorneys fees The surety upon the bond or deposit is not liable in an aggregate amount in excess of the amount

CCBA Nuts amp Bolts on Construction Law - 28 of 49

named in the bond or deposit nor for any monetary penalty assessed pursuant to this chapter for an infraction (7) If a final judgment impairs the liability of the surety upon the bond or deposit so furnished that there is not in effect a bond or deposit in the full amount prescribed in this section the registration of the contractor is automatically suspended until the bond or deposit liability in the required amount unimpaired by unsatisfied judgment claims is furnished (8) In lieu of the surety bond required by this section the contractor may file with the department an assigned savings account upon forms provided by the department (9) Any person having filed and served a summons and complaint as required by this section having an unsatisfied final judgment against the registrant for any items referred to in this section may execute upon the security held by the department by serving a certified copy of the unsatisfied final judgment by registered or certified mail upon the department within one year of the date of entry of such judgment Upon the receipt of service of such certified copy the department shall pay or order paid from the deposit through the registry of the superior court which rendered judgment towards the amount of the unsatisfied judgment The priority of payment by the department shall be the order of receipt by the department but the department shall have no liability for payment in excess of the amount of the deposit (10) Within ten days after resolution of the case a certified copy of the final judgment and order or any settlement documents where a case is not disposed of by a court trial a certified copy of the dispositive settlement documents must be provided to the department by the prevailing party Failure to provide a copy of the final judgment and order or the dispositive settlement documents to the department within ten days of entry of such an order constitutes a violation of this chapter and a penalty adopted by rule of not less than two hundred fifty dollars may be assessed against the prevailing party (11) The director may require an applicant applying to renew or reinstate a registration or applying for a new registration to file a bond of up to three times the normally required amount if the director determines that an applicant or a previous registration of a corporate officer owner or partner of a current applicant has had in the past five years a total of three final judgments in actions under this chapter involving a residential single-family dwelling on two or more different structures (12) The director may adopt rules necessary for the proper administration of the security RCW 1827114 Disclosure statement required mdash Prerequisite to lien claim

(1) Any contractor agreeing to perform any contracting project (a) For the repair alteration or construction of four or fewer residential units or accessory structures on such residential property when the bid or contract price totals one thousand dollars or more or (b) for the repair alteration or construction of a commercial building when the bid or contract price totals one thousand dollars or more but less than sixty thousand dollars must provide the customer with

CCBA Nuts amp Bolts on Construction Law - 29 of 49

the following disclosure statement in substantially the following form using lower case and upper case twelve-point and bold type where appropriate prior to starting work on the project NOTICE TO CUSTOMER This contractor is registered with the state of Washington registration no and has posted with the state a bond or deposit of for the purpose of satisfying claims against the contractor for breach of contract including negligent or improper work in the conduct of the contractors business The expiration date of this contractors registration is THIS BOND OR DEPOSIT MIGHT NOT BE SUFFICIENT TO COVER A CLAIM THAT MIGHT ARISE FROM THE WORK DONE UNDER YOUR CONTRACT This bond or deposit is not for your exclusive use because it covers all work performed by this contractor The bond or deposit is intended to pay valid claims up to that you and other customers suppliers subcontractors or taxing authorities may have FOR GREATER PROTECTION YOU MAY WITHHOLD A PERCENTAGE OF YOUR CONTRACT You may withhold a contractually defined percentage of your construction contract as retainage for a stated period of time to provide protection to you and help insure that your project will be completed as required by your contract YOUR PROPERTY MAY BE LIENED If a supplier of materials used in your construction project or an employee or subcontractor of your contractor or subcontractors is not paid your property may be liened to force payment and you could pay twice for the same work FOR ADDITIONAL PROTECTION YOU MAY REQUEST THE CONTRACTOR TO PROVIDE YOU WITH ORIGINAL LIEN RELEASE DOCUMENTS FROM EACH SUPPLIER OR SUBCONTRACTOR ON YOUR PROJECT The contractor is required to provide you with further information about lien release documents if you request it General information is also available from the state Department of Labor and Industries I have received a copy of this disclosure statement

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(Signature of customer) (2) The contractor must retain a signed copy of the disclosure statement in his or her files for a minimum of three years and produce a signed or electronic signature copy of the disclosure statement to the department upon request (3) A contractor subject to this section shall notify any consumer to whom notice is required under subsection (1) of this section if the contractors registration has expired or is revoked or suspended by the department prior to completion or other termination of the contract with the consumer (4) No contractor subject to this section may bring or maintain any lien claim under chapter 6004 RCW based on any contract to which this section applies without alleging and proving that the contractor has provided the customer with a copy of the disclosure statement as required in subsection (1) of this section (5) This section does not apply to contracts authorized under chapter 3904 RCW or to contractors contracting with other contractors (6) Failure to comply with this section shall constitute an infraction under the provisions of this chapter (7) The department shall produce model disclosure statements and public service announcements detailing the information needed to assist contractors and contractors customers to comply under this section As necessary the department shall periodically update these education materials RCW 3908010 Bond required mdash Conditions mdash Retention of contract amount in lieu of bond (1)(a) Whenever any board council commission trustees or body acting for the state or any county or municipality or any public body must contract with any person or corporation to do any work for the state county or municipality or other public body city town or district such board council commission trustees or body must require the person or persons with whom such contract is made to make execute and deliver to such board council commission trustees or body a good and sufficient bond with a surety company as surety conditioned that such person or persons must (i) Faithfully perform all the provisions of such contract (ii) Pay all laborers mechanics and subcontractors and material suppliers and all persons who supply such person or persons or subcontractors with provisions and supplies for the carrying on of such work and

CCBA Nuts amp Bolts on Construction Law - 31 of 49

(iii) Pay the taxes increases and penalties incurred on the project under Titles 50 51 and 82 RCW on (A) Projects referred to in RCW 6028011(1)(b) andor (B) projects for which the bond is conditioned on the payment of such taxes increases and penalties (b) The bond in cases of cities and towns must be filed with the clerk or comptroller thereof and any person or persons performing such services or furnishing material to any subcontractor has the same right under the provisions of such bond as if such work services or material was furnished to the original contractor (2) The provisions of RCW 3908010 through 3908030 do not apply to any money loaned or advanced to any such contractor subcontractor or other person in the performance of any such work (3) On contracts of thirty-five thousand dollars or less at the option of the contractor the respective public entity may in lieu of the bond retain fifty percent of the contract amount for a period of thirty days after date of final acceptance or until receipt of all necessary releases from the department of revenue the employment security department and the department of labor and industries and settlement of any liens filed under chapter 6028 RCW whichever is later (4) For contracts of one hundred thousand dollars or less the public entity may accept a full payment and performance bond from an individual surety or sureties (5) The surety must agree to be bound by the laws of the state of Washington and subjected to the jurisdiction of the state of Washington RCW 6004011 Definitions

Unless the context requires otherwise the definitions in this section apply throughout this chapter (1) Construction agent means any registered or licensed contractor registered or licensed subcontractor architect engineer or other person having charge of any improvement to real property who shall be deemed the agent of the owner for the limited purpose of establishing the lien created by this chapter (2) Contract price means the amount agreed upon by the contracting parties or if no amount is agreed upon then the customary and reasonable charge therefor (3) Draws means periodic disbursements of interim or construction financing by a lender (4) Furnishing labor professional services materials or equipment means the performance of any labor or professional services the contribution owed to any employee benefit plan on account of any labor the provision of any supplies or materials and the renting leasing or

CCBA Nuts amp Bolts on Construction Law - 32 of 49

otherwise supplying of equipment for the improvement of real property (5) Improvement means (a) Constructing altering repairing remodeling demolishing clearing grading or filling in of to or upon any real property or street or road in front of or adjoining the same (b) planting of trees vines shrubs plants hedges or lawns or providing other landscaping materials on any real property and (c) providing professional services upon real property or in preparation for or in conjunction with the intended activities in (a) or (b) of this subsection (6) Interim or construction financing means that portion of money secured by a mortgage deed of trust or other encumbrance to finance improvement of or to real property but does not include (a) Funds to acquire real property (b) Funds to pay interest insurance premiums lease deposits taxes assessments or prior encumbrances (c) Funds to pay loan commitment title legal closing recording or appraisal fees (d) Funds to pay other customary fees which pursuant to agreement with the owner or borrower are to be paid by the lender from time to time (e) Funds to acquire personal property for which the potential lien claimant may not claim a lien pursuant to this chapter (7) Labor means exertion of the powers of body or mind performed at the site for compensation Labor includes amounts due and owed to any employee benefit plan on account of such labor performed (8) Mortgagee means a person who has a valid mortgage of record or deed of trust of record securing a loan (9) Owner-occupied means a single-family residence occupied by the owner as his or her principal residence (10) Payment bond means a surety bond issued by a surety licensed to issue surety bonds in the state of Washington that confers upon potential claimants the rights of third party beneficiaries (11) Potential lien claimant means any person or entity entitled to assert lien rights under this chapter who has otherwise complied with the provisions of this chapter and is registered or licensed if required to be licensed or registered by the provisions of the laws of the state of Washington (12) Prime contractor includes all contractors general contractors and specialty

CCBA Nuts amp Bolts on Construction Law - 33 of 49

contractors as defined by chapter 1827 or 1928 RCW or who are otherwise required to be registered or licensed by law who contract directly with a property owner or their common law agent to assume primary responsibility for the creation of an improvement to real property and includes property owners or their common law agents who are contractors general contractors or specialty contractors as defined in chapter 1827 or 1928 RCW or who are otherwise required to be registered or licensed by law who offer to sell their property without occupying or using the structures projects developments or improvements for more than one year (13) Professional services means surveying establishing or marking the boundaries of preparing maps plans or specifications for or inspecting testing or otherwise performing any other architectural or engineering services for the improvement of real property (14) Real property lender means a bank savings bank savings and loan association credit union mortgage company or other corporation association partnership trust or individual that makes loans secured by real property located in the state of Washington (15) Site means the real property which is or is to be improved (16) Subcontractor means a general contractor or specialty contractor as defined by chapter 1827 or 1928 RCW or who is otherwise required to be registered or licensed by law who contracts for the improvement of real property with someone other than the owner of the property or their common law agent

6004021 Lien authorized

Except as provided in RCW 6004031 any person furnishing labor professional services materials or equipment for the improvement of real property shall have a lien upon the improvement for the contract price of labor professional services materials or equipment furnished at the instance of the owner or the agent or construction agent of the owner

6004031 Notices mdash Exceptions

(1) Except as otherwise provided in this section every person furnishing professional services materials or equipment for the improvement of real property shall give the owner or reputed owner notice in writing of the right to claim a lien If the prime contractor is in compliance with the requirements of RCW 1927095 6004230 and 6004261 this notice shall also be given to the prime contractor as described in this subsection unless the potential lien claimant has contracted directly with the prime contractor The notice may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after the date which is sixty days before (a) Mailing the notice by certified or registered mail to the owner or reputed owner or

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(b) Delivering or serving the notice personally upon the owner or reputed owner and obtaining evidence of delivery in the form of a receipt or other acknowledgment signed by the owner or reputed owner or an affidavit of service In the case of new construction of a single-family residence the notice of a right to claim a lien may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after a date which is ten days before the notice is given as described in this subsection (2) Notices of a right to claim a lien shall not be required of (a) Persons who contract directly with the owner or the owners common law agent (b) Laborers whose claim of lien is based solely on performing labor or (c) Subcontractors who contract for the improvement of real property directly with the prime contractor except as provided in subsection (3)(b) of this section (3) Persons who furnish professional services materials or equipment in connection with the repair alteration or remodel of an existing owner-occupied single-family residence or appurtenant garage (a) Who contract directly with the owner-occupier or their common law agent shall not be required to send a written notice of the right to claim a lien and shall have a lien for the full amount due under their contract as provided in RCW 6004021 or (b) Who do not contract directly with the owner-occupier or their common law agent shall give notice of the right to claim a lien to the owner-occupier Liens of persons furnishing professional services materials or equipment who do not contract directly with the owner-occupier or their common law agent may only be satisfied from amounts not yet paid to the prime contractor by the owner at the time the notice described in this section is received regardless of whether amounts not yet paid to the prime contractor are due For the purposes of this subsection received means actual receipt of notice by personal service or registered or certified mail or three days after mailing by registered or certified mail excluding Saturdays Sundays or legal holidays (4) The notice of right to claim a lien described in subsection (1) of this section shall include but not be limited to the following information and shall substantially be in the following form using lower-case and upper-case ten-point type where appropriate

CCBA Nuts amp Bolts on Construction Law - 35 of 49

NOTICE TO OWNER

IMPORTANT READ BOTH SIDES OF THIS NOTICE CAREFULLY

PROTECT YOURSELF FROM PAYING TWICE

To Date

Re (description of property Street address or general location) From AT THE REQUEST OF (Name of person ordering the professional services materials or equipment) THIS IS NOT A LIEN This notice is sent to you to tell you who is providing professional services materials or equipment for the improvement of your property and to advise you of the rights of these persons and your responsibilities Also take note that laborers on your project may claim a lien without sending you a notice

OWNEROCCUPIER OF EXISTING

RESIDENTIAL PROPERTY

Under Washington law those who furnish labor professional services materials or equipment for the repair remodel or alteration of your owner-occupied principal residence and who are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien The law limits the amount that a lien claimant can claim against your property Claims may only be made against that portion of the contract price you have not yet paid to your prime contractor as of the time this notice was given to you or three days after this notice was mailed to you Review the back of this notice for more information and ways to avoid lien claims

COMMERCIAL ANDOR NEW

RESIDENTIAL PROPERTY

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We have or will be providing professional services materials or equipment for the improvement of your commercial or new residential project In the event you or your contractor fail to pay us we may file a lien against your property A lien may be claimed for all professional services materials or equipment furnished after a date that is sixty days before this notice was given to you or mailed to you unless the improvement to your property is the construction of a new single-family residence then ten days before this notice was given to you or mailed to you Sender Address Telephone Brief description of professional services materials or equipment provided or to be provided

IMPORTANT INFORMATION

ON REVERSE SIDE

IMPORTANT INFORMATION

FOR YOUR PROTECTION This notice is sent to inform you that we have or will provide professional services materials or equipment for the improvement of your property We expect to be paid by the person who ordered our services but if we are not paid we have the right to enforce our claim by filing a construction lien against your property LEARN more about the lien laws and the meaning of this notice by discussing them with your contractor suppliers Department of Labor and Industries the firm sending you this notice your lender or your attorney

COMMON METHODS TO AVOID CONSTRUCTION LIENS There are several methods available to protect your property from construction liens The following are two of the more commonly used methods

DUAL PAYCHECKS (Joint Checks) When paying your contractor for services or materials you may make checks payable jointly to the contractor and the firms furnishing you this notice

CCBA Nuts amp Bolts on Construction Law - 37 of 49

LIEN RELEASES You may require your contractor to provide lien releases signed by all the suppliers and subcontractors from whom you have received this notice If they cannot obtain lien releases because you have not paid them you may use the dual payee check method to protect yourself

YOU SHOULD TAKE APPROPRIATE STEPS TO PROTECT YOUR PROPERTY FROM LIENS YOUR PRIME CONTRACTOR AND YOUR CONSTRUCTION LENDER ARE REQUIRED BY LAW TO GIVE YOU WRITTEN INFORMATION ABOUT LIEN CLAIMS IF YOU HAVE NOT RECEIVED IT ASK THEM FOR IT

(5) Every potential lien claimant providing professional services where no improvement as defined in RCW 6004011(5) (a) or (b) has been commenced and the professional services provided are not visible from an inspection of the real property may record in the real property records of the county where the property is located a notice which shall contain the professional service providers name address telephone number legal description of the property the owner or reputed owners name and the general nature of the professional services provided If such notice is not recorded the lien claimed shall be subordinate to the interest of any subsequent mortgagee and invalid as to the interest of any subsequent purchaser if the mortgagee or purchaser acts in good faith and for a valuable consideration acquires an interest in the property prior to the commencement of an improvement as defined in RCW 6004011(5) (a) or (b) without notice of the professional services being provided The notice described in this subsection shall be substantially in the following form

NOTICE OF FURNISHING

PROFESSIONAL SERVICES That on the (day) day of (month and year) (name of provider) began providing professional services upon or for the improvement of real property legally described as follows

[Legal Description is mandatory]

CCBA Nuts amp Bolts on Construction Law - 38 of 49

The general nature of the professional services provided is The owner or reputed owner of the real property is

(Signature)

(Name of Claimant)

(Street Address)

(City State Zip Code)

(Phone Number)

(6) A lien authorized by this chapter shall not be enforced unless the lien claimant has complied with the applicable provisions of this section

6004041 Contractor registration

A contractor or subcontractor required to be registered under chapter 1827 RCW or licensed under chapter 1928 RCW or otherwise required to be registered or licensed by law shall be deemed the construction agent of the owner for the purposes of establishing the lien created by this chapter only if so registered or licensed Persons dealing with contractors or subcontractors may rely for the purposes of this section upon a certificate of registration issued pursuant to chapter 1827 RCW or license issued pursuant to chapter 1928 RCW or other certificate or license issued pursuant to law covering the period when the labor professional services material or equipment shall be furnished and the lien rights shall not be lost by suspension or revocation of registration or license without their knowledge No lien rights described in this

CCBA Nuts amp Bolts on Construction Law - 39 of 49

chapter shall be lost or denied by virtue of the absence suspension or revocation of such registration or license with respect to any contractor or subcontractor not in immediate contractual privity with the lien claimant

6004081 Frivolous claim mdash Procedure

(1) Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who believes the claim of lien to be frivolous and made without reasonable cause or clearly excessive may apply by motion to the superior court for the county where the property or some part thereof is located for an order directing the lien claimant to appear before the court at a time no earlier than six nor later than fifteen days following the date of service of the application and order on the lien claimant and show cause if any he or she has why the relief requested should not be granted The motion shall state the grounds upon which relief is asked and shall be supported by the affidavit of the applicant or his or her attorney setting forth a concise statement of the facts upon which the motion is based (2) The order shall clearly state that if the lien claimant fails to appear at the time and place noted the lien shall be released with prejudice and that the lien claimant shall be ordered to pay the costs requested by the applicant including reasonable attorneys fees (3) If no action to foreclose the lien claim has been filed the clerk of the court shall assign a cause number to the application and obtain from the applicant a filing fee pursuant to RCW 3618016 If an action has been filed to foreclose the lien claim the application shall be made a part of that action (4) If following a hearing on the matter the court determines that the lien is frivolous and made without reasonable cause or clearly excessive the court shall issue an order releasing the lien if frivolous and made without reasonable cause or reducing the lien if clearly excessive and awarding costs and reasonable attorneys fees to the applicant to be paid by the lien claimant If the court determines that the lien is not frivolous and was made with reasonable cause and is not clearly excessive the court shall issue an order so stating and awarding costs and reasonable attorneys fees to the lien claimant to be paid by the applicant (5) Proceedings under this section shall not affect other rights and remedies available to the parties under this chapter or otherwise

6004091 Recording mdash Time mdash Contents of lien

Every person claiming a lien under RCW 6004021 shall file for recording in the county where the subject property is located a notice of claim of lien not later than ninety days after the person

CCBA Nuts amp Bolts on Construction Law - 40 of 49

has ceased to furnish labor professional services materials or equipment or the last date on which employee benefit contributions were due The notice of claim of lien (1) Shall state in substance and effect (a) The name phone number and address of the claimant (b) The first and last date on which the labor professional services materials or equipment was furnished or employee benefit contributions were due (c) The name of the person indebted to the claimant (d) The street address legal description or other description reasonably calculated to identify for a person familiar with the area the location of the real property to be charged with the lien (e) The name of the owner or reputed owner of the property if known and if not known that fact shall be stated and (f) The principal amount for which the lien is claimed (2) Shall be signed by the claimant or some person authorized to act on his or her behalf who shall affirmatively state they have read the notice of claim of lien and believe the notice of claim of lien to be true and correct under penalty of perjury and shall be acknowledged pursuant to chapter 6408 RCW If the lien has been assigned the name of the assignee shall be stated Where an action to foreclose the lien has been commenced such notice of claim of lien may be amended as pleadings may be by order of the court insofar as the interests of third parties are not adversely affected by such amendment A claim of lien substantially in the following form shall be sufficient

CLAIM OF LIEN

claimant vs name of person indebted to claimant

Notice is hereby given that the person named below claims a lien pursuant to chapter 6404 RCW In support of this lien the following information is submitted

1 NAME OF LIEN CLAIMANT

TELEPHONE NUMBER

CCBA Nuts amp Bolts on Construction Law - 41 of 49

ADDRESS

2 DATE ON WHICH THE CLAIMANT BEGAN TO PERFORM LABOR PROVIDE PROFESSIONAL SERVICES SUPPLY MATERIAL OR EQUIPMENT OR THE DATE ON WHICH EMPLOYEE BENEFIT CONTRIBUTIONS BECAME DUE

3 NAME OF PERSON INDEBTED TO THE CLAIMANT

4 DESCRIPTION OF THE PROPERTY AGAINST WHICH A LIEN IS CLAIMED (Street address legal description or other information that will reasonably describe the property)

5 NAME OF THE OWNER OR REPUTED OWNER (If not known state unknown)

6 THE LAST DATE ON WHICH LABOR WAS PERFORMED PROFESSIONAL SERVICES WERE FURNISHED CONTRIBUTIONS TO AN EMPLOYEE BENEFIT PLAN WERE DUE OR MATERIAL OR EQUIPMENT WAS FURNISHED

7 PRINCIPAL AMOUNT FOR WHICH THE LIEN IS CLAIMED IS

8 IF THE CLAIMANT IS THE ASSIGNEE OF THIS CLAIM SO STATE HERE

Claimant

(Phone number address city

CCBA Nuts amp Bolts on Construction Law - 42 of 49

and

state of claimant)

STATE OF WASHINGTON COUNTY OF ss being sworn says I am the claimant (or attorney of the claimant or administrator representative or agent of the trustees of an employee benefit plan) above named I have read or heard the foregoing claim read and know the contents thereof and believe the same to be true and correct and that the claim of lien is not frivolous and is made with reasonable cause and is not clearly excessive under penalty of perjury Subscribed and sworn to before me this day of The period provided for recording the claim of lien is a period of limitation and no action to foreclose a lien shall be maintained unless the claim of lien is filed for recording within the ninety-day period stated The lien claimant shall give a copy of the claim of lien to the owner or reputed owner by mailing it by certified or registered mail or by personal service within fourteen days of the time the claim of lien is filed for recording Failure to do so results in a forfeiture of any right the claimant may have to attorneys fees and costs against the owner under RCW 6004181

6004161 Bond in lieu of claim

Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who disputes the correctness or validity of the claim of lien may record either before or after the commencement of an action to enforce the lien in the office of the county recorder or auditor in the county where the claim of lien was recorded a bond issued by a surety company authorized to issue surety bonds in the state The surety shall be listed in the latest federal department of the treasury list of surety companies acceptable on federal bonds published in the Federal Register as authorized to issue bonds on United States government projects with an underwriting limitation including applicable reinsurance equal to or greater than the amount of the bond to be recorded The bond shall contain a description of the claim of lien and real property involved and be in an amount equal to the greater of five thousand dollars or two times the amount of the lien claimed if it is ten thousand dollars or less and in an amount equal to or greater than one and one-half times the amount of the lien if it is in

CCBA Nuts amp Bolts on Construction Law - 43 of 49

excess of ten thousand dollars If the claim of lien affects more than one parcel of real property and is segregated to each parcel the bond may be segregated the same as in the claim of lien A separate bond shall be required for each claim of lien made by separate claimants However a single bond may be used to guarantee payment of amounts claimed by more than one claim of lien by a single claimant so long as the amount of the bond meets the requirements of this section as applied to the aggregate sum of all claims by such claimant The condition of the bond shall be to guarantee payment of any judgment upon the lien in favor of the lien claimant entered in any action to recover the amount claimed in a claim of lien or on the claim asserted in the claim of lien The effect of recording a bond shall be to release the real property described in the notice of claim of lien from the lien and any action brought to recover the amount claimed Unless otherwise prohibited by law if no action is commenced to recover on a lien within the time specified in RCW 6004141 the surety shall be discharged from liability under the bond If an action is timely commenced then on payment of any judgment entered in the action or on payment of the full amount of the bond to the holder of the judgment whichever is less the surety shall be discharged from liability under the bond Nothing in this section shall in any way prohibit or limit the use of other methods devised by the affected parties to secure the obligation underlying a claim of lien and to obtain a release of real property from a claim of lien

6004181 Rank of lien mdash Application of proceeds mdash Attorneys fees

(1) In every case in which different construction liens are claimed against the same property the court shall declare the rank of such lien or class of liens which liens shall be in the following order (a) Liens for the performance of labor (b) Liens for contributions owed to employee benefit plans (c) Liens for furnishing material supplies or equipment (d) Liens for subcontractors including but not limited to their labor and materials and (e) Liens for prime contractors or for professional services (2) The proceeds of the sale of property must be applied to each lien or class of liens in order of its rank and in an action brought to foreclose a lien pro rata among each claimant in each separate priority class A personal judgment may be rendered against any party personally liable for any debt for which the lien is claimed If the lien is established the judgment shall provide

CCBA Nuts amp Bolts on Construction Law - 44 of 49

for the enforcement thereof upon the property liable as in the case of foreclosure of judgment liens The amount realized by such enforcement of the lien shall be credited upon the proper personal judgment The deficiency if any remaining unsatisfied shall stand as a personal judgment and may be collected by execution against any party liable therefor (3) The court may allow the prevailing party in the action whether plaintiff or defendant as part of the costs of the action the moneys paid for recording the claim of lien costs of title report bond costs and attorneys fees and necessary expenses incurred by the attorney in the superior court court of appeals supreme court or arbitration as the court or arbitrator deems reasonable Such costs shall have the priority of the class of lien to which they are related as established by subsection (1) of this section (4) Real property against which a lien under this chapter is enforced may be ordered sold by the court and the proceeds deposited into the registry of the clerk of the court pending further determination respecting distribution of the proceeds of the sale

6004900 Liberal construction mdash 1991 c 281

RCW 1927095 6004230 and 6004011 through 6004226 and 6004261 are to be liberally construed to provide security for all parties intended to be protected by their provisions

RCW 6028011

Retained percentage mdash Public transportation projects mdash Labor and material lien created mdash Bond in lieu of retained funds mdash Termination before completion mdash Chapter deemed exclusive mdash Release of ferry contract payments mdash Projects of farmers home administration mdash General contractorconstruction manager procedure mdash Definitions

(1)(a) Except as provided in (b) of this subsection public improvement contracts must provide and public bodies must reserve a contract retainage not to exceed five percent of the moneys earned by the contractor as a trust fund for the protection and payment of (i) The claims of any person arising under the contract and (ii) the state with respect to taxes increases and penalties imposed pursuant to Titles 50 51 and 82 RCW which may be due from such contractor (b) Public improvement contracts funded in whole or in part by federal transportation funds must rely upon the contract bond as referred to in chapter 3908 RCW for the protection and payment of (i) The claims of any person or persons arising under the contract to the extent such claims are provided for in RCW 3908010 and (ii) the state with respect to taxes increases and penalties incurred on the public improvement project under Titles 50 51 and 82 RCW which may be due The contract bond must remain in full force and effect until at a minimum all claims filed in compliance with chapter 3908 RCW are resolved

CCBA Nuts amp Bolts on Construction Law - 45 of 49

(2) Every person performing labor or furnishing supplies toward the completion of a public improvement contract has a lien upon moneys reserved by a public body under the provisions of a public improvement contract However the notice of the lien of the claimant must be given within forty-five days of completion of the contract work and in the manner provided in RCW 3908030 (3) The contractor at any time may request the contract retainage be reduced to one hundred percent of the value of the work remaining on the project (a) After completion of all contract work other than landscaping the contractor may request that the public body release and pay in full the amounts retained during the performance of the contract and sixty days thereafter the public body must release and pay in full the amounts retained (other than continuing retention of five percent of the moneys earned for landscaping) subject to the provisions of chapters 3912 and 6028 RCW (b) Sixty days after completion of all contract work the public body must release and pay in full the amounts retained during the performance of the contract subject to the provisions of chapters 3912 and 6028 RCW (4) The moneys reserved by a public body under the provisions of a public improvement contract at the option of the contractor must be (a) Retained in a fund by the public body (b) Deposited by the public body in an interest bearing account in a bank mutual savings bank or savings and loan association Interest on moneys reserved by a public body under the provision of a public improvement contract must be paid to the contractor (c) Placed in escrow with a bank or trust company by the public body When the moneys reserved are placed in escrow the public body must issue a check representing the sum of the moneys reserved payable to the bank or trust company and the contractor jointly This check must be converted into bonds and securities chosen by the contractor and approved by the public body and the bonds and securities must be held in escrow Interest on the bonds and securities must be paid to the contractor as the interest accrues (5) The contractor or subcontractor may withhold payment of not more than five percent from the moneys earned by any subcontractor or sub-subcontractor or supplier contracted with by the contractor to provide labor materials or equipment to the public project Whenever the contractor or subcontractor reserves funds earned by a subcontractor or sub-subcontractor or

CCBA Nuts amp Bolts on Construction Law - 46 of 49

supplier the contractor or subcontractor must pay interest to the subcontractor or sub-subcontractor or supplier at a rate equal to that received by the contractor or subcontractor from reserved funds (6) A contractor may submit a bond for all or any portion of the contract retainage in a form acceptable to the public body and from a bonding company meeting standards established by the public body The public body must accept a bond meeting these requirements unless the public body can demonstrate good cause for refusing to accept it This bond and any proceeds therefrom are subject to all claims and liens and in the same manner and priority as set forth for retained percentages in this chapter The public body must release the bonded portion of the retained funds to the contractor within thirty days of accepting the bond from the contractor Whenever a public body accepts a bond in lieu of retained funds from a contractor the contractor must accept like bonds from any subcontractors or suppliers from which the contractor has retained funds The contractor must then release the funds retained from the subcontractor or supplier to the subcontractor or supplier within thirty days of accepting the bond from the subcontractor or supplier (7) If the public body administering a contract after a substantial portion of the work has been completed finds that an unreasonable delay will occur in the completion of the remaining portion of the contract for any reason not the result of a breach thereof it may if the contractor agrees delete from the contract the remaining work and accept as final the improvement at the stage of completion then attained and make payment in proportion to the amount of the work accomplished and in this case any amounts retained and accumulated under this section must be held for a period of sixty days following the completion In the event that the work is terminated before final completion as provided in this section the public body may thereafter enter into a new contract with the same contractor to perform the remaining work or improvement for an amount equal to or less than the cost of the remaining work as was provided for in the original contract without advertisement or bid The provisions of this chapter are exclusive and supersede all provisions and regulations in conflict herewith (8) Whenever the department of transportation has contracted for the construction of two or more ferry vessels sixty days after completion of all contract work on each ferry vessel the department must release and pay in full the amounts retained in connection with the construction of the vessel subject to the provisions of RCW 6028021 and chapter 3912 RCW However the department of transportation may at its discretion condition the release of funds retained in connection with the completed ferry upon the contractor delivering a good and sufficient bond with two or more sureties or with a surety company in the amount of the retained funds to be released to the contractor conditioned that no taxes may be certified or claims filed for work on the ferry after a period of sixty days following completion of the ferry and if taxes are certified or claims filed recovery may be had on the bond by the department of revenue the employment

CCBA Nuts amp Bolts on Construction Law - 47 of 49

security department the department of labor and industries and the material suppliers and laborers filing claims (9) Except as provided in subsection (1) of this section reservation by a public body for any purpose from the moneys earned by a contractor by fulfilling its responsibilities under public improvement contracts is prohibited (10) Contracts on projects funded in whole or in part by farmers home administration and subject to farmers home administration regulations are not subject to subsections (1) through (9) of this section (11) This subsection applies only to a public body that has contracted for the construction of a facility using the general contractorconstruction manager procedure as defined under RCW 3910210 If the work performed by a subcontractor on the project has been completed within the first half of the time provided in the general contractorconstruction manager contract for completing the work the public body may accept the completion of the subcontract The public body must give public notice of this acceptance After a forty-five day period for giving notice of liens and compliance with the retainage release procedures in RCW 6028021 the public body may release that portion of the retained funds associated with the subcontract Claims against the retained funds after the forty-five day period are not valid (12) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise (a) Contract retainage means an amount reserved by a public body from the moneys earned by a person under a public improvement contract (b) Person means a person or persons mechanic subcontractor or materialperson who performs labor or provides materials for a public improvement contract and any other person who supplies the person with provisions or supplies for the carrying on of a public improvement contract (c) Public body means the state or a county city town district board or other public body (d) Public improvement contract means a contract for public improvements or work other than for professional services or a work order as defined in RCW 3910210

CCBA Nuts amp Bolts on Construction Law - 48 of 49

RCW 6432070 Liens or encumbrances mdash Enforcement mdash Satisfaction

(1) Subsequent to recording the declaration as provided in this chapter and while the property remains subject to this chapter no lien shall thereafter arise or be effective against the property During such period liens or encumbrances shall arise or be created only against each apartment and the percentage of undivided interest in the common areas and facilities and appurtenant to such apartment in the same manner and under the same conditions in every respect as liens or encumbrances may arise or be created upon or against any other separate parcel of real property subject to individual ownership PROVIDED That no labor performed or materials furnished with the consent of or at the request of the owner of any apartment or such owners agent contractor or subcontractor shall be the basis for the filing of a lien against any other apartment or any other property of any other apartment owner not expressly consenting to or requesting the same except that such express consent shall be deemed to be given by any apartment owner in the case of emergency repairs Labor performed or materials furnished for the common areas and facilities if authorized by the association of apartment owners the manager or board of directors shall be deemed to be performed or furnished with the express consent of each apartment owner and shall be the basis for the filing of a lien against each of the apartments and shall be subject to the provisions of subsection (2) of this section (2) In the event a lien against two or more apartments becomes effective the apartment owners of the separate apartments may remove their apartment and the percentage of undivided interest in the common areas and facilities appurtenant to such apartment from the lien by payment of the fractional or proportional amounts attributable to each of the apartments affected Such individual payments shall be computed by reference to the percentages appearing on the declaration Subsequent to any such payment discharge or satisfaction the apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto shall thereafter be free and clear of the liens so paid satisfied or discharged Such partial payment satisfaction or discharge shall not prevent the lienor from proceeding to enforce his or her rights against any apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto not so paid satisfied or discharged

CCBA Nuts amp Bolts on Construction Law - 49 of 49

  • Cover Sheet
  • 20141110 - Washington Lien and Bond CLE
  • LampI Lien Summary
  • Claim of Lien
  • Form Notice to Owner
  • Model Disclosure Statement (Notice to Customer)
  • LampI Facts about Construction Liens
    • What you should know about contracts
    • How to protect your investment
    • For more information
      • Notice of Claim Against Bond and Retained Percentage
      • Preclaim Notice Bond amp Retained Percentage
      • Statute Handout
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(Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false ConvertColors ConvertToCMYK DestinationProfileName () DestinationProfileSelector DocumentCMYK Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles false MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector DocumentCMYK PreserveEditing true UntaggedCMYKHandling LeaveUntagged UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ]gtgt setdistillerparamsltlt HWResolution [2400 2400] PageSize [612000 792000]gtgt setpagedevice

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Onyx PalatinoLinotype-Bold PalatinoLinotype-BoldItalic PalatinoLinotype-Italic PalatinoLinotype-Roman Parchment-Regular Playbill PoorRichard-Regular Raavi Ravie ShowcardGothic-Reg Shruti SnapITC-Regular Stencil Sylfaen SymbolMT Tahoma Tahoma-Bold TempusSansITC TimesNewRomanPS-BoldItalicMT TimesNewRomanPS-BoldMT TimesNewRomanPS-ItalicMT TimesNewRomanPSMT Trebuchet-BoldItalic TrebuchetMS TrebuchetMS-Bold TrebuchetMS-Italic Tunga-Regular Verdana Verdana-Bold Verdana-BoldItalic Verdana-Italic VinerHandITC Vivaldii VladimirScript Vrinda Webdings Wingdings2 Wingdings3 Wingdings-Regular ZWAdobeF ] NeverEmbed [ true ] AntiAliasColorImages false CropColorImages true ColorImageMinResolution 300 ColorImageMinResolutionPolicy OK DownsampleColorImages true ColorImageDownsampleType Bicubic ColorImageResolution 300 ColorImageDepth -1 ColorImageMinDownsampleDepth 1 ColorImageDownsampleThreshold 150000 EncodeColorImages false ColorImageFilter DCTEncode AutoFilterColorImages true ColorImageAutoFilterStrategy JPEG ColorACSImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt ColorImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000ColorACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000ColorImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasGrayImages false CropGrayImages true GrayImageMinResolution 300 GrayImageMinResolutionPolicy OK DownsampleGrayImages true GrayImageDownsampleType Bicubic GrayImageResolution 300 GrayImageDepth -1 GrayImageMinDownsampleDepth 2 GrayImageDownsampleThreshold 150000 EncodeGrayImages false GrayImageFilter DCTEncode AutoFilterGrayImages true GrayImageAutoFilterStrategy JPEG GrayACSImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt GrayImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000GrayACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000GrayImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasMonoImages false CropMonoImages true MonoImageMinResolution 1200 MonoImageMinResolutionPolicy OK DownsampleMonoImages true MonoImageDownsampleType Bicubic MonoImageResolution 1200 MonoImageDepth -1 MonoImageDownsampleThreshold 150000 EncodeMonoImages false MonoImageFilter CCITTFaxEncode MonoImageDict ltlt K -1 gtgt AllowPSXObjects false CheckCompliance [ None ] PDFX1aCheck false PDFX3Check false PDFXCompliantPDFOnly false PDFXNoTrimBoxError true PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile (None) PDFXOutputConditionIdentifier () PDFXOutputCondition () PDFXRegistryName () PDFXTrapped False Description ltlt CHS ltFEFF4f7f75288fd94e9b8bbe5b9a521b5efa7684002000410064006f006200650020005000440046002065876863900275284e8e9ad88d2891cf76845370524d53705237300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200035002e003000204ee553ca66f49ad87248672c676562535f00521b5efa768400200050004400460020658768633002gt CHT ltFEFF4f7f752890194e9b8a2d7f6e5efa7acb7684002000410064006f006200650020005000440046002065874ef69069752865bc9ad854c18cea76845370524d5370523786557406300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200035002e003000204ee553ca66f49ad87248672c4f86958b555f5df25efa7acb76840020005000440046002065874ef63002gt DAN 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 DEU ltFEFF00560065007200770065006e00640065006e0020005300690065002000640069006500730065002000450069006e007300740065006c006c0075006e00670065006e0020007a0075006d002000450072007300740065006c006c0065006e00200076006f006e002000410064006f006200650020005000440046002d0044006f006b0075006d0065006e00740065006e002c00200076006f006e002000640065006e0065006e002000530069006500200068006f006300680077006500720074006900670065002000500072006500700072006500730073002d0044007200750063006b0065002000650072007a0065007500670065006e0020006d00f60063006800740065006e002e002000450072007300740065006c006c007400650020005000440046002d0044006f006b0075006d0065006e007400650020006b00f6006e006e0065006e0020006d006900740020004100630072006f00620061007400200075006e0064002000410064006f00620065002000520065006100640065007200200035002e00300020006f0064006500720020006800f600680065007200200067006500f600660066006e00650074002000770065007200640065006e002egt ESP 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 FRA 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 ITA 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 JPN ltFEFF9ad854c18cea306a30d730ea30d730ec30b951fa529b7528002000410064006f0062006500200050004400460020658766f8306e4f5c6210306b4f7f75283057307e305930023053306e8a2d5b9a30674f5c62103055308c305f0020005000440046002030d530a130a430eb306f3001004100630072006f0062006100740020304a30883073002000410064006f00620065002000520065006100640065007200200035002e003000204ee5964d3067958b304f30533068304c3067304d307e305930023053306e8a2d5b9a306b306f30d530a930f330c8306e57cb30818fbc307f304c5fc59808306730593002gt KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020ace0d488c9c80020c2dcd5d80020c778c1c4c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200035002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor prepress-afdrukken van hoge kwaliteit De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 50 en hoger) NOR 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 PTB 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 SUO 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 SVE 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 ENU (Use these settings to create Adobe PDF documents best suited for high-quality prepress printing Created PDF documents can be opened with Acrobat and Adobe Reader 50 and later) gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false ConvertColors ConvertToCMYK DestinationProfileName () DestinationProfileSelector DocumentCMYK Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles false MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector DocumentCMYK PreserveEditing true UntaggedCMYKHandling LeaveUntagged UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ]gtgt setdistillerparamsltlt HWResolution [2400 2400] PageSize [612000 792000]gtgt setpagedevice

          1. To
          2. Date
          3. Re
          4. From
          5. AT THE REQUEST OF
          6. Sender
          7. Address
          8. Telephone
          9. Brief description of professional services materials or equipment provided or to be provided
          10. 1
          11. 2
          12. 3
          13. reg no
          14. deposit $
          15. expiration date
          16. claims up to $
          17. Reset

11122014

10

Immix Law Group Washington Lien and Bond Claims

Property Ownersrsquo Claims Against Contractors

Claim Against Contractor Registration Bond (RCW 1827040)bull Recovery Limitations

bull Residential homeowners entitled to recover entire bond amountbull Other claimants are entitled to frac12 of the bond amount or $4000 if

subcontractor or specialty contractorbull Claimants entitled to attorneysrsquo fees up to amount of bond

Immix Law Group Washington Lien and Bond Claims

Property Ownersrsquo Claims Against Contractors

Claim Against Contractor Registration Bond (RCW 1827040)

bull Service Requirementsbull Service on the bonding company and the contractor must be made

on the Department of Labor amp Industries by serving three copies of the summons and complaint by certified andor registered mail (RCW 1827040(3)) with the filing fee

bull You should also serve the contractor and all other named defendants personally so that the breach of contract claim and other claims are properly served

Immix Law Group

Washington Public Contracts Retainage and Bond Claims

CCBA Nuts amp Bolts on Construction Law - 11 of 49

11122014

11

Immix Law Group Washington Lien and Bond Claims

Public Contracts Retainage ClaimsRetainage Claims (RCW 6028011)bull ldquolsquoContract retainagersquo means an amount reserved by a public body from

the moneys earned by a person under a public improvement contractrdquo bull Usually five percent (5)bull Prime contractor can submit a bond in lieu of retainagebull All persons supplying labor materials equipment services entitled to

claimbull Exception Temporary labor supplier not entitled to claim against retention

because not ldquosubcontractorrdquo Better Financial Solutions Inc v Caicos Corp 117 Wn App 899 (2003)

Immix Law Group Washington Lien and Bond Claims

Public Contracts Retainage Claims

Preclaim Notice of Retainage Claim (RCW 6028011)

bull Sub‐tier subcontractors and suppliers must give preclaimnotice to the public agency within 60 days of furnishing labor material supplies or equipment to the project

bull Relates back 60 days from the date of the noticebull Must be delivered to contracting agency

Immix Law Group Washington Lien and Bond Claims

Public Contracts Retainage Claims

Notice of Retainage Claim (RCW 6028011)

bull All claimants must provide a Notice of Claim within 45 days after ldquocompletion of the contract workrdquo (essentially ldquoproject completionrdquo)

bull The Notice must be delivered to contracting agencybull Hand delivered or certified mail with return receipt

bull Must file the foreclosure suit within 4 months after providing the Notice of Claim

CCBA Nuts amp Bolts on Construction Law - 12 of 49

11122014

12

Immix Law Group Washington Lien and Bond Claims

Public Contracts Bond Claims

Bond Claims ndash Washingtonrsquos Little Miller Act (RCW 3908010)

On Washington Public Works projects in excess of $25000 general contractors must post a payment bond usually in the amount of the contract price

Immix Law Group Washington Lien and Bond Claims

Public Contracts Bond Claims

Preclaim Notice of Bond Claim (RCW 3908010)

bull Lower‐tier subcontractors and material suppliers must give preclaim notice to the prime contractor within 10 days after starting work

Immix Law Group Washington Lien and Bond Claims

Public Contracts Bond Claims

Notice of Bond Claim (RCW 3908010)

bull All claimants must provide a Notice of Claim within 30 days after ldquoacceptance of the workrdquo (different than retention claim)bull ldquoAcceptancerdquo is an affirmative act by the public works owner

bull The Notice must be delivered to public works ownerbull Hand delivered or certified mail with return receipt

bull No deadline provided in the statute ndash foreclose by general statute of limitationsbull 3 years for oral contracts 6 years for written contracts

CCBA Nuts amp Bolts on Construction Law - 13 of 49

11122014

13

Immix Law Group Washington Lien and Bond Claims

Public Contracts Bond amp Retainage Claims

bull Practice Pointer Coordinate the filing of the retention and bond Preclaim Notice and Notice of Claim to ensure that the contractorrsquos claims are protected

bull File the Bond amp Retainage Preclaim Notice within 10 days after starting work

bull File the Bond amp Retainage Notice of Claim within 30 days from project completion

Immix Law Group Washington Lien and Bond Claims

Public Contracts Prompt Pay ActWashingtonrsquos Prompt Pay Act

bull Prime contractors are entitled to payment within 30 days after the public agencyrsquos receipt of the invoice

bull If the public agency intends to withhold payment (all or in part) the agency must notify the contractor in writing within 8 days of receipt stating

bull Why payment (all or part) is being withheld

bull Actions required by contractor in order to receive payment

Immix Law Group Washington Lien and Bond Claims

Public Contracts Prompt Pay ActWashingtonrsquos Prompt Pay Act (contrsquod)

bull Public agency can withhold up to 150 of the disputed amount

bull Failure to comply entitles the contractor to 1 interest per month until paid

bull Subcontractors must be paid within 10 days of prime contractorrsquos receipt of payment

CCBA Nuts amp Bolts on Construction Law - 14 of 49

11122014

14

Immix Law Group

Questions

CCBA Nuts amp Bolts on Construction Law - 15 of 49

SUMMARY OF THE REQUIREMENTS TO BE MET BY A LIEN CLAIMANT ON A WASHINGTON PRIVATE CONSTRUCTION PROJECT

NOTICE TO CUSTOMER

FROM

Prime Contractor working on four or fewer residential units when the contract price is $1000 or more or on a commercial building when the contract price is $1000 or more but less than $60000

TO Owner

WHEN Before starting construction NOTICE OF FURNISHING PROFESSIONAL SERVICES

FROM

Provider of professional services

TO County Recorder

WHEN As soon as professional services are commenced PRECLAIM NOTICE (for all projects except repair and remodeling of owner-occupied single-family residence)

FROM

Provider of professional services materials or equipment except that the following need not provide the notice (1) a provider that contracts directly with the owner or the owners actual agent or (2) a first tier subcontractor

TO Owner and usually also prime contractor

WHEN New single family residence within ten days of first supplying professional services materials or equipment All other projects within 60 days of first supplying professional services materials or equipment

PRECLAIM NOTICE (for repair and remodeling of owner-occupied single-family residence)

FROM

Provider of professional services materials or equipment to anyone other than the owner

TO Owner and usually also prime contractor

WHEN Immediately after agreeing to furnish professional services materials or equipment

FROM

Potential lien claimant to whom payment is five or more days overdue

NOTICE TO REAL PROPERTY LENDER (only applicable where there is not a payment bond of at least 50 of the amount of construction financing)

TO Construction lender owner and prime contractor

WHEN Within 35 days of date payment is due

CLAIM OF LIEN

FROM

Unpaid claimant

TO County Recorder

WHEN Not later than 90 days after the last furnishing of labor professional services materials or equipment or the last date on which employee benefit contributions were due

COPY OF CLAIM OF LIEN

FROM

Unpaid claimant

TO Owner

WHEN Within 14 days of date claim of lien is filed for recording

DEADLINE FOR FILING A LAWSUIT Within eight months of recording claim of lien

F625-055-000 const lien summary 2-96 This summary is intended to generally set forth the requirements applicable to most lien claimants The remainder of the chapter should be consulted for a more detailed discussion

CCBA Nuts amp Bolts on Construction Law - 16 of 49

CLAIM OF LIEN SIGNED BY ATTORNEY

Return Address __________________________ __________________________ __________________________

Document Title Claim of Lien

Reference Number _____________________________

Grantor _____________________________

Grantee _____________________________

Legal Description

Assessors Property Tax Parcel No

CLAIM OF LIEN

________________________ claimant vs _____________________________ name of persons indebted to claimant

Notice is hereby given that the person named below claims a lien pursuant to Chapter 6004 RCW In

support of this lien the following information is submitted

1 NAME OF LIEN CLAIMANT ______________________________________

TELEPHONE NUMBER ______________________________________

ADDRESS ______________________________________

______________________________________

2 DATE ON WHICH THE CLAIMANT BEGAN TO PERFORM LABOR PROVIDE PROFESSIONAL SERVICES SUPPLY MATERIAL OR EQUIPMENT OR THE DATE ON WHICH EMPLOYEE BENEFIT CONTRIBUTIONS BECOMES DUE _________

3 NAME OF PERSON INDEBTED TO THE CLAIMANT _________________

4 DESCRIPTIONOF THE PROPERTY AGAINST WHICH A LIEN IS CLAIMED All fee leasehold and other interests of _______________ and any other owner person or entity in the property commonly known as ___________________________located at _______________________ _________________________ _________________County Washington _______ the legal description of which is believed to be as follows

[Legal Description - andor - The legal description of the underlying real property is described on the attached Exhibit A]

CCBA Nuts amp Bolts on Construction Law - 17 of 49

5 NAME OF THE OWNER OR REPUTED OWNER (if not known state ldquounknownrdquo) ____________________________________________________________________________________________

6 THE LAST DATE ON WHICH LABOR WAS PERFORMED PROFESSIONAL SERVICES WERE FURNISHED CONTRIBUTIONS TO AN EMPLOYEE BENEFIT PLAN WERE DUE OR MATERIAL OR EQUIPMENT WAS FURNISHED _____________________________________________________________

7 PRINCIPAL AMOUNT FOR WHICH THE LIEN IS CLAIMED IS $_______

8 IF THE CLAIMANT IS THE ASSIGNEE OF THIS CLAIM SO STATE HERE ___

___________________ Claimant ___________________________

___________________________ (__)____-______

By ________s________________ Print Name ___________________ Its Attorney

STATE OF WASHINGTON )

SS COUNTYOF ____________ )

________________ being sworn says I am the attorney of the claimant above named I have read or heard the foregoing claim read and know the contents thereof and believe the same to be true and correct and that the claim of lien is not frivolous and is made with reasonable cause and is not clearly excessive under penalty of perjury

__________________________ Print Name _______________

SUBSCRIBED and SWORN to before me this ___day of ___________________ 201_

STATE OF WASHINGTON )

SS COUNTYOF ____________ )

[Seal or Stamp]

__________________________ Print Name _______________ Notary Public in and for the State of Washington residing at________________________________ My Commission Expires __________________

CCBA Nuts amp Bolts on Construction Law - 18 of 49

I certify that I know or have satisfactory evidence that___________________ is the person who appeared before me and said person acknowledged that [heshe] signed this instrument on oath stated that [heshe] was authorized to execute this instrument and acknowledged it as the attorney of___________________ to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument

CCBA Nuts amp Bolts on Construction Law - 19 of 49

F625-054-000 construction lien notice 11-05 IMPORTANT INFORMATION ON PAGE 2

NOTICE TO OWNER IMPORTANT READ BOTH SIDES OF THIS NOTICE CAREFULLY

PROTECT YOURSELF FROM PAYING TWICE

To

Date

Re

From (Description of property street address or general location)

AT THE REQUEST OF Name of person ordering their professional services materials or equipment

THIS IS NOT A LIEN This notice is sent to you to tell you who is providing professional services materials or equipment for the improvement of your property and to advise you of the rights of these persons and your responsibilities Also take notice that laborers on your project may claim a lien without sending you a notice

OWNEROCCUPIER OF EXISTING RESIDENTIAL PROPERTY Under Washington law those who furnish labor professional services materials or equipment for the repair remodel or alteration of you owner-occupied principal residence and who are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien The law limits the amount that a lien claimant can claim against your property Claims may only be made against that portion of the contract price you have not yet paid to your prime contractor as of the time this notice was given to you or three days after this notice was mailed to you Review page 2 of this notice for more information and ways to avoid lien claims

COMMERCIAL ANDOR NEW RESIDENTIAL PROPERTY We have or will be providing professional services materials or equipment for the improvement of your commercial or new residential project In the event you or your contractor fail to pay us we may file a lien against your property A lien may be claimed for all professional services materials or equipment furnished after a date that is sixty days before this notice was given to you or mailed to you unless the improvement to you property is the construction of a new single-family residence then ten days before this notice was given to you or mailed to you

Sender

Address

Telephone

Brief description of professional services materials or equipment provided or to be provided

CCBA Nuts amp Bolts on Construction Law - 20 of 49

F625-054-000 construction lien notice page 2 11-05

Important Information for your Protection

This notice is sent to inform you that we have or will provide professional services materials or equipment for the repair remodel or alteration of you property We expect to be paid by the person who ordered our services but if we are not paid we have the right to enforce our claim by filing a construction lien against your property

LEARN more about the lien laws and the meaning of this notice by

discussing them with our contractor suppliers Department of Labor and Industries the firm sending you this notice your lender or your attorney

COMMON METHODS TO AVOID CONSTRUCTION LIENS

There are several methods available to protect your property from construction liens The following are two of the more commonly used methods

DUAL PAYCHECKS (Joint Checks) When paying your

contractor for services or materials you may make checks payable jointly to the contractor and the firms furnishing you this notice

LIEN RELEASES You may require your contractor to provide

lien releases signed by all the suppliers and subcontractors from whom you have received this notice If they cannot obtain lien releases because you have not paid them you may use the dual payee check method to protect yourself

You should take appropriate steps to protect your property from

liens

Your prime contractor and your construction lender are required by law to give you written information about lien claims If you have not received it ask them for it

CCBA Nuts amp Bolts on Construction Law - 21 of 49

F625-030-000 model disclosure statement notice to customer 09-2007

Department of Labor and Industries Construction Compliance

MODEL DISCLOSURE STATEMENTNOTICE TO CUSTOMER

This contractor is registered with the state of Washington registration no____________________ and has posted with the state a bond or deposit of ______________________ for the purpose of satisfying claims against the contractor for breach of contract including negligent or improper work in the conduct of the contractorrsquos business The expiration date of this contractorrsquos registration is ______________________

THIS BOND OR DEPOSIT MIGHT NOT BE SUFFICIENT TO COVER A CLAIM THAT MIGHT ARISE FROM THE WORK DONE UNDER YOUR CONTRACT This bond or deposit is not for your exclusive use because it covers all work performed by this contractor The bond or deposit is intended to pay valid claims up to ___________________________ that you and other customers suppliers subcontractors or taxing authorities may have FOR GREATER PROTECTION YOU MAY WITHHOLD A PERCENTAGE OF YOUR CONTRACT You may withhold a contractually defined percentage of your construction contract as retainage for a stated period of time to provide protection to you and help insure that your project will be completed as required by your contract

YOUR PROPERTY MAY BE LIENED If a supplier of materials used in your construction project or an employee or subcontractor of your contractor or subcontractors is not paid your property may be liened to force payment and you could pay twice for the same work FOR ADDITIONAL PROTECTION YOU MAY REQUEST THE CONTRACTOR TO PROVIDE YOU WITH ORIGINAL ldquoLIEN RELEASErdquo DOCUMENTS FROM EACH SUPPLIER OR SUBCONTRACTOR AT YOUR PROJECT The contractor is required to provide you with further information about lien release document if you request it General information is also available from the state Department of Labor and Industries I have received a copy of this disclosure statement Dated this _______ day of _______________ of the year __________

_____________________________________________________ Signature of Customer The contractor must retain a signed copy of the disclosure statement in his or her files for a minimum of three years and produce a signed or electronic signature copy of the disclosure statement to the department upon request

CCBA Nuts amp Bolts on Construction Law - 22 of 49

Facts About Construction LiensWhat you should know about contractsIf your contractor fails to pay subcontractors suppliers or laborers or neglects to make other legally required payments those who are owed money can look to your property for payment even if you have paid your contractor in full This is true if you have hired a contractor to build a new home or are buying a newly built home

It is also true when you remodel or improve your property although the amount of your liability may be limited to the amount you owe the prime contractor at the time a lien is filed

Under Washington laws those who work on your property or provide materials and are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien

People who supply materials or labor ordered by your contractor are permitted by law to file a lien only if they do so within 90 days of cessation of performance or delivery of materials The time frame is spelled out in RCW 6004091

If you enter into a contract to buy a newly built home you may not receive a notice of a lien based on a claim by a contractor or material handler Be aware that a lien may be claimed even though you have not received a notice

Before making final payment on the project request a completed lien release form from each contractor and material supplier A sample of this release of lien form is available from the Department of Labor amp Industries Contractor Registration Section

You have final responsibility for seeing that all bills are paid even if you have paid your contractor in full

If you receive a notice to enforce a lien take the notice seriously Let your contractor know you have received the notice Find out what arrangements are being made to pay the sender of the notice

When in doubt or if you need more details consult your attorney When and how to pay your contractor is a decision that requires serious consideration

Reminder Washington laws require contractors to give you a disclosure statement if your contract exceeds $1000 [RCW 1827114(A) or (B)]

CCBA Nuts amp Bolts on Construction Law - 23 of 49

PUBLICATION F625-017-000 [01-2008]

Other formats for persons with disabilities are available on request Call 1-800-647-0982 TDD users call 360-902-5797 LampI is an equal opportunity employer

For more information

How to protect your investment

If you are dealing with a lending institution ask your loan officer what precautions the lending institution takes to verify that subcontractors and material suppliers are being paid when mortgage money is paid to your contractor

Request lender supervision when dealing with a lending institution that provides interim or construction financing

Ask the prime contractor to disclose all potential lien claimants as a condition of payment A lien claimant must mail (by certified or registered mail or by personal service) a copy of the claim of lien to the owner within 14 days of the time the lien is recorded [RCW 6004091(2)] While an action is ongoing an owner may withhold from this prime contractor the amount of money for which a claim is recorded by a subcontractor supplier or laborer [RCW 6004151]

It is recommended that your check be made payable jointly naming the contractor and the subcontractor or supplier as payees

Upon payment and acceptance of the amount due the owner has the right to an executed release of all lien rights by lien claimants [RCW 6004071]

Consider using an escrow agent to protect your interests Find out whether your escrow agent will protect you against liens when disbursing payments If you are interested in this alternative consult your attorney

Request that your contractor post a performance bond in the amount of the project cost That will give you recourse in the event the contractor fails to complete the building agreement

8 On the Web Find more information about hiring a contractor at

wwwLniwagovTradesLicensingContractorsHireCon

Contractor Registration Hotline1-800-647-0982

You may also call your local LampI office See listings under ldquoWashington State ofrdquo in the government section or the white pages of the telephone book

Please note This notice was prepared by the Department of Labor amp Industries Specialty Compliance Services Division for reproduction by lending institutions and contractors for distribution to their clients It explains the basics of the construction lien law to help you protect yourself This information is not a reflection upon the abilities or credit of your contractor

CCBA Nuts amp Bolts on Construction Law - 24 of 49

NOTICE OF CLAIM AGAINST

BOND AND RETAINED PERCENTAGE

RCW 3908030 RCW 6028010

VIA CERTIFIED MAIL ndash RETURN RECEIPT REQUESTED

TO [Public Owner] [Public Ownerrsquos Address]

Project [Project Name amp Address] NOTICE IS HEREBY GIVEN that the undersigned [Claimant] [Claimantrsquos Address] has a claim in the amount of ----- and 00100 Dollars ($XX) (not including attorneysrsquo fees or costs) together with interest at twelve percent (12) against [Public Owner] (ldquoOwnerrdquo) pursuant to RCW 6028 and the payment bond taken from [Prime Contractor] (ldquoContractorrdquo) [Prime Contractorrsquos Address] as principal and [Surety Company] (ldquoSuretyrdquo) [Suretyrsquos Address] as surety Bond No ________ pursuant to RCW 3908 for [describe services material supplies labor furnished] provided on the Project This Notice of Claim Against Bond and Retained Percentage supersedes and replaces previous Notices DATED This ___day of _________ 201_ [Claimant] By ______________________________________ Its ______________________________________ [Claimantrsquos Address]

_________________________________________

[Contractors Registration No if applicable]

(Copies furnished to General Contractor and General Contractorrsquos Bonding Company)

CCBA Nuts amp Bolts on Construction Law - 25 of 49

PRECLAIM NOTICE TO CONTRACTOR BY SUBCONTRACTORS MATERIALMEN OR SUPPLIERS FOR

CLAIM AGAINST BOND AND RETAINED PERCENTAGE

VIA CERTIFIED OR REGISTERED MAIL- RETURN RECEIPT REQUESTED

TO [Name of General Contractor] [Address]

YOU ARE HEREBY NOTIFIED that the undersigned ____________at the request of_________________ commenced to deliver or furnish materials supplies andor equipment for the use in the construction alteration andor repair of that certain project known as____________________ [project name] which is located at ____________________________ [address or description] If the undersigned is not paid for these materials supplies andor equipment it will file a claim against you and your bond andor retainage pursuant to RCW 3908 andor 6028 et seq for payment of any sum that is due and owing to the undersigned

DATED This __ day of _____________ 201_

[Name of Claimant]

By ____________________________________

Its ____________________________________

Address ______________________________

__________________________________________

__________________________________________

[Contractors Registration No if applicable]

(Mail via certified mail return receipt requested or hand deliver and obtain receipt)

CCBA Nuts amp Bolts on Construction Law - 26 of 49

Washington Liens amp Bonds ndash Pertinent Statutes

RCW 1827040 Bond or other security required mdash Actions against mdash Suspension of registration upon impairment (1) Each applicant shall file with the department a surety bond issued by a surety insurer who meets the requirements of chapter 4828 RCW in the sum of twelve thousand dollars if the applicant is a general contractor and six thousand dollars if the applicant is a specialty contractor If no valid bond is already on file with the department at the time the application is filed a bond must accompany the registration application The bond shall have the state of Washington named as obligee with good and sufficient surety in a form to be approved by the department The bond shall be continuous and may be canceled by the surety upon the surety giving written notice to the director A cancellation or revocation of the bond or withdrawal of the surety from the bond automatically suspends the registration issued to the contractor until a new bond or reinstatement notice has been filed and approved as provided in this section The bond shall be conditioned that the applicant will pay all persons performing labor including employee benefits for the contractor will pay all taxes and contributions due to the state of Washington and will pay all persons furnishing material or renting or supplying equipment to the contractor and will pay all amounts that may be adjudged against the contractor by reason of breach of contract including improper work in the conduct of the contracting business A change in the name of a business or a change in the type of business entity shall not impair a bond for the purposes of this section so long as one of the original applicants for such bond maintains partial ownership in the business covered by the bond (2) At the time of initial registration or renewal the contractor shall provide a bond or other security deposit as required by this chapter and comply with all of the other provisions of this chapter before the department shall issue or renew the contractors certificate of registration Any contractor registered as of July 1 2001 who maintains that registration in accordance with this chapter is in compliance with this chapter until the next renewal of the contractors certificate of registration (3) Any person firm or corporation having a claim against the contractor for any of the items referred to in this section may bring suit against the contractor and the bond or deposit in the superior court of the county in which the work was done or of any county in which jurisdiction of the contractor may be had The surety issuing the bond shall be named as a party to any suit upon the bond Action upon the bond or deposit brought by a residential homeowner for breach of contract by a party to the construction contract shall be commenced by filing the summons and complaint with the clerk of the appropriate superior court within two years from the date the claimed contract work was substantially completed or abandoned whichever occurred first Action upon the bond or deposit brought by any other authorized party shall be commenced by filing the summons and complaint with the clerk of the appropriate superior court within one year from the date the claimed labor was performed and benefits accrued taxes and contributions owing the state of Washington became due materials and equipment were furnished or the claimed contract work was substantially completed or abandoned whichever occurred first Service of process in an action filed under this chapter against the contractor and the contractors bond or the deposit shall be exclusively by service upon the department Three

CCBA Nuts amp Bolts on Construction Law - 27 of 49

copies of the summons and complaint and a fee adopted by rule of not less than fifty dollars to cover the costs shall be served by registered or certified mail or other delivery service requiring notice of receipt upon the department at the time suit is started and the department shall maintain a record available for public inspection of all suits so commenced Service is not complete until the department receives the fee and three copies of the summons and complaint The service shall constitute service and confer personal jurisdiction on the contractor and the surety for suit on claimants claim against the contractor and the bond or deposit and the department shall transmit the summons and complaint or a copy thereof to the contractor at the address listed in the contractors application and to the surety within two days after it shall have been received (4) The surety upon the bond shall not be liable in an aggregate amount in excess of the amount named in the bond nor for any monetary penalty assessed pursuant to this chapter for an infraction The liability of the surety shall not cumulate where the bond has been renewed continued reinstated reissued or otherwise extended The surety upon the bond may upon notice to the department and the parties tender to the clerk of the court having jurisdiction of the action an amount equal to the claims thereunder or the amount of the bond less the amount of judgments if any previously satisfied therefrom and to the extent of such tender the surety upon the bond shall be exonerated but if the actions commenced and pending and provided to the department as required in subsection (3) of this section at any one time exceed the amount of the bond then unimpaired claims shall be satisfied from the bond in the following order (a) Employee labor and claims of laborers including employee benefits (b) Claims for breach of contract by a party to the construction contract (c) Registered or licensed subcontractors material and equipment (d) Taxes and contributions due the state of Washington (e) Any court costs interest and attorneys fees plaintiff may be entitled to recover The surety is not liable for any amount in excess of the penal limit of its bond A payment made by the surety in good faith exonerates the bond to the extent of any payment made by the surety (5) The total amount paid from a bond or deposit required of a general contractor by this section to claimants other than residential homeowners must not exceed one-half of the bond amount The total amount paid from a bond or deposit required of a specialty contractor by this section to claimants other than residential homeowners must not exceed one-half of the bond amount or four thousand dollars whichever is greater (6) The prevailing party in an action filed under this section against the contractor and contractors bond or deposit for breach of contract by a party to the construction contract involving a residential homeowner is entitled to costs interest and reasonable attorneys fees The surety upon the bond or deposit is not liable in an aggregate amount in excess of the amount

CCBA Nuts amp Bolts on Construction Law - 28 of 49

named in the bond or deposit nor for any monetary penalty assessed pursuant to this chapter for an infraction (7) If a final judgment impairs the liability of the surety upon the bond or deposit so furnished that there is not in effect a bond or deposit in the full amount prescribed in this section the registration of the contractor is automatically suspended until the bond or deposit liability in the required amount unimpaired by unsatisfied judgment claims is furnished (8) In lieu of the surety bond required by this section the contractor may file with the department an assigned savings account upon forms provided by the department (9) Any person having filed and served a summons and complaint as required by this section having an unsatisfied final judgment against the registrant for any items referred to in this section may execute upon the security held by the department by serving a certified copy of the unsatisfied final judgment by registered or certified mail upon the department within one year of the date of entry of such judgment Upon the receipt of service of such certified copy the department shall pay or order paid from the deposit through the registry of the superior court which rendered judgment towards the amount of the unsatisfied judgment The priority of payment by the department shall be the order of receipt by the department but the department shall have no liability for payment in excess of the amount of the deposit (10) Within ten days after resolution of the case a certified copy of the final judgment and order or any settlement documents where a case is not disposed of by a court trial a certified copy of the dispositive settlement documents must be provided to the department by the prevailing party Failure to provide a copy of the final judgment and order or the dispositive settlement documents to the department within ten days of entry of such an order constitutes a violation of this chapter and a penalty adopted by rule of not less than two hundred fifty dollars may be assessed against the prevailing party (11) The director may require an applicant applying to renew or reinstate a registration or applying for a new registration to file a bond of up to three times the normally required amount if the director determines that an applicant or a previous registration of a corporate officer owner or partner of a current applicant has had in the past five years a total of three final judgments in actions under this chapter involving a residential single-family dwelling on two or more different structures (12) The director may adopt rules necessary for the proper administration of the security RCW 1827114 Disclosure statement required mdash Prerequisite to lien claim

(1) Any contractor agreeing to perform any contracting project (a) For the repair alteration or construction of four or fewer residential units or accessory structures on such residential property when the bid or contract price totals one thousand dollars or more or (b) for the repair alteration or construction of a commercial building when the bid or contract price totals one thousand dollars or more but less than sixty thousand dollars must provide the customer with

CCBA Nuts amp Bolts on Construction Law - 29 of 49

the following disclosure statement in substantially the following form using lower case and upper case twelve-point and bold type where appropriate prior to starting work on the project NOTICE TO CUSTOMER This contractor is registered with the state of Washington registration no and has posted with the state a bond or deposit of for the purpose of satisfying claims against the contractor for breach of contract including negligent or improper work in the conduct of the contractors business The expiration date of this contractors registration is THIS BOND OR DEPOSIT MIGHT NOT BE SUFFICIENT TO COVER A CLAIM THAT MIGHT ARISE FROM THE WORK DONE UNDER YOUR CONTRACT This bond or deposit is not for your exclusive use because it covers all work performed by this contractor The bond or deposit is intended to pay valid claims up to that you and other customers suppliers subcontractors or taxing authorities may have FOR GREATER PROTECTION YOU MAY WITHHOLD A PERCENTAGE OF YOUR CONTRACT You may withhold a contractually defined percentage of your construction contract as retainage for a stated period of time to provide protection to you and help insure that your project will be completed as required by your contract YOUR PROPERTY MAY BE LIENED If a supplier of materials used in your construction project or an employee or subcontractor of your contractor or subcontractors is not paid your property may be liened to force payment and you could pay twice for the same work FOR ADDITIONAL PROTECTION YOU MAY REQUEST THE CONTRACTOR TO PROVIDE YOU WITH ORIGINAL LIEN RELEASE DOCUMENTS FROM EACH SUPPLIER OR SUBCONTRACTOR ON YOUR PROJECT The contractor is required to provide you with further information about lien release documents if you request it General information is also available from the state Department of Labor and Industries I have received a copy of this disclosure statement

CCBA Nuts amp Bolts on Construction Law - 30 of 49

(Signature of customer) (2) The contractor must retain a signed copy of the disclosure statement in his or her files for a minimum of three years and produce a signed or electronic signature copy of the disclosure statement to the department upon request (3) A contractor subject to this section shall notify any consumer to whom notice is required under subsection (1) of this section if the contractors registration has expired or is revoked or suspended by the department prior to completion or other termination of the contract with the consumer (4) No contractor subject to this section may bring or maintain any lien claim under chapter 6004 RCW based on any contract to which this section applies without alleging and proving that the contractor has provided the customer with a copy of the disclosure statement as required in subsection (1) of this section (5) This section does not apply to contracts authorized under chapter 3904 RCW or to contractors contracting with other contractors (6) Failure to comply with this section shall constitute an infraction under the provisions of this chapter (7) The department shall produce model disclosure statements and public service announcements detailing the information needed to assist contractors and contractors customers to comply under this section As necessary the department shall periodically update these education materials RCW 3908010 Bond required mdash Conditions mdash Retention of contract amount in lieu of bond (1)(a) Whenever any board council commission trustees or body acting for the state or any county or municipality or any public body must contract with any person or corporation to do any work for the state county or municipality or other public body city town or district such board council commission trustees or body must require the person or persons with whom such contract is made to make execute and deliver to such board council commission trustees or body a good and sufficient bond with a surety company as surety conditioned that such person or persons must (i) Faithfully perform all the provisions of such contract (ii) Pay all laborers mechanics and subcontractors and material suppliers and all persons who supply such person or persons or subcontractors with provisions and supplies for the carrying on of such work and

CCBA Nuts amp Bolts on Construction Law - 31 of 49

(iii) Pay the taxes increases and penalties incurred on the project under Titles 50 51 and 82 RCW on (A) Projects referred to in RCW 6028011(1)(b) andor (B) projects for which the bond is conditioned on the payment of such taxes increases and penalties (b) The bond in cases of cities and towns must be filed with the clerk or comptroller thereof and any person or persons performing such services or furnishing material to any subcontractor has the same right under the provisions of such bond as if such work services or material was furnished to the original contractor (2) The provisions of RCW 3908010 through 3908030 do not apply to any money loaned or advanced to any such contractor subcontractor or other person in the performance of any such work (3) On contracts of thirty-five thousand dollars or less at the option of the contractor the respective public entity may in lieu of the bond retain fifty percent of the contract amount for a period of thirty days after date of final acceptance or until receipt of all necessary releases from the department of revenue the employment security department and the department of labor and industries and settlement of any liens filed under chapter 6028 RCW whichever is later (4) For contracts of one hundred thousand dollars or less the public entity may accept a full payment and performance bond from an individual surety or sureties (5) The surety must agree to be bound by the laws of the state of Washington and subjected to the jurisdiction of the state of Washington RCW 6004011 Definitions

Unless the context requires otherwise the definitions in this section apply throughout this chapter (1) Construction agent means any registered or licensed contractor registered or licensed subcontractor architect engineer or other person having charge of any improvement to real property who shall be deemed the agent of the owner for the limited purpose of establishing the lien created by this chapter (2) Contract price means the amount agreed upon by the contracting parties or if no amount is agreed upon then the customary and reasonable charge therefor (3) Draws means periodic disbursements of interim or construction financing by a lender (4) Furnishing labor professional services materials or equipment means the performance of any labor or professional services the contribution owed to any employee benefit plan on account of any labor the provision of any supplies or materials and the renting leasing or

CCBA Nuts amp Bolts on Construction Law - 32 of 49

otherwise supplying of equipment for the improvement of real property (5) Improvement means (a) Constructing altering repairing remodeling demolishing clearing grading or filling in of to or upon any real property or street or road in front of or adjoining the same (b) planting of trees vines shrubs plants hedges or lawns or providing other landscaping materials on any real property and (c) providing professional services upon real property or in preparation for or in conjunction with the intended activities in (a) or (b) of this subsection (6) Interim or construction financing means that portion of money secured by a mortgage deed of trust or other encumbrance to finance improvement of or to real property but does not include (a) Funds to acquire real property (b) Funds to pay interest insurance premiums lease deposits taxes assessments or prior encumbrances (c) Funds to pay loan commitment title legal closing recording or appraisal fees (d) Funds to pay other customary fees which pursuant to agreement with the owner or borrower are to be paid by the lender from time to time (e) Funds to acquire personal property for which the potential lien claimant may not claim a lien pursuant to this chapter (7) Labor means exertion of the powers of body or mind performed at the site for compensation Labor includes amounts due and owed to any employee benefit plan on account of such labor performed (8) Mortgagee means a person who has a valid mortgage of record or deed of trust of record securing a loan (9) Owner-occupied means a single-family residence occupied by the owner as his or her principal residence (10) Payment bond means a surety bond issued by a surety licensed to issue surety bonds in the state of Washington that confers upon potential claimants the rights of third party beneficiaries (11) Potential lien claimant means any person or entity entitled to assert lien rights under this chapter who has otherwise complied with the provisions of this chapter and is registered or licensed if required to be licensed or registered by the provisions of the laws of the state of Washington (12) Prime contractor includes all contractors general contractors and specialty

CCBA Nuts amp Bolts on Construction Law - 33 of 49

contractors as defined by chapter 1827 or 1928 RCW or who are otherwise required to be registered or licensed by law who contract directly with a property owner or their common law agent to assume primary responsibility for the creation of an improvement to real property and includes property owners or their common law agents who are contractors general contractors or specialty contractors as defined in chapter 1827 or 1928 RCW or who are otherwise required to be registered or licensed by law who offer to sell their property without occupying or using the structures projects developments or improvements for more than one year (13) Professional services means surveying establishing or marking the boundaries of preparing maps plans or specifications for or inspecting testing or otherwise performing any other architectural or engineering services for the improvement of real property (14) Real property lender means a bank savings bank savings and loan association credit union mortgage company or other corporation association partnership trust or individual that makes loans secured by real property located in the state of Washington (15) Site means the real property which is or is to be improved (16) Subcontractor means a general contractor or specialty contractor as defined by chapter 1827 or 1928 RCW or who is otherwise required to be registered or licensed by law who contracts for the improvement of real property with someone other than the owner of the property or their common law agent

6004021 Lien authorized

Except as provided in RCW 6004031 any person furnishing labor professional services materials or equipment for the improvement of real property shall have a lien upon the improvement for the contract price of labor professional services materials or equipment furnished at the instance of the owner or the agent or construction agent of the owner

6004031 Notices mdash Exceptions

(1) Except as otherwise provided in this section every person furnishing professional services materials or equipment for the improvement of real property shall give the owner or reputed owner notice in writing of the right to claim a lien If the prime contractor is in compliance with the requirements of RCW 1927095 6004230 and 6004261 this notice shall also be given to the prime contractor as described in this subsection unless the potential lien claimant has contracted directly with the prime contractor The notice may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after the date which is sixty days before (a) Mailing the notice by certified or registered mail to the owner or reputed owner or

CCBA Nuts amp Bolts on Construction Law - 34 of 49

(b) Delivering or serving the notice personally upon the owner or reputed owner and obtaining evidence of delivery in the form of a receipt or other acknowledgment signed by the owner or reputed owner or an affidavit of service In the case of new construction of a single-family residence the notice of a right to claim a lien may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after a date which is ten days before the notice is given as described in this subsection (2) Notices of a right to claim a lien shall not be required of (a) Persons who contract directly with the owner or the owners common law agent (b) Laborers whose claim of lien is based solely on performing labor or (c) Subcontractors who contract for the improvement of real property directly with the prime contractor except as provided in subsection (3)(b) of this section (3) Persons who furnish professional services materials or equipment in connection with the repair alteration or remodel of an existing owner-occupied single-family residence or appurtenant garage (a) Who contract directly with the owner-occupier or their common law agent shall not be required to send a written notice of the right to claim a lien and shall have a lien for the full amount due under their contract as provided in RCW 6004021 or (b) Who do not contract directly with the owner-occupier or their common law agent shall give notice of the right to claim a lien to the owner-occupier Liens of persons furnishing professional services materials or equipment who do not contract directly with the owner-occupier or their common law agent may only be satisfied from amounts not yet paid to the prime contractor by the owner at the time the notice described in this section is received regardless of whether amounts not yet paid to the prime contractor are due For the purposes of this subsection received means actual receipt of notice by personal service or registered or certified mail or three days after mailing by registered or certified mail excluding Saturdays Sundays or legal holidays (4) The notice of right to claim a lien described in subsection (1) of this section shall include but not be limited to the following information and shall substantially be in the following form using lower-case and upper-case ten-point type where appropriate

CCBA Nuts amp Bolts on Construction Law - 35 of 49

NOTICE TO OWNER

IMPORTANT READ BOTH SIDES OF THIS NOTICE CAREFULLY

PROTECT YOURSELF FROM PAYING TWICE

To Date

Re (description of property Street address or general location) From AT THE REQUEST OF (Name of person ordering the professional services materials or equipment) THIS IS NOT A LIEN This notice is sent to you to tell you who is providing professional services materials or equipment for the improvement of your property and to advise you of the rights of these persons and your responsibilities Also take note that laborers on your project may claim a lien without sending you a notice

OWNEROCCUPIER OF EXISTING

RESIDENTIAL PROPERTY

Under Washington law those who furnish labor professional services materials or equipment for the repair remodel or alteration of your owner-occupied principal residence and who are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien The law limits the amount that a lien claimant can claim against your property Claims may only be made against that portion of the contract price you have not yet paid to your prime contractor as of the time this notice was given to you or three days after this notice was mailed to you Review the back of this notice for more information and ways to avoid lien claims

COMMERCIAL ANDOR NEW

RESIDENTIAL PROPERTY

CCBA Nuts amp Bolts on Construction Law - 36 of 49

We have or will be providing professional services materials or equipment for the improvement of your commercial or new residential project In the event you or your contractor fail to pay us we may file a lien against your property A lien may be claimed for all professional services materials or equipment furnished after a date that is sixty days before this notice was given to you or mailed to you unless the improvement to your property is the construction of a new single-family residence then ten days before this notice was given to you or mailed to you Sender Address Telephone Brief description of professional services materials or equipment provided or to be provided

IMPORTANT INFORMATION

ON REVERSE SIDE

IMPORTANT INFORMATION

FOR YOUR PROTECTION This notice is sent to inform you that we have or will provide professional services materials or equipment for the improvement of your property We expect to be paid by the person who ordered our services but if we are not paid we have the right to enforce our claim by filing a construction lien against your property LEARN more about the lien laws and the meaning of this notice by discussing them with your contractor suppliers Department of Labor and Industries the firm sending you this notice your lender or your attorney

COMMON METHODS TO AVOID CONSTRUCTION LIENS There are several methods available to protect your property from construction liens The following are two of the more commonly used methods

DUAL PAYCHECKS (Joint Checks) When paying your contractor for services or materials you may make checks payable jointly to the contractor and the firms furnishing you this notice

CCBA Nuts amp Bolts on Construction Law - 37 of 49

LIEN RELEASES You may require your contractor to provide lien releases signed by all the suppliers and subcontractors from whom you have received this notice If they cannot obtain lien releases because you have not paid them you may use the dual payee check method to protect yourself

YOU SHOULD TAKE APPROPRIATE STEPS TO PROTECT YOUR PROPERTY FROM LIENS YOUR PRIME CONTRACTOR AND YOUR CONSTRUCTION LENDER ARE REQUIRED BY LAW TO GIVE YOU WRITTEN INFORMATION ABOUT LIEN CLAIMS IF YOU HAVE NOT RECEIVED IT ASK THEM FOR IT

(5) Every potential lien claimant providing professional services where no improvement as defined in RCW 6004011(5) (a) or (b) has been commenced and the professional services provided are not visible from an inspection of the real property may record in the real property records of the county where the property is located a notice which shall contain the professional service providers name address telephone number legal description of the property the owner or reputed owners name and the general nature of the professional services provided If such notice is not recorded the lien claimed shall be subordinate to the interest of any subsequent mortgagee and invalid as to the interest of any subsequent purchaser if the mortgagee or purchaser acts in good faith and for a valuable consideration acquires an interest in the property prior to the commencement of an improvement as defined in RCW 6004011(5) (a) or (b) without notice of the professional services being provided The notice described in this subsection shall be substantially in the following form

NOTICE OF FURNISHING

PROFESSIONAL SERVICES That on the (day) day of (month and year) (name of provider) began providing professional services upon or for the improvement of real property legally described as follows

[Legal Description is mandatory]

CCBA Nuts amp Bolts on Construction Law - 38 of 49

The general nature of the professional services provided is The owner or reputed owner of the real property is

(Signature)

(Name of Claimant)

(Street Address)

(City State Zip Code)

(Phone Number)

(6) A lien authorized by this chapter shall not be enforced unless the lien claimant has complied with the applicable provisions of this section

6004041 Contractor registration

A contractor or subcontractor required to be registered under chapter 1827 RCW or licensed under chapter 1928 RCW or otherwise required to be registered or licensed by law shall be deemed the construction agent of the owner for the purposes of establishing the lien created by this chapter only if so registered or licensed Persons dealing with contractors or subcontractors may rely for the purposes of this section upon a certificate of registration issued pursuant to chapter 1827 RCW or license issued pursuant to chapter 1928 RCW or other certificate or license issued pursuant to law covering the period when the labor professional services material or equipment shall be furnished and the lien rights shall not be lost by suspension or revocation of registration or license without their knowledge No lien rights described in this

CCBA Nuts amp Bolts on Construction Law - 39 of 49

chapter shall be lost or denied by virtue of the absence suspension or revocation of such registration or license with respect to any contractor or subcontractor not in immediate contractual privity with the lien claimant

6004081 Frivolous claim mdash Procedure

(1) Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who believes the claim of lien to be frivolous and made without reasonable cause or clearly excessive may apply by motion to the superior court for the county where the property or some part thereof is located for an order directing the lien claimant to appear before the court at a time no earlier than six nor later than fifteen days following the date of service of the application and order on the lien claimant and show cause if any he or she has why the relief requested should not be granted The motion shall state the grounds upon which relief is asked and shall be supported by the affidavit of the applicant or his or her attorney setting forth a concise statement of the facts upon which the motion is based (2) The order shall clearly state that if the lien claimant fails to appear at the time and place noted the lien shall be released with prejudice and that the lien claimant shall be ordered to pay the costs requested by the applicant including reasonable attorneys fees (3) If no action to foreclose the lien claim has been filed the clerk of the court shall assign a cause number to the application and obtain from the applicant a filing fee pursuant to RCW 3618016 If an action has been filed to foreclose the lien claim the application shall be made a part of that action (4) If following a hearing on the matter the court determines that the lien is frivolous and made without reasonable cause or clearly excessive the court shall issue an order releasing the lien if frivolous and made without reasonable cause or reducing the lien if clearly excessive and awarding costs and reasonable attorneys fees to the applicant to be paid by the lien claimant If the court determines that the lien is not frivolous and was made with reasonable cause and is not clearly excessive the court shall issue an order so stating and awarding costs and reasonable attorneys fees to the lien claimant to be paid by the applicant (5) Proceedings under this section shall not affect other rights and remedies available to the parties under this chapter or otherwise

6004091 Recording mdash Time mdash Contents of lien

Every person claiming a lien under RCW 6004021 shall file for recording in the county where the subject property is located a notice of claim of lien not later than ninety days after the person

CCBA Nuts amp Bolts on Construction Law - 40 of 49

has ceased to furnish labor professional services materials or equipment or the last date on which employee benefit contributions were due The notice of claim of lien (1) Shall state in substance and effect (a) The name phone number and address of the claimant (b) The first and last date on which the labor professional services materials or equipment was furnished or employee benefit contributions were due (c) The name of the person indebted to the claimant (d) The street address legal description or other description reasonably calculated to identify for a person familiar with the area the location of the real property to be charged with the lien (e) The name of the owner or reputed owner of the property if known and if not known that fact shall be stated and (f) The principal amount for which the lien is claimed (2) Shall be signed by the claimant or some person authorized to act on his or her behalf who shall affirmatively state they have read the notice of claim of lien and believe the notice of claim of lien to be true and correct under penalty of perjury and shall be acknowledged pursuant to chapter 6408 RCW If the lien has been assigned the name of the assignee shall be stated Where an action to foreclose the lien has been commenced such notice of claim of lien may be amended as pleadings may be by order of the court insofar as the interests of third parties are not adversely affected by such amendment A claim of lien substantially in the following form shall be sufficient

CLAIM OF LIEN

claimant vs name of person indebted to claimant

Notice is hereby given that the person named below claims a lien pursuant to chapter 6404 RCW In support of this lien the following information is submitted

1 NAME OF LIEN CLAIMANT

TELEPHONE NUMBER

CCBA Nuts amp Bolts on Construction Law - 41 of 49

ADDRESS

2 DATE ON WHICH THE CLAIMANT BEGAN TO PERFORM LABOR PROVIDE PROFESSIONAL SERVICES SUPPLY MATERIAL OR EQUIPMENT OR THE DATE ON WHICH EMPLOYEE BENEFIT CONTRIBUTIONS BECAME DUE

3 NAME OF PERSON INDEBTED TO THE CLAIMANT

4 DESCRIPTION OF THE PROPERTY AGAINST WHICH A LIEN IS CLAIMED (Street address legal description or other information that will reasonably describe the property)

5 NAME OF THE OWNER OR REPUTED OWNER (If not known state unknown)

6 THE LAST DATE ON WHICH LABOR WAS PERFORMED PROFESSIONAL SERVICES WERE FURNISHED CONTRIBUTIONS TO AN EMPLOYEE BENEFIT PLAN WERE DUE OR MATERIAL OR EQUIPMENT WAS FURNISHED

7 PRINCIPAL AMOUNT FOR WHICH THE LIEN IS CLAIMED IS

8 IF THE CLAIMANT IS THE ASSIGNEE OF THIS CLAIM SO STATE HERE

Claimant

(Phone number address city

CCBA Nuts amp Bolts on Construction Law - 42 of 49

and

state of claimant)

STATE OF WASHINGTON COUNTY OF ss being sworn says I am the claimant (or attorney of the claimant or administrator representative or agent of the trustees of an employee benefit plan) above named I have read or heard the foregoing claim read and know the contents thereof and believe the same to be true and correct and that the claim of lien is not frivolous and is made with reasonable cause and is not clearly excessive under penalty of perjury Subscribed and sworn to before me this day of The period provided for recording the claim of lien is a period of limitation and no action to foreclose a lien shall be maintained unless the claim of lien is filed for recording within the ninety-day period stated The lien claimant shall give a copy of the claim of lien to the owner or reputed owner by mailing it by certified or registered mail or by personal service within fourteen days of the time the claim of lien is filed for recording Failure to do so results in a forfeiture of any right the claimant may have to attorneys fees and costs against the owner under RCW 6004181

6004161 Bond in lieu of claim

Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who disputes the correctness or validity of the claim of lien may record either before or after the commencement of an action to enforce the lien in the office of the county recorder or auditor in the county where the claim of lien was recorded a bond issued by a surety company authorized to issue surety bonds in the state The surety shall be listed in the latest federal department of the treasury list of surety companies acceptable on federal bonds published in the Federal Register as authorized to issue bonds on United States government projects with an underwriting limitation including applicable reinsurance equal to or greater than the amount of the bond to be recorded The bond shall contain a description of the claim of lien and real property involved and be in an amount equal to the greater of five thousand dollars or two times the amount of the lien claimed if it is ten thousand dollars or less and in an amount equal to or greater than one and one-half times the amount of the lien if it is in

CCBA Nuts amp Bolts on Construction Law - 43 of 49

excess of ten thousand dollars If the claim of lien affects more than one parcel of real property and is segregated to each parcel the bond may be segregated the same as in the claim of lien A separate bond shall be required for each claim of lien made by separate claimants However a single bond may be used to guarantee payment of amounts claimed by more than one claim of lien by a single claimant so long as the amount of the bond meets the requirements of this section as applied to the aggregate sum of all claims by such claimant The condition of the bond shall be to guarantee payment of any judgment upon the lien in favor of the lien claimant entered in any action to recover the amount claimed in a claim of lien or on the claim asserted in the claim of lien The effect of recording a bond shall be to release the real property described in the notice of claim of lien from the lien and any action brought to recover the amount claimed Unless otherwise prohibited by law if no action is commenced to recover on a lien within the time specified in RCW 6004141 the surety shall be discharged from liability under the bond If an action is timely commenced then on payment of any judgment entered in the action or on payment of the full amount of the bond to the holder of the judgment whichever is less the surety shall be discharged from liability under the bond Nothing in this section shall in any way prohibit or limit the use of other methods devised by the affected parties to secure the obligation underlying a claim of lien and to obtain a release of real property from a claim of lien

6004181 Rank of lien mdash Application of proceeds mdash Attorneys fees

(1) In every case in which different construction liens are claimed against the same property the court shall declare the rank of such lien or class of liens which liens shall be in the following order (a) Liens for the performance of labor (b) Liens for contributions owed to employee benefit plans (c) Liens for furnishing material supplies or equipment (d) Liens for subcontractors including but not limited to their labor and materials and (e) Liens for prime contractors or for professional services (2) The proceeds of the sale of property must be applied to each lien or class of liens in order of its rank and in an action brought to foreclose a lien pro rata among each claimant in each separate priority class A personal judgment may be rendered against any party personally liable for any debt for which the lien is claimed If the lien is established the judgment shall provide

CCBA Nuts amp Bolts on Construction Law - 44 of 49

for the enforcement thereof upon the property liable as in the case of foreclosure of judgment liens The amount realized by such enforcement of the lien shall be credited upon the proper personal judgment The deficiency if any remaining unsatisfied shall stand as a personal judgment and may be collected by execution against any party liable therefor (3) The court may allow the prevailing party in the action whether plaintiff or defendant as part of the costs of the action the moneys paid for recording the claim of lien costs of title report bond costs and attorneys fees and necessary expenses incurred by the attorney in the superior court court of appeals supreme court or arbitration as the court or arbitrator deems reasonable Such costs shall have the priority of the class of lien to which they are related as established by subsection (1) of this section (4) Real property against which a lien under this chapter is enforced may be ordered sold by the court and the proceeds deposited into the registry of the clerk of the court pending further determination respecting distribution of the proceeds of the sale

6004900 Liberal construction mdash 1991 c 281

RCW 1927095 6004230 and 6004011 through 6004226 and 6004261 are to be liberally construed to provide security for all parties intended to be protected by their provisions

RCW 6028011

Retained percentage mdash Public transportation projects mdash Labor and material lien created mdash Bond in lieu of retained funds mdash Termination before completion mdash Chapter deemed exclusive mdash Release of ferry contract payments mdash Projects of farmers home administration mdash General contractorconstruction manager procedure mdash Definitions

(1)(a) Except as provided in (b) of this subsection public improvement contracts must provide and public bodies must reserve a contract retainage not to exceed five percent of the moneys earned by the contractor as a trust fund for the protection and payment of (i) The claims of any person arising under the contract and (ii) the state with respect to taxes increases and penalties imposed pursuant to Titles 50 51 and 82 RCW which may be due from such contractor (b) Public improvement contracts funded in whole or in part by federal transportation funds must rely upon the contract bond as referred to in chapter 3908 RCW for the protection and payment of (i) The claims of any person or persons arising under the contract to the extent such claims are provided for in RCW 3908010 and (ii) the state with respect to taxes increases and penalties incurred on the public improvement project under Titles 50 51 and 82 RCW which may be due The contract bond must remain in full force and effect until at a minimum all claims filed in compliance with chapter 3908 RCW are resolved

CCBA Nuts amp Bolts on Construction Law - 45 of 49

(2) Every person performing labor or furnishing supplies toward the completion of a public improvement contract has a lien upon moneys reserved by a public body under the provisions of a public improvement contract However the notice of the lien of the claimant must be given within forty-five days of completion of the contract work and in the manner provided in RCW 3908030 (3) The contractor at any time may request the contract retainage be reduced to one hundred percent of the value of the work remaining on the project (a) After completion of all contract work other than landscaping the contractor may request that the public body release and pay in full the amounts retained during the performance of the contract and sixty days thereafter the public body must release and pay in full the amounts retained (other than continuing retention of five percent of the moneys earned for landscaping) subject to the provisions of chapters 3912 and 6028 RCW (b) Sixty days after completion of all contract work the public body must release and pay in full the amounts retained during the performance of the contract subject to the provisions of chapters 3912 and 6028 RCW (4) The moneys reserved by a public body under the provisions of a public improvement contract at the option of the contractor must be (a) Retained in a fund by the public body (b) Deposited by the public body in an interest bearing account in a bank mutual savings bank or savings and loan association Interest on moneys reserved by a public body under the provision of a public improvement contract must be paid to the contractor (c) Placed in escrow with a bank or trust company by the public body When the moneys reserved are placed in escrow the public body must issue a check representing the sum of the moneys reserved payable to the bank or trust company and the contractor jointly This check must be converted into bonds and securities chosen by the contractor and approved by the public body and the bonds and securities must be held in escrow Interest on the bonds and securities must be paid to the contractor as the interest accrues (5) The contractor or subcontractor may withhold payment of not more than five percent from the moneys earned by any subcontractor or sub-subcontractor or supplier contracted with by the contractor to provide labor materials or equipment to the public project Whenever the contractor or subcontractor reserves funds earned by a subcontractor or sub-subcontractor or

CCBA Nuts amp Bolts on Construction Law - 46 of 49

supplier the contractor or subcontractor must pay interest to the subcontractor or sub-subcontractor or supplier at a rate equal to that received by the contractor or subcontractor from reserved funds (6) A contractor may submit a bond for all or any portion of the contract retainage in a form acceptable to the public body and from a bonding company meeting standards established by the public body The public body must accept a bond meeting these requirements unless the public body can demonstrate good cause for refusing to accept it This bond and any proceeds therefrom are subject to all claims and liens and in the same manner and priority as set forth for retained percentages in this chapter The public body must release the bonded portion of the retained funds to the contractor within thirty days of accepting the bond from the contractor Whenever a public body accepts a bond in lieu of retained funds from a contractor the contractor must accept like bonds from any subcontractors or suppliers from which the contractor has retained funds The contractor must then release the funds retained from the subcontractor or supplier to the subcontractor or supplier within thirty days of accepting the bond from the subcontractor or supplier (7) If the public body administering a contract after a substantial portion of the work has been completed finds that an unreasonable delay will occur in the completion of the remaining portion of the contract for any reason not the result of a breach thereof it may if the contractor agrees delete from the contract the remaining work and accept as final the improvement at the stage of completion then attained and make payment in proportion to the amount of the work accomplished and in this case any amounts retained and accumulated under this section must be held for a period of sixty days following the completion In the event that the work is terminated before final completion as provided in this section the public body may thereafter enter into a new contract with the same contractor to perform the remaining work or improvement for an amount equal to or less than the cost of the remaining work as was provided for in the original contract without advertisement or bid The provisions of this chapter are exclusive and supersede all provisions and regulations in conflict herewith (8) Whenever the department of transportation has contracted for the construction of two or more ferry vessels sixty days after completion of all contract work on each ferry vessel the department must release and pay in full the amounts retained in connection with the construction of the vessel subject to the provisions of RCW 6028021 and chapter 3912 RCW However the department of transportation may at its discretion condition the release of funds retained in connection with the completed ferry upon the contractor delivering a good and sufficient bond with two or more sureties or with a surety company in the amount of the retained funds to be released to the contractor conditioned that no taxes may be certified or claims filed for work on the ferry after a period of sixty days following completion of the ferry and if taxes are certified or claims filed recovery may be had on the bond by the department of revenue the employment

CCBA Nuts amp Bolts on Construction Law - 47 of 49

security department the department of labor and industries and the material suppliers and laborers filing claims (9) Except as provided in subsection (1) of this section reservation by a public body for any purpose from the moneys earned by a contractor by fulfilling its responsibilities under public improvement contracts is prohibited (10) Contracts on projects funded in whole or in part by farmers home administration and subject to farmers home administration regulations are not subject to subsections (1) through (9) of this section (11) This subsection applies only to a public body that has contracted for the construction of a facility using the general contractorconstruction manager procedure as defined under RCW 3910210 If the work performed by a subcontractor on the project has been completed within the first half of the time provided in the general contractorconstruction manager contract for completing the work the public body may accept the completion of the subcontract The public body must give public notice of this acceptance After a forty-five day period for giving notice of liens and compliance with the retainage release procedures in RCW 6028021 the public body may release that portion of the retained funds associated with the subcontract Claims against the retained funds after the forty-five day period are not valid (12) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise (a) Contract retainage means an amount reserved by a public body from the moneys earned by a person under a public improvement contract (b) Person means a person or persons mechanic subcontractor or materialperson who performs labor or provides materials for a public improvement contract and any other person who supplies the person with provisions or supplies for the carrying on of a public improvement contract (c) Public body means the state or a county city town district board or other public body (d) Public improvement contract means a contract for public improvements or work other than for professional services or a work order as defined in RCW 3910210

CCBA Nuts amp Bolts on Construction Law - 48 of 49

RCW 6432070 Liens or encumbrances mdash Enforcement mdash Satisfaction

(1) Subsequent to recording the declaration as provided in this chapter and while the property remains subject to this chapter no lien shall thereafter arise or be effective against the property During such period liens or encumbrances shall arise or be created only against each apartment and the percentage of undivided interest in the common areas and facilities and appurtenant to such apartment in the same manner and under the same conditions in every respect as liens or encumbrances may arise or be created upon or against any other separate parcel of real property subject to individual ownership PROVIDED That no labor performed or materials furnished with the consent of or at the request of the owner of any apartment or such owners agent contractor or subcontractor shall be the basis for the filing of a lien against any other apartment or any other property of any other apartment owner not expressly consenting to or requesting the same except that such express consent shall be deemed to be given by any apartment owner in the case of emergency repairs Labor performed or materials furnished for the common areas and facilities if authorized by the association of apartment owners the manager or board of directors shall be deemed to be performed or furnished with the express consent of each apartment owner and shall be the basis for the filing of a lien against each of the apartments and shall be subject to the provisions of subsection (2) of this section (2) In the event a lien against two or more apartments becomes effective the apartment owners of the separate apartments may remove their apartment and the percentage of undivided interest in the common areas and facilities appurtenant to such apartment from the lien by payment of the fractional or proportional amounts attributable to each of the apartments affected Such individual payments shall be computed by reference to the percentages appearing on the declaration Subsequent to any such payment discharge or satisfaction the apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto shall thereafter be free and clear of the liens so paid satisfied or discharged Such partial payment satisfaction or discharge shall not prevent the lienor from proceeding to enforce his or her rights against any apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto not so paid satisfied or discharged

CCBA Nuts amp Bolts on Construction Law - 49 of 49

  • Cover Sheet
  • 20141110 - Washington Lien and Bond CLE
  • LampI Lien Summary
  • Claim of Lien
  • Form Notice to Owner
  • Model Disclosure Statement (Notice to Customer)
  • LampI Facts about Construction Liens
    • What you should know about contracts
    • How to protect your investment
    • For more information
      • Notice of Claim Against Bond and Retained Percentage
      • Preclaim Notice Bond amp Retained Percentage
      • Statute Handout
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ltFEFF004200720075006700200069006e0064007300740069006c006c0069006e006700650072006e0065002000740069006c0020006100740020006f007000720065007400740065002000410064006f006200650020005000440046002d0064006f006b0075006d0065006e007400650072002c0020006400650072002000620065006400730074002000650067006e006500720020007300690067002000740069006c002000700072006500700072006500730073002d007500640073006b007200690076006e0069006e00670020006100660020006800f8006a0020006b00760061006c0069007400650074002e0020004400650020006f007000720065007400740065006400650020005000440046002d0064006f006b0075006d0065006e0074006500720020006b0061006e002000e50062006e00650073002000690020004100630072006f00620061007400200065006c006c006500720020004100630072006f006200610074002000520065006100640065007200200035002e00300020006f00670020006e0079006500720065002egt DEU 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 ESP ltFEFF005500740069006c0069006300650020006500730074006100200063006f006e0066006900670075007200610063006900f3006e0020007000610072006100200063007200650061007200200064006f00630075006d0065006e0074006f00730020005000440046002000640065002000410064006f0062006500200061006400650063007500610064006f00730020007000610072006100200069006d0070007200650073006900f3006e0020007000720065002d0065006400690074006f007200690061006c00200064006500200061006c00740061002000630061006c0069006400610064002e002000530065002000700075006500640065006e00200061006200720069007200200064006f00630075006d0065006e0074006f00730020005000440046002000630072006500610064006f007300200063006f006e0020004100630072006f006200610074002c002000410064006f00620065002000520065006100640065007200200035002e003000200079002000760065007200730069006f006e0065007300200070006f00730074006500720069006f007200650073002egt FRA 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 ITA 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 JPN ltFEFF9ad854c18cea306a30d730ea30d730ec30b951fa529b7528002000410064006f0062006500200050004400460020658766f8306e4f5c6210306b4f7f75283057307e305930023053306e8a2d5b9a30674f5c62103055308c305f0020005000440046002030d530a130a430eb306f3001004100630072006f0062006100740020304a30883073002000410064006f00620065002000520065006100640065007200200035002e003000204ee5964d3067958b304f30533068304c3067304d307e305930023053306e8a2d5b9a306b306f30d530a930f330c8306e57cb30818fbc307f304c5fc59808306730593002gt KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020ace0d488c9c80020c2dcd5d80020c778c1c4c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200035002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor prepress-afdrukken van hoge kwaliteit De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 50 en hoger) NOR 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 PTB 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 SUO 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 SVE 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 ENU (Use these settings to create Adobe PDF documents best suited for high-quality prepress printing Created PDF documents can be opened with Acrobat and Adobe Reader 50 and later) gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false ConvertColors ConvertToCMYK DestinationProfileName () DestinationProfileSelector DocumentCMYK Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles false MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector DocumentCMYK PreserveEditing true UntaggedCMYKHandling LeaveUntagged UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ]gtgt setdistillerparamsltlt HWResolution [2400 2400] PageSize [612000 792000]gtgt setpagedevice

          1. To
          2. Date
          3. Re
          4. From
          5. AT THE REQUEST OF
          6. Sender
          7. Address
          8. Telephone
          9. Brief description of professional services materials or equipment provided or to be provided
          10. 1
          11. 2
          12. 3
          13. reg no
          14. deposit $
          15. expiration date
          16. claims up to $
          17. Reset

11122014

11

Immix Law Group Washington Lien and Bond Claims

Public Contracts Retainage ClaimsRetainage Claims (RCW 6028011)bull ldquolsquoContract retainagersquo means an amount reserved by a public body from

the moneys earned by a person under a public improvement contractrdquo bull Usually five percent (5)bull Prime contractor can submit a bond in lieu of retainagebull All persons supplying labor materials equipment services entitled to

claimbull Exception Temporary labor supplier not entitled to claim against retention

because not ldquosubcontractorrdquo Better Financial Solutions Inc v Caicos Corp 117 Wn App 899 (2003)

Immix Law Group Washington Lien and Bond Claims

Public Contracts Retainage Claims

Preclaim Notice of Retainage Claim (RCW 6028011)

bull Sub‐tier subcontractors and suppliers must give preclaimnotice to the public agency within 60 days of furnishing labor material supplies or equipment to the project

bull Relates back 60 days from the date of the noticebull Must be delivered to contracting agency

Immix Law Group Washington Lien and Bond Claims

Public Contracts Retainage Claims

Notice of Retainage Claim (RCW 6028011)

bull All claimants must provide a Notice of Claim within 45 days after ldquocompletion of the contract workrdquo (essentially ldquoproject completionrdquo)

bull The Notice must be delivered to contracting agencybull Hand delivered or certified mail with return receipt

bull Must file the foreclosure suit within 4 months after providing the Notice of Claim

CCBA Nuts amp Bolts on Construction Law - 12 of 49

11122014

12

Immix Law Group Washington Lien and Bond Claims

Public Contracts Bond Claims

Bond Claims ndash Washingtonrsquos Little Miller Act (RCW 3908010)

On Washington Public Works projects in excess of $25000 general contractors must post a payment bond usually in the amount of the contract price

Immix Law Group Washington Lien and Bond Claims

Public Contracts Bond Claims

Preclaim Notice of Bond Claim (RCW 3908010)

bull Lower‐tier subcontractors and material suppliers must give preclaim notice to the prime contractor within 10 days after starting work

Immix Law Group Washington Lien and Bond Claims

Public Contracts Bond Claims

Notice of Bond Claim (RCW 3908010)

bull All claimants must provide a Notice of Claim within 30 days after ldquoacceptance of the workrdquo (different than retention claim)bull ldquoAcceptancerdquo is an affirmative act by the public works owner

bull The Notice must be delivered to public works ownerbull Hand delivered or certified mail with return receipt

bull No deadline provided in the statute ndash foreclose by general statute of limitationsbull 3 years for oral contracts 6 years for written contracts

CCBA Nuts amp Bolts on Construction Law - 13 of 49

11122014

13

Immix Law Group Washington Lien and Bond Claims

Public Contracts Bond amp Retainage Claims

bull Practice Pointer Coordinate the filing of the retention and bond Preclaim Notice and Notice of Claim to ensure that the contractorrsquos claims are protected

bull File the Bond amp Retainage Preclaim Notice within 10 days after starting work

bull File the Bond amp Retainage Notice of Claim within 30 days from project completion

Immix Law Group Washington Lien and Bond Claims

Public Contracts Prompt Pay ActWashingtonrsquos Prompt Pay Act

bull Prime contractors are entitled to payment within 30 days after the public agencyrsquos receipt of the invoice

bull If the public agency intends to withhold payment (all or in part) the agency must notify the contractor in writing within 8 days of receipt stating

bull Why payment (all or part) is being withheld

bull Actions required by contractor in order to receive payment

Immix Law Group Washington Lien and Bond Claims

Public Contracts Prompt Pay ActWashingtonrsquos Prompt Pay Act (contrsquod)

bull Public agency can withhold up to 150 of the disputed amount

bull Failure to comply entitles the contractor to 1 interest per month until paid

bull Subcontractors must be paid within 10 days of prime contractorrsquos receipt of payment

CCBA Nuts amp Bolts on Construction Law - 14 of 49

11122014

14

Immix Law Group

Questions

CCBA Nuts amp Bolts on Construction Law - 15 of 49

SUMMARY OF THE REQUIREMENTS TO BE MET BY A LIEN CLAIMANT ON A WASHINGTON PRIVATE CONSTRUCTION PROJECT

NOTICE TO CUSTOMER

FROM

Prime Contractor working on four or fewer residential units when the contract price is $1000 or more or on a commercial building when the contract price is $1000 or more but less than $60000

TO Owner

WHEN Before starting construction NOTICE OF FURNISHING PROFESSIONAL SERVICES

FROM

Provider of professional services

TO County Recorder

WHEN As soon as professional services are commenced PRECLAIM NOTICE (for all projects except repair and remodeling of owner-occupied single-family residence)

FROM

Provider of professional services materials or equipment except that the following need not provide the notice (1) a provider that contracts directly with the owner or the owners actual agent or (2) a first tier subcontractor

TO Owner and usually also prime contractor

WHEN New single family residence within ten days of first supplying professional services materials or equipment All other projects within 60 days of first supplying professional services materials or equipment

PRECLAIM NOTICE (for repair and remodeling of owner-occupied single-family residence)

FROM

Provider of professional services materials or equipment to anyone other than the owner

TO Owner and usually also prime contractor

WHEN Immediately after agreeing to furnish professional services materials or equipment

FROM

Potential lien claimant to whom payment is five or more days overdue

NOTICE TO REAL PROPERTY LENDER (only applicable where there is not a payment bond of at least 50 of the amount of construction financing)

TO Construction lender owner and prime contractor

WHEN Within 35 days of date payment is due

CLAIM OF LIEN

FROM

Unpaid claimant

TO County Recorder

WHEN Not later than 90 days after the last furnishing of labor professional services materials or equipment or the last date on which employee benefit contributions were due

COPY OF CLAIM OF LIEN

FROM

Unpaid claimant

TO Owner

WHEN Within 14 days of date claim of lien is filed for recording

DEADLINE FOR FILING A LAWSUIT Within eight months of recording claim of lien

F625-055-000 const lien summary 2-96 This summary is intended to generally set forth the requirements applicable to most lien claimants The remainder of the chapter should be consulted for a more detailed discussion

CCBA Nuts amp Bolts on Construction Law - 16 of 49

CLAIM OF LIEN SIGNED BY ATTORNEY

Return Address __________________________ __________________________ __________________________

Document Title Claim of Lien

Reference Number _____________________________

Grantor _____________________________

Grantee _____________________________

Legal Description

Assessors Property Tax Parcel No

CLAIM OF LIEN

________________________ claimant vs _____________________________ name of persons indebted to claimant

Notice is hereby given that the person named below claims a lien pursuant to Chapter 6004 RCW In

support of this lien the following information is submitted

1 NAME OF LIEN CLAIMANT ______________________________________

TELEPHONE NUMBER ______________________________________

ADDRESS ______________________________________

______________________________________

2 DATE ON WHICH THE CLAIMANT BEGAN TO PERFORM LABOR PROVIDE PROFESSIONAL SERVICES SUPPLY MATERIAL OR EQUIPMENT OR THE DATE ON WHICH EMPLOYEE BENEFIT CONTRIBUTIONS BECOMES DUE _________

3 NAME OF PERSON INDEBTED TO THE CLAIMANT _________________

4 DESCRIPTIONOF THE PROPERTY AGAINST WHICH A LIEN IS CLAIMED All fee leasehold and other interests of _______________ and any other owner person or entity in the property commonly known as ___________________________located at _______________________ _________________________ _________________County Washington _______ the legal description of which is believed to be as follows

[Legal Description - andor - The legal description of the underlying real property is described on the attached Exhibit A]

CCBA Nuts amp Bolts on Construction Law - 17 of 49

5 NAME OF THE OWNER OR REPUTED OWNER (if not known state ldquounknownrdquo) ____________________________________________________________________________________________

6 THE LAST DATE ON WHICH LABOR WAS PERFORMED PROFESSIONAL SERVICES WERE FURNISHED CONTRIBUTIONS TO AN EMPLOYEE BENEFIT PLAN WERE DUE OR MATERIAL OR EQUIPMENT WAS FURNISHED _____________________________________________________________

7 PRINCIPAL AMOUNT FOR WHICH THE LIEN IS CLAIMED IS $_______

8 IF THE CLAIMANT IS THE ASSIGNEE OF THIS CLAIM SO STATE HERE ___

___________________ Claimant ___________________________

___________________________ (__)____-______

By ________s________________ Print Name ___________________ Its Attorney

STATE OF WASHINGTON )

SS COUNTYOF ____________ )

________________ being sworn says I am the attorney of the claimant above named I have read or heard the foregoing claim read and know the contents thereof and believe the same to be true and correct and that the claim of lien is not frivolous and is made with reasonable cause and is not clearly excessive under penalty of perjury

__________________________ Print Name _______________

SUBSCRIBED and SWORN to before me this ___day of ___________________ 201_

STATE OF WASHINGTON )

SS COUNTYOF ____________ )

[Seal or Stamp]

__________________________ Print Name _______________ Notary Public in and for the State of Washington residing at________________________________ My Commission Expires __________________

CCBA Nuts amp Bolts on Construction Law - 18 of 49

I certify that I know or have satisfactory evidence that___________________ is the person who appeared before me and said person acknowledged that [heshe] signed this instrument on oath stated that [heshe] was authorized to execute this instrument and acknowledged it as the attorney of___________________ to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument

CCBA Nuts amp Bolts on Construction Law - 19 of 49

F625-054-000 construction lien notice 11-05 IMPORTANT INFORMATION ON PAGE 2

NOTICE TO OWNER IMPORTANT READ BOTH SIDES OF THIS NOTICE CAREFULLY

PROTECT YOURSELF FROM PAYING TWICE

To

Date

Re

From (Description of property street address or general location)

AT THE REQUEST OF Name of person ordering their professional services materials or equipment

THIS IS NOT A LIEN This notice is sent to you to tell you who is providing professional services materials or equipment for the improvement of your property and to advise you of the rights of these persons and your responsibilities Also take notice that laborers on your project may claim a lien without sending you a notice

OWNEROCCUPIER OF EXISTING RESIDENTIAL PROPERTY Under Washington law those who furnish labor professional services materials or equipment for the repair remodel or alteration of you owner-occupied principal residence and who are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien The law limits the amount that a lien claimant can claim against your property Claims may only be made against that portion of the contract price you have not yet paid to your prime contractor as of the time this notice was given to you or three days after this notice was mailed to you Review page 2 of this notice for more information and ways to avoid lien claims

COMMERCIAL ANDOR NEW RESIDENTIAL PROPERTY We have or will be providing professional services materials or equipment for the improvement of your commercial or new residential project In the event you or your contractor fail to pay us we may file a lien against your property A lien may be claimed for all professional services materials or equipment furnished after a date that is sixty days before this notice was given to you or mailed to you unless the improvement to you property is the construction of a new single-family residence then ten days before this notice was given to you or mailed to you

Sender

Address

Telephone

Brief description of professional services materials or equipment provided or to be provided

CCBA Nuts amp Bolts on Construction Law - 20 of 49

F625-054-000 construction lien notice page 2 11-05

Important Information for your Protection

This notice is sent to inform you that we have or will provide professional services materials or equipment for the repair remodel or alteration of you property We expect to be paid by the person who ordered our services but if we are not paid we have the right to enforce our claim by filing a construction lien against your property

LEARN more about the lien laws and the meaning of this notice by

discussing them with our contractor suppliers Department of Labor and Industries the firm sending you this notice your lender or your attorney

COMMON METHODS TO AVOID CONSTRUCTION LIENS

There are several methods available to protect your property from construction liens The following are two of the more commonly used methods

DUAL PAYCHECKS (Joint Checks) When paying your

contractor for services or materials you may make checks payable jointly to the contractor and the firms furnishing you this notice

LIEN RELEASES You may require your contractor to provide

lien releases signed by all the suppliers and subcontractors from whom you have received this notice If they cannot obtain lien releases because you have not paid them you may use the dual payee check method to protect yourself

You should take appropriate steps to protect your property from

liens

Your prime contractor and your construction lender are required by law to give you written information about lien claims If you have not received it ask them for it

CCBA Nuts amp Bolts on Construction Law - 21 of 49

F625-030-000 model disclosure statement notice to customer 09-2007

Department of Labor and Industries Construction Compliance

MODEL DISCLOSURE STATEMENTNOTICE TO CUSTOMER

This contractor is registered with the state of Washington registration no____________________ and has posted with the state a bond or deposit of ______________________ for the purpose of satisfying claims against the contractor for breach of contract including negligent or improper work in the conduct of the contractorrsquos business The expiration date of this contractorrsquos registration is ______________________

THIS BOND OR DEPOSIT MIGHT NOT BE SUFFICIENT TO COVER A CLAIM THAT MIGHT ARISE FROM THE WORK DONE UNDER YOUR CONTRACT This bond or deposit is not for your exclusive use because it covers all work performed by this contractor The bond or deposit is intended to pay valid claims up to ___________________________ that you and other customers suppliers subcontractors or taxing authorities may have FOR GREATER PROTECTION YOU MAY WITHHOLD A PERCENTAGE OF YOUR CONTRACT You may withhold a contractually defined percentage of your construction contract as retainage for a stated period of time to provide protection to you and help insure that your project will be completed as required by your contract

YOUR PROPERTY MAY BE LIENED If a supplier of materials used in your construction project or an employee or subcontractor of your contractor or subcontractors is not paid your property may be liened to force payment and you could pay twice for the same work FOR ADDITIONAL PROTECTION YOU MAY REQUEST THE CONTRACTOR TO PROVIDE YOU WITH ORIGINAL ldquoLIEN RELEASErdquo DOCUMENTS FROM EACH SUPPLIER OR SUBCONTRACTOR AT YOUR PROJECT The contractor is required to provide you with further information about lien release document if you request it General information is also available from the state Department of Labor and Industries I have received a copy of this disclosure statement Dated this _______ day of _______________ of the year __________

_____________________________________________________ Signature of Customer The contractor must retain a signed copy of the disclosure statement in his or her files for a minimum of three years and produce a signed or electronic signature copy of the disclosure statement to the department upon request

CCBA Nuts amp Bolts on Construction Law - 22 of 49

Facts About Construction LiensWhat you should know about contractsIf your contractor fails to pay subcontractors suppliers or laborers or neglects to make other legally required payments those who are owed money can look to your property for payment even if you have paid your contractor in full This is true if you have hired a contractor to build a new home or are buying a newly built home

It is also true when you remodel or improve your property although the amount of your liability may be limited to the amount you owe the prime contractor at the time a lien is filed

Under Washington laws those who work on your property or provide materials and are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien

People who supply materials or labor ordered by your contractor are permitted by law to file a lien only if they do so within 90 days of cessation of performance or delivery of materials The time frame is spelled out in RCW 6004091

If you enter into a contract to buy a newly built home you may not receive a notice of a lien based on a claim by a contractor or material handler Be aware that a lien may be claimed even though you have not received a notice

Before making final payment on the project request a completed lien release form from each contractor and material supplier A sample of this release of lien form is available from the Department of Labor amp Industries Contractor Registration Section

You have final responsibility for seeing that all bills are paid even if you have paid your contractor in full

If you receive a notice to enforce a lien take the notice seriously Let your contractor know you have received the notice Find out what arrangements are being made to pay the sender of the notice

When in doubt or if you need more details consult your attorney When and how to pay your contractor is a decision that requires serious consideration

Reminder Washington laws require contractors to give you a disclosure statement if your contract exceeds $1000 [RCW 1827114(A) or (B)]

CCBA Nuts amp Bolts on Construction Law - 23 of 49

PUBLICATION F625-017-000 [01-2008]

Other formats for persons with disabilities are available on request Call 1-800-647-0982 TDD users call 360-902-5797 LampI is an equal opportunity employer

For more information

How to protect your investment

If you are dealing with a lending institution ask your loan officer what precautions the lending institution takes to verify that subcontractors and material suppliers are being paid when mortgage money is paid to your contractor

Request lender supervision when dealing with a lending institution that provides interim or construction financing

Ask the prime contractor to disclose all potential lien claimants as a condition of payment A lien claimant must mail (by certified or registered mail or by personal service) a copy of the claim of lien to the owner within 14 days of the time the lien is recorded [RCW 6004091(2)] While an action is ongoing an owner may withhold from this prime contractor the amount of money for which a claim is recorded by a subcontractor supplier or laborer [RCW 6004151]

It is recommended that your check be made payable jointly naming the contractor and the subcontractor or supplier as payees

Upon payment and acceptance of the amount due the owner has the right to an executed release of all lien rights by lien claimants [RCW 6004071]

Consider using an escrow agent to protect your interests Find out whether your escrow agent will protect you against liens when disbursing payments If you are interested in this alternative consult your attorney

Request that your contractor post a performance bond in the amount of the project cost That will give you recourse in the event the contractor fails to complete the building agreement

8 On the Web Find more information about hiring a contractor at

wwwLniwagovTradesLicensingContractorsHireCon

Contractor Registration Hotline1-800-647-0982

You may also call your local LampI office See listings under ldquoWashington State ofrdquo in the government section or the white pages of the telephone book

Please note This notice was prepared by the Department of Labor amp Industries Specialty Compliance Services Division for reproduction by lending institutions and contractors for distribution to their clients It explains the basics of the construction lien law to help you protect yourself This information is not a reflection upon the abilities or credit of your contractor

CCBA Nuts amp Bolts on Construction Law - 24 of 49

NOTICE OF CLAIM AGAINST

BOND AND RETAINED PERCENTAGE

RCW 3908030 RCW 6028010

VIA CERTIFIED MAIL ndash RETURN RECEIPT REQUESTED

TO [Public Owner] [Public Ownerrsquos Address]

Project [Project Name amp Address] NOTICE IS HEREBY GIVEN that the undersigned [Claimant] [Claimantrsquos Address] has a claim in the amount of ----- and 00100 Dollars ($XX) (not including attorneysrsquo fees or costs) together with interest at twelve percent (12) against [Public Owner] (ldquoOwnerrdquo) pursuant to RCW 6028 and the payment bond taken from [Prime Contractor] (ldquoContractorrdquo) [Prime Contractorrsquos Address] as principal and [Surety Company] (ldquoSuretyrdquo) [Suretyrsquos Address] as surety Bond No ________ pursuant to RCW 3908 for [describe services material supplies labor furnished] provided on the Project This Notice of Claim Against Bond and Retained Percentage supersedes and replaces previous Notices DATED This ___day of _________ 201_ [Claimant] By ______________________________________ Its ______________________________________ [Claimantrsquos Address]

_________________________________________

[Contractors Registration No if applicable]

(Copies furnished to General Contractor and General Contractorrsquos Bonding Company)

CCBA Nuts amp Bolts on Construction Law - 25 of 49

PRECLAIM NOTICE TO CONTRACTOR BY SUBCONTRACTORS MATERIALMEN OR SUPPLIERS FOR

CLAIM AGAINST BOND AND RETAINED PERCENTAGE

VIA CERTIFIED OR REGISTERED MAIL- RETURN RECEIPT REQUESTED

TO [Name of General Contractor] [Address]

YOU ARE HEREBY NOTIFIED that the undersigned ____________at the request of_________________ commenced to deliver or furnish materials supplies andor equipment for the use in the construction alteration andor repair of that certain project known as____________________ [project name] which is located at ____________________________ [address or description] If the undersigned is not paid for these materials supplies andor equipment it will file a claim against you and your bond andor retainage pursuant to RCW 3908 andor 6028 et seq for payment of any sum that is due and owing to the undersigned

DATED This __ day of _____________ 201_

[Name of Claimant]

By ____________________________________

Its ____________________________________

Address ______________________________

__________________________________________

__________________________________________

[Contractors Registration No if applicable]

(Mail via certified mail return receipt requested or hand deliver and obtain receipt)

CCBA Nuts amp Bolts on Construction Law - 26 of 49

Washington Liens amp Bonds ndash Pertinent Statutes

RCW 1827040 Bond or other security required mdash Actions against mdash Suspension of registration upon impairment (1) Each applicant shall file with the department a surety bond issued by a surety insurer who meets the requirements of chapter 4828 RCW in the sum of twelve thousand dollars if the applicant is a general contractor and six thousand dollars if the applicant is a specialty contractor If no valid bond is already on file with the department at the time the application is filed a bond must accompany the registration application The bond shall have the state of Washington named as obligee with good and sufficient surety in a form to be approved by the department The bond shall be continuous and may be canceled by the surety upon the surety giving written notice to the director A cancellation or revocation of the bond or withdrawal of the surety from the bond automatically suspends the registration issued to the contractor until a new bond or reinstatement notice has been filed and approved as provided in this section The bond shall be conditioned that the applicant will pay all persons performing labor including employee benefits for the contractor will pay all taxes and contributions due to the state of Washington and will pay all persons furnishing material or renting or supplying equipment to the contractor and will pay all amounts that may be adjudged against the contractor by reason of breach of contract including improper work in the conduct of the contracting business A change in the name of a business or a change in the type of business entity shall not impair a bond for the purposes of this section so long as one of the original applicants for such bond maintains partial ownership in the business covered by the bond (2) At the time of initial registration or renewal the contractor shall provide a bond or other security deposit as required by this chapter and comply with all of the other provisions of this chapter before the department shall issue or renew the contractors certificate of registration Any contractor registered as of July 1 2001 who maintains that registration in accordance with this chapter is in compliance with this chapter until the next renewal of the contractors certificate of registration (3) Any person firm or corporation having a claim against the contractor for any of the items referred to in this section may bring suit against the contractor and the bond or deposit in the superior court of the county in which the work was done or of any county in which jurisdiction of the contractor may be had The surety issuing the bond shall be named as a party to any suit upon the bond Action upon the bond or deposit brought by a residential homeowner for breach of contract by a party to the construction contract shall be commenced by filing the summons and complaint with the clerk of the appropriate superior court within two years from the date the claimed contract work was substantially completed or abandoned whichever occurred first Action upon the bond or deposit brought by any other authorized party shall be commenced by filing the summons and complaint with the clerk of the appropriate superior court within one year from the date the claimed labor was performed and benefits accrued taxes and contributions owing the state of Washington became due materials and equipment were furnished or the claimed contract work was substantially completed or abandoned whichever occurred first Service of process in an action filed under this chapter against the contractor and the contractors bond or the deposit shall be exclusively by service upon the department Three

CCBA Nuts amp Bolts on Construction Law - 27 of 49

copies of the summons and complaint and a fee adopted by rule of not less than fifty dollars to cover the costs shall be served by registered or certified mail or other delivery service requiring notice of receipt upon the department at the time suit is started and the department shall maintain a record available for public inspection of all suits so commenced Service is not complete until the department receives the fee and three copies of the summons and complaint The service shall constitute service and confer personal jurisdiction on the contractor and the surety for suit on claimants claim against the contractor and the bond or deposit and the department shall transmit the summons and complaint or a copy thereof to the contractor at the address listed in the contractors application and to the surety within two days after it shall have been received (4) The surety upon the bond shall not be liable in an aggregate amount in excess of the amount named in the bond nor for any monetary penalty assessed pursuant to this chapter for an infraction The liability of the surety shall not cumulate where the bond has been renewed continued reinstated reissued or otherwise extended The surety upon the bond may upon notice to the department and the parties tender to the clerk of the court having jurisdiction of the action an amount equal to the claims thereunder or the amount of the bond less the amount of judgments if any previously satisfied therefrom and to the extent of such tender the surety upon the bond shall be exonerated but if the actions commenced and pending and provided to the department as required in subsection (3) of this section at any one time exceed the amount of the bond then unimpaired claims shall be satisfied from the bond in the following order (a) Employee labor and claims of laborers including employee benefits (b) Claims for breach of contract by a party to the construction contract (c) Registered or licensed subcontractors material and equipment (d) Taxes and contributions due the state of Washington (e) Any court costs interest and attorneys fees plaintiff may be entitled to recover The surety is not liable for any amount in excess of the penal limit of its bond A payment made by the surety in good faith exonerates the bond to the extent of any payment made by the surety (5) The total amount paid from a bond or deposit required of a general contractor by this section to claimants other than residential homeowners must not exceed one-half of the bond amount The total amount paid from a bond or deposit required of a specialty contractor by this section to claimants other than residential homeowners must not exceed one-half of the bond amount or four thousand dollars whichever is greater (6) The prevailing party in an action filed under this section against the contractor and contractors bond or deposit for breach of contract by a party to the construction contract involving a residential homeowner is entitled to costs interest and reasonable attorneys fees The surety upon the bond or deposit is not liable in an aggregate amount in excess of the amount

CCBA Nuts amp Bolts on Construction Law - 28 of 49

named in the bond or deposit nor for any monetary penalty assessed pursuant to this chapter for an infraction (7) If a final judgment impairs the liability of the surety upon the bond or deposit so furnished that there is not in effect a bond or deposit in the full amount prescribed in this section the registration of the contractor is automatically suspended until the bond or deposit liability in the required amount unimpaired by unsatisfied judgment claims is furnished (8) In lieu of the surety bond required by this section the contractor may file with the department an assigned savings account upon forms provided by the department (9) Any person having filed and served a summons and complaint as required by this section having an unsatisfied final judgment against the registrant for any items referred to in this section may execute upon the security held by the department by serving a certified copy of the unsatisfied final judgment by registered or certified mail upon the department within one year of the date of entry of such judgment Upon the receipt of service of such certified copy the department shall pay or order paid from the deposit through the registry of the superior court which rendered judgment towards the amount of the unsatisfied judgment The priority of payment by the department shall be the order of receipt by the department but the department shall have no liability for payment in excess of the amount of the deposit (10) Within ten days after resolution of the case a certified copy of the final judgment and order or any settlement documents where a case is not disposed of by a court trial a certified copy of the dispositive settlement documents must be provided to the department by the prevailing party Failure to provide a copy of the final judgment and order or the dispositive settlement documents to the department within ten days of entry of such an order constitutes a violation of this chapter and a penalty adopted by rule of not less than two hundred fifty dollars may be assessed against the prevailing party (11) The director may require an applicant applying to renew or reinstate a registration or applying for a new registration to file a bond of up to three times the normally required amount if the director determines that an applicant or a previous registration of a corporate officer owner or partner of a current applicant has had in the past five years a total of three final judgments in actions under this chapter involving a residential single-family dwelling on two or more different structures (12) The director may adopt rules necessary for the proper administration of the security RCW 1827114 Disclosure statement required mdash Prerequisite to lien claim

(1) Any contractor agreeing to perform any contracting project (a) For the repair alteration or construction of four or fewer residential units or accessory structures on such residential property when the bid or contract price totals one thousand dollars or more or (b) for the repair alteration or construction of a commercial building when the bid or contract price totals one thousand dollars or more but less than sixty thousand dollars must provide the customer with

CCBA Nuts amp Bolts on Construction Law - 29 of 49

the following disclosure statement in substantially the following form using lower case and upper case twelve-point and bold type where appropriate prior to starting work on the project NOTICE TO CUSTOMER This contractor is registered with the state of Washington registration no and has posted with the state a bond or deposit of for the purpose of satisfying claims against the contractor for breach of contract including negligent or improper work in the conduct of the contractors business The expiration date of this contractors registration is THIS BOND OR DEPOSIT MIGHT NOT BE SUFFICIENT TO COVER A CLAIM THAT MIGHT ARISE FROM THE WORK DONE UNDER YOUR CONTRACT This bond or deposit is not for your exclusive use because it covers all work performed by this contractor The bond or deposit is intended to pay valid claims up to that you and other customers suppliers subcontractors or taxing authorities may have FOR GREATER PROTECTION YOU MAY WITHHOLD A PERCENTAGE OF YOUR CONTRACT You may withhold a contractually defined percentage of your construction contract as retainage for a stated period of time to provide protection to you and help insure that your project will be completed as required by your contract YOUR PROPERTY MAY BE LIENED If a supplier of materials used in your construction project or an employee or subcontractor of your contractor or subcontractors is not paid your property may be liened to force payment and you could pay twice for the same work FOR ADDITIONAL PROTECTION YOU MAY REQUEST THE CONTRACTOR TO PROVIDE YOU WITH ORIGINAL LIEN RELEASE DOCUMENTS FROM EACH SUPPLIER OR SUBCONTRACTOR ON YOUR PROJECT The contractor is required to provide you with further information about lien release documents if you request it General information is also available from the state Department of Labor and Industries I have received a copy of this disclosure statement

CCBA Nuts amp Bolts on Construction Law - 30 of 49

(Signature of customer) (2) The contractor must retain a signed copy of the disclosure statement in his or her files for a minimum of three years and produce a signed or electronic signature copy of the disclosure statement to the department upon request (3) A contractor subject to this section shall notify any consumer to whom notice is required under subsection (1) of this section if the contractors registration has expired or is revoked or suspended by the department prior to completion or other termination of the contract with the consumer (4) No contractor subject to this section may bring or maintain any lien claim under chapter 6004 RCW based on any contract to which this section applies without alleging and proving that the contractor has provided the customer with a copy of the disclosure statement as required in subsection (1) of this section (5) This section does not apply to contracts authorized under chapter 3904 RCW or to contractors contracting with other contractors (6) Failure to comply with this section shall constitute an infraction under the provisions of this chapter (7) The department shall produce model disclosure statements and public service announcements detailing the information needed to assist contractors and contractors customers to comply under this section As necessary the department shall periodically update these education materials RCW 3908010 Bond required mdash Conditions mdash Retention of contract amount in lieu of bond (1)(a) Whenever any board council commission trustees or body acting for the state or any county or municipality or any public body must contract with any person or corporation to do any work for the state county or municipality or other public body city town or district such board council commission trustees or body must require the person or persons with whom such contract is made to make execute and deliver to such board council commission trustees or body a good and sufficient bond with a surety company as surety conditioned that such person or persons must (i) Faithfully perform all the provisions of such contract (ii) Pay all laborers mechanics and subcontractors and material suppliers and all persons who supply such person or persons or subcontractors with provisions and supplies for the carrying on of such work and

CCBA Nuts amp Bolts on Construction Law - 31 of 49

(iii) Pay the taxes increases and penalties incurred on the project under Titles 50 51 and 82 RCW on (A) Projects referred to in RCW 6028011(1)(b) andor (B) projects for which the bond is conditioned on the payment of such taxes increases and penalties (b) The bond in cases of cities and towns must be filed with the clerk or comptroller thereof and any person or persons performing such services or furnishing material to any subcontractor has the same right under the provisions of such bond as if such work services or material was furnished to the original contractor (2) The provisions of RCW 3908010 through 3908030 do not apply to any money loaned or advanced to any such contractor subcontractor or other person in the performance of any such work (3) On contracts of thirty-five thousand dollars or less at the option of the contractor the respective public entity may in lieu of the bond retain fifty percent of the contract amount for a period of thirty days after date of final acceptance or until receipt of all necessary releases from the department of revenue the employment security department and the department of labor and industries and settlement of any liens filed under chapter 6028 RCW whichever is later (4) For contracts of one hundred thousand dollars or less the public entity may accept a full payment and performance bond from an individual surety or sureties (5) The surety must agree to be bound by the laws of the state of Washington and subjected to the jurisdiction of the state of Washington RCW 6004011 Definitions

Unless the context requires otherwise the definitions in this section apply throughout this chapter (1) Construction agent means any registered or licensed contractor registered or licensed subcontractor architect engineer or other person having charge of any improvement to real property who shall be deemed the agent of the owner for the limited purpose of establishing the lien created by this chapter (2) Contract price means the amount agreed upon by the contracting parties or if no amount is agreed upon then the customary and reasonable charge therefor (3) Draws means periodic disbursements of interim or construction financing by a lender (4) Furnishing labor professional services materials or equipment means the performance of any labor or professional services the contribution owed to any employee benefit plan on account of any labor the provision of any supplies or materials and the renting leasing or

CCBA Nuts amp Bolts on Construction Law - 32 of 49

otherwise supplying of equipment for the improvement of real property (5) Improvement means (a) Constructing altering repairing remodeling demolishing clearing grading or filling in of to or upon any real property or street or road in front of or adjoining the same (b) planting of trees vines shrubs plants hedges or lawns or providing other landscaping materials on any real property and (c) providing professional services upon real property or in preparation for or in conjunction with the intended activities in (a) or (b) of this subsection (6) Interim or construction financing means that portion of money secured by a mortgage deed of trust or other encumbrance to finance improvement of or to real property but does not include (a) Funds to acquire real property (b) Funds to pay interest insurance premiums lease deposits taxes assessments or prior encumbrances (c) Funds to pay loan commitment title legal closing recording or appraisal fees (d) Funds to pay other customary fees which pursuant to agreement with the owner or borrower are to be paid by the lender from time to time (e) Funds to acquire personal property for which the potential lien claimant may not claim a lien pursuant to this chapter (7) Labor means exertion of the powers of body or mind performed at the site for compensation Labor includes amounts due and owed to any employee benefit plan on account of such labor performed (8) Mortgagee means a person who has a valid mortgage of record or deed of trust of record securing a loan (9) Owner-occupied means a single-family residence occupied by the owner as his or her principal residence (10) Payment bond means a surety bond issued by a surety licensed to issue surety bonds in the state of Washington that confers upon potential claimants the rights of third party beneficiaries (11) Potential lien claimant means any person or entity entitled to assert lien rights under this chapter who has otherwise complied with the provisions of this chapter and is registered or licensed if required to be licensed or registered by the provisions of the laws of the state of Washington (12) Prime contractor includes all contractors general contractors and specialty

CCBA Nuts amp Bolts on Construction Law - 33 of 49

contractors as defined by chapter 1827 or 1928 RCW or who are otherwise required to be registered or licensed by law who contract directly with a property owner or their common law agent to assume primary responsibility for the creation of an improvement to real property and includes property owners or their common law agents who are contractors general contractors or specialty contractors as defined in chapter 1827 or 1928 RCW or who are otherwise required to be registered or licensed by law who offer to sell their property without occupying or using the structures projects developments or improvements for more than one year (13) Professional services means surveying establishing or marking the boundaries of preparing maps plans or specifications for or inspecting testing or otherwise performing any other architectural or engineering services for the improvement of real property (14) Real property lender means a bank savings bank savings and loan association credit union mortgage company or other corporation association partnership trust or individual that makes loans secured by real property located in the state of Washington (15) Site means the real property which is or is to be improved (16) Subcontractor means a general contractor or specialty contractor as defined by chapter 1827 or 1928 RCW or who is otherwise required to be registered or licensed by law who contracts for the improvement of real property with someone other than the owner of the property or their common law agent

6004021 Lien authorized

Except as provided in RCW 6004031 any person furnishing labor professional services materials or equipment for the improvement of real property shall have a lien upon the improvement for the contract price of labor professional services materials or equipment furnished at the instance of the owner or the agent or construction agent of the owner

6004031 Notices mdash Exceptions

(1) Except as otherwise provided in this section every person furnishing professional services materials or equipment for the improvement of real property shall give the owner or reputed owner notice in writing of the right to claim a lien If the prime contractor is in compliance with the requirements of RCW 1927095 6004230 and 6004261 this notice shall also be given to the prime contractor as described in this subsection unless the potential lien claimant has contracted directly with the prime contractor The notice may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after the date which is sixty days before (a) Mailing the notice by certified or registered mail to the owner or reputed owner or

CCBA Nuts amp Bolts on Construction Law - 34 of 49

(b) Delivering or serving the notice personally upon the owner or reputed owner and obtaining evidence of delivery in the form of a receipt or other acknowledgment signed by the owner or reputed owner or an affidavit of service In the case of new construction of a single-family residence the notice of a right to claim a lien may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after a date which is ten days before the notice is given as described in this subsection (2) Notices of a right to claim a lien shall not be required of (a) Persons who contract directly with the owner or the owners common law agent (b) Laborers whose claim of lien is based solely on performing labor or (c) Subcontractors who contract for the improvement of real property directly with the prime contractor except as provided in subsection (3)(b) of this section (3) Persons who furnish professional services materials or equipment in connection with the repair alteration or remodel of an existing owner-occupied single-family residence or appurtenant garage (a) Who contract directly with the owner-occupier or their common law agent shall not be required to send a written notice of the right to claim a lien and shall have a lien for the full amount due under their contract as provided in RCW 6004021 or (b) Who do not contract directly with the owner-occupier or their common law agent shall give notice of the right to claim a lien to the owner-occupier Liens of persons furnishing professional services materials or equipment who do not contract directly with the owner-occupier or their common law agent may only be satisfied from amounts not yet paid to the prime contractor by the owner at the time the notice described in this section is received regardless of whether amounts not yet paid to the prime contractor are due For the purposes of this subsection received means actual receipt of notice by personal service or registered or certified mail or three days after mailing by registered or certified mail excluding Saturdays Sundays or legal holidays (4) The notice of right to claim a lien described in subsection (1) of this section shall include but not be limited to the following information and shall substantially be in the following form using lower-case and upper-case ten-point type where appropriate

CCBA Nuts amp Bolts on Construction Law - 35 of 49

NOTICE TO OWNER

IMPORTANT READ BOTH SIDES OF THIS NOTICE CAREFULLY

PROTECT YOURSELF FROM PAYING TWICE

To Date

Re (description of property Street address or general location) From AT THE REQUEST OF (Name of person ordering the professional services materials or equipment) THIS IS NOT A LIEN This notice is sent to you to tell you who is providing professional services materials or equipment for the improvement of your property and to advise you of the rights of these persons and your responsibilities Also take note that laborers on your project may claim a lien without sending you a notice

OWNEROCCUPIER OF EXISTING

RESIDENTIAL PROPERTY

Under Washington law those who furnish labor professional services materials or equipment for the repair remodel or alteration of your owner-occupied principal residence and who are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien The law limits the amount that a lien claimant can claim against your property Claims may only be made against that portion of the contract price you have not yet paid to your prime contractor as of the time this notice was given to you or three days after this notice was mailed to you Review the back of this notice for more information and ways to avoid lien claims

COMMERCIAL ANDOR NEW

RESIDENTIAL PROPERTY

CCBA Nuts amp Bolts on Construction Law - 36 of 49

We have or will be providing professional services materials or equipment for the improvement of your commercial or new residential project In the event you or your contractor fail to pay us we may file a lien against your property A lien may be claimed for all professional services materials or equipment furnished after a date that is sixty days before this notice was given to you or mailed to you unless the improvement to your property is the construction of a new single-family residence then ten days before this notice was given to you or mailed to you Sender Address Telephone Brief description of professional services materials or equipment provided or to be provided

IMPORTANT INFORMATION

ON REVERSE SIDE

IMPORTANT INFORMATION

FOR YOUR PROTECTION This notice is sent to inform you that we have or will provide professional services materials or equipment for the improvement of your property We expect to be paid by the person who ordered our services but if we are not paid we have the right to enforce our claim by filing a construction lien against your property LEARN more about the lien laws and the meaning of this notice by discussing them with your contractor suppliers Department of Labor and Industries the firm sending you this notice your lender or your attorney

COMMON METHODS TO AVOID CONSTRUCTION LIENS There are several methods available to protect your property from construction liens The following are two of the more commonly used methods

DUAL PAYCHECKS (Joint Checks) When paying your contractor for services or materials you may make checks payable jointly to the contractor and the firms furnishing you this notice

CCBA Nuts amp Bolts on Construction Law - 37 of 49

LIEN RELEASES You may require your contractor to provide lien releases signed by all the suppliers and subcontractors from whom you have received this notice If they cannot obtain lien releases because you have not paid them you may use the dual payee check method to protect yourself

YOU SHOULD TAKE APPROPRIATE STEPS TO PROTECT YOUR PROPERTY FROM LIENS YOUR PRIME CONTRACTOR AND YOUR CONSTRUCTION LENDER ARE REQUIRED BY LAW TO GIVE YOU WRITTEN INFORMATION ABOUT LIEN CLAIMS IF YOU HAVE NOT RECEIVED IT ASK THEM FOR IT

(5) Every potential lien claimant providing professional services where no improvement as defined in RCW 6004011(5) (a) or (b) has been commenced and the professional services provided are not visible from an inspection of the real property may record in the real property records of the county where the property is located a notice which shall contain the professional service providers name address telephone number legal description of the property the owner or reputed owners name and the general nature of the professional services provided If such notice is not recorded the lien claimed shall be subordinate to the interest of any subsequent mortgagee and invalid as to the interest of any subsequent purchaser if the mortgagee or purchaser acts in good faith and for a valuable consideration acquires an interest in the property prior to the commencement of an improvement as defined in RCW 6004011(5) (a) or (b) without notice of the professional services being provided The notice described in this subsection shall be substantially in the following form

NOTICE OF FURNISHING

PROFESSIONAL SERVICES That on the (day) day of (month and year) (name of provider) began providing professional services upon or for the improvement of real property legally described as follows

[Legal Description is mandatory]

CCBA Nuts amp Bolts on Construction Law - 38 of 49

The general nature of the professional services provided is The owner or reputed owner of the real property is

(Signature)

(Name of Claimant)

(Street Address)

(City State Zip Code)

(Phone Number)

(6) A lien authorized by this chapter shall not be enforced unless the lien claimant has complied with the applicable provisions of this section

6004041 Contractor registration

A contractor or subcontractor required to be registered under chapter 1827 RCW or licensed under chapter 1928 RCW or otherwise required to be registered or licensed by law shall be deemed the construction agent of the owner for the purposes of establishing the lien created by this chapter only if so registered or licensed Persons dealing with contractors or subcontractors may rely for the purposes of this section upon a certificate of registration issued pursuant to chapter 1827 RCW or license issued pursuant to chapter 1928 RCW or other certificate or license issued pursuant to law covering the period when the labor professional services material or equipment shall be furnished and the lien rights shall not be lost by suspension or revocation of registration or license without their knowledge No lien rights described in this

CCBA Nuts amp Bolts on Construction Law - 39 of 49

chapter shall be lost or denied by virtue of the absence suspension or revocation of such registration or license with respect to any contractor or subcontractor not in immediate contractual privity with the lien claimant

6004081 Frivolous claim mdash Procedure

(1) Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who believes the claim of lien to be frivolous and made without reasonable cause or clearly excessive may apply by motion to the superior court for the county where the property or some part thereof is located for an order directing the lien claimant to appear before the court at a time no earlier than six nor later than fifteen days following the date of service of the application and order on the lien claimant and show cause if any he or she has why the relief requested should not be granted The motion shall state the grounds upon which relief is asked and shall be supported by the affidavit of the applicant or his or her attorney setting forth a concise statement of the facts upon which the motion is based (2) The order shall clearly state that if the lien claimant fails to appear at the time and place noted the lien shall be released with prejudice and that the lien claimant shall be ordered to pay the costs requested by the applicant including reasonable attorneys fees (3) If no action to foreclose the lien claim has been filed the clerk of the court shall assign a cause number to the application and obtain from the applicant a filing fee pursuant to RCW 3618016 If an action has been filed to foreclose the lien claim the application shall be made a part of that action (4) If following a hearing on the matter the court determines that the lien is frivolous and made without reasonable cause or clearly excessive the court shall issue an order releasing the lien if frivolous and made without reasonable cause or reducing the lien if clearly excessive and awarding costs and reasonable attorneys fees to the applicant to be paid by the lien claimant If the court determines that the lien is not frivolous and was made with reasonable cause and is not clearly excessive the court shall issue an order so stating and awarding costs and reasonable attorneys fees to the lien claimant to be paid by the applicant (5) Proceedings under this section shall not affect other rights and remedies available to the parties under this chapter or otherwise

6004091 Recording mdash Time mdash Contents of lien

Every person claiming a lien under RCW 6004021 shall file for recording in the county where the subject property is located a notice of claim of lien not later than ninety days after the person

CCBA Nuts amp Bolts on Construction Law - 40 of 49

has ceased to furnish labor professional services materials or equipment or the last date on which employee benefit contributions were due The notice of claim of lien (1) Shall state in substance and effect (a) The name phone number and address of the claimant (b) The first and last date on which the labor professional services materials or equipment was furnished or employee benefit contributions were due (c) The name of the person indebted to the claimant (d) The street address legal description or other description reasonably calculated to identify for a person familiar with the area the location of the real property to be charged with the lien (e) The name of the owner or reputed owner of the property if known and if not known that fact shall be stated and (f) The principal amount for which the lien is claimed (2) Shall be signed by the claimant or some person authorized to act on his or her behalf who shall affirmatively state they have read the notice of claim of lien and believe the notice of claim of lien to be true and correct under penalty of perjury and shall be acknowledged pursuant to chapter 6408 RCW If the lien has been assigned the name of the assignee shall be stated Where an action to foreclose the lien has been commenced such notice of claim of lien may be amended as pleadings may be by order of the court insofar as the interests of third parties are not adversely affected by such amendment A claim of lien substantially in the following form shall be sufficient

CLAIM OF LIEN

claimant vs name of person indebted to claimant

Notice is hereby given that the person named below claims a lien pursuant to chapter 6404 RCW In support of this lien the following information is submitted

1 NAME OF LIEN CLAIMANT

TELEPHONE NUMBER

CCBA Nuts amp Bolts on Construction Law - 41 of 49

ADDRESS

2 DATE ON WHICH THE CLAIMANT BEGAN TO PERFORM LABOR PROVIDE PROFESSIONAL SERVICES SUPPLY MATERIAL OR EQUIPMENT OR THE DATE ON WHICH EMPLOYEE BENEFIT CONTRIBUTIONS BECAME DUE

3 NAME OF PERSON INDEBTED TO THE CLAIMANT

4 DESCRIPTION OF THE PROPERTY AGAINST WHICH A LIEN IS CLAIMED (Street address legal description or other information that will reasonably describe the property)

5 NAME OF THE OWNER OR REPUTED OWNER (If not known state unknown)

6 THE LAST DATE ON WHICH LABOR WAS PERFORMED PROFESSIONAL SERVICES WERE FURNISHED CONTRIBUTIONS TO AN EMPLOYEE BENEFIT PLAN WERE DUE OR MATERIAL OR EQUIPMENT WAS FURNISHED

7 PRINCIPAL AMOUNT FOR WHICH THE LIEN IS CLAIMED IS

8 IF THE CLAIMANT IS THE ASSIGNEE OF THIS CLAIM SO STATE HERE

Claimant

(Phone number address city

CCBA Nuts amp Bolts on Construction Law - 42 of 49

and

state of claimant)

STATE OF WASHINGTON COUNTY OF ss being sworn says I am the claimant (or attorney of the claimant or administrator representative or agent of the trustees of an employee benefit plan) above named I have read or heard the foregoing claim read and know the contents thereof and believe the same to be true and correct and that the claim of lien is not frivolous and is made with reasonable cause and is not clearly excessive under penalty of perjury Subscribed and sworn to before me this day of The period provided for recording the claim of lien is a period of limitation and no action to foreclose a lien shall be maintained unless the claim of lien is filed for recording within the ninety-day period stated The lien claimant shall give a copy of the claim of lien to the owner or reputed owner by mailing it by certified or registered mail or by personal service within fourteen days of the time the claim of lien is filed for recording Failure to do so results in a forfeiture of any right the claimant may have to attorneys fees and costs against the owner under RCW 6004181

6004161 Bond in lieu of claim

Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who disputes the correctness or validity of the claim of lien may record either before or after the commencement of an action to enforce the lien in the office of the county recorder or auditor in the county where the claim of lien was recorded a bond issued by a surety company authorized to issue surety bonds in the state The surety shall be listed in the latest federal department of the treasury list of surety companies acceptable on federal bonds published in the Federal Register as authorized to issue bonds on United States government projects with an underwriting limitation including applicable reinsurance equal to or greater than the amount of the bond to be recorded The bond shall contain a description of the claim of lien and real property involved and be in an amount equal to the greater of five thousand dollars or two times the amount of the lien claimed if it is ten thousand dollars or less and in an amount equal to or greater than one and one-half times the amount of the lien if it is in

CCBA Nuts amp Bolts on Construction Law - 43 of 49

excess of ten thousand dollars If the claim of lien affects more than one parcel of real property and is segregated to each parcel the bond may be segregated the same as in the claim of lien A separate bond shall be required for each claim of lien made by separate claimants However a single bond may be used to guarantee payment of amounts claimed by more than one claim of lien by a single claimant so long as the amount of the bond meets the requirements of this section as applied to the aggregate sum of all claims by such claimant The condition of the bond shall be to guarantee payment of any judgment upon the lien in favor of the lien claimant entered in any action to recover the amount claimed in a claim of lien or on the claim asserted in the claim of lien The effect of recording a bond shall be to release the real property described in the notice of claim of lien from the lien and any action brought to recover the amount claimed Unless otherwise prohibited by law if no action is commenced to recover on a lien within the time specified in RCW 6004141 the surety shall be discharged from liability under the bond If an action is timely commenced then on payment of any judgment entered in the action or on payment of the full amount of the bond to the holder of the judgment whichever is less the surety shall be discharged from liability under the bond Nothing in this section shall in any way prohibit or limit the use of other methods devised by the affected parties to secure the obligation underlying a claim of lien and to obtain a release of real property from a claim of lien

6004181 Rank of lien mdash Application of proceeds mdash Attorneys fees

(1) In every case in which different construction liens are claimed against the same property the court shall declare the rank of such lien or class of liens which liens shall be in the following order (a) Liens for the performance of labor (b) Liens for contributions owed to employee benefit plans (c) Liens for furnishing material supplies or equipment (d) Liens for subcontractors including but not limited to their labor and materials and (e) Liens for prime contractors or for professional services (2) The proceeds of the sale of property must be applied to each lien or class of liens in order of its rank and in an action brought to foreclose a lien pro rata among each claimant in each separate priority class A personal judgment may be rendered against any party personally liable for any debt for which the lien is claimed If the lien is established the judgment shall provide

CCBA Nuts amp Bolts on Construction Law - 44 of 49

for the enforcement thereof upon the property liable as in the case of foreclosure of judgment liens The amount realized by such enforcement of the lien shall be credited upon the proper personal judgment The deficiency if any remaining unsatisfied shall stand as a personal judgment and may be collected by execution against any party liable therefor (3) The court may allow the prevailing party in the action whether plaintiff or defendant as part of the costs of the action the moneys paid for recording the claim of lien costs of title report bond costs and attorneys fees and necessary expenses incurred by the attorney in the superior court court of appeals supreme court or arbitration as the court or arbitrator deems reasonable Such costs shall have the priority of the class of lien to which they are related as established by subsection (1) of this section (4) Real property against which a lien under this chapter is enforced may be ordered sold by the court and the proceeds deposited into the registry of the clerk of the court pending further determination respecting distribution of the proceeds of the sale

6004900 Liberal construction mdash 1991 c 281

RCW 1927095 6004230 and 6004011 through 6004226 and 6004261 are to be liberally construed to provide security for all parties intended to be protected by their provisions

RCW 6028011

Retained percentage mdash Public transportation projects mdash Labor and material lien created mdash Bond in lieu of retained funds mdash Termination before completion mdash Chapter deemed exclusive mdash Release of ferry contract payments mdash Projects of farmers home administration mdash General contractorconstruction manager procedure mdash Definitions

(1)(a) Except as provided in (b) of this subsection public improvement contracts must provide and public bodies must reserve a contract retainage not to exceed five percent of the moneys earned by the contractor as a trust fund for the protection and payment of (i) The claims of any person arising under the contract and (ii) the state with respect to taxes increases and penalties imposed pursuant to Titles 50 51 and 82 RCW which may be due from such contractor (b) Public improvement contracts funded in whole or in part by federal transportation funds must rely upon the contract bond as referred to in chapter 3908 RCW for the protection and payment of (i) The claims of any person or persons arising under the contract to the extent such claims are provided for in RCW 3908010 and (ii) the state with respect to taxes increases and penalties incurred on the public improvement project under Titles 50 51 and 82 RCW which may be due The contract bond must remain in full force and effect until at a minimum all claims filed in compliance with chapter 3908 RCW are resolved

CCBA Nuts amp Bolts on Construction Law - 45 of 49

(2) Every person performing labor or furnishing supplies toward the completion of a public improvement contract has a lien upon moneys reserved by a public body under the provisions of a public improvement contract However the notice of the lien of the claimant must be given within forty-five days of completion of the contract work and in the manner provided in RCW 3908030 (3) The contractor at any time may request the contract retainage be reduced to one hundred percent of the value of the work remaining on the project (a) After completion of all contract work other than landscaping the contractor may request that the public body release and pay in full the amounts retained during the performance of the contract and sixty days thereafter the public body must release and pay in full the amounts retained (other than continuing retention of five percent of the moneys earned for landscaping) subject to the provisions of chapters 3912 and 6028 RCW (b) Sixty days after completion of all contract work the public body must release and pay in full the amounts retained during the performance of the contract subject to the provisions of chapters 3912 and 6028 RCW (4) The moneys reserved by a public body under the provisions of a public improvement contract at the option of the contractor must be (a) Retained in a fund by the public body (b) Deposited by the public body in an interest bearing account in a bank mutual savings bank or savings and loan association Interest on moneys reserved by a public body under the provision of a public improvement contract must be paid to the contractor (c) Placed in escrow with a bank or trust company by the public body When the moneys reserved are placed in escrow the public body must issue a check representing the sum of the moneys reserved payable to the bank or trust company and the contractor jointly This check must be converted into bonds and securities chosen by the contractor and approved by the public body and the bonds and securities must be held in escrow Interest on the bonds and securities must be paid to the contractor as the interest accrues (5) The contractor or subcontractor may withhold payment of not more than five percent from the moneys earned by any subcontractor or sub-subcontractor or supplier contracted with by the contractor to provide labor materials or equipment to the public project Whenever the contractor or subcontractor reserves funds earned by a subcontractor or sub-subcontractor or

CCBA Nuts amp Bolts on Construction Law - 46 of 49

supplier the contractor or subcontractor must pay interest to the subcontractor or sub-subcontractor or supplier at a rate equal to that received by the contractor or subcontractor from reserved funds (6) A contractor may submit a bond for all or any portion of the contract retainage in a form acceptable to the public body and from a bonding company meeting standards established by the public body The public body must accept a bond meeting these requirements unless the public body can demonstrate good cause for refusing to accept it This bond and any proceeds therefrom are subject to all claims and liens and in the same manner and priority as set forth for retained percentages in this chapter The public body must release the bonded portion of the retained funds to the contractor within thirty days of accepting the bond from the contractor Whenever a public body accepts a bond in lieu of retained funds from a contractor the contractor must accept like bonds from any subcontractors or suppliers from which the contractor has retained funds The contractor must then release the funds retained from the subcontractor or supplier to the subcontractor or supplier within thirty days of accepting the bond from the subcontractor or supplier (7) If the public body administering a contract after a substantial portion of the work has been completed finds that an unreasonable delay will occur in the completion of the remaining portion of the contract for any reason not the result of a breach thereof it may if the contractor agrees delete from the contract the remaining work and accept as final the improvement at the stage of completion then attained and make payment in proportion to the amount of the work accomplished and in this case any amounts retained and accumulated under this section must be held for a period of sixty days following the completion In the event that the work is terminated before final completion as provided in this section the public body may thereafter enter into a new contract with the same contractor to perform the remaining work or improvement for an amount equal to or less than the cost of the remaining work as was provided for in the original contract without advertisement or bid The provisions of this chapter are exclusive and supersede all provisions and regulations in conflict herewith (8) Whenever the department of transportation has contracted for the construction of two or more ferry vessels sixty days after completion of all contract work on each ferry vessel the department must release and pay in full the amounts retained in connection with the construction of the vessel subject to the provisions of RCW 6028021 and chapter 3912 RCW However the department of transportation may at its discretion condition the release of funds retained in connection with the completed ferry upon the contractor delivering a good and sufficient bond with two or more sureties or with a surety company in the amount of the retained funds to be released to the contractor conditioned that no taxes may be certified or claims filed for work on the ferry after a period of sixty days following completion of the ferry and if taxes are certified or claims filed recovery may be had on the bond by the department of revenue the employment

CCBA Nuts amp Bolts on Construction Law - 47 of 49

security department the department of labor and industries and the material suppliers and laborers filing claims (9) Except as provided in subsection (1) of this section reservation by a public body for any purpose from the moneys earned by a contractor by fulfilling its responsibilities under public improvement contracts is prohibited (10) Contracts on projects funded in whole or in part by farmers home administration and subject to farmers home administration regulations are not subject to subsections (1) through (9) of this section (11) This subsection applies only to a public body that has contracted for the construction of a facility using the general contractorconstruction manager procedure as defined under RCW 3910210 If the work performed by a subcontractor on the project has been completed within the first half of the time provided in the general contractorconstruction manager contract for completing the work the public body may accept the completion of the subcontract The public body must give public notice of this acceptance After a forty-five day period for giving notice of liens and compliance with the retainage release procedures in RCW 6028021 the public body may release that portion of the retained funds associated with the subcontract Claims against the retained funds after the forty-five day period are not valid (12) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise (a) Contract retainage means an amount reserved by a public body from the moneys earned by a person under a public improvement contract (b) Person means a person or persons mechanic subcontractor or materialperson who performs labor or provides materials for a public improvement contract and any other person who supplies the person with provisions or supplies for the carrying on of a public improvement contract (c) Public body means the state or a county city town district board or other public body (d) Public improvement contract means a contract for public improvements or work other than for professional services or a work order as defined in RCW 3910210

CCBA Nuts amp Bolts on Construction Law - 48 of 49

RCW 6432070 Liens or encumbrances mdash Enforcement mdash Satisfaction

(1) Subsequent to recording the declaration as provided in this chapter and while the property remains subject to this chapter no lien shall thereafter arise or be effective against the property During such period liens or encumbrances shall arise or be created only against each apartment and the percentage of undivided interest in the common areas and facilities and appurtenant to such apartment in the same manner and under the same conditions in every respect as liens or encumbrances may arise or be created upon or against any other separate parcel of real property subject to individual ownership PROVIDED That no labor performed or materials furnished with the consent of or at the request of the owner of any apartment or such owners agent contractor or subcontractor shall be the basis for the filing of a lien against any other apartment or any other property of any other apartment owner not expressly consenting to or requesting the same except that such express consent shall be deemed to be given by any apartment owner in the case of emergency repairs Labor performed or materials furnished for the common areas and facilities if authorized by the association of apartment owners the manager or board of directors shall be deemed to be performed or furnished with the express consent of each apartment owner and shall be the basis for the filing of a lien against each of the apartments and shall be subject to the provisions of subsection (2) of this section (2) In the event a lien against two or more apartments becomes effective the apartment owners of the separate apartments may remove their apartment and the percentage of undivided interest in the common areas and facilities appurtenant to such apartment from the lien by payment of the fractional or proportional amounts attributable to each of the apartments affected Such individual payments shall be computed by reference to the percentages appearing on the declaration Subsequent to any such payment discharge or satisfaction the apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto shall thereafter be free and clear of the liens so paid satisfied or discharged Such partial payment satisfaction or discharge shall not prevent the lienor from proceeding to enforce his or her rights against any apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto not so paid satisfied or discharged

CCBA Nuts amp Bolts on Construction Law - 49 of 49

  • Cover Sheet
  • 20141110 - Washington Lien and Bond CLE
  • LampI Lien Summary
  • Claim of Lien
  • Form Notice to Owner
  • Model Disclosure Statement (Notice to Customer)
  • LampI Facts about Construction Liens
    • What you should know about contracts
    • How to protect your investment
    • For more information
      • Notice of Claim Against Bond and Retained Percentage
      • Preclaim Notice Bond amp Retained Percentage
      • Statute Handout
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ltFEFF9ad854c18cea306a30d730ea30d730ec30b951fa529b7528002000410064006f0062006500200050004400460020658766f8306e4f5c6210306b4f7f75283057307e305930023053306e8a2d5b9a30674f5c62103055308c305f0020005000440046002030d530a130a430eb306f3001004100630072006f0062006100740020304a30883073002000410064006f00620065002000520065006100640065007200200035002e003000204ee5964d3067958b304f30533068304c3067304d307e305930023053306e8a2d5b9a306b306f30d530a930f330c8306e57cb30818fbc307f304c5fc59808306730593002gt KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020ace0d488c9c80020c2dcd5d80020c778c1c4c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200035002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor prepress-afdrukken van hoge kwaliteit De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 50 en hoger) NOR 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 PTB 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 SUO ltFEFF004b00e40079007400e40020006e00e40069007400e4002000610073006500740075006b007300690061002c0020006b0075006e0020006c0075006f00740020006c00e400680069006e006e00e4002000760061006100740069007600610061006e0020007000610069006e006100740075006b00730065006e002000760061006c006d0069007300740065006c00750074007900f6006800f6006e00200073006f00700069007600690061002000410064006f0062006500200050004400460020002d0064006f006b0075006d0065006e007400740065006a0061002e0020004c0075006f0064007500740020005000440046002d0064006f006b0075006d0065006e00740069007400200076006f0069006400610061006e0020006100760061007400610020004100630072006f0062006100740069006c006c00610020006a0061002000410064006f00620065002000520065006100640065007200200035002e0030003a006c006c00610020006a006100200075007500640065006d006d0069006c006c0061002egt SVE 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 ENU (Use these settings to create Adobe PDF documents best suited for high-quality prepress printing Created PDF documents can be opened with Acrobat and Adobe Reader 50 and later) gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false ConvertColors ConvertToCMYK DestinationProfileName () DestinationProfileSelector DocumentCMYK Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles false MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector DocumentCMYK PreserveEditing true UntaggedCMYKHandling LeaveUntagged UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ]gtgt setdistillerparamsltlt HWResolution [2400 2400] PageSize [612000 792000]gtgt setpagedevice

          ltlt ASCII85EncodePages false AllowTransparency false AutoPositionEPSFiles true AutoRotatePages None Binding Left CalGrayProfile (Dot Gain 20) CalRGBProfile (sRGB IEC61966-21) CalCMYKProfile (US Web Coated 050SWOP051 v2) sRGBProfile (sRGB IEC61966-21) CannotEmbedFontPolicy Warning CompatibilityLevel 14 CompressObjects Tags CompressPages true ConvertImagesToIndexed true PassThroughJPEGImages true CreateJDFFile false CreateJobTicket false DefaultRenderingIntent Default DetectBlends true DetectCurves 00000 ColorConversionStrategy LeaveColorUnchanged DoThumbnails false EmbedAllFonts true EmbedOpenType false ParseICCProfilesInComments true EmbedJobOptions true DSCReportingLevel 0 EmitDSCWarnings false EndPage -1 ImageMemory 1048576 LockDistillerParams true MaxSubsetPct 100 Optimize true OPM 1 ParseDSCComments true ParseDSCCommentsForDocInfo true PreserveCopyPage true PreserveDICMYKValues true PreserveEPSInfo true PreserveFlatness true PreserveHalftoneInfo false PreserveOPIComments true PreserveOverprintSettings true StartPage 1 SubsetFonts true TransferFunctionInfo Apply UCRandBGInfo Preserve UsePrologue false ColorSettingsFile () AlwaysEmbed [ true Algerian Arial-Black Arial-BoldItalicMT Arial-BoldMT Arial-ItalicMT ArialMT ArialNarrow ArialNarrow-Bold ArialNarrow-BoldItalic ArialNarrow-Italic BaskOldFace Bauhaus93 BellMT BellMTBold BellMTItalic BerlinSansFB-Bold BerlinSansFBDemi-Bold BerlinSansFB-Reg BernardMT-Condensed BodoniMTPosterCompressed BookAntiqua BookAntiqua-Bold BookAntiqua-BoldItalic BookAntiqua-Italic BookmanOldStyle BookmanOldStyle-Bold BookmanOldStyle-BoldItalic BookmanOldStyle-Italic BookshelfSymbolSeven BritannicBold Broadway BrushScriptMT CalifornianFB-Bold CalifornianFB-Italic CalifornianFB-Reg Centaur CenturyGothic CenturyGothic-Bold CenturyGothic-BoldItalic CenturyGothic-Italic Chiller-Regular ColonnaMT ComicSansMS ComicSansMS-Bold CooperBlack CourierNewPS-BoldItalicMT CourierNewPS-BoldMT CourierNewPS-ItalicMT CourierNewPSMT EstrangeloEdessa EXTRAAPLNew-Regular EXTRAOIANew-Regular FootlightMTLight FranklinGothic-Medium FranklinGothic-MediumItalic FreestyleScript-Regular Garamond Garamond-Bold Garamond-Italic Gautami Georgia Georgia-Bold Georgia-BoldItalic Georgia-Italic HarlowSolid Harrington HighTowerText-Italic HighTowerText-Reg Impact InformalRoman-Regular Jokerman-Regular JuiceITC-Regular Kartika KristenITC-Regular KunstlerScript Latha LatinWide LucidaATTMSpecial LucidaBright LucidaBright-Demi LucidaBright-DemiItalic LucidaBright-Italic LucidaCalligraphy-Italic LucidaConsole LucidaFax LucidaFax-Demi LucidaFax-DemiItalic LucidaFax-Italic LucidaforAttachmate LucidaHandwriting-Italic LucidaSans LucidaSans-Demi LucidaSans-DemiItalic LucidaSans-Italic LucidaSansUnicode Magneto-Bold Mangal-Regular MaturaMTScriptCapitals MicrosoftSansSerif Mistral Modern-Regular Monospace821BT-Roman MonotypeCorsiva MSOutlook MSReferenceSansSerif MSReferenceSpecialty MVBoli NiagaraEngraved-Reg NiagaraSolid-Reg OldEnglishTextMT Onyx PalatinoLinotype-Bold PalatinoLinotype-BoldItalic PalatinoLinotype-Italic PalatinoLinotype-Roman Parchment-Regular Playbill PoorRichard-Regular Raavi Ravie ShowcardGothic-Reg Shruti SnapITC-Regular Stencil Sylfaen SymbolMT Tahoma Tahoma-Bold TempusSansITC TimesNewRomanPS-BoldItalicMT TimesNewRomanPS-BoldMT TimesNewRomanPS-ItalicMT TimesNewRomanPSMT Trebuchet-BoldItalic TrebuchetMS TrebuchetMS-Bold TrebuchetMS-Italic Tunga-Regular Verdana Verdana-Bold Verdana-BoldItalic Verdana-Italic VinerHandITC Vivaldii VladimirScript Vrinda Webdings Wingdings2 Wingdings3 Wingdings-Regular ZWAdobeF ] NeverEmbed [ true ] AntiAliasColorImages false CropColorImages true ColorImageMinResolution 300 ColorImageMinResolutionPolicy OK DownsampleColorImages true ColorImageDownsampleType Bicubic ColorImageResolution 300 ColorImageDepth -1 ColorImageMinDownsampleDepth 1 ColorImageDownsampleThreshold 150000 EncodeColorImages false ColorImageFilter DCTEncode AutoFilterColorImages true ColorImageAutoFilterStrategy JPEG ColorACSImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt ColorImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000ColorACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000ColorImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasGrayImages false CropGrayImages true GrayImageMinResolution 300 GrayImageMinResolutionPolicy OK DownsampleGrayImages true GrayImageDownsampleType Bicubic GrayImageResolution 300 GrayImageDepth -1 GrayImageMinDownsampleDepth 2 GrayImageDownsampleThreshold 150000 EncodeGrayImages false GrayImageFilter DCTEncode AutoFilterGrayImages true GrayImageAutoFilterStrategy JPEG GrayACSImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt GrayImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000GrayACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000GrayImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasMonoImages false CropMonoImages true MonoImageMinResolution 1200 MonoImageMinResolutionPolicy OK DownsampleMonoImages true MonoImageDownsampleType Bicubic MonoImageResolution 1200 MonoImageDepth -1 MonoImageDownsampleThreshold 150000 EncodeMonoImages false MonoImageFilter CCITTFaxEncode MonoImageDict ltlt K -1 gtgt AllowPSXObjects false CheckCompliance [ None ] PDFX1aCheck false PDFX3Check false PDFXCompliantPDFOnly false PDFXNoTrimBoxError true PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile (None) PDFXOutputConditionIdentifier () PDFXOutputCondition () PDFXRegistryName () PDFXTrapped False Description ltlt CHS ltFEFF4f7f75288fd94e9b8bbe5b9a521b5efa7684002000410064006f006200650020005000440046002065876863900275284e8e9ad88d2891cf76845370524d53705237300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200035002e003000204ee553ca66f49ad87248672c676562535f00521b5efa768400200050004400460020658768633002gt CHT ltFEFF4f7f752890194e9b8a2d7f6e5efa7acb7684002000410064006f006200650020005000440046002065874ef69069752865bc9ad854c18cea76845370524d5370523786557406300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200035002e003000204ee553ca66f49ad87248672c4f86958b555f5df25efa7acb76840020005000440046002065874ef63002gt DAN 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 DEU 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 ESP ltFEFF005500740069006c0069006300650020006500730074006100200063006f006e0066006900670075007200610063006900f3006e0020007000610072006100200063007200650061007200200064006f00630075006d0065006e0074006f00730020005000440046002000640065002000410064006f0062006500200061006400650063007500610064006f00730020007000610072006100200069006d0070007200650073006900f3006e0020007000720065002d0065006400690074006f007200690061006c00200064006500200061006c00740061002000630061006c0069006400610064002e002000530065002000700075006500640065006e00200061006200720069007200200064006f00630075006d0065006e0074006f00730020005000440046002000630072006500610064006f007300200063006f006e0020004100630072006f006200610074002c002000410064006f00620065002000520065006100640065007200200035002e003000200079002000760065007200730069006f006e0065007300200070006f00730074006500720069006f007200650073002egt FRA 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 ITA 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 JPN ltFEFF9ad854c18cea306a30d730ea30d730ec30b951fa529b7528002000410064006f0062006500200050004400460020658766f8306e4f5c6210306b4f7f75283057307e305930023053306e8a2d5b9a30674f5c62103055308c305f0020005000440046002030d530a130a430eb306f3001004100630072006f0062006100740020304a30883073002000410064006f00620065002000520065006100640065007200200035002e003000204ee5964d3067958b304f30533068304c3067304d307e305930023053306e8a2d5b9a306b306f30d530a930f330c8306e57cb30818fbc307f304c5fc59808306730593002gt KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020ace0d488c9c80020c2dcd5d80020c778c1c4c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200035002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor prepress-afdrukken van hoge kwaliteit De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 50 en hoger) NOR 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 PTB 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 SUO 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 SVE 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 ENU (Use these settings to create Adobe PDF documents best suited for high-quality prepress printing Created PDF documents can be opened with Acrobat and Adobe Reader 50 and later) gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false ConvertColors ConvertToCMYK DestinationProfileName () DestinationProfileSelector DocumentCMYK Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles false MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector DocumentCMYK PreserveEditing true UntaggedCMYKHandling LeaveUntagged UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ]gtgt setdistillerparamsltlt HWResolution [2400 2400] PageSize [612000 792000]gtgt setpagedevice

          1. To
          2. Date
          3. Re
          4. From
          5. AT THE REQUEST OF
          6. Sender
          7. Address
          8. Telephone
          9. Brief description of professional services materials or equipment provided or to be provided
          10. 1
          11. 2
          12. 3
          13. reg no
          14. deposit $
          15. expiration date
          16. claims up to $
          17. Reset

11122014

12

Immix Law Group Washington Lien and Bond Claims

Public Contracts Bond Claims

Bond Claims ndash Washingtonrsquos Little Miller Act (RCW 3908010)

On Washington Public Works projects in excess of $25000 general contractors must post a payment bond usually in the amount of the contract price

Immix Law Group Washington Lien and Bond Claims

Public Contracts Bond Claims

Preclaim Notice of Bond Claim (RCW 3908010)

bull Lower‐tier subcontractors and material suppliers must give preclaim notice to the prime contractor within 10 days after starting work

Immix Law Group Washington Lien and Bond Claims

Public Contracts Bond Claims

Notice of Bond Claim (RCW 3908010)

bull All claimants must provide a Notice of Claim within 30 days after ldquoacceptance of the workrdquo (different than retention claim)bull ldquoAcceptancerdquo is an affirmative act by the public works owner

bull The Notice must be delivered to public works ownerbull Hand delivered or certified mail with return receipt

bull No deadline provided in the statute ndash foreclose by general statute of limitationsbull 3 years for oral contracts 6 years for written contracts

CCBA Nuts amp Bolts on Construction Law - 13 of 49

11122014

13

Immix Law Group Washington Lien and Bond Claims

Public Contracts Bond amp Retainage Claims

bull Practice Pointer Coordinate the filing of the retention and bond Preclaim Notice and Notice of Claim to ensure that the contractorrsquos claims are protected

bull File the Bond amp Retainage Preclaim Notice within 10 days after starting work

bull File the Bond amp Retainage Notice of Claim within 30 days from project completion

Immix Law Group Washington Lien and Bond Claims

Public Contracts Prompt Pay ActWashingtonrsquos Prompt Pay Act

bull Prime contractors are entitled to payment within 30 days after the public agencyrsquos receipt of the invoice

bull If the public agency intends to withhold payment (all or in part) the agency must notify the contractor in writing within 8 days of receipt stating

bull Why payment (all or part) is being withheld

bull Actions required by contractor in order to receive payment

Immix Law Group Washington Lien and Bond Claims

Public Contracts Prompt Pay ActWashingtonrsquos Prompt Pay Act (contrsquod)

bull Public agency can withhold up to 150 of the disputed amount

bull Failure to comply entitles the contractor to 1 interest per month until paid

bull Subcontractors must be paid within 10 days of prime contractorrsquos receipt of payment

CCBA Nuts amp Bolts on Construction Law - 14 of 49

11122014

14

Immix Law Group

Questions

CCBA Nuts amp Bolts on Construction Law - 15 of 49

SUMMARY OF THE REQUIREMENTS TO BE MET BY A LIEN CLAIMANT ON A WASHINGTON PRIVATE CONSTRUCTION PROJECT

NOTICE TO CUSTOMER

FROM

Prime Contractor working on four or fewer residential units when the contract price is $1000 or more or on a commercial building when the contract price is $1000 or more but less than $60000

TO Owner

WHEN Before starting construction NOTICE OF FURNISHING PROFESSIONAL SERVICES

FROM

Provider of professional services

TO County Recorder

WHEN As soon as professional services are commenced PRECLAIM NOTICE (for all projects except repair and remodeling of owner-occupied single-family residence)

FROM

Provider of professional services materials or equipment except that the following need not provide the notice (1) a provider that contracts directly with the owner or the owners actual agent or (2) a first tier subcontractor

TO Owner and usually also prime contractor

WHEN New single family residence within ten days of first supplying professional services materials or equipment All other projects within 60 days of first supplying professional services materials or equipment

PRECLAIM NOTICE (for repair and remodeling of owner-occupied single-family residence)

FROM

Provider of professional services materials or equipment to anyone other than the owner

TO Owner and usually also prime contractor

WHEN Immediately after agreeing to furnish professional services materials or equipment

FROM

Potential lien claimant to whom payment is five or more days overdue

NOTICE TO REAL PROPERTY LENDER (only applicable where there is not a payment bond of at least 50 of the amount of construction financing)

TO Construction lender owner and prime contractor

WHEN Within 35 days of date payment is due

CLAIM OF LIEN

FROM

Unpaid claimant

TO County Recorder

WHEN Not later than 90 days after the last furnishing of labor professional services materials or equipment or the last date on which employee benefit contributions were due

COPY OF CLAIM OF LIEN

FROM

Unpaid claimant

TO Owner

WHEN Within 14 days of date claim of lien is filed for recording

DEADLINE FOR FILING A LAWSUIT Within eight months of recording claim of lien

F625-055-000 const lien summary 2-96 This summary is intended to generally set forth the requirements applicable to most lien claimants The remainder of the chapter should be consulted for a more detailed discussion

CCBA Nuts amp Bolts on Construction Law - 16 of 49

CLAIM OF LIEN SIGNED BY ATTORNEY

Return Address __________________________ __________________________ __________________________

Document Title Claim of Lien

Reference Number _____________________________

Grantor _____________________________

Grantee _____________________________

Legal Description

Assessors Property Tax Parcel No

CLAIM OF LIEN

________________________ claimant vs _____________________________ name of persons indebted to claimant

Notice is hereby given that the person named below claims a lien pursuant to Chapter 6004 RCW In

support of this lien the following information is submitted

1 NAME OF LIEN CLAIMANT ______________________________________

TELEPHONE NUMBER ______________________________________

ADDRESS ______________________________________

______________________________________

2 DATE ON WHICH THE CLAIMANT BEGAN TO PERFORM LABOR PROVIDE PROFESSIONAL SERVICES SUPPLY MATERIAL OR EQUIPMENT OR THE DATE ON WHICH EMPLOYEE BENEFIT CONTRIBUTIONS BECOMES DUE _________

3 NAME OF PERSON INDEBTED TO THE CLAIMANT _________________

4 DESCRIPTIONOF THE PROPERTY AGAINST WHICH A LIEN IS CLAIMED All fee leasehold and other interests of _______________ and any other owner person or entity in the property commonly known as ___________________________located at _______________________ _________________________ _________________County Washington _______ the legal description of which is believed to be as follows

[Legal Description - andor - The legal description of the underlying real property is described on the attached Exhibit A]

CCBA Nuts amp Bolts on Construction Law - 17 of 49

5 NAME OF THE OWNER OR REPUTED OWNER (if not known state ldquounknownrdquo) ____________________________________________________________________________________________

6 THE LAST DATE ON WHICH LABOR WAS PERFORMED PROFESSIONAL SERVICES WERE FURNISHED CONTRIBUTIONS TO AN EMPLOYEE BENEFIT PLAN WERE DUE OR MATERIAL OR EQUIPMENT WAS FURNISHED _____________________________________________________________

7 PRINCIPAL AMOUNT FOR WHICH THE LIEN IS CLAIMED IS $_______

8 IF THE CLAIMANT IS THE ASSIGNEE OF THIS CLAIM SO STATE HERE ___

___________________ Claimant ___________________________

___________________________ (__)____-______

By ________s________________ Print Name ___________________ Its Attorney

STATE OF WASHINGTON )

SS COUNTYOF ____________ )

________________ being sworn says I am the attorney of the claimant above named I have read or heard the foregoing claim read and know the contents thereof and believe the same to be true and correct and that the claim of lien is not frivolous and is made with reasonable cause and is not clearly excessive under penalty of perjury

__________________________ Print Name _______________

SUBSCRIBED and SWORN to before me this ___day of ___________________ 201_

STATE OF WASHINGTON )

SS COUNTYOF ____________ )

[Seal or Stamp]

__________________________ Print Name _______________ Notary Public in and for the State of Washington residing at________________________________ My Commission Expires __________________

CCBA Nuts amp Bolts on Construction Law - 18 of 49

I certify that I know or have satisfactory evidence that___________________ is the person who appeared before me and said person acknowledged that [heshe] signed this instrument on oath stated that [heshe] was authorized to execute this instrument and acknowledged it as the attorney of___________________ to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument

CCBA Nuts amp Bolts on Construction Law - 19 of 49

F625-054-000 construction lien notice 11-05 IMPORTANT INFORMATION ON PAGE 2

NOTICE TO OWNER IMPORTANT READ BOTH SIDES OF THIS NOTICE CAREFULLY

PROTECT YOURSELF FROM PAYING TWICE

To

Date

Re

From (Description of property street address or general location)

AT THE REQUEST OF Name of person ordering their professional services materials or equipment

THIS IS NOT A LIEN This notice is sent to you to tell you who is providing professional services materials or equipment for the improvement of your property and to advise you of the rights of these persons and your responsibilities Also take notice that laborers on your project may claim a lien without sending you a notice

OWNEROCCUPIER OF EXISTING RESIDENTIAL PROPERTY Under Washington law those who furnish labor professional services materials or equipment for the repair remodel or alteration of you owner-occupied principal residence and who are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien The law limits the amount that a lien claimant can claim against your property Claims may only be made against that portion of the contract price you have not yet paid to your prime contractor as of the time this notice was given to you or three days after this notice was mailed to you Review page 2 of this notice for more information and ways to avoid lien claims

COMMERCIAL ANDOR NEW RESIDENTIAL PROPERTY We have or will be providing professional services materials or equipment for the improvement of your commercial or new residential project In the event you or your contractor fail to pay us we may file a lien against your property A lien may be claimed for all professional services materials or equipment furnished after a date that is sixty days before this notice was given to you or mailed to you unless the improvement to you property is the construction of a new single-family residence then ten days before this notice was given to you or mailed to you

Sender

Address

Telephone

Brief description of professional services materials or equipment provided or to be provided

CCBA Nuts amp Bolts on Construction Law - 20 of 49

F625-054-000 construction lien notice page 2 11-05

Important Information for your Protection

This notice is sent to inform you that we have or will provide professional services materials or equipment for the repair remodel or alteration of you property We expect to be paid by the person who ordered our services but if we are not paid we have the right to enforce our claim by filing a construction lien against your property

LEARN more about the lien laws and the meaning of this notice by

discussing them with our contractor suppliers Department of Labor and Industries the firm sending you this notice your lender or your attorney

COMMON METHODS TO AVOID CONSTRUCTION LIENS

There are several methods available to protect your property from construction liens The following are two of the more commonly used methods

DUAL PAYCHECKS (Joint Checks) When paying your

contractor for services or materials you may make checks payable jointly to the contractor and the firms furnishing you this notice

LIEN RELEASES You may require your contractor to provide

lien releases signed by all the suppliers and subcontractors from whom you have received this notice If they cannot obtain lien releases because you have not paid them you may use the dual payee check method to protect yourself

You should take appropriate steps to protect your property from

liens

Your prime contractor and your construction lender are required by law to give you written information about lien claims If you have not received it ask them for it

CCBA Nuts amp Bolts on Construction Law - 21 of 49

F625-030-000 model disclosure statement notice to customer 09-2007

Department of Labor and Industries Construction Compliance

MODEL DISCLOSURE STATEMENTNOTICE TO CUSTOMER

This contractor is registered with the state of Washington registration no____________________ and has posted with the state a bond or deposit of ______________________ for the purpose of satisfying claims against the contractor for breach of contract including negligent or improper work in the conduct of the contractorrsquos business The expiration date of this contractorrsquos registration is ______________________

THIS BOND OR DEPOSIT MIGHT NOT BE SUFFICIENT TO COVER A CLAIM THAT MIGHT ARISE FROM THE WORK DONE UNDER YOUR CONTRACT This bond or deposit is not for your exclusive use because it covers all work performed by this contractor The bond or deposit is intended to pay valid claims up to ___________________________ that you and other customers suppliers subcontractors or taxing authorities may have FOR GREATER PROTECTION YOU MAY WITHHOLD A PERCENTAGE OF YOUR CONTRACT You may withhold a contractually defined percentage of your construction contract as retainage for a stated period of time to provide protection to you and help insure that your project will be completed as required by your contract

YOUR PROPERTY MAY BE LIENED If a supplier of materials used in your construction project or an employee or subcontractor of your contractor or subcontractors is not paid your property may be liened to force payment and you could pay twice for the same work FOR ADDITIONAL PROTECTION YOU MAY REQUEST THE CONTRACTOR TO PROVIDE YOU WITH ORIGINAL ldquoLIEN RELEASErdquo DOCUMENTS FROM EACH SUPPLIER OR SUBCONTRACTOR AT YOUR PROJECT The contractor is required to provide you with further information about lien release document if you request it General information is also available from the state Department of Labor and Industries I have received a copy of this disclosure statement Dated this _______ day of _______________ of the year __________

_____________________________________________________ Signature of Customer The contractor must retain a signed copy of the disclosure statement in his or her files for a minimum of three years and produce a signed or electronic signature copy of the disclosure statement to the department upon request

CCBA Nuts amp Bolts on Construction Law - 22 of 49

Facts About Construction LiensWhat you should know about contractsIf your contractor fails to pay subcontractors suppliers or laborers or neglects to make other legally required payments those who are owed money can look to your property for payment even if you have paid your contractor in full This is true if you have hired a contractor to build a new home or are buying a newly built home

It is also true when you remodel or improve your property although the amount of your liability may be limited to the amount you owe the prime contractor at the time a lien is filed

Under Washington laws those who work on your property or provide materials and are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien

People who supply materials or labor ordered by your contractor are permitted by law to file a lien only if they do so within 90 days of cessation of performance or delivery of materials The time frame is spelled out in RCW 6004091

If you enter into a contract to buy a newly built home you may not receive a notice of a lien based on a claim by a contractor or material handler Be aware that a lien may be claimed even though you have not received a notice

Before making final payment on the project request a completed lien release form from each contractor and material supplier A sample of this release of lien form is available from the Department of Labor amp Industries Contractor Registration Section

You have final responsibility for seeing that all bills are paid even if you have paid your contractor in full

If you receive a notice to enforce a lien take the notice seriously Let your contractor know you have received the notice Find out what arrangements are being made to pay the sender of the notice

When in doubt or if you need more details consult your attorney When and how to pay your contractor is a decision that requires serious consideration

Reminder Washington laws require contractors to give you a disclosure statement if your contract exceeds $1000 [RCW 1827114(A) or (B)]

CCBA Nuts amp Bolts on Construction Law - 23 of 49

PUBLICATION F625-017-000 [01-2008]

Other formats for persons with disabilities are available on request Call 1-800-647-0982 TDD users call 360-902-5797 LampI is an equal opportunity employer

For more information

How to protect your investment

If you are dealing with a lending institution ask your loan officer what precautions the lending institution takes to verify that subcontractors and material suppliers are being paid when mortgage money is paid to your contractor

Request lender supervision when dealing with a lending institution that provides interim or construction financing

Ask the prime contractor to disclose all potential lien claimants as a condition of payment A lien claimant must mail (by certified or registered mail or by personal service) a copy of the claim of lien to the owner within 14 days of the time the lien is recorded [RCW 6004091(2)] While an action is ongoing an owner may withhold from this prime contractor the amount of money for which a claim is recorded by a subcontractor supplier or laborer [RCW 6004151]

It is recommended that your check be made payable jointly naming the contractor and the subcontractor or supplier as payees

Upon payment and acceptance of the amount due the owner has the right to an executed release of all lien rights by lien claimants [RCW 6004071]

Consider using an escrow agent to protect your interests Find out whether your escrow agent will protect you against liens when disbursing payments If you are interested in this alternative consult your attorney

Request that your contractor post a performance bond in the amount of the project cost That will give you recourse in the event the contractor fails to complete the building agreement

8 On the Web Find more information about hiring a contractor at

wwwLniwagovTradesLicensingContractorsHireCon

Contractor Registration Hotline1-800-647-0982

You may also call your local LampI office See listings under ldquoWashington State ofrdquo in the government section or the white pages of the telephone book

Please note This notice was prepared by the Department of Labor amp Industries Specialty Compliance Services Division for reproduction by lending institutions and contractors for distribution to their clients It explains the basics of the construction lien law to help you protect yourself This information is not a reflection upon the abilities or credit of your contractor

CCBA Nuts amp Bolts on Construction Law - 24 of 49

NOTICE OF CLAIM AGAINST

BOND AND RETAINED PERCENTAGE

RCW 3908030 RCW 6028010

VIA CERTIFIED MAIL ndash RETURN RECEIPT REQUESTED

TO [Public Owner] [Public Ownerrsquos Address]

Project [Project Name amp Address] NOTICE IS HEREBY GIVEN that the undersigned [Claimant] [Claimantrsquos Address] has a claim in the amount of ----- and 00100 Dollars ($XX) (not including attorneysrsquo fees or costs) together with interest at twelve percent (12) against [Public Owner] (ldquoOwnerrdquo) pursuant to RCW 6028 and the payment bond taken from [Prime Contractor] (ldquoContractorrdquo) [Prime Contractorrsquos Address] as principal and [Surety Company] (ldquoSuretyrdquo) [Suretyrsquos Address] as surety Bond No ________ pursuant to RCW 3908 for [describe services material supplies labor furnished] provided on the Project This Notice of Claim Against Bond and Retained Percentage supersedes and replaces previous Notices DATED This ___day of _________ 201_ [Claimant] By ______________________________________ Its ______________________________________ [Claimantrsquos Address]

_________________________________________

[Contractors Registration No if applicable]

(Copies furnished to General Contractor and General Contractorrsquos Bonding Company)

CCBA Nuts amp Bolts on Construction Law - 25 of 49

PRECLAIM NOTICE TO CONTRACTOR BY SUBCONTRACTORS MATERIALMEN OR SUPPLIERS FOR

CLAIM AGAINST BOND AND RETAINED PERCENTAGE

VIA CERTIFIED OR REGISTERED MAIL- RETURN RECEIPT REQUESTED

TO [Name of General Contractor] [Address]

YOU ARE HEREBY NOTIFIED that the undersigned ____________at the request of_________________ commenced to deliver or furnish materials supplies andor equipment for the use in the construction alteration andor repair of that certain project known as____________________ [project name] which is located at ____________________________ [address or description] If the undersigned is not paid for these materials supplies andor equipment it will file a claim against you and your bond andor retainage pursuant to RCW 3908 andor 6028 et seq for payment of any sum that is due and owing to the undersigned

DATED This __ day of _____________ 201_

[Name of Claimant]

By ____________________________________

Its ____________________________________

Address ______________________________

__________________________________________

__________________________________________

[Contractors Registration No if applicable]

(Mail via certified mail return receipt requested or hand deliver and obtain receipt)

CCBA Nuts amp Bolts on Construction Law - 26 of 49

Washington Liens amp Bonds ndash Pertinent Statutes

RCW 1827040 Bond or other security required mdash Actions against mdash Suspension of registration upon impairment (1) Each applicant shall file with the department a surety bond issued by a surety insurer who meets the requirements of chapter 4828 RCW in the sum of twelve thousand dollars if the applicant is a general contractor and six thousand dollars if the applicant is a specialty contractor If no valid bond is already on file with the department at the time the application is filed a bond must accompany the registration application The bond shall have the state of Washington named as obligee with good and sufficient surety in a form to be approved by the department The bond shall be continuous and may be canceled by the surety upon the surety giving written notice to the director A cancellation or revocation of the bond or withdrawal of the surety from the bond automatically suspends the registration issued to the contractor until a new bond or reinstatement notice has been filed and approved as provided in this section The bond shall be conditioned that the applicant will pay all persons performing labor including employee benefits for the contractor will pay all taxes and contributions due to the state of Washington and will pay all persons furnishing material or renting or supplying equipment to the contractor and will pay all amounts that may be adjudged against the contractor by reason of breach of contract including improper work in the conduct of the contracting business A change in the name of a business or a change in the type of business entity shall not impair a bond for the purposes of this section so long as one of the original applicants for such bond maintains partial ownership in the business covered by the bond (2) At the time of initial registration or renewal the contractor shall provide a bond or other security deposit as required by this chapter and comply with all of the other provisions of this chapter before the department shall issue or renew the contractors certificate of registration Any contractor registered as of July 1 2001 who maintains that registration in accordance with this chapter is in compliance with this chapter until the next renewal of the contractors certificate of registration (3) Any person firm or corporation having a claim against the contractor for any of the items referred to in this section may bring suit against the contractor and the bond or deposit in the superior court of the county in which the work was done or of any county in which jurisdiction of the contractor may be had The surety issuing the bond shall be named as a party to any suit upon the bond Action upon the bond or deposit brought by a residential homeowner for breach of contract by a party to the construction contract shall be commenced by filing the summons and complaint with the clerk of the appropriate superior court within two years from the date the claimed contract work was substantially completed or abandoned whichever occurred first Action upon the bond or deposit brought by any other authorized party shall be commenced by filing the summons and complaint with the clerk of the appropriate superior court within one year from the date the claimed labor was performed and benefits accrued taxes and contributions owing the state of Washington became due materials and equipment were furnished or the claimed contract work was substantially completed or abandoned whichever occurred first Service of process in an action filed under this chapter against the contractor and the contractors bond or the deposit shall be exclusively by service upon the department Three

CCBA Nuts amp Bolts on Construction Law - 27 of 49

copies of the summons and complaint and a fee adopted by rule of not less than fifty dollars to cover the costs shall be served by registered or certified mail or other delivery service requiring notice of receipt upon the department at the time suit is started and the department shall maintain a record available for public inspection of all suits so commenced Service is not complete until the department receives the fee and three copies of the summons and complaint The service shall constitute service and confer personal jurisdiction on the contractor and the surety for suit on claimants claim against the contractor and the bond or deposit and the department shall transmit the summons and complaint or a copy thereof to the contractor at the address listed in the contractors application and to the surety within two days after it shall have been received (4) The surety upon the bond shall not be liable in an aggregate amount in excess of the amount named in the bond nor for any monetary penalty assessed pursuant to this chapter for an infraction The liability of the surety shall not cumulate where the bond has been renewed continued reinstated reissued or otherwise extended The surety upon the bond may upon notice to the department and the parties tender to the clerk of the court having jurisdiction of the action an amount equal to the claims thereunder or the amount of the bond less the amount of judgments if any previously satisfied therefrom and to the extent of such tender the surety upon the bond shall be exonerated but if the actions commenced and pending and provided to the department as required in subsection (3) of this section at any one time exceed the amount of the bond then unimpaired claims shall be satisfied from the bond in the following order (a) Employee labor and claims of laborers including employee benefits (b) Claims for breach of contract by a party to the construction contract (c) Registered or licensed subcontractors material and equipment (d) Taxes and contributions due the state of Washington (e) Any court costs interest and attorneys fees plaintiff may be entitled to recover The surety is not liable for any amount in excess of the penal limit of its bond A payment made by the surety in good faith exonerates the bond to the extent of any payment made by the surety (5) The total amount paid from a bond or deposit required of a general contractor by this section to claimants other than residential homeowners must not exceed one-half of the bond amount The total amount paid from a bond or deposit required of a specialty contractor by this section to claimants other than residential homeowners must not exceed one-half of the bond amount or four thousand dollars whichever is greater (6) The prevailing party in an action filed under this section against the contractor and contractors bond or deposit for breach of contract by a party to the construction contract involving a residential homeowner is entitled to costs interest and reasonable attorneys fees The surety upon the bond or deposit is not liable in an aggregate amount in excess of the amount

CCBA Nuts amp Bolts on Construction Law - 28 of 49

named in the bond or deposit nor for any monetary penalty assessed pursuant to this chapter for an infraction (7) If a final judgment impairs the liability of the surety upon the bond or deposit so furnished that there is not in effect a bond or deposit in the full amount prescribed in this section the registration of the contractor is automatically suspended until the bond or deposit liability in the required amount unimpaired by unsatisfied judgment claims is furnished (8) In lieu of the surety bond required by this section the contractor may file with the department an assigned savings account upon forms provided by the department (9) Any person having filed and served a summons and complaint as required by this section having an unsatisfied final judgment against the registrant for any items referred to in this section may execute upon the security held by the department by serving a certified copy of the unsatisfied final judgment by registered or certified mail upon the department within one year of the date of entry of such judgment Upon the receipt of service of such certified copy the department shall pay or order paid from the deposit through the registry of the superior court which rendered judgment towards the amount of the unsatisfied judgment The priority of payment by the department shall be the order of receipt by the department but the department shall have no liability for payment in excess of the amount of the deposit (10) Within ten days after resolution of the case a certified copy of the final judgment and order or any settlement documents where a case is not disposed of by a court trial a certified copy of the dispositive settlement documents must be provided to the department by the prevailing party Failure to provide a copy of the final judgment and order or the dispositive settlement documents to the department within ten days of entry of such an order constitutes a violation of this chapter and a penalty adopted by rule of not less than two hundred fifty dollars may be assessed against the prevailing party (11) The director may require an applicant applying to renew or reinstate a registration or applying for a new registration to file a bond of up to three times the normally required amount if the director determines that an applicant or a previous registration of a corporate officer owner or partner of a current applicant has had in the past five years a total of three final judgments in actions under this chapter involving a residential single-family dwelling on two or more different structures (12) The director may adopt rules necessary for the proper administration of the security RCW 1827114 Disclosure statement required mdash Prerequisite to lien claim

(1) Any contractor agreeing to perform any contracting project (a) For the repair alteration or construction of four or fewer residential units or accessory structures on such residential property when the bid or contract price totals one thousand dollars or more or (b) for the repair alteration or construction of a commercial building when the bid or contract price totals one thousand dollars or more but less than sixty thousand dollars must provide the customer with

CCBA Nuts amp Bolts on Construction Law - 29 of 49

the following disclosure statement in substantially the following form using lower case and upper case twelve-point and bold type where appropriate prior to starting work on the project NOTICE TO CUSTOMER This contractor is registered with the state of Washington registration no and has posted with the state a bond or deposit of for the purpose of satisfying claims against the contractor for breach of contract including negligent or improper work in the conduct of the contractors business The expiration date of this contractors registration is THIS BOND OR DEPOSIT MIGHT NOT BE SUFFICIENT TO COVER A CLAIM THAT MIGHT ARISE FROM THE WORK DONE UNDER YOUR CONTRACT This bond or deposit is not for your exclusive use because it covers all work performed by this contractor The bond or deposit is intended to pay valid claims up to that you and other customers suppliers subcontractors or taxing authorities may have FOR GREATER PROTECTION YOU MAY WITHHOLD A PERCENTAGE OF YOUR CONTRACT You may withhold a contractually defined percentage of your construction contract as retainage for a stated period of time to provide protection to you and help insure that your project will be completed as required by your contract YOUR PROPERTY MAY BE LIENED If a supplier of materials used in your construction project or an employee or subcontractor of your contractor or subcontractors is not paid your property may be liened to force payment and you could pay twice for the same work FOR ADDITIONAL PROTECTION YOU MAY REQUEST THE CONTRACTOR TO PROVIDE YOU WITH ORIGINAL LIEN RELEASE DOCUMENTS FROM EACH SUPPLIER OR SUBCONTRACTOR ON YOUR PROJECT The contractor is required to provide you with further information about lien release documents if you request it General information is also available from the state Department of Labor and Industries I have received a copy of this disclosure statement

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(Signature of customer) (2) The contractor must retain a signed copy of the disclosure statement in his or her files for a minimum of three years and produce a signed or electronic signature copy of the disclosure statement to the department upon request (3) A contractor subject to this section shall notify any consumer to whom notice is required under subsection (1) of this section if the contractors registration has expired or is revoked or suspended by the department prior to completion or other termination of the contract with the consumer (4) No contractor subject to this section may bring or maintain any lien claim under chapter 6004 RCW based on any contract to which this section applies without alleging and proving that the contractor has provided the customer with a copy of the disclosure statement as required in subsection (1) of this section (5) This section does not apply to contracts authorized under chapter 3904 RCW or to contractors contracting with other contractors (6) Failure to comply with this section shall constitute an infraction under the provisions of this chapter (7) The department shall produce model disclosure statements and public service announcements detailing the information needed to assist contractors and contractors customers to comply under this section As necessary the department shall periodically update these education materials RCW 3908010 Bond required mdash Conditions mdash Retention of contract amount in lieu of bond (1)(a) Whenever any board council commission trustees or body acting for the state or any county or municipality or any public body must contract with any person or corporation to do any work for the state county or municipality or other public body city town or district such board council commission trustees or body must require the person or persons with whom such contract is made to make execute and deliver to such board council commission trustees or body a good and sufficient bond with a surety company as surety conditioned that such person or persons must (i) Faithfully perform all the provisions of such contract (ii) Pay all laborers mechanics and subcontractors and material suppliers and all persons who supply such person or persons or subcontractors with provisions and supplies for the carrying on of such work and

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(iii) Pay the taxes increases and penalties incurred on the project under Titles 50 51 and 82 RCW on (A) Projects referred to in RCW 6028011(1)(b) andor (B) projects for which the bond is conditioned on the payment of such taxes increases and penalties (b) The bond in cases of cities and towns must be filed with the clerk or comptroller thereof and any person or persons performing such services or furnishing material to any subcontractor has the same right under the provisions of such bond as if such work services or material was furnished to the original contractor (2) The provisions of RCW 3908010 through 3908030 do not apply to any money loaned or advanced to any such contractor subcontractor or other person in the performance of any such work (3) On contracts of thirty-five thousand dollars or less at the option of the contractor the respective public entity may in lieu of the bond retain fifty percent of the contract amount for a period of thirty days after date of final acceptance or until receipt of all necessary releases from the department of revenue the employment security department and the department of labor and industries and settlement of any liens filed under chapter 6028 RCW whichever is later (4) For contracts of one hundred thousand dollars or less the public entity may accept a full payment and performance bond from an individual surety or sureties (5) The surety must agree to be bound by the laws of the state of Washington and subjected to the jurisdiction of the state of Washington RCW 6004011 Definitions

Unless the context requires otherwise the definitions in this section apply throughout this chapter (1) Construction agent means any registered or licensed contractor registered or licensed subcontractor architect engineer or other person having charge of any improvement to real property who shall be deemed the agent of the owner for the limited purpose of establishing the lien created by this chapter (2) Contract price means the amount agreed upon by the contracting parties or if no amount is agreed upon then the customary and reasonable charge therefor (3) Draws means periodic disbursements of interim or construction financing by a lender (4) Furnishing labor professional services materials or equipment means the performance of any labor or professional services the contribution owed to any employee benefit plan on account of any labor the provision of any supplies or materials and the renting leasing or

CCBA Nuts amp Bolts on Construction Law - 32 of 49

otherwise supplying of equipment for the improvement of real property (5) Improvement means (a) Constructing altering repairing remodeling demolishing clearing grading or filling in of to or upon any real property or street or road in front of or adjoining the same (b) planting of trees vines shrubs plants hedges or lawns or providing other landscaping materials on any real property and (c) providing professional services upon real property or in preparation for or in conjunction with the intended activities in (a) or (b) of this subsection (6) Interim or construction financing means that portion of money secured by a mortgage deed of trust or other encumbrance to finance improvement of or to real property but does not include (a) Funds to acquire real property (b) Funds to pay interest insurance premiums lease deposits taxes assessments or prior encumbrances (c) Funds to pay loan commitment title legal closing recording or appraisal fees (d) Funds to pay other customary fees which pursuant to agreement with the owner or borrower are to be paid by the lender from time to time (e) Funds to acquire personal property for which the potential lien claimant may not claim a lien pursuant to this chapter (7) Labor means exertion of the powers of body or mind performed at the site for compensation Labor includes amounts due and owed to any employee benefit plan on account of such labor performed (8) Mortgagee means a person who has a valid mortgage of record or deed of trust of record securing a loan (9) Owner-occupied means a single-family residence occupied by the owner as his or her principal residence (10) Payment bond means a surety bond issued by a surety licensed to issue surety bonds in the state of Washington that confers upon potential claimants the rights of third party beneficiaries (11) Potential lien claimant means any person or entity entitled to assert lien rights under this chapter who has otherwise complied with the provisions of this chapter and is registered or licensed if required to be licensed or registered by the provisions of the laws of the state of Washington (12) Prime contractor includes all contractors general contractors and specialty

CCBA Nuts amp Bolts on Construction Law - 33 of 49

contractors as defined by chapter 1827 or 1928 RCW or who are otherwise required to be registered or licensed by law who contract directly with a property owner or their common law agent to assume primary responsibility for the creation of an improvement to real property and includes property owners or their common law agents who are contractors general contractors or specialty contractors as defined in chapter 1827 or 1928 RCW or who are otherwise required to be registered or licensed by law who offer to sell their property without occupying or using the structures projects developments or improvements for more than one year (13) Professional services means surveying establishing or marking the boundaries of preparing maps plans or specifications for or inspecting testing or otherwise performing any other architectural or engineering services for the improvement of real property (14) Real property lender means a bank savings bank savings and loan association credit union mortgage company or other corporation association partnership trust or individual that makes loans secured by real property located in the state of Washington (15) Site means the real property which is or is to be improved (16) Subcontractor means a general contractor or specialty contractor as defined by chapter 1827 or 1928 RCW or who is otherwise required to be registered or licensed by law who contracts for the improvement of real property with someone other than the owner of the property or their common law agent

6004021 Lien authorized

Except as provided in RCW 6004031 any person furnishing labor professional services materials or equipment for the improvement of real property shall have a lien upon the improvement for the contract price of labor professional services materials or equipment furnished at the instance of the owner or the agent or construction agent of the owner

6004031 Notices mdash Exceptions

(1) Except as otherwise provided in this section every person furnishing professional services materials or equipment for the improvement of real property shall give the owner or reputed owner notice in writing of the right to claim a lien If the prime contractor is in compliance with the requirements of RCW 1927095 6004230 and 6004261 this notice shall also be given to the prime contractor as described in this subsection unless the potential lien claimant has contracted directly with the prime contractor The notice may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after the date which is sixty days before (a) Mailing the notice by certified or registered mail to the owner or reputed owner or

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(b) Delivering or serving the notice personally upon the owner or reputed owner and obtaining evidence of delivery in the form of a receipt or other acknowledgment signed by the owner or reputed owner or an affidavit of service In the case of new construction of a single-family residence the notice of a right to claim a lien may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after a date which is ten days before the notice is given as described in this subsection (2) Notices of a right to claim a lien shall not be required of (a) Persons who contract directly with the owner or the owners common law agent (b) Laborers whose claim of lien is based solely on performing labor or (c) Subcontractors who contract for the improvement of real property directly with the prime contractor except as provided in subsection (3)(b) of this section (3) Persons who furnish professional services materials or equipment in connection with the repair alteration or remodel of an existing owner-occupied single-family residence or appurtenant garage (a) Who contract directly with the owner-occupier or their common law agent shall not be required to send a written notice of the right to claim a lien and shall have a lien for the full amount due under their contract as provided in RCW 6004021 or (b) Who do not contract directly with the owner-occupier or their common law agent shall give notice of the right to claim a lien to the owner-occupier Liens of persons furnishing professional services materials or equipment who do not contract directly with the owner-occupier or their common law agent may only be satisfied from amounts not yet paid to the prime contractor by the owner at the time the notice described in this section is received regardless of whether amounts not yet paid to the prime contractor are due For the purposes of this subsection received means actual receipt of notice by personal service or registered or certified mail or three days after mailing by registered or certified mail excluding Saturdays Sundays or legal holidays (4) The notice of right to claim a lien described in subsection (1) of this section shall include but not be limited to the following information and shall substantially be in the following form using lower-case and upper-case ten-point type where appropriate

CCBA Nuts amp Bolts on Construction Law - 35 of 49

NOTICE TO OWNER

IMPORTANT READ BOTH SIDES OF THIS NOTICE CAREFULLY

PROTECT YOURSELF FROM PAYING TWICE

To Date

Re (description of property Street address or general location) From AT THE REQUEST OF (Name of person ordering the professional services materials or equipment) THIS IS NOT A LIEN This notice is sent to you to tell you who is providing professional services materials or equipment for the improvement of your property and to advise you of the rights of these persons and your responsibilities Also take note that laborers on your project may claim a lien without sending you a notice

OWNEROCCUPIER OF EXISTING

RESIDENTIAL PROPERTY

Under Washington law those who furnish labor professional services materials or equipment for the repair remodel or alteration of your owner-occupied principal residence and who are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien The law limits the amount that a lien claimant can claim against your property Claims may only be made against that portion of the contract price you have not yet paid to your prime contractor as of the time this notice was given to you or three days after this notice was mailed to you Review the back of this notice for more information and ways to avoid lien claims

COMMERCIAL ANDOR NEW

RESIDENTIAL PROPERTY

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We have or will be providing professional services materials or equipment for the improvement of your commercial or new residential project In the event you or your contractor fail to pay us we may file a lien against your property A lien may be claimed for all professional services materials or equipment furnished after a date that is sixty days before this notice was given to you or mailed to you unless the improvement to your property is the construction of a new single-family residence then ten days before this notice was given to you or mailed to you Sender Address Telephone Brief description of professional services materials or equipment provided or to be provided

IMPORTANT INFORMATION

ON REVERSE SIDE

IMPORTANT INFORMATION

FOR YOUR PROTECTION This notice is sent to inform you that we have or will provide professional services materials or equipment for the improvement of your property We expect to be paid by the person who ordered our services but if we are not paid we have the right to enforce our claim by filing a construction lien against your property LEARN more about the lien laws and the meaning of this notice by discussing them with your contractor suppliers Department of Labor and Industries the firm sending you this notice your lender or your attorney

COMMON METHODS TO AVOID CONSTRUCTION LIENS There are several methods available to protect your property from construction liens The following are two of the more commonly used methods

DUAL PAYCHECKS (Joint Checks) When paying your contractor for services or materials you may make checks payable jointly to the contractor and the firms furnishing you this notice

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LIEN RELEASES You may require your contractor to provide lien releases signed by all the suppliers and subcontractors from whom you have received this notice If they cannot obtain lien releases because you have not paid them you may use the dual payee check method to protect yourself

YOU SHOULD TAKE APPROPRIATE STEPS TO PROTECT YOUR PROPERTY FROM LIENS YOUR PRIME CONTRACTOR AND YOUR CONSTRUCTION LENDER ARE REQUIRED BY LAW TO GIVE YOU WRITTEN INFORMATION ABOUT LIEN CLAIMS IF YOU HAVE NOT RECEIVED IT ASK THEM FOR IT

(5) Every potential lien claimant providing professional services where no improvement as defined in RCW 6004011(5) (a) or (b) has been commenced and the professional services provided are not visible from an inspection of the real property may record in the real property records of the county where the property is located a notice which shall contain the professional service providers name address telephone number legal description of the property the owner or reputed owners name and the general nature of the professional services provided If such notice is not recorded the lien claimed shall be subordinate to the interest of any subsequent mortgagee and invalid as to the interest of any subsequent purchaser if the mortgagee or purchaser acts in good faith and for a valuable consideration acquires an interest in the property prior to the commencement of an improvement as defined in RCW 6004011(5) (a) or (b) without notice of the professional services being provided The notice described in this subsection shall be substantially in the following form

NOTICE OF FURNISHING

PROFESSIONAL SERVICES That on the (day) day of (month and year) (name of provider) began providing professional services upon or for the improvement of real property legally described as follows

[Legal Description is mandatory]

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The general nature of the professional services provided is The owner or reputed owner of the real property is

(Signature)

(Name of Claimant)

(Street Address)

(City State Zip Code)

(Phone Number)

(6) A lien authorized by this chapter shall not be enforced unless the lien claimant has complied with the applicable provisions of this section

6004041 Contractor registration

A contractor or subcontractor required to be registered under chapter 1827 RCW or licensed under chapter 1928 RCW or otherwise required to be registered or licensed by law shall be deemed the construction agent of the owner for the purposes of establishing the lien created by this chapter only if so registered or licensed Persons dealing with contractors or subcontractors may rely for the purposes of this section upon a certificate of registration issued pursuant to chapter 1827 RCW or license issued pursuant to chapter 1928 RCW or other certificate or license issued pursuant to law covering the period when the labor professional services material or equipment shall be furnished and the lien rights shall not be lost by suspension or revocation of registration or license without their knowledge No lien rights described in this

CCBA Nuts amp Bolts on Construction Law - 39 of 49

chapter shall be lost or denied by virtue of the absence suspension or revocation of such registration or license with respect to any contractor or subcontractor not in immediate contractual privity with the lien claimant

6004081 Frivolous claim mdash Procedure

(1) Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who believes the claim of lien to be frivolous and made without reasonable cause or clearly excessive may apply by motion to the superior court for the county where the property or some part thereof is located for an order directing the lien claimant to appear before the court at a time no earlier than six nor later than fifteen days following the date of service of the application and order on the lien claimant and show cause if any he or she has why the relief requested should not be granted The motion shall state the grounds upon which relief is asked and shall be supported by the affidavit of the applicant or his or her attorney setting forth a concise statement of the facts upon which the motion is based (2) The order shall clearly state that if the lien claimant fails to appear at the time and place noted the lien shall be released with prejudice and that the lien claimant shall be ordered to pay the costs requested by the applicant including reasonable attorneys fees (3) If no action to foreclose the lien claim has been filed the clerk of the court shall assign a cause number to the application and obtain from the applicant a filing fee pursuant to RCW 3618016 If an action has been filed to foreclose the lien claim the application shall be made a part of that action (4) If following a hearing on the matter the court determines that the lien is frivolous and made without reasonable cause or clearly excessive the court shall issue an order releasing the lien if frivolous and made without reasonable cause or reducing the lien if clearly excessive and awarding costs and reasonable attorneys fees to the applicant to be paid by the lien claimant If the court determines that the lien is not frivolous and was made with reasonable cause and is not clearly excessive the court shall issue an order so stating and awarding costs and reasonable attorneys fees to the lien claimant to be paid by the applicant (5) Proceedings under this section shall not affect other rights and remedies available to the parties under this chapter or otherwise

6004091 Recording mdash Time mdash Contents of lien

Every person claiming a lien under RCW 6004021 shall file for recording in the county where the subject property is located a notice of claim of lien not later than ninety days after the person

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has ceased to furnish labor professional services materials or equipment or the last date on which employee benefit contributions were due The notice of claim of lien (1) Shall state in substance and effect (a) The name phone number and address of the claimant (b) The first and last date on which the labor professional services materials or equipment was furnished or employee benefit contributions were due (c) The name of the person indebted to the claimant (d) The street address legal description or other description reasonably calculated to identify for a person familiar with the area the location of the real property to be charged with the lien (e) The name of the owner or reputed owner of the property if known and if not known that fact shall be stated and (f) The principal amount for which the lien is claimed (2) Shall be signed by the claimant or some person authorized to act on his or her behalf who shall affirmatively state they have read the notice of claim of lien and believe the notice of claim of lien to be true and correct under penalty of perjury and shall be acknowledged pursuant to chapter 6408 RCW If the lien has been assigned the name of the assignee shall be stated Where an action to foreclose the lien has been commenced such notice of claim of lien may be amended as pleadings may be by order of the court insofar as the interests of third parties are not adversely affected by such amendment A claim of lien substantially in the following form shall be sufficient

CLAIM OF LIEN

claimant vs name of person indebted to claimant

Notice is hereby given that the person named below claims a lien pursuant to chapter 6404 RCW In support of this lien the following information is submitted

1 NAME OF LIEN CLAIMANT

TELEPHONE NUMBER

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ADDRESS

2 DATE ON WHICH THE CLAIMANT BEGAN TO PERFORM LABOR PROVIDE PROFESSIONAL SERVICES SUPPLY MATERIAL OR EQUIPMENT OR THE DATE ON WHICH EMPLOYEE BENEFIT CONTRIBUTIONS BECAME DUE

3 NAME OF PERSON INDEBTED TO THE CLAIMANT

4 DESCRIPTION OF THE PROPERTY AGAINST WHICH A LIEN IS CLAIMED (Street address legal description or other information that will reasonably describe the property)

5 NAME OF THE OWNER OR REPUTED OWNER (If not known state unknown)

6 THE LAST DATE ON WHICH LABOR WAS PERFORMED PROFESSIONAL SERVICES WERE FURNISHED CONTRIBUTIONS TO AN EMPLOYEE BENEFIT PLAN WERE DUE OR MATERIAL OR EQUIPMENT WAS FURNISHED

7 PRINCIPAL AMOUNT FOR WHICH THE LIEN IS CLAIMED IS

8 IF THE CLAIMANT IS THE ASSIGNEE OF THIS CLAIM SO STATE HERE

Claimant

(Phone number address city

CCBA Nuts amp Bolts on Construction Law - 42 of 49

and

state of claimant)

STATE OF WASHINGTON COUNTY OF ss being sworn says I am the claimant (or attorney of the claimant or administrator representative or agent of the trustees of an employee benefit plan) above named I have read or heard the foregoing claim read and know the contents thereof and believe the same to be true and correct and that the claim of lien is not frivolous and is made with reasonable cause and is not clearly excessive under penalty of perjury Subscribed and sworn to before me this day of The period provided for recording the claim of lien is a period of limitation and no action to foreclose a lien shall be maintained unless the claim of lien is filed for recording within the ninety-day period stated The lien claimant shall give a copy of the claim of lien to the owner or reputed owner by mailing it by certified or registered mail or by personal service within fourteen days of the time the claim of lien is filed for recording Failure to do so results in a forfeiture of any right the claimant may have to attorneys fees and costs against the owner under RCW 6004181

6004161 Bond in lieu of claim

Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who disputes the correctness or validity of the claim of lien may record either before or after the commencement of an action to enforce the lien in the office of the county recorder or auditor in the county where the claim of lien was recorded a bond issued by a surety company authorized to issue surety bonds in the state The surety shall be listed in the latest federal department of the treasury list of surety companies acceptable on federal bonds published in the Federal Register as authorized to issue bonds on United States government projects with an underwriting limitation including applicable reinsurance equal to or greater than the amount of the bond to be recorded The bond shall contain a description of the claim of lien and real property involved and be in an amount equal to the greater of five thousand dollars or two times the amount of the lien claimed if it is ten thousand dollars or less and in an amount equal to or greater than one and one-half times the amount of the lien if it is in

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excess of ten thousand dollars If the claim of lien affects more than one parcel of real property and is segregated to each parcel the bond may be segregated the same as in the claim of lien A separate bond shall be required for each claim of lien made by separate claimants However a single bond may be used to guarantee payment of amounts claimed by more than one claim of lien by a single claimant so long as the amount of the bond meets the requirements of this section as applied to the aggregate sum of all claims by such claimant The condition of the bond shall be to guarantee payment of any judgment upon the lien in favor of the lien claimant entered in any action to recover the amount claimed in a claim of lien or on the claim asserted in the claim of lien The effect of recording a bond shall be to release the real property described in the notice of claim of lien from the lien and any action brought to recover the amount claimed Unless otherwise prohibited by law if no action is commenced to recover on a lien within the time specified in RCW 6004141 the surety shall be discharged from liability under the bond If an action is timely commenced then on payment of any judgment entered in the action or on payment of the full amount of the bond to the holder of the judgment whichever is less the surety shall be discharged from liability under the bond Nothing in this section shall in any way prohibit or limit the use of other methods devised by the affected parties to secure the obligation underlying a claim of lien and to obtain a release of real property from a claim of lien

6004181 Rank of lien mdash Application of proceeds mdash Attorneys fees

(1) In every case in which different construction liens are claimed against the same property the court shall declare the rank of such lien or class of liens which liens shall be in the following order (a) Liens for the performance of labor (b) Liens for contributions owed to employee benefit plans (c) Liens for furnishing material supplies or equipment (d) Liens for subcontractors including but not limited to their labor and materials and (e) Liens for prime contractors or for professional services (2) The proceeds of the sale of property must be applied to each lien or class of liens in order of its rank and in an action brought to foreclose a lien pro rata among each claimant in each separate priority class A personal judgment may be rendered against any party personally liable for any debt for which the lien is claimed If the lien is established the judgment shall provide

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for the enforcement thereof upon the property liable as in the case of foreclosure of judgment liens The amount realized by such enforcement of the lien shall be credited upon the proper personal judgment The deficiency if any remaining unsatisfied shall stand as a personal judgment and may be collected by execution against any party liable therefor (3) The court may allow the prevailing party in the action whether plaintiff or defendant as part of the costs of the action the moneys paid for recording the claim of lien costs of title report bond costs and attorneys fees and necessary expenses incurred by the attorney in the superior court court of appeals supreme court or arbitration as the court or arbitrator deems reasonable Such costs shall have the priority of the class of lien to which they are related as established by subsection (1) of this section (4) Real property against which a lien under this chapter is enforced may be ordered sold by the court and the proceeds deposited into the registry of the clerk of the court pending further determination respecting distribution of the proceeds of the sale

6004900 Liberal construction mdash 1991 c 281

RCW 1927095 6004230 and 6004011 through 6004226 and 6004261 are to be liberally construed to provide security for all parties intended to be protected by their provisions

RCW 6028011

Retained percentage mdash Public transportation projects mdash Labor and material lien created mdash Bond in lieu of retained funds mdash Termination before completion mdash Chapter deemed exclusive mdash Release of ferry contract payments mdash Projects of farmers home administration mdash General contractorconstruction manager procedure mdash Definitions

(1)(a) Except as provided in (b) of this subsection public improvement contracts must provide and public bodies must reserve a contract retainage not to exceed five percent of the moneys earned by the contractor as a trust fund for the protection and payment of (i) The claims of any person arising under the contract and (ii) the state with respect to taxes increases and penalties imposed pursuant to Titles 50 51 and 82 RCW which may be due from such contractor (b) Public improvement contracts funded in whole or in part by federal transportation funds must rely upon the contract bond as referred to in chapter 3908 RCW for the protection and payment of (i) The claims of any person or persons arising under the contract to the extent such claims are provided for in RCW 3908010 and (ii) the state with respect to taxes increases and penalties incurred on the public improvement project under Titles 50 51 and 82 RCW which may be due The contract bond must remain in full force and effect until at a minimum all claims filed in compliance with chapter 3908 RCW are resolved

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(2) Every person performing labor or furnishing supplies toward the completion of a public improvement contract has a lien upon moneys reserved by a public body under the provisions of a public improvement contract However the notice of the lien of the claimant must be given within forty-five days of completion of the contract work and in the manner provided in RCW 3908030 (3) The contractor at any time may request the contract retainage be reduced to one hundred percent of the value of the work remaining on the project (a) After completion of all contract work other than landscaping the contractor may request that the public body release and pay in full the amounts retained during the performance of the contract and sixty days thereafter the public body must release and pay in full the amounts retained (other than continuing retention of five percent of the moneys earned for landscaping) subject to the provisions of chapters 3912 and 6028 RCW (b) Sixty days after completion of all contract work the public body must release and pay in full the amounts retained during the performance of the contract subject to the provisions of chapters 3912 and 6028 RCW (4) The moneys reserved by a public body under the provisions of a public improvement contract at the option of the contractor must be (a) Retained in a fund by the public body (b) Deposited by the public body in an interest bearing account in a bank mutual savings bank or savings and loan association Interest on moneys reserved by a public body under the provision of a public improvement contract must be paid to the contractor (c) Placed in escrow with a bank or trust company by the public body When the moneys reserved are placed in escrow the public body must issue a check representing the sum of the moneys reserved payable to the bank or trust company and the contractor jointly This check must be converted into bonds and securities chosen by the contractor and approved by the public body and the bonds and securities must be held in escrow Interest on the bonds and securities must be paid to the contractor as the interest accrues (5) The contractor or subcontractor may withhold payment of not more than five percent from the moneys earned by any subcontractor or sub-subcontractor or supplier contracted with by the contractor to provide labor materials or equipment to the public project Whenever the contractor or subcontractor reserves funds earned by a subcontractor or sub-subcontractor or

CCBA Nuts amp Bolts on Construction Law - 46 of 49

supplier the contractor or subcontractor must pay interest to the subcontractor or sub-subcontractor or supplier at a rate equal to that received by the contractor or subcontractor from reserved funds (6) A contractor may submit a bond for all or any portion of the contract retainage in a form acceptable to the public body and from a bonding company meeting standards established by the public body The public body must accept a bond meeting these requirements unless the public body can demonstrate good cause for refusing to accept it This bond and any proceeds therefrom are subject to all claims and liens and in the same manner and priority as set forth for retained percentages in this chapter The public body must release the bonded portion of the retained funds to the contractor within thirty days of accepting the bond from the contractor Whenever a public body accepts a bond in lieu of retained funds from a contractor the contractor must accept like bonds from any subcontractors or suppliers from which the contractor has retained funds The contractor must then release the funds retained from the subcontractor or supplier to the subcontractor or supplier within thirty days of accepting the bond from the subcontractor or supplier (7) If the public body administering a contract after a substantial portion of the work has been completed finds that an unreasonable delay will occur in the completion of the remaining portion of the contract for any reason not the result of a breach thereof it may if the contractor agrees delete from the contract the remaining work and accept as final the improvement at the stage of completion then attained and make payment in proportion to the amount of the work accomplished and in this case any amounts retained and accumulated under this section must be held for a period of sixty days following the completion In the event that the work is terminated before final completion as provided in this section the public body may thereafter enter into a new contract with the same contractor to perform the remaining work or improvement for an amount equal to or less than the cost of the remaining work as was provided for in the original contract without advertisement or bid The provisions of this chapter are exclusive and supersede all provisions and regulations in conflict herewith (8) Whenever the department of transportation has contracted for the construction of two or more ferry vessels sixty days after completion of all contract work on each ferry vessel the department must release and pay in full the amounts retained in connection with the construction of the vessel subject to the provisions of RCW 6028021 and chapter 3912 RCW However the department of transportation may at its discretion condition the release of funds retained in connection with the completed ferry upon the contractor delivering a good and sufficient bond with two or more sureties or with a surety company in the amount of the retained funds to be released to the contractor conditioned that no taxes may be certified or claims filed for work on the ferry after a period of sixty days following completion of the ferry and if taxes are certified or claims filed recovery may be had on the bond by the department of revenue the employment

CCBA Nuts amp Bolts on Construction Law - 47 of 49

security department the department of labor and industries and the material suppliers and laborers filing claims (9) Except as provided in subsection (1) of this section reservation by a public body for any purpose from the moneys earned by a contractor by fulfilling its responsibilities under public improvement contracts is prohibited (10) Contracts on projects funded in whole or in part by farmers home administration and subject to farmers home administration regulations are not subject to subsections (1) through (9) of this section (11) This subsection applies only to a public body that has contracted for the construction of a facility using the general contractorconstruction manager procedure as defined under RCW 3910210 If the work performed by a subcontractor on the project has been completed within the first half of the time provided in the general contractorconstruction manager contract for completing the work the public body may accept the completion of the subcontract The public body must give public notice of this acceptance After a forty-five day period for giving notice of liens and compliance with the retainage release procedures in RCW 6028021 the public body may release that portion of the retained funds associated with the subcontract Claims against the retained funds after the forty-five day period are not valid (12) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise (a) Contract retainage means an amount reserved by a public body from the moneys earned by a person under a public improvement contract (b) Person means a person or persons mechanic subcontractor or materialperson who performs labor or provides materials for a public improvement contract and any other person who supplies the person with provisions or supplies for the carrying on of a public improvement contract (c) Public body means the state or a county city town district board or other public body (d) Public improvement contract means a contract for public improvements or work other than for professional services or a work order as defined in RCW 3910210

CCBA Nuts amp Bolts on Construction Law - 48 of 49

RCW 6432070 Liens or encumbrances mdash Enforcement mdash Satisfaction

(1) Subsequent to recording the declaration as provided in this chapter and while the property remains subject to this chapter no lien shall thereafter arise or be effective against the property During such period liens or encumbrances shall arise or be created only against each apartment and the percentage of undivided interest in the common areas and facilities and appurtenant to such apartment in the same manner and under the same conditions in every respect as liens or encumbrances may arise or be created upon or against any other separate parcel of real property subject to individual ownership PROVIDED That no labor performed or materials furnished with the consent of or at the request of the owner of any apartment or such owners agent contractor or subcontractor shall be the basis for the filing of a lien against any other apartment or any other property of any other apartment owner not expressly consenting to or requesting the same except that such express consent shall be deemed to be given by any apartment owner in the case of emergency repairs Labor performed or materials furnished for the common areas and facilities if authorized by the association of apartment owners the manager or board of directors shall be deemed to be performed or furnished with the express consent of each apartment owner and shall be the basis for the filing of a lien against each of the apartments and shall be subject to the provisions of subsection (2) of this section (2) In the event a lien against two or more apartments becomes effective the apartment owners of the separate apartments may remove their apartment and the percentage of undivided interest in the common areas and facilities appurtenant to such apartment from the lien by payment of the fractional or proportional amounts attributable to each of the apartments affected Such individual payments shall be computed by reference to the percentages appearing on the declaration Subsequent to any such payment discharge or satisfaction the apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto shall thereafter be free and clear of the liens so paid satisfied or discharged Such partial payment satisfaction or discharge shall not prevent the lienor from proceeding to enforce his or her rights against any apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto not so paid satisfied or discharged

CCBA Nuts amp Bolts on Construction Law - 49 of 49

  • Cover Sheet
  • 20141110 - Washington Lien and Bond CLE
  • LampI Lien Summary
  • Claim of Lien
  • Form Notice to Owner
  • Model Disclosure Statement (Notice to Customer)
  • LampI Facts about Construction Liens
    • What you should know about contracts
    • How to protect your investment
    • For more information
      • Notice of Claim Against Bond and Retained Percentage
      • Preclaim Notice Bond amp Retained Percentage
      • Statute Handout
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 DEU 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 ESP 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 FRA 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ltFEFF9ad854c18cea306a30d730ea30d730ec30b951fa529b7528002000410064006f0062006500200050004400460020658766f8306e4f5c6210306b4f7f75283057307e305930023053306e8a2d5b9a30674f5c62103055308c305f0020005000440046002030d530a130a430eb306f3001004100630072006f0062006100740020304a30883073002000410064006f00620065002000520065006100640065007200200035002e003000204ee5964d3067958b304f30533068304c3067304d307e305930023053306e8a2d5b9a306b306f30d530a930f330c8306e57cb30818fbc307f304c5fc59808306730593002gt KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020ace0d488c9c80020c2dcd5d80020c778c1c4c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200035002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor prepress-afdrukken van hoge kwaliteit De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 50 en hoger) NOR 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 PTB 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ltFEFF004b00e40079007400e40020006e00e40069007400e4002000610073006500740075006b007300690061002c0020006b0075006e0020006c0075006f00740020006c00e400680069006e006e00e4002000760061006100740069007600610061006e0020007000610069006e006100740075006b00730065006e002000760061006c006d0069007300740065006c00750074007900f6006800f6006e00200073006f00700069007600690061002000410064006f0062006500200050004400460020002d0064006f006b0075006d0065006e007400740065006a0061002e0020004c0075006f0064007500740020005000440046002d0064006f006b0075006d0065006e00740069007400200076006f0069006400610061006e0020006100760061007400610020004100630072006f0062006100740069006c006c00610020006a0061002000410064006f00620065002000520065006100640065007200200035002e0030003a006c006c00610020006a006100200075007500640065006d006d0069006c006c0061002egt SVE ltFEFF0041006e007600e4006e00640020006400650020006800e4007200200069006e0073007400e4006c006c006e0069006e006700610072006e00610020006f006d002000640075002000760069006c006c00200073006b006100700061002000410064006f006200650020005000440046002d0064006f006b0075006d0065006e007400200073006f006d002000e400720020006c00e4006d0070006c0069006700610020006600f60072002000700072006500700072006500730073002d007500740073006b00720069006600740020006d006500640020006800f600670020006b00760061006c0069007400650074002e002000200053006b006100700061006400650020005000440046002d0064006f006b0075006d0065006e00740020006b0061006e002000f600700070006e00610073002000690020004100630072006f0062006100740020006f00630068002000410064006f00620065002000520065006100640065007200200035002e00300020006f00630068002000730065006e006100720065002egt ENU (Use these settings to create Adobe PDF documents best suited for high-quality prepress printing Created PDF documents can be opened with Acrobat and Adobe Reader 50 and later) gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false ConvertColors ConvertToCMYK DestinationProfileName () DestinationProfileSelector DocumentCMYK Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles false MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector DocumentCMYK PreserveEditing true UntaggedCMYKHandling LeaveUntagged UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ]gtgt setdistillerparamsltlt HWResolution [2400 2400] PageSize [612000 792000]gtgt setpagedevice

          1. To
          2. Date
          3. Re
          4. From
          5. AT THE REQUEST OF
          6. Sender
          7. Address
          8. Telephone
          9. Brief description of professional services materials or equipment provided or to be provided
          10. 1
          11. 2
          12. 3
          13. reg no
          14. deposit $
          15. expiration date
          16. claims up to $
          17. Reset

11122014

13

Immix Law Group Washington Lien and Bond Claims

Public Contracts Bond amp Retainage Claims

bull Practice Pointer Coordinate the filing of the retention and bond Preclaim Notice and Notice of Claim to ensure that the contractorrsquos claims are protected

bull File the Bond amp Retainage Preclaim Notice within 10 days after starting work

bull File the Bond amp Retainage Notice of Claim within 30 days from project completion

Immix Law Group Washington Lien and Bond Claims

Public Contracts Prompt Pay ActWashingtonrsquos Prompt Pay Act

bull Prime contractors are entitled to payment within 30 days after the public agencyrsquos receipt of the invoice

bull If the public agency intends to withhold payment (all or in part) the agency must notify the contractor in writing within 8 days of receipt stating

bull Why payment (all or part) is being withheld

bull Actions required by contractor in order to receive payment

Immix Law Group Washington Lien and Bond Claims

Public Contracts Prompt Pay ActWashingtonrsquos Prompt Pay Act (contrsquod)

bull Public agency can withhold up to 150 of the disputed amount

bull Failure to comply entitles the contractor to 1 interest per month until paid

bull Subcontractors must be paid within 10 days of prime contractorrsquos receipt of payment

CCBA Nuts amp Bolts on Construction Law - 14 of 49

11122014

14

Immix Law Group

Questions

CCBA Nuts amp Bolts on Construction Law - 15 of 49

SUMMARY OF THE REQUIREMENTS TO BE MET BY A LIEN CLAIMANT ON A WASHINGTON PRIVATE CONSTRUCTION PROJECT

NOTICE TO CUSTOMER

FROM

Prime Contractor working on four or fewer residential units when the contract price is $1000 or more or on a commercial building when the contract price is $1000 or more but less than $60000

TO Owner

WHEN Before starting construction NOTICE OF FURNISHING PROFESSIONAL SERVICES

FROM

Provider of professional services

TO County Recorder

WHEN As soon as professional services are commenced PRECLAIM NOTICE (for all projects except repair and remodeling of owner-occupied single-family residence)

FROM

Provider of professional services materials or equipment except that the following need not provide the notice (1) a provider that contracts directly with the owner or the owners actual agent or (2) a first tier subcontractor

TO Owner and usually also prime contractor

WHEN New single family residence within ten days of first supplying professional services materials or equipment All other projects within 60 days of first supplying professional services materials or equipment

PRECLAIM NOTICE (for repair and remodeling of owner-occupied single-family residence)

FROM

Provider of professional services materials or equipment to anyone other than the owner

TO Owner and usually also prime contractor

WHEN Immediately after agreeing to furnish professional services materials or equipment

FROM

Potential lien claimant to whom payment is five or more days overdue

NOTICE TO REAL PROPERTY LENDER (only applicable where there is not a payment bond of at least 50 of the amount of construction financing)

TO Construction lender owner and prime contractor

WHEN Within 35 days of date payment is due

CLAIM OF LIEN

FROM

Unpaid claimant

TO County Recorder

WHEN Not later than 90 days after the last furnishing of labor professional services materials or equipment or the last date on which employee benefit contributions were due

COPY OF CLAIM OF LIEN

FROM

Unpaid claimant

TO Owner

WHEN Within 14 days of date claim of lien is filed for recording

DEADLINE FOR FILING A LAWSUIT Within eight months of recording claim of lien

F625-055-000 const lien summary 2-96 This summary is intended to generally set forth the requirements applicable to most lien claimants The remainder of the chapter should be consulted for a more detailed discussion

CCBA Nuts amp Bolts on Construction Law - 16 of 49

CLAIM OF LIEN SIGNED BY ATTORNEY

Return Address __________________________ __________________________ __________________________

Document Title Claim of Lien

Reference Number _____________________________

Grantor _____________________________

Grantee _____________________________

Legal Description

Assessors Property Tax Parcel No

CLAIM OF LIEN

________________________ claimant vs _____________________________ name of persons indebted to claimant

Notice is hereby given that the person named below claims a lien pursuant to Chapter 6004 RCW In

support of this lien the following information is submitted

1 NAME OF LIEN CLAIMANT ______________________________________

TELEPHONE NUMBER ______________________________________

ADDRESS ______________________________________

______________________________________

2 DATE ON WHICH THE CLAIMANT BEGAN TO PERFORM LABOR PROVIDE PROFESSIONAL SERVICES SUPPLY MATERIAL OR EQUIPMENT OR THE DATE ON WHICH EMPLOYEE BENEFIT CONTRIBUTIONS BECOMES DUE _________

3 NAME OF PERSON INDEBTED TO THE CLAIMANT _________________

4 DESCRIPTIONOF THE PROPERTY AGAINST WHICH A LIEN IS CLAIMED All fee leasehold and other interests of _______________ and any other owner person or entity in the property commonly known as ___________________________located at _______________________ _________________________ _________________County Washington _______ the legal description of which is believed to be as follows

[Legal Description - andor - The legal description of the underlying real property is described on the attached Exhibit A]

CCBA Nuts amp Bolts on Construction Law - 17 of 49

5 NAME OF THE OWNER OR REPUTED OWNER (if not known state ldquounknownrdquo) ____________________________________________________________________________________________

6 THE LAST DATE ON WHICH LABOR WAS PERFORMED PROFESSIONAL SERVICES WERE FURNISHED CONTRIBUTIONS TO AN EMPLOYEE BENEFIT PLAN WERE DUE OR MATERIAL OR EQUIPMENT WAS FURNISHED _____________________________________________________________

7 PRINCIPAL AMOUNT FOR WHICH THE LIEN IS CLAIMED IS $_______

8 IF THE CLAIMANT IS THE ASSIGNEE OF THIS CLAIM SO STATE HERE ___

___________________ Claimant ___________________________

___________________________ (__)____-______

By ________s________________ Print Name ___________________ Its Attorney

STATE OF WASHINGTON )

SS COUNTYOF ____________ )

________________ being sworn says I am the attorney of the claimant above named I have read or heard the foregoing claim read and know the contents thereof and believe the same to be true and correct and that the claim of lien is not frivolous and is made with reasonable cause and is not clearly excessive under penalty of perjury

__________________________ Print Name _______________

SUBSCRIBED and SWORN to before me this ___day of ___________________ 201_

STATE OF WASHINGTON )

SS COUNTYOF ____________ )

[Seal or Stamp]

__________________________ Print Name _______________ Notary Public in and for the State of Washington residing at________________________________ My Commission Expires __________________

CCBA Nuts amp Bolts on Construction Law - 18 of 49

I certify that I know or have satisfactory evidence that___________________ is the person who appeared before me and said person acknowledged that [heshe] signed this instrument on oath stated that [heshe] was authorized to execute this instrument and acknowledged it as the attorney of___________________ to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument

CCBA Nuts amp Bolts on Construction Law - 19 of 49

F625-054-000 construction lien notice 11-05 IMPORTANT INFORMATION ON PAGE 2

NOTICE TO OWNER IMPORTANT READ BOTH SIDES OF THIS NOTICE CAREFULLY

PROTECT YOURSELF FROM PAYING TWICE

To

Date

Re

From (Description of property street address or general location)

AT THE REQUEST OF Name of person ordering their professional services materials or equipment

THIS IS NOT A LIEN This notice is sent to you to tell you who is providing professional services materials or equipment for the improvement of your property and to advise you of the rights of these persons and your responsibilities Also take notice that laborers on your project may claim a lien without sending you a notice

OWNEROCCUPIER OF EXISTING RESIDENTIAL PROPERTY Under Washington law those who furnish labor professional services materials or equipment for the repair remodel or alteration of you owner-occupied principal residence and who are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien The law limits the amount that a lien claimant can claim against your property Claims may only be made against that portion of the contract price you have not yet paid to your prime contractor as of the time this notice was given to you or three days after this notice was mailed to you Review page 2 of this notice for more information and ways to avoid lien claims

COMMERCIAL ANDOR NEW RESIDENTIAL PROPERTY We have or will be providing professional services materials or equipment for the improvement of your commercial or new residential project In the event you or your contractor fail to pay us we may file a lien against your property A lien may be claimed for all professional services materials or equipment furnished after a date that is sixty days before this notice was given to you or mailed to you unless the improvement to you property is the construction of a new single-family residence then ten days before this notice was given to you or mailed to you

Sender

Address

Telephone

Brief description of professional services materials or equipment provided or to be provided

CCBA Nuts amp Bolts on Construction Law - 20 of 49

F625-054-000 construction lien notice page 2 11-05

Important Information for your Protection

This notice is sent to inform you that we have or will provide professional services materials or equipment for the repair remodel or alteration of you property We expect to be paid by the person who ordered our services but if we are not paid we have the right to enforce our claim by filing a construction lien against your property

LEARN more about the lien laws and the meaning of this notice by

discussing them with our contractor suppliers Department of Labor and Industries the firm sending you this notice your lender or your attorney

COMMON METHODS TO AVOID CONSTRUCTION LIENS

There are several methods available to protect your property from construction liens The following are two of the more commonly used methods

DUAL PAYCHECKS (Joint Checks) When paying your

contractor for services or materials you may make checks payable jointly to the contractor and the firms furnishing you this notice

LIEN RELEASES You may require your contractor to provide

lien releases signed by all the suppliers and subcontractors from whom you have received this notice If they cannot obtain lien releases because you have not paid them you may use the dual payee check method to protect yourself

You should take appropriate steps to protect your property from

liens

Your prime contractor and your construction lender are required by law to give you written information about lien claims If you have not received it ask them for it

CCBA Nuts amp Bolts on Construction Law - 21 of 49

F625-030-000 model disclosure statement notice to customer 09-2007

Department of Labor and Industries Construction Compliance

MODEL DISCLOSURE STATEMENTNOTICE TO CUSTOMER

This contractor is registered with the state of Washington registration no____________________ and has posted with the state a bond or deposit of ______________________ for the purpose of satisfying claims against the contractor for breach of contract including negligent or improper work in the conduct of the contractorrsquos business The expiration date of this contractorrsquos registration is ______________________

THIS BOND OR DEPOSIT MIGHT NOT BE SUFFICIENT TO COVER A CLAIM THAT MIGHT ARISE FROM THE WORK DONE UNDER YOUR CONTRACT This bond or deposit is not for your exclusive use because it covers all work performed by this contractor The bond or deposit is intended to pay valid claims up to ___________________________ that you and other customers suppliers subcontractors or taxing authorities may have FOR GREATER PROTECTION YOU MAY WITHHOLD A PERCENTAGE OF YOUR CONTRACT You may withhold a contractually defined percentage of your construction contract as retainage for a stated period of time to provide protection to you and help insure that your project will be completed as required by your contract

YOUR PROPERTY MAY BE LIENED If a supplier of materials used in your construction project or an employee or subcontractor of your contractor or subcontractors is not paid your property may be liened to force payment and you could pay twice for the same work FOR ADDITIONAL PROTECTION YOU MAY REQUEST THE CONTRACTOR TO PROVIDE YOU WITH ORIGINAL ldquoLIEN RELEASErdquo DOCUMENTS FROM EACH SUPPLIER OR SUBCONTRACTOR AT YOUR PROJECT The contractor is required to provide you with further information about lien release document if you request it General information is also available from the state Department of Labor and Industries I have received a copy of this disclosure statement Dated this _______ day of _______________ of the year __________

_____________________________________________________ Signature of Customer The contractor must retain a signed copy of the disclosure statement in his or her files for a minimum of three years and produce a signed or electronic signature copy of the disclosure statement to the department upon request

CCBA Nuts amp Bolts on Construction Law - 22 of 49

Facts About Construction LiensWhat you should know about contractsIf your contractor fails to pay subcontractors suppliers or laborers or neglects to make other legally required payments those who are owed money can look to your property for payment even if you have paid your contractor in full This is true if you have hired a contractor to build a new home or are buying a newly built home

It is also true when you remodel or improve your property although the amount of your liability may be limited to the amount you owe the prime contractor at the time a lien is filed

Under Washington laws those who work on your property or provide materials and are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien

People who supply materials or labor ordered by your contractor are permitted by law to file a lien only if they do so within 90 days of cessation of performance or delivery of materials The time frame is spelled out in RCW 6004091

If you enter into a contract to buy a newly built home you may not receive a notice of a lien based on a claim by a contractor or material handler Be aware that a lien may be claimed even though you have not received a notice

Before making final payment on the project request a completed lien release form from each contractor and material supplier A sample of this release of lien form is available from the Department of Labor amp Industries Contractor Registration Section

You have final responsibility for seeing that all bills are paid even if you have paid your contractor in full

If you receive a notice to enforce a lien take the notice seriously Let your contractor know you have received the notice Find out what arrangements are being made to pay the sender of the notice

When in doubt or if you need more details consult your attorney When and how to pay your contractor is a decision that requires serious consideration

Reminder Washington laws require contractors to give you a disclosure statement if your contract exceeds $1000 [RCW 1827114(A) or (B)]

CCBA Nuts amp Bolts on Construction Law - 23 of 49

PUBLICATION F625-017-000 [01-2008]

Other formats for persons with disabilities are available on request Call 1-800-647-0982 TDD users call 360-902-5797 LampI is an equal opportunity employer

For more information

How to protect your investment

If you are dealing with a lending institution ask your loan officer what precautions the lending institution takes to verify that subcontractors and material suppliers are being paid when mortgage money is paid to your contractor

Request lender supervision when dealing with a lending institution that provides interim or construction financing

Ask the prime contractor to disclose all potential lien claimants as a condition of payment A lien claimant must mail (by certified or registered mail or by personal service) a copy of the claim of lien to the owner within 14 days of the time the lien is recorded [RCW 6004091(2)] While an action is ongoing an owner may withhold from this prime contractor the amount of money for which a claim is recorded by a subcontractor supplier or laborer [RCW 6004151]

It is recommended that your check be made payable jointly naming the contractor and the subcontractor or supplier as payees

Upon payment and acceptance of the amount due the owner has the right to an executed release of all lien rights by lien claimants [RCW 6004071]

Consider using an escrow agent to protect your interests Find out whether your escrow agent will protect you against liens when disbursing payments If you are interested in this alternative consult your attorney

Request that your contractor post a performance bond in the amount of the project cost That will give you recourse in the event the contractor fails to complete the building agreement

8 On the Web Find more information about hiring a contractor at

wwwLniwagovTradesLicensingContractorsHireCon

Contractor Registration Hotline1-800-647-0982

You may also call your local LampI office See listings under ldquoWashington State ofrdquo in the government section or the white pages of the telephone book

Please note This notice was prepared by the Department of Labor amp Industries Specialty Compliance Services Division for reproduction by lending institutions and contractors for distribution to their clients It explains the basics of the construction lien law to help you protect yourself This information is not a reflection upon the abilities or credit of your contractor

CCBA Nuts amp Bolts on Construction Law - 24 of 49

NOTICE OF CLAIM AGAINST

BOND AND RETAINED PERCENTAGE

RCW 3908030 RCW 6028010

VIA CERTIFIED MAIL ndash RETURN RECEIPT REQUESTED

TO [Public Owner] [Public Ownerrsquos Address]

Project [Project Name amp Address] NOTICE IS HEREBY GIVEN that the undersigned [Claimant] [Claimantrsquos Address] has a claim in the amount of ----- and 00100 Dollars ($XX) (not including attorneysrsquo fees or costs) together with interest at twelve percent (12) against [Public Owner] (ldquoOwnerrdquo) pursuant to RCW 6028 and the payment bond taken from [Prime Contractor] (ldquoContractorrdquo) [Prime Contractorrsquos Address] as principal and [Surety Company] (ldquoSuretyrdquo) [Suretyrsquos Address] as surety Bond No ________ pursuant to RCW 3908 for [describe services material supplies labor furnished] provided on the Project This Notice of Claim Against Bond and Retained Percentage supersedes and replaces previous Notices DATED This ___day of _________ 201_ [Claimant] By ______________________________________ Its ______________________________________ [Claimantrsquos Address]

_________________________________________

[Contractors Registration No if applicable]

(Copies furnished to General Contractor and General Contractorrsquos Bonding Company)

CCBA Nuts amp Bolts on Construction Law - 25 of 49

PRECLAIM NOTICE TO CONTRACTOR BY SUBCONTRACTORS MATERIALMEN OR SUPPLIERS FOR

CLAIM AGAINST BOND AND RETAINED PERCENTAGE

VIA CERTIFIED OR REGISTERED MAIL- RETURN RECEIPT REQUESTED

TO [Name of General Contractor] [Address]

YOU ARE HEREBY NOTIFIED that the undersigned ____________at the request of_________________ commenced to deliver or furnish materials supplies andor equipment for the use in the construction alteration andor repair of that certain project known as____________________ [project name] which is located at ____________________________ [address or description] If the undersigned is not paid for these materials supplies andor equipment it will file a claim against you and your bond andor retainage pursuant to RCW 3908 andor 6028 et seq for payment of any sum that is due and owing to the undersigned

DATED This __ day of _____________ 201_

[Name of Claimant]

By ____________________________________

Its ____________________________________

Address ______________________________

__________________________________________

__________________________________________

[Contractors Registration No if applicable]

(Mail via certified mail return receipt requested or hand deliver and obtain receipt)

CCBA Nuts amp Bolts on Construction Law - 26 of 49

Washington Liens amp Bonds ndash Pertinent Statutes

RCW 1827040 Bond or other security required mdash Actions against mdash Suspension of registration upon impairment (1) Each applicant shall file with the department a surety bond issued by a surety insurer who meets the requirements of chapter 4828 RCW in the sum of twelve thousand dollars if the applicant is a general contractor and six thousand dollars if the applicant is a specialty contractor If no valid bond is already on file with the department at the time the application is filed a bond must accompany the registration application The bond shall have the state of Washington named as obligee with good and sufficient surety in a form to be approved by the department The bond shall be continuous and may be canceled by the surety upon the surety giving written notice to the director A cancellation or revocation of the bond or withdrawal of the surety from the bond automatically suspends the registration issued to the contractor until a new bond or reinstatement notice has been filed and approved as provided in this section The bond shall be conditioned that the applicant will pay all persons performing labor including employee benefits for the contractor will pay all taxes and contributions due to the state of Washington and will pay all persons furnishing material or renting or supplying equipment to the contractor and will pay all amounts that may be adjudged against the contractor by reason of breach of contract including improper work in the conduct of the contracting business A change in the name of a business or a change in the type of business entity shall not impair a bond for the purposes of this section so long as one of the original applicants for such bond maintains partial ownership in the business covered by the bond (2) At the time of initial registration or renewal the contractor shall provide a bond or other security deposit as required by this chapter and comply with all of the other provisions of this chapter before the department shall issue or renew the contractors certificate of registration Any contractor registered as of July 1 2001 who maintains that registration in accordance with this chapter is in compliance with this chapter until the next renewal of the contractors certificate of registration (3) Any person firm or corporation having a claim against the contractor for any of the items referred to in this section may bring suit against the contractor and the bond or deposit in the superior court of the county in which the work was done or of any county in which jurisdiction of the contractor may be had The surety issuing the bond shall be named as a party to any suit upon the bond Action upon the bond or deposit brought by a residential homeowner for breach of contract by a party to the construction contract shall be commenced by filing the summons and complaint with the clerk of the appropriate superior court within two years from the date the claimed contract work was substantially completed or abandoned whichever occurred first Action upon the bond or deposit brought by any other authorized party shall be commenced by filing the summons and complaint with the clerk of the appropriate superior court within one year from the date the claimed labor was performed and benefits accrued taxes and contributions owing the state of Washington became due materials and equipment were furnished or the claimed contract work was substantially completed or abandoned whichever occurred first Service of process in an action filed under this chapter against the contractor and the contractors bond or the deposit shall be exclusively by service upon the department Three

CCBA Nuts amp Bolts on Construction Law - 27 of 49

copies of the summons and complaint and a fee adopted by rule of not less than fifty dollars to cover the costs shall be served by registered or certified mail or other delivery service requiring notice of receipt upon the department at the time suit is started and the department shall maintain a record available for public inspection of all suits so commenced Service is not complete until the department receives the fee and three copies of the summons and complaint The service shall constitute service and confer personal jurisdiction on the contractor and the surety for suit on claimants claim against the contractor and the bond or deposit and the department shall transmit the summons and complaint or a copy thereof to the contractor at the address listed in the contractors application and to the surety within two days after it shall have been received (4) The surety upon the bond shall not be liable in an aggregate amount in excess of the amount named in the bond nor for any monetary penalty assessed pursuant to this chapter for an infraction The liability of the surety shall not cumulate where the bond has been renewed continued reinstated reissued or otherwise extended The surety upon the bond may upon notice to the department and the parties tender to the clerk of the court having jurisdiction of the action an amount equal to the claims thereunder or the amount of the bond less the amount of judgments if any previously satisfied therefrom and to the extent of such tender the surety upon the bond shall be exonerated but if the actions commenced and pending and provided to the department as required in subsection (3) of this section at any one time exceed the amount of the bond then unimpaired claims shall be satisfied from the bond in the following order (a) Employee labor and claims of laborers including employee benefits (b) Claims for breach of contract by a party to the construction contract (c) Registered or licensed subcontractors material and equipment (d) Taxes and contributions due the state of Washington (e) Any court costs interest and attorneys fees plaintiff may be entitled to recover The surety is not liable for any amount in excess of the penal limit of its bond A payment made by the surety in good faith exonerates the bond to the extent of any payment made by the surety (5) The total amount paid from a bond or deposit required of a general contractor by this section to claimants other than residential homeowners must not exceed one-half of the bond amount The total amount paid from a bond or deposit required of a specialty contractor by this section to claimants other than residential homeowners must not exceed one-half of the bond amount or four thousand dollars whichever is greater (6) The prevailing party in an action filed under this section against the contractor and contractors bond or deposit for breach of contract by a party to the construction contract involving a residential homeowner is entitled to costs interest and reasonable attorneys fees The surety upon the bond or deposit is not liable in an aggregate amount in excess of the amount

CCBA Nuts amp Bolts on Construction Law - 28 of 49

named in the bond or deposit nor for any monetary penalty assessed pursuant to this chapter for an infraction (7) If a final judgment impairs the liability of the surety upon the bond or deposit so furnished that there is not in effect a bond or deposit in the full amount prescribed in this section the registration of the contractor is automatically suspended until the bond or deposit liability in the required amount unimpaired by unsatisfied judgment claims is furnished (8) In lieu of the surety bond required by this section the contractor may file with the department an assigned savings account upon forms provided by the department (9) Any person having filed and served a summons and complaint as required by this section having an unsatisfied final judgment against the registrant for any items referred to in this section may execute upon the security held by the department by serving a certified copy of the unsatisfied final judgment by registered or certified mail upon the department within one year of the date of entry of such judgment Upon the receipt of service of such certified copy the department shall pay or order paid from the deposit through the registry of the superior court which rendered judgment towards the amount of the unsatisfied judgment The priority of payment by the department shall be the order of receipt by the department but the department shall have no liability for payment in excess of the amount of the deposit (10) Within ten days after resolution of the case a certified copy of the final judgment and order or any settlement documents where a case is not disposed of by a court trial a certified copy of the dispositive settlement documents must be provided to the department by the prevailing party Failure to provide a copy of the final judgment and order or the dispositive settlement documents to the department within ten days of entry of such an order constitutes a violation of this chapter and a penalty adopted by rule of not less than two hundred fifty dollars may be assessed against the prevailing party (11) The director may require an applicant applying to renew or reinstate a registration or applying for a new registration to file a bond of up to three times the normally required amount if the director determines that an applicant or a previous registration of a corporate officer owner or partner of a current applicant has had in the past five years a total of three final judgments in actions under this chapter involving a residential single-family dwelling on two or more different structures (12) The director may adopt rules necessary for the proper administration of the security RCW 1827114 Disclosure statement required mdash Prerequisite to lien claim

(1) Any contractor agreeing to perform any contracting project (a) For the repair alteration or construction of four or fewer residential units or accessory structures on such residential property when the bid or contract price totals one thousand dollars or more or (b) for the repair alteration or construction of a commercial building when the bid or contract price totals one thousand dollars or more but less than sixty thousand dollars must provide the customer with

CCBA Nuts amp Bolts on Construction Law - 29 of 49

the following disclosure statement in substantially the following form using lower case and upper case twelve-point and bold type where appropriate prior to starting work on the project NOTICE TO CUSTOMER This contractor is registered with the state of Washington registration no and has posted with the state a bond or deposit of for the purpose of satisfying claims against the contractor for breach of contract including negligent or improper work in the conduct of the contractors business The expiration date of this contractors registration is THIS BOND OR DEPOSIT MIGHT NOT BE SUFFICIENT TO COVER A CLAIM THAT MIGHT ARISE FROM THE WORK DONE UNDER YOUR CONTRACT This bond or deposit is not for your exclusive use because it covers all work performed by this contractor The bond or deposit is intended to pay valid claims up to that you and other customers suppliers subcontractors or taxing authorities may have FOR GREATER PROTECTION YOU MAY WITHHOLD A PERCENTAGE OF YOUR CONTRACT You may withhold a contractually defined percentage of your construction contract as retainage for a stated period of time to provide protection to you and help insure that your project will be completed as required by your contract YOUR PROPERTY MAY BE LIENED If a supplier of materials used in your construction project or an employee or subcontractor of your contractor or subcontractors is not paid your property may be liened to force payment and you could pay twice for the same work FOR ADDITIONAL PROTECTION YOU MAY REQUEST THE CONTRACTOR TO PROVIDE YOU WITH ORIGINAL LIEN RELEASE DOCUMENTS FROM EACH SUPPLIER OR SUBCONTRACTOR ON YOUR PROJECT The contractor is required to provide you with further information about lien release documents if you request it General information is also available from the state Department of Labor and Industries I have received a copy of this disclosure statement

CCBA Nuts amp Bolts on Construction Law - 30 of 49

(Signature of customer) (2) The contractor must retain a signed copy of the disclosure statement in his or her files for a minimum of three years and produce a signed or electronic signature copy of the disclosure statement to the department upon request (3) A contractor subject to this section shall notify any consumer to whom notice is required under subsection (1) of this section if the contractors registration has expired or is revoked or suspended by the department prior to completion or other termination of the contract with the consumer (4) No contractor subject to this section may bring or maintain any lien claim under chapter 6004 RCW based on any contract to which this section applies without alleging and proving that the contractor has provided the customer with a copy of the disclosure statement as required in subsection (1) of this section (5) This section does not apply to contracts authorized under chapter 3904 RCW or to contractors contracting with other contractors (6) Failure to comply with this section shall constitute an infraction under the provisions of this chapter (7) The department shall produce model disclosure statements and public service announcements detailing the information needed to assist contractors and contractors customers to comply under this section As necessary the department shall periodically update these education materials RCW 3908010 Bond required mdash Conditions mdash Retention of contract amount in lieu of bond (1)(a) Whenever any board council commission trustees or body acting for the state or any county or municipality or any public body must contract with any person or corporation to do any work for the state county or municipality or other public body city town or district such board council commission trustees or body must require the person or persons with whom such contract is made to make execute and deliver to such board council commission trustees or body a good and sufficient bond with a surety company as surety conditioned that such person or persons must (i) Faithfully perform all the provisions of such contract (ii) Pay all laborers mechanics and subcontractors and material suppliers and all persons who supply such person or persons or subcontractors with provisions and supplies for the carrying on of such work and

CCBA Nuts amp Bolts on Construction Law - 31 of 49

(iii) Pay the taxes increases and penalties incurred on the project under Titles 50 51 and 82 RCW on (A) Projects referred to in RCW 6028011(1)(b) andor (B) projects for which the bond is conditioned on the payment of such taxes increases and penalties (b) The bond in cases of cities and towns must be filed with the clerk or comptroller thereof and any person or persons performing such services or furnishing material to any subcontractor has the same right under the provisions of such bond as if such work services or material was furnished to the original contractor (2) The provisions of RCW 3908010 through 3908030 do not apply to any money loaned or advanced to any such contractor subcontractor or other person in the performance of any such work (3) On contracts of thirty-five thousand dollars or less at the option of the contractor the respective public entity may in lieu of the bond retain fifty percent of the contract amount for a period of thirty days after date of final acceptance or until receipt of all necessary releases from the department of revenue the employment security department and the department of labor and industries and settlement of any liens filed under chapter 6028 RCW whichever is later (4) For contracts of one hundred thousand dollars or less the public entity may accept a full payment and performance bond from an individual surety or sureties (5) The surety must agree to be bound by the laws of the state of Washington and subjected to the jurisdiction of the state of Washington RCW 6004011 Definitions

Unless the context requires otherwise the definitions in this section apply throughout this chapter (1) Construction agent means any registered or licensed contractor registered or licensed subcontractor architect engineer or other person having charge of any improvement to real property who shall be deemed the agent of the owner for the limited purpose of establishing the lien created by this chapter (2) Contract price means the amount agreed upon by the contracting parties or if no amount is agreed upon then the customary and reasonable charge therefor (3) Draws means periodic disbursements of interim or construction financing by a lender (4) Furnishing labor professional services materials or equipment means the performance of any labor or professional services the contribution owed to any employee benefit plan on account of any labor the provision of any supplies or materials and the renting leasing or

CCBA Nuts amp Bolts on Construction Law - 32 of 49

otherwise supplying of equipment for the improvement of real property (5) Improvement means (a) Constructing altering repairing remodeling demolishing clearing grading or filling in of to or upon any real property or street or road in front of or adjoining the same (b) planting of trees vines shrubs plants hedges or lawns or providing other landscaping materials on any real property and (c) providing professional services upon real property or in preparation for or in conjunction with the intended activities in (a) or (b) of this subsection (6) Interim or construction financing means that portion of money secured by a mortgage deed of trust or other encumbrance to finance improvement of or to real property but does not include (a) Funds to acquire real property (b) Funds to pay interest insurance premiums lease deposits taxes assessments or prior encumbrances (c) Funds to pay loan commitment title legal closing recording or appraisal fees (d) Funds to pay other customary fees which pursuant to agreement with the owner or borrower are to be paid by the lender from time to time (e) Funds to acquire personal property for which the potential lien claimant may not claim a lien pursuant to this chapter (7) Labor means exertion of the powers of body or mind performed at the site for compensation Labor includes amounts due and owed to any employee benefit plan on account of such labor performed (8) Mortgagee means a person who has a valid mortgage of record or deed of trust of record securing a loan (9) Owner-occupied means a single-family residence occupied by the owner as his or her principal residence (10) Payment bond means a surety bond issued by a surety licensed to issue surety bonds in the state of Washington that confers upon potential claimants the rights of third party beneficiaries (11) Potential lien claimant means any person or entity entitled to assert lien rights under this chapter who has otherwise complied with the provisions of this chapter and is registered or licensed if required to be licensed or registered by the provisions of the laws of the state of Washington (12) Prime contractor includes all contractors general contractors and specialty

CCBA Nuts amp Bolts on Construction Law - 33 of 49

contractors as defined by chapter 1827 or 1928 RCW or who are otherwise required to be registered or licensed by law who contract directly with a property owner or their common law agent to assume primary responsibility for the creation of an improvement to real property and includes property owners or their common law agents who are contractors general contractors or specialty contractors as defined in chapter 1827 or 1928 RCW or who are otherwise required to be registered or licensed by law who offer to sell their property without occupying or using the structures projects developments or improvements for more than one year (13) Professional services means surveying establishing or marking the boundaries of preparing maps plans or specifications for or inspecting testing or otherwise performing any other architectural or engineering services for the improvement of real property (14) Real property lender means a bank savings bank savings and loan association credit union mortgage company or other corporation association partnership trust or individual that makes loans secured by real property located in the state of Washington (15) Site means the real property which is or is to be improved (16) Subcontractor means a general contractor or specialty contractor as defined by chapter 1827 or 1928 RCW or who is otherwise required to be registered or licensed by law who contracts for the improvement of real property with someone other than the owner of the property or their common law agent

6004021 Lien authorized

Except as provided in RCW 6004031 any person furnishing labor professional services materials or equipment for the improvement of real property shall have a lien upon the improvement for the contract price of labor professional services materials or equipment furnished at the instance of the owner or the agent or construction agent of the owner

6004031 Notices mdash Exceptions

(1) Except as otherwise provided in this section every person furnishing professional services materials or equipment for the improvement of real property shall give the owner or reputed owner notice in writing of the right to claim a lien If the prime contractor is in compliance with the requirements of RCW 1927095 6004230 and 6004261 this notice shall also be given to the prime contractor as described in this subsection unless the potential lien claimant has contracted directly with the prime contractor The notice may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after the date which is sixty days before (a) Mailing the notice by certified or registered mail to the owner or reputed owner or

CCBA Nuts amp Bolts on Construction Law - 34 of 49

(b) Delivering or serving the notice personally upon the owner or reputed owner and obtaining evidence of delivery in the form of a receipt or other acknowledgment signed by the owner or reputed owner or an affidavit of service In the case of new construction of a single-family residence the notice of a right to claim a lien may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after a date which is ten days before the notice is given as described in this subsection (2) Notices of a right to claim a lien shall not be required of (a) Persons who contract directly with the owner or the owners common law agent (b) Laborers whose claim of lien is based solely on performing labor or (c) Subcontractors who contract for the improvement of real property directly with the prime contractor except as provided in subsection (3)(b) of this section (3) Persons who furnish professional services materials or equipment in connection with the repair alteration or remodel of an existing owner-occupied single-family residence or appurtenant garage (a) Who contract directly with the owner-occupier or their common law agent shall not be required to send a written notice of the right to claim a lien and shall have a lien for the full amount due under their contract as provided in RCW 6004021 or (b) Who do not contract directly with the owner-occupier or their common law agent shall give notice of the right to claim a lien to the owner-occupier Liens of persons furnishing professional services materials or equipment who do not contract directly with the owner-occupier or their common law agent may only be satisfied from amounts not yet paid to the prime contractor by the owner at the time the notice described in this section is received regardless of whether amounts not yet paid to the prime contractor are due For the purposes of this subsection received means actual receipt of notice by personal service or registered or certified mail or three days after mailing by registered or certified mail excluding Saturdays Sundays or legal holidays (4) The notice of right to claim a lien described in subsection (1) of this section shall include but not be limited to the following information and shall substantially be in the following form using lower-case and upper-case ten-point type where appropriate

CCBA Nuts amp Bolts on Construction Law - 35 of 49

NOTICE TO OWNER

IMPORTANT READ BOTH SIDES OF THIS NOTICE CAREFULLY

PROTECT YOURSELF FROM PAYING TWICE

To Date

Re (description of property Street address or general location) From AT THE REQUEST OF (Name of person ordering the professional services materials or equipment) THIS IS NOT A LIEN This notice is sent to you to tell you who is providing professional services materials or equipment for the improvement of your property and to advise you of the rights of these persons and your responsibilities Also take note that laborers on your project may claim a lien without sending you a notice

OWNEROCCUPIER OF EXISTING

RESIDENTIAL PROPERTY

Under Washington law those who furnish labor professional services materials or equipment for the repair remodel or alteration of your owner-occupied principal residence and who are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien The law limits the amount that a lien claimant can claim against your property Claims may only be made against that portion of the contract price you have not yet paid to your prime contractor as of the time this notice was given to you or three days after this notice was mailed to you Review the back of this notice for more information and ways to avoid lien claims

COMMERCIAL ANDOR NEW

RESIDENTIAL PROPERTY

CCBA Nuts amp Bolts on Construction Law - 36 of 49

We have or will be providing professional services materials or equipment for the improvement of your commercial or new residential project In the event you or your contractor fail to pay us we may file a lien against your property A lien may be claimed for all professional services materials or equipment furnished after a date that is sixty days before this notice was given to you or mailed to you unless the improvement to your property is the construction of a new single-family residence then ten days before this notice was given to you or mailed to you Sender Address Telephone Brief description of professional services materials or equipment provided or to be provided

IMPORTANT INFORMATION

ON REVERSE SIDE

IMPORTANT INFORMATION

FOR YOUR PROTECTION This notice is sent to inform you that we have or will provide professional services materials or equipment for the improvement of your property We expect to be paid by the person who ordered our services but if we are not paid we have the right to enforce our claim by filing a construction lien against your property LEARN more about the lien laws and the meaning of this notice by discussing them with your contractor suppliers Department of Labor and Industries the firm sending you this notice your lender or your attorney

COMMON METHODS TO AVOID CONSTRUCTION LIENS There are several methods available to protect your property from construction liens The following are two of the more commonly used methods

DUAL PAYCHECKS (Joint Checks) When paying your contractor for services or materials you may make checks payable jointly to the contractor and the firms furnishing you this notice

CCBA Nuts amp Bolts on Construction Law - 37 of 49

LIEN RELEASES You may require your contractor to provide lien releases signed by all the suppliers and subcontractors from whom you have received this notice If they cannot obtain lien releases because you have not paid them you may use the dual payee check method to protect yourself

YOU SHOULD TAKE APPROPRIATE STEPS TO PROTECT YOUR PROPERTY FROM LIENS YOUR PRIME CONTRACTOR AND YOUR CONSTRUCTION LENDER ARE REQUIRED BY LAW TO GIVE YOU WRITTEN INFORMATION ABOUT LIEN CLAIMS IF YOU HAVE NOT RECEIVED IT ASK THEM FOR IT

(5) Every potential lien claimant providing professional services where no improvement as defined in RCW 6004011(5) (a) or (b) has been commenced and the professional services provided are not visible from an inspection of the real property may record in the real property records of the county where the property is located a notice which shall contain the professional service providers name address telephone number legal description of the property the owner or reputed owners name and the general nature of the professional services provided If such notice is not recorded the lien claimed shall be subordinate to the interest of any subsequent mortgagee and invalid as to the interest of any subsequent purchaser if the mortgagee or purchaser acts in good faith and for a valuable consideration acquires an interest in the property prior to the commencement of an improvement as defined in RCW 6004011(5) (a) or (b) without notice of the professional services being provided The notice described in this subsection shall be substantially in the following form

NOTICE OF FURNISHING

PROFESSIONAL SERVICES That on the (day) day of (month and year) (name of provider) began providing professional services upon or for the improvement of real property legally described as follows

[Legal Description is mandatory]

CCBA Nuts amp Bolts on Construction Law - 38 of 49

The general nature of the professional services provided is The owner or reputed owner of the real property is

(Signature)

(Name of Claimant)

(Street Address)

(City State Zip Code)

(Phone Number)

(6) A lien authorized by this chapter shall not be enforced unless the lien claimant has complied with the applicable provisions of this section

6004041 Contractor registration

A contractor or subcontractor required to be registered under chapter 1827 RCW or licensed under chapter 1928 RCW or otherwise required to be registered or licensed by law shall be deemed the construction agent of the owner for the purposes of establishing the lien created by this chapter only if so registered or licensed Persons dealing with contractors or subcontractors may rely for the purposes of this section upon a certificate of registration issued pursuant to chapter 1827 RCW or license issued pursuant to chapter 1928 RCW or other certificate or license issued pursuant to law covering the period when the labor professional services material or equipment shall be furnished and the lien rights shall not be lost by suspension or revocation of registration or license without their knowledge No lien rights described in this

CCBA Nuts amp Bolts on Construction Law - 39 of 49

chapter shall be lost or denied by virtue of the absence suspension or revocation of such registration or license with respect to any contractor or subcontractor not in immediate contractual privity with the lien claimant

6004081 Frivolous claim mdash Procedure

(1) Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who believes the claim of lien to be frivolous and made without reasonable cause or clearly excessive may apply by motion to the superior court for the county where the property or some part thereof is located for an order directing the lien claimant to appear before the court at a time no earlier than six nor later than fifteen days following the date of service of the application and order on the lien claimant and show cause if any he or she has why the relief requested should not be granted The motion shall state the grounds upon which relief is asked and shall be supported by the affidavit of the applicant or his or her attorney setting forth a concise statement of the facts upon which the motion is based (2) The order shall clearly state that if the lien claimant fails to appear at the time and place noted the lien shall be released with prejudice and that the lien claimant shall be ordered to pay the costs requested by the applicant including reasonable attorneys fees (3) If no action to foreclose the lien claim has been filed the clerk of the court shall assign a cause number to the application and obtain from the applicant a filing fee pursuant to RCW 3618016 If an action has been filed to foreclose the lien claim the application shall be made a part of that action (4) If following a hearing on the matter the court determines that the lien is frivolous and made without reasonable cause or clearly excessive the court shall issue an order releasing the lien if frivolous and made without reasonable cause or reducing the lien if clearly excessive and awarding costs and reasonable attorneys fees to the applicant to be paid by the lien claimant If the court determines that the lien is not frivolous and was made with reasonable cause and is not clearly excessive the court shall issue an order so stating and awarding costs and reasonable attorneys fees to the lien claimant to be paid by the applicant (5) Proceedings under this section shall not affect other rights and remedies available to the parties under this chapter or otherwise

6004091 Recording mdash Time mdash Contents of lien

Every person claiming a lien under RCW 6004021 shall file for recording in the county where the subject property is located a notice of claim of lien not later than ninety days after the person

CCBA Nuts amp Bolts on Construction Law - 40 of 49

has ceased to furnish labor professional services materials or equipment or the last date on which employee benefit contributions were due The notice of claim of lien (1) Shall state in substance and effect (a) The name phone number and address of the claimant (b) The first and last date on which the labor professional services materials or equipment was furnished or employee benefit contributions were due (c) The name of the person indebted to the claimant (d) The street address legal description or other description reasonably calculated to identify for a person familiar with the area the location of the real property to be charged with the lien (e) The name of the owner or reputed owner of the property if known and if not known that fact shall be stated and (f) The principal amount for which the lien is claimed (2) Shall be signed by the claimant or some person authorized to act on his or her behalf who shall affirmatively state they have read the notice of claim of lien and believe the notice of claim of lien to be true and correct under penalty of perjury and shall be acknowledged pursuant to chapter 6408 RCW If the lien has been assigned the name of the assignee shall be stated Where an action to foreclose the lien has been commenced such notice of claim of lien may be amended as pleadings may be by order of the court insofar as the interests of third parties are not adversely affected by such amendment A claim of lien substantially in the following form shall be sufficient

CLAIM OF LIEN

claimant vs name of person indebted to claimant

Notice is hereby given that the person named below claims a lien pursuant to chapter 6404 RCW In support of this lien the following information is submitted

1 NAME OF LIEN CLAIMANT

TELEPHONE NUMBER

CCBA Nuts amp Bolts on Construction Law - 41 of 49

ADDRESS

2 DATE ON WHICH THE CLAIMANT BEGAN TO PERFORM LABOR PROVIDE PROFESSIONAL SERVICES SUPPLY MATERIAL OR EQUIPMENT OR THE DATE ON WHICH EMPLOYEE BENEFIT CONTRIBUTIONS BECAME DUE

3 NAME OF PERSON INDEBTED TO THE CLAIMANT

4 DESCRIPTION OF THE PROPERTY AGAINST WHICH A LIEN IS CLAIMED (Street address legal description or other information that will reasonably describe the property)

5 NAME OF THE OWNER OR REPUTED OWNER (If not known state unknown)

6 THE LAST DATE ON WHICH LABOR WAS PERFORMED PROFESSIONAL SERVICES WERE FURNISHED CONTRIBUTIONS TO AN EMPLOYEE BENEFIT PLAN WERE DUE OR MATERIAL OR EQUIPMENT WAS FURNISHED

7 PRINCIPAL AMOUNT FOR WHICH THE LIEN IS CLAIMED IS

8 IF THE CLAIMANT IS THE ASSIGNEE OF THIS CLAIM SO STATE HERE

Claimant

(Phone number address city

CCBA Nuts amp Bolts on Construction Law - 42 of 49

and

state of claimant)

STATE OF WASHINGTON COUNTY OF ss being sworn says I am the claimant (or attorney of the claimant or administrator representative or agent of the trustees of an employee benefit plan) above named I have read or heard the foregoing claim read and know the contents thereof and believe the same to be true and correct and that the claim of lien is not frivolous and is made with reasonable cause and is not clearly excessive under penalty of perjury Subscribed and sworn to before me this day of The period provided for recording the claim of lien is a period of limitation and no action to foreclose a lien shall be maintained unless the claim of lien is filed for recording within the ninety-day period stated The lien claimant shall give a copy of the claim of lien to the owner or reputed owner by mailing it by certified or registered mail or by personal service within fourteen days of the time the claim of lien is filed for recording Failure to do so results in a forfeiture of any right the claimant may have to attorneys fees and costs against the owner under RCW 6004181

6004161 Bond in lieu of claim

Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who disputes the correctness or validity of the claim of lien may record either before or after the commencement of an action to enforce the lien in the office of the county recorder or auditor in the county where the claim of lien was recorded a bond issued by a surety company authorized to issue surety bonds in the state The surety shall be listed in the latest federal department of the treasury list of surety companies acceptable on federal bonds published in the Federal Register as authorized to issue bonds on United States government projects with an underwriting limitation including applicable reinsurance equal to or greater than the amount of the bond to be recorded The bond shall contain a description of the claim of lien and real property involved and be in an amount equal to the greater of five thousand dollars or two times the amount of the lien claimed if it is ten thousand dollars or less and in an amount equal to or greater than one and one-half times the amount of the lien if it is in

CCBA Nuts amp Bolts on Construction Law - 43 of 49

excess of ten thousand dollars If the claim of lien affects more than one parcel of real property and is segregated to each parcel the bond may be segregated the same as in the claim of lien A separate bond shall be required for each claim of lien made by separate claimants However a single bond may be used to guarantee payment of amounts claimed by more than one claim of lien by a single claimant so long as the amount of the bond meets the requirements of this section as applied to the aggregate sum of all claims by such claimant The condition of the bond shall be to guarantee payment of any judgment upon the lien in favor of the lien claimant entered in any action to recover the amount claimed in a claim of lien or on the claim asserted in the claim of lien The effect of recording a bond shall be to release the real property described in the notice of claim of lien from the lien and any action brought to recover the amount claimed Unless otherwise prohibited by law if no action is commenced to recover on a lien within the time specified in RCW 6004141 the surety shall be discharged from liability under the bond If an action is timely commenced then on payment of any judgment entered in the action or on payment of the full amount of the bond to the holder of the judgment whichever is less the surety shall be discharged from liability under the bond Nothing in this section shall in any way prohibit or limit the use of other methods devised by the affected parties to secure the obligation underlying a claim of lien and to obtain a release of real property from a claim of lien

6004181 Rank of lien mdash Application of proceeds mdash Attorneys fees

(1) In every case in which different construction liens are claimed against the same property the court shall declare the rank of such lien or class of liens which liens shall be in the following order (a) Liens for the performance of labor (b) Liens for contributions owed to employee benefit plans (c) Liens for furnishing material supplies or equipment (d) Liens for subcontractors including but not limited to their labor and materials and (e) Liens for prime contractors or for professional services (2) The proceeds of the sale of property must be applied to each lien or class of liens in order of its rank and in an action brought to foreclose a lien pro rata among each claimant in each separate priority class A personal judgment may be rendered against any party personally liable for any debt for which the lien is claimed If the lien is established the judgment shall provide

CCBA Nuts amp Bolts on Construction Law - 44 of 49

for the enforcement thereof upon the property liable as in the case of foreclosure of judgment liens The amount realized by such enforcement of the lien shall be credited upon the proper personal judgment The deficiency if any remaining unsatisfied shall stand as a personal judgment and may be collected by execution against any party liable therefor (3) The court may allow the prevailing party in the action whether plaintiff or defendant as part of the costs of the action the moneys paid for recording the claim of lien costs of title report bond costs and attorneys fees and necessary expenses incurred by the attorney in the superior court court of appeals supreme court or arbitration as the court or arbitrator deems reasonable Such costs shall have the priority of the class of lien to which they are related as established by subsection (1) of this section (4) Real property against which a lien under this chapter is enforced may be ordered sold by the court and the proceeds deposited into the registry of the clerk of the court pending further determination respecting distribution of the proceeds of the sale

6004900 Liberal construction mdash 1991 c 281

RCW 1927095 6004230 and 6004011 through 6004226 and 6004261 are to be liberally construed to provide security for all parties intended to be protected by their provisions

RCW 6028011

Retained percentage mdash Public transportation projects mdash Labor and material lien created mdash Bond in lieu of retained funds mdash Termination before completion mdash Chapter deemed exclusive mdash Release of ferry contract payments mdash Projects of farmers home administration mdash General contractorconstruction manager procedure mdash Definitions

(1)(a) Except as provided in (b) of this subsection public improvement contracts must provide and public bodies must reserve a contract retainage not to exceed five percent of the moneys earned by the contractor as a trust fund for the protection and payment of (i) The claims of any person arising under the contract and (ii) the state with respect to taxes increases and penalties imposed pursuant to Titles 50 51 and 82 RCW which may be due from such contractor (b) Public improvement contracts funded in whole or in part by federal transportation funds must rely upon the contract bond as referred to in chapter 3908 RCW for the protection and payment of (i) The claims of any person or persons arising under the contract to the extent such claims are provided for in RCW 3908010 and (ii) the state with respect to taxes increases and penalties incurred on the public improvement project under Titles 50 51 and 82 RCW which may be due The contract bond must remain in full force and effect until at a minimum all claims filed in compliance with chapter 3908 RCW are resolved

CCBA Nuts amp Bolts on Construction Law - 45 of 49

(2) Every person performing labor or furnishing supplies toward the completion of a public improvement contract has a lien upon moneys reserved by a public body under the provisions of a public improvement contract However the notice of the lien of the claimant must be given within forty-five days of completion of the contract work and in the manner provided in RCW 3908030 (3) The contractor at any time may request the contract retainage be reduced to one hundred percent of the value of the work remaining on the project (a) After completion of all contract work other than landscaping the contractor may request that the public body release and pay in full the amounts retained during the performance of the contract and sixty days thereafter the public body must release and pay in full the amounts retained (other than continuing retention of five percent of the moneys earned for landscaping) subject to the provisions of chapters 3912 and 6028 RCW (b) Sixty days after completion of all contract work the public body must release and pay in full the amounts retained during the performance of the contract subject to the provisions of chapters 3912 and 6028 RCW (4) The moneys reserved by a public body under the provisions of a public improvement contract at the option of the contractor must be (a) Retained in a fund by the public body (b) Deposited by the public body in an interest bearing account in a bank mutual savings bank or savings and loan association Interest on moneys reserved by a public body under the provision of a public improvement contract must be paid to the contractor (c) Placed in escrow with a bank or trust company by the public body When the moneys reserved are placed in escrow the public body must issue a check representing the sum of the moneys reserved payable to the bank or trust company and the contractor jointly This check must be converted into bonds and securities chosen by the contractor and approved by the public body and the bonds and securities must be held in escrow Interest on the bonds and securities must be paid to the contractor as the interest accrues (5) The contractor or subcontractor may withhold payment of not more than five percent from the moneys earned by any subcontractor or sub-subcontractor or supplier contracted with by the contractor to provide labor materials or equipment to the public project Whenever the contractor or subcontractor reserves funds earned by a subcontractor or sub-subcontractor or

CCBA Nuts amp Bolts on Construction Law - 46 of 49

supplier the contractor or subcontractor must pay interest to the subcontractor or sub-subcontractor or supplier at a rate equal to that received by the contractor or subcontractor from reserved funds (6) A contractor may submit a bond for all or any portion of the contract retainage in a form acceptable to the public body and from a bonding company meeting standards established by the public body The public body must accept a bond meeting these requirements unless the public body can demonstrate good cause for refusing to accept it This bond and any proceeds therefrom are subject to all claims and liens and in the same manner and priority as set forth for retained percentages in this chapter The public body must release the bonded portion of the retained funds to the contractor within thirty days of accepting the bond from the contractor Whenever a public body accepts a bond in lieu of retained funds from a contractor the contractor must accept like bonds from any subcontractors or suppliers from which the contractor has retained funds The contractor must then release the funds retained from the subcontractor or supplier to the subcontractor or supplier within thirty days of accepting the bond from the subcontractor or supplier (7) If the public body administering a contract after a substantial portion of the work has been completed finds that an unreasonable delay will occur in the completion of the remaining portion of the contract for any reason not the result of a breach thereof it may if the contractor agrees delete from the contract the remaining work and accept as final the improvement at the stage of completion then attained and make payment in proportion to the amount of the work accomplished and in this case any amounts retained and accumulated under this section must be held for a period of sixty days following the completion In the event that the work is terminated before final completion as provided in this section the public body may thereafter enter into a new contract with the same contractor to perform the remaining work or improvement for an amount equal to or less than the cost of the remaining work as was provided for in the original contract without advertisement or bid The provisions of this chapter are exclusive and supersede all provisions and regulations in conflict herewith (8) Whenever the department of transportation has contracted for the construction of two or more ferry vessels sixty days after completion of all contract work on each ferry vessel the department must release and pay in full the amounts retained in connection with the construction of the vessel subject to the provisions of RCW 6028021 and chapter 3912 RCW However the department of transportation may at its discretion condition the release of funds retained in connection with the completed ferry upon the contractor delivering a good and sufficient bond with two or more sureties or with a surety company in the amount of the retained funds to be released to the contractor conditioned that no taxes may be certified or claims filed for work on the ferry after a period of sixty days following completion of the ferry and if taxes are certified or claims filed recovery may be had on the bond by the department of revenue the employment

CCBA Nuts amp Bolts on Construction Law - 47 of 49

security department the department of labor and industries and the material suppliers and laborers filing claims (9) Except as provided in subsection (1) of this section reservation by a public body for any purpose from the moneys earned by a contractor by fulfilling its responsibilities under public improvement contracts is prohibited (10) Contracts on projects funded in whole or in part by farmers home administration and subject to farmers home administration regulations are not subject to subsections (1) through (9) of this section (11) This subsection applies only to a public body that has contracted for the construction of a facility using the general contractorconstruction manager procedure as defined under RCW 3910210 If the work performed by a subcontractor on the project has been completed within the first half of the time provided in the general contractorconstruction manager contract for completing the work the public body may accept the completion of the subcontract The public body must give public notice of this acceptance After a forty-five day period for giving notice of liens and compliance with the retainage release procedures in RCW 6028021 the public body may release that portion of the retained funds associated with the subcontract Claims against the retained funds after the forty-five day period are not valid (12) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise (a) Contract retainage means an amount reserved by a public body from the moneys earned by a person under a public improvement contract (b) Person means a person or persons mechanic subcontractor or materialperson who performs labor or provides materials for a public improvement contract and any other person who supplies the person with provisions or supplies for the carrying on of a public improvement contract (c) Public body means the state or a county city town district board or other public body (d) Public improvement contract means a contract for public improvements or work other than for professional services or a work order as defined in RCW 3910210

CCBA Nuts amp Bolts on Construction Law - 48 of 49

RCW 6432070 Liens or encumbrances mdash Enforcement mdash Satisfaction

(1) Subsequent to recording the declaration as provided in this chapter and while the property remains subject to this chapter no lien shall thereafter arise or be effective against the property During such period liens or encumbrances shall arise or be created only against each apartment and the percentage of undivided interest in the common areas and facilities and appurtenant to such apartment in the same manner and under the same conditions in every respect as liens or encumbrances may arise or be created upon or against any other separate parcel of real property subject to individual ownership PROVIDED That no labor performed or materials furnished with the consent of or at the request of the owner of any apartment or such owners agent contractor or subcontractor shall be the basis for the filing of a lien against any other apartment or any other property of any other apartment owner not expressly consenting to or requesting the same except that such express consent shall be deemed to be given by any apartment owner in the case of emergency repairs Labor performed or materials furnished for the common areas and facilities if authorized by the association of apartment owners the manager or board of directors shall be deemed to be performed or furnished with the express consent of each apartment owner and shall be the basis for the filing of a lien against each of the apartments and shall be subject to the provisions of subsection (2) of this section (2) In the event a lien against two or more apartments becomes effective the apartment owners of the separate apartments may remove their apartment and the percentage of undivided interest in the common areas and facilities appurtenant to such apartment from the lien by payment of the fractional or proportional amounts attributable to each of the apartments affected Such individual payments shall be computed by reference to the percentages appearing on the declaration Subsequent to any such payment discharge or satisfaction the apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto shall thereafter be free and clear of the liens so paid satisfied or discharged Such partial payment satisfaction or discharge shall not prevent the lienor from proceeding to enforce his or her rights against any apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto not so paid satisfied or discharged

CCBA Nuts amp Bolts on Construction Law - 49 of 49

  • Cover Sheet
  • 20141110 - Washington Lien and Bond CLE
  • LampI Lien Summary
  • Claim of Lien
  • Form Notice to Owner
  • Model Disclosure Statement (Notice to Customer)
  • LampI Facts about Construction Liens
    • What you should know about contracts
    • How to protect your investment
    • For more information
      • Notice of Claim Against Bond and Retained Percentage
      • Preclaim Notice Bond amp Retained Percentage
      • Statute Handout
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 ITA 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 JPN ltFEFF9ad854c18cea306a30d730ea30d730ec30b951fa529b7528002000410064006f0062006500200050004400460020658766f8306e4f5c6210306b4f7f75283057307e305930023053306e8a2d5b9a30674f5c62103055308c305f0020005000440046002030d530a130a430eb306f3001004100630072006f0062006100740020304a30883073002000410064006f00620065002000520065006100640065007200200035002e003000204ee5964d3067958b304f30533068304c3067304d307e305930023053306e8a2d5b9a306b306f30d530a930f330c8306e57cb30818fbc307f304c5fc59808306730593002gt KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020ace0d488c9c80020c2dcd5d80020c778c1c4c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200035002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor prepress-afdrukken van hoge kwaliteit De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 50 en hoger) NOR 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 PTB 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 SUO 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 SVE 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 ENU (Use these settings to create Adobe PDF documents best suited for high-quality prepress printing Created PDF documents can be opened with Acrobat and Adobe Reader 50 and later) gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false ConvertColors ConvertToCMYK DestinationProfileName () DestinationProfileSelector DocumentCMYK Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles false MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector DocumentCMYK PreserveEditing true UntaggedCMYKHandling LeaveUntagged UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ]gtgt setdistillerparamsltlt HWResolution [2400 2400] PageSize [612000 792000]gtgt setpagedevice

          ltlt ASCII85EncodePages false AllowTransparency false AutoPositionEPSFiles true AutoRotatePages None Binding Left CalGrayProfile (Dot Gain 20) CalRGBProfile (sRGB IEC61966-21) CalCMYKProfile (US Web Coated 050SWOP051 v2) sRGBProfile (sRGB IEC61966-21) CannotEmbedFontPolicy Warning CompatibilityLevel 14 CompressObjects Tags CompressPages true ConvertImagesToIndexed true PassThroughJPEGImages true CreateJDFFile false CreateJobTicket false DefaultRenderingIntent Default DetectBlends true DetectCurves 00000 ColorConversionStrategy LeaveColorUnchanged DoThumbnails false EmbedAllFonts true EmbedOpenType false ParseICCProfilesInComments true EmbedJobOptions true DSCReportingLevel 0 EmitDSCWarnings false EndPage -1 ImageMemory 1048576 LockDistillerParams true MaxSubsetPct 100 Optimize true OPM 1 ParseDSCComments true ParseDSCCommentsForDocInfo true PreserveCopyPage true PreserveDICMYKValues true PreserveEPSInfo true PreserveFlatness true PreserveHalftoneInfo false PreserveOPIComments true PreserveOverprintSettings true StartPage 1 SubsetFonts true TransferFunctionInfo Apply UCRandBGInfo Preserve UsePrologue false ColorSettingsFile () AlwaysEmbed [ true Algerian Arial-Black Arial-BoldItalicMT Arial-BoldMT Arial-ItalicMT ArialMT ArialNarrow ArialNarrow-Bold ArialNarrow-BoldItalic ArialNarrow-Italic BaskOldFace Bauhaus93 BellMT BellMTBold BellMTItalic BerlinSansFB-Bold BerlinSansFBDemi-Bold BerlinSansFB-Reg BernardMT-Condensed BodoniMTPosterCompressed BookAntiqua BookAntiqua-Bold BookAntiqua-BoldItalic BookAntiqua-Italic BookmanOldStyle BookmanOldStyle-Bold BookmanOldStyle-BoldItalic BookmanOldStyle-Italic BookshelfSymbolSeven BritannicBold Broadway BrushScriptMT CalifornianFB-Bold CalifornianFB-Italic CalifornianFB-Reg Centaur CenturyGothic CenturyGothic-Bold CenturyGothic-BoldItalic CenturyGothic-Italic Chiller-Regular ColonnaMT ComicSansMS ComicSansMS-Bold CooperBlack CourierNewPS-BoldItalicMT CourierNewPS-BoldMT CourierNewPS-ItalicMT CourierNewPSMT EstrangeloEdessa EXTRAAPLNew-Regular EXTRAOIANew-Regular FootlightMTLight FranklinGothic-Medium FranklinGothic-MediumItalic FreestyleScript-Regular Garamond Garamond-Bold Garamond-Italic Gautami Georgia Georgia-Bold Georgia-BoldItalic Georgia-Italic HarlowSolid Harrington HighTowerText-Italic HighTowerText-Reg Impact InformalRoman-Regular Jokerman-Regular JuiceITC-Regular Kartika KristenITC-Regular KunstlerScript Latha LatinWide LucidaATTMSpecial LucidaBright LucidaBright-Demi LucidaBright-DemiItalic LucidaBright-Italic LucidaCalligraphy-Italic LucidaConsole LucidaFax LucidaFax-Demi LucidaFax-DemiItalic LucidaFax-Italic LucidaforAttachmate LucidaHandwriting-Italic LucidaSans LucidaSans-Demi LucidaSans-DemiItalic LucidaSans-Italic LucidaSansUnicode Magneto-Bold Mangal-Regular MaturaMTScriptCapitals MicrosoftSansSerif Mistral Modern-Regular Monospace821BT-Roman MonotypeCorsiva MSOutlook MSReferenceSansSerif MSReferenceSpecialty MVBoli NiagaraEngraved-Reg NiagaraSolid-Reg OldEnglishTextMT Onyx PalatinoLinotype-Bold PalatinoLinotype-BoldItalic PalatinoLinotype-Italic PalatinoLinotype-Roman Parchment-Regular Playbill PoorRichard-Regular Raavi Ravie ShowcardGothic-Reg Shruti SnapITC-Regular Stencil Sylfaen SymbolMT Tahoma Tahoma-Bold TempusSansITC TimesNewRomanPS-BoldItalicMT TimesNewRomanPS-BoldMT TimesNewRomanPS-ItalicMT TimesNewRomanPSMT Trebuchet-BoldItalic TrebuchetMS TrebuchetMS-Bold TrebuchetMS-Italic Tunga-Regular Verdana Verdana-Bold Verdana-BoldItalic Verdana-Italic VinerHandITC Vivaldii VladimirScript Vrinda Webdings Wingdings2 Wingdings3 Wingdings-Regular ZWAdobeF ] NeverEmbed [ true ] AntiAliasColorImages false CropColorImages true ColorImageMinResolution 300 ColorImageMinResolutionPolicy OK DownsampleColorImages true ColorImageDownsampleType Bicubic ColorImageResolution 300 ColorImageDepth -1 ColorImageMinDownsampleDepth 1 ColorImageDownsampleThreshold 150000 EncodeColorImages false ColorImageFilter DCTEncode AutoFilterColorImages true ColorImageAutoFilterStrategy JPEG ColorACSImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt ColorImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000ColorACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000ColorImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasGrayImages false CropGrayImages true GrayImageMinResolution 300 GrayImageMinResolutionPolicy OK DownsampleGrayImages true GrayImageDownsampleType Bicubic GrayImageResolution 300 GrayImageDepth -1 GrayImageMinDownsampleDepth 2 GrayImageDownsampleThreshold 150000 EncodeGrayImages false GrayImageFilter DCTEncode AutoFilterGrayImages true GrayImageAutoFilterStrategy JPEG GrayACSImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt GrayImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000GrayACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000GrayImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasMonoImages false CropMonoImages true MonoImageMinResolution 1200 MonoImageMinResolutionPolicy OK DownsampleMonoImages true MonoImageDownsampleType Bicubic MonoImageResolution 1200 MonoImageDepth -1 MonoImageDownsampleThreshold 150000 EncodeMonoImages false MonoImageFilter CCITTFaxEncode MonoImageDict ltlt K -1 gtgt AllowPSXObjects false CheckCompliance [ None ] PDFX1aCheck false PDFX3Check false PDFXCompliantPDFOnly false PDFXNoTrimBoxError true PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile (None) PDFXOutputConditionIdentifier () PDFXOutputCondition () PDFXRegistryName () PDFXTrapped False Description ltlt CHS ltFEFF4f7f75288fd94e9b8bbe5b9a521b5efa7684002000410064006f006200650020005000440046002065876863900275284e8e9ad88d2891cf76845370524d53705237300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200035002e003000204ee553ca66f49ad87248672c676562535f00521b5efa768400200050004400460020658768633002gt CHT ltFEFF4f7f752890194e9b8a2d7f6e5efa7acb7684002000410064006f006200650020005000440046002065874ef69069752865bc9ad854c18cea76845370524d5370523786557406300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200035002e003000204ee553ca66f49ad87248672c4f86958b555f5df25efa7acb76840020005000440046002065874ef63002gt DAN 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 DEU ltFEFF00560065007200770065006e00640065006e0020005300690065002000640069006500730065002000450069006e007300740065006c006c0075006e00670065006e0020007a0075006d002000450072007300740065006c006c0065006e00200076006f006e002000410064006f006200650020005000440046002d0044006f006b0075006d0065006e00740065006e002c00200076006f006e002000640065006e0065006e002000530069006500200068006f006300680077006500720074006900670065002000500072006500700072006500730073002d0044007200750063006b0065002000650072007a0065007500670065006e0020006d00f60063006800740065006e002e002000450072007300740065006c006c007400650020005000440046002d0044006f006b0075006d0065006e007400650020006b00f6006e006e0065006e0020006d006900740020004100630072006f00620061007400200075006e0064002000410064006f00620065002000520065006100640065007200200035002e00300020006f0064006500720020006800f600680065007200200067006500f600660066006e00650074002000770065007200640065006e002egt ESP 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 FRA ltFEFF005500740069006c006900730065007a00200063006500730020006f007000740069006f006e00730020006100660069006e00200064006500200063007200e900650072002000640065007300200064006f00630075006d0065006e00740073002000410064006f00620065002000500044004600200070006f0075007200200075006e00650020007100750061006c0069007400e90020006400270069006d007000720065007300730069006f006e00200070007200e9007000720065007300730065002e0020004c0065007300200064006f00630075006d0065006e00740073002000500044004600200063007200e900e90073002000700065007500760065006e0074002000ea0074007200650020006f007500760065007200740073002000640061006e00730020004100630072006f006200610074002c002000610069006e00730069002000710075002700410064006f00620065002000520065006100640065007200200035002e0030002000650074002000760065007200730069006f006e007300200075006c007400e90072006900650075007200650073002egt ITA ltFEFF005500740069006c0069007a007a006100720065002000710075006500730074006500200069006d0070006f007300740061007a0069006f006e00690020007000650072002000630072006500610072006500200064006f00630075006d0065006e00740069002000410064006f00620065002000500044004600200070006900f900200061006400610074007400690020006100200075006e00610020007000720065007300740061006d0070006100200064006900200061006c007400610020007100750061006c0069007400e0002e0020004900200064006f00630075006d0065006e007400690020005000440046002000630072006500610074006900200070006f00730073006f006e006f0020006500730073006500720065002000610070006500720074006900200063006f006e0020004100630072006f00620061007400200065002000410064006f00620065002000520065006100640065007200200035002e003000200065002000760065007200730069006f006e006900200073007500630063006500730073006900760065002egt JPN ltFEFF9ad854c18cea306a30d730ea30d730ec30b951fa529b7528002000410064006f0062006500200050004400460020658766f8306e4f5c6210306b4f7f75283057307e305930023053306e8a2d5b9a30674f5c62103055308c305f0020005000440046002030d530a130a430eb306f3001004100630072006f0062006100740020304a30883073002000410064006f00620065002000520065006100640065007200200035002e003000204ee5964d3067958b304f30533068304c3067304d307e305930023053306e8a2d5b9a306b306f30d530a930f330c8306e57cb30818fbc307f304c5fc59808306730593002gt KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020ace0d488c9c80020c2dcd5d80020c778c1c4c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200035002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor prepress-afdrukken van hoge kwaliteit De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 50 en hoger) NOR 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 PTB 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 SVE 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 ENU (Use these settings to create Adobe PDF documents best suited for high-quality prepress printing Created PDF documents can be opened with Acrobat and Adobe Reader 50 and later) gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false ConvertColors ConvertToCMYK DestinationProfileName () DestinationProfileSelector DocumentCMYK Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles false MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector DocumentCMYK PreserveEditing true UntaggedCMYKHandling LeaveUntagged UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ]gtgt setdistillerparamsltlt HWResolution [2400 2400] PageSize [612000 792000]gtgt setpagedevice

          1. To
          2. Date
          3. Re
          4. From
          5. AT THE REQUEST OF
          6. Sender
          7. Address
          8. Telephone
          9. Brief description of professional services materials or equipment provided or to be provided
          10. 1
          11. 2
          12. 3
          13. reg no
          14. deposit $
          15. expiration date
          16. claims up to $
          17. Reset

11122014

14

Immix Law Group

Questions

CCBA Nuts amp Bolts on Construction Law - 15 of 49

SUMMARY OF THE REQUIREMENTS TO BE MET BY A LIEN CLAIMANT ON A WASHINGTON PRIVATE CONSTRUCTION PROJECT

NOTICE TO CUSTOMER

FROM

Prime Contractor working on four or fewer residential units when the contract price is $1000 or more or on a commercial building when the contract price is $1000 or more but less than $60000

TO Owner

WHEN Before starting construction NOTICE OF FURNISHING PROFESSIONAL SERVICES

FROM

Provider of professional services

TO County Recorder

WHEN As soon as professional services are commenced PRECLAIM NOTICE (for all projects except repair and remodeling of owner-occupied single-family residence)

FROM

Provider of professional services materials or equipment except that the following need not provide the notice (1) a provider that contracts directly with the owner or the owners actual agent or (2) a first tier subcontractor

TO Owner and usually also prime contractor

WHEN New single family residence within ten days of first supplying professional services materials or equipment All other projects within 60 days of first supplying professional services materials or equipment

PRECLAIM NOTICE (for repair and remodeling of owner-occupied single-family residence)

FROM

Provider of professional services materials or equipment to anyone other than the owner

TO Owner and usually also prime contractor

WHEN Immediately after agreeing to furnish professional services materials or equipment

FROM

Potential lien claimant to whom payment is five or more days overdue

NOTICE TO REAL PROPERTY LENDER (only applicable where there is not a payment bond of at least 50 of the amount of construction financing)

TO Construction lender owner and prime contractor

WHEN Within 35 days of date payment is due

CLAIM OF LIEN

FROM

Unpaid claimant

TO County Recorder

WHEN Not later than 90 days after the last furnishing of labor professional services materials or equipment or the last date on which employee benefit contributions were due

COPY OF CLAIM OF LIEN

FROM

Unpaid claimant

TO Owner

WHEN Within 14 days of date claim of lien is filed for recording

DEADLINE FOR FILING A LAWSUIT Within eight months of recording claim of lien

F625-055-000 const lien summary 2-96 This summary is intended to generally set forth the requirements applicable to most lien claimants The remainder of the chapter should be consulted for a more detailed discussion

CCBA Nuts amp Bolts on Construction Law - 16 of 49

CLAIM OF LIEN SIGNED BY ATTORNEY

Return Address __________________________ __________________________ __________________________

Document Title Claim of Lien

Reference Number _____________________________

Grantor _____________________________

Grantee _____________________________

Legal Description

Assessors Property Tax Parcel No

CLAIM OF LIEN

________________________ claimant vs _____________________________ name of persons indebted to claimant

Notice is hereby given that the person named below claims a lien pursuant to Chapter 6004 RCW In

support of this lien the following information is submitted

1 NAME OF LIEN CLAIMANT ______________________________________

TELEPHONE NUMBER ______________________________________

ADDRESS ______________________________________

______________________________________

2 DATE ON WHICH THE CLAIMANT BEGAN TO PERFORM LABOR PROVIDE PROFESSIONAL SERVICES SUPPLY MATERIAL OR EQUIPMENT OR THE DATE ON WHICH EMPLOYEE BENEFIT CONTRIBUTIONS BECOMES DUE _________

3 NAME OF PERSON INDEBTED TO THE CLAIMANT _________________

4 DESCRIPTIONOF THE PROPERTY AGAINST WHICH A LIEN IS CLAIMED All fee leasehold and other interests of _______________ and any other owner person or entity in the property commonly known as ___________________________located at _______________________ _________________________ _________________County Washington _______ the legal description of which is believed to be as follows

[Legal Description - andor - The legal description of the underlying real property is described on the attached Exhibit A]

CCBA Nuts amp Bolts on Construction Law - 17 of 49

5 NAME OF THE OWNER OR REPUTED OWNER (if not known state ldquounknownrdquo) ____________________________________________________________________________________________

6 THE LAST DATE ON WHICH LABOR WAS PERFORMED PROFESSIONAL SERVICES WERE FURNISHED CONTRIBUTIONS TO AN EMPLOYEE BENEFIT PLAN WERE DUE OR MATERIAL OR EQUIPMENT WAS FURNISHED _____________________________________________________________

7 PRINCIPAL AMOUNT FOR WHICH THE LIEN IS CLAIMED IS $_______

8 IF THE CLAIMANT IS THE ASSIGNEE OF THIS CLAIM SO STATE HERE ___

___________________ Claimant ___________________________

___________________________ (__)____-______

By ________s________________ Print Name ___________________ Its Attorney

STATE OF WASHINGTON )

SS COUNTYOF ____________ )

________________ being sworn says I am the attorney of the claimant above named I have read or heard the foregoing claim read and know the contents thereof and believe the same to be true and correct and that the claim of lien is not frivolous and is made with reasonable cause and is not clearly excessive under penalty of perjury

__________________________ Print Name _______________

SUBSCRIBED and SWORN to before me this ___day of ___________________ 201_

STATE OF WASHINGTON )

SS COUNTYOF ____________ )

[Seal or Stamp]

__________________________ Print Name _______________ Notary Public in and for the State of Washington residing at________________________________ My Commission Expires __________________

CCBA Nuts amp Bolts on Construction Law - 18 of 49

I certify that I know or have satisfactory evidence that___________________ is the person who appeared before me and said person acknowledged that [heshe] signed this instrument on oath stated that [heshe] was authorized to execute this instrument and acknowledged it as the attorney of___________________ to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument

CCBA Nuts amp Bolts on Construction Law - 19 of 49

F625-054-000 construction lien notice 11-05 IMPORTANT INFORMATION ON PAGE 2

NOTICE TO OWNER IMPORTANT READ BOTH SIDES OF THIS NOTICE CAREFULLY

PROTECT YOURSELF FROM PAYING TWICE

To

Date

Re

From (Description of property street address or general location)

AT THE REQUEST OF Name of person ordering their professional services materials or equipment

THIS IS NOT A LIEN This notice is sent to you to tell you who is providing professional services materials or equipment for the improvement of your property and to advise you of the rights of these persons and your responsibilities Also take notice that laborers on your project may claim a lien without sending you a notice

OWNEROCCUPIER OF EXISTING RESIDENTIAL PROPERTY Under Washington law those who furnish labor professional services materials or equipment for the repair remodel or alteration of you owner-occupied principal residence and who are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien The law limits the amount that a lien claimant can claim against your property Claims may only be made against that portion of the contract price you have not yet paid to your prime contractor as of the time this notice was given to you or three days after this notice was mailed to you Review page 2 of this notice for more information and ways to avoid lien claims

COMMERCIAL ANDOR NEW RESIDENTIAL PROPERTY We have or will be providing professional services materials or equipment for the improvement of your commercial or new residential project In the event you or your contractor fail to pay us we may file a lien against your property A lien may be claimed for all professional services materials or equipment furnished after a date that is sixty days before this notice was given to you or mailed to you unless the improvement to you property is the construction of a new single-family residence then ten days before this notice was given to you or mailed to you

Sender

Address

Telephone

Brief description of professional services materials or equipment provided or to be provided

CCBA Nuts amp Bolts on Construction Law - 20 of 49

F625-054-000 construction lien notice page 2 11-05

Important Information for your Protection

This notice is sent to inform you that we have or will provide professional services materials or equipment for the repair remodel or alteration of you property We expect to be paid by the person who ordered our services but if we are not paid we have the right to enforce our claim by filing a construction lien against your property

LEARN more about the lien laws and the meaning of this notice by

discussing them with our contractor suppliers Department of Labor and Industries the firm sending you this notice your lender or your attorney

COMMON METHODS TO AVOID CONSTRUCTION LIENS

There are several methods available to protect your property from construction liens The following are two of the more commonly used methods

DUAL PAYCHECKS (Joint Checks) When paying your

contractor for services or materials you may make checks payable jointly to the contractor and the firms furnishing you this notice

LIEN RELEASES You may require your contractor to provide

lien releases signed by all the suppliers and subcontractors from whom you have received this notice If they cannot obtain lien releases because you have not paid them you may use the dual payee check method to protect yourself

You should take appropriate steps to protect your property from

liens

Your prime contractor and your construction lender are required by law to give you written information about lien claims If you have not received it ask them for it

CCBA Nuts amp Bolts on Construction Law - 21 of 49

F625-030-000 model disclosure statement notice to customer 09-2007

Department of Labor and Industries Construction Compliance

MODEL DISCLOSURE STATEMENTNOTICE TO CUSTOMER

This contractor is registered with the state of Washington registration no____________________ and has posted with the state a bond or deposit of ______________________ for the purpose of satisfying claims against the contractor for breach of contract including negligent or improper work in the conduct of the contractorrsquos business The expiration date of this contractorrsquos registration is ______________________

THIS BOND OR DEPOSIT MIGHT NOT BE SUFFICIENT TO COVER A CLAIM THAT MIGHT ARISE FROM THE WORK DONE UNDER YOUR CONTRACT This bond or deposit is not for your exclusive use because it covers all work performed by this contractor The bond or deposit is intended to pay valid claims up to ___________________________ that you and other customers suppliers subcontractors or taxing authorities may have FOR GREATER PROTECTION YOU MAY WITHHOLD A PERCENTAGE OF YOUR CONTRACT You may withhold a contractually defined percentage of your construction contract as retainage for a stated period of time to provide protection to you and help insure that your project will be completed as required by your contract

YOUR PROPERTY MAY BE LIENED If a supplier of materials used in your construction project or an employee or subcontractor of your contractor or subcontractors is not paid your property may be liened to force payment and you could pay twice for the same work FOR ADDITIONAL PROTECTION YOU MAY REQUEST THE CONTRACTOR TO PROVIDE YOU WITH ORIGINAL ldquoLIEN RELEASErdquo DOCUMENTS FROM EACH SUPPLIER OR SUBCONTRACTOR AT YOUR PROJECT The contractor is required to provide you with further information about lien release document if you request it General information is also available from the state Department of Labor and Industries I have received a copy of this disclosure statement Dated this _______ day of _______________ of the year __________

_____________________________________________________ Signature of Customer The contractor must retain a signed copy of the disclosure statement in his or her files for a minimum of three years and produce a signed or electronic signature copy of the disclosure statement to the department upon request

CCBA Nuts amp Bolts on Construction Law - 22 of 49

Facts About Construction LiensWhat you should know about contractsIf your contractor fails to pay subcontractors suppliers or laborers or neglects to make other legally required payments those who are owed money can look to your property for payment even if you have paid your contractor in full This is true if you have hired a contractor to build a new home or are buying a newly built home

It is also true when you remodel or improve your property although the amount of your liability may be limited to the amount you owe the prime contractor at the time a lien is filed

Under Washington laws those who work on your property or provide materials and are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien

People who supply materials or labor ordered by your contractor are permitted by law to file a lien only if they do so within 90 days of cessation of performance or delivery of materials The time frame is spelled out in RCW 6004091

If you enter into a contract to buy a newly built home you may not receive a notice of a lien based on a claim by a contractor or material handler Be aware that a lien may be claimed even though you have not received a notice

Before making final payment on the project request a completed lien release form from each contractor and material supplier A sample of this release of lien form is available from the Department of Labor amp Industries Contractor Registration Section

You have final responsibility for seeing that all bills are paid even if you have paid your contractor in full

If you receive a notice to enforce a lien take the notice seriously Let your contractor know you have received the notice Find out what arrangements are being made to pay the sender of the notice

When in doubt or if you need more details consult your attorney When and how to pay your contractor is a decision that requires serious consideration

Reminder Washington laws require contractors to give you a disclosure statement if your contract exceeds $1000 [RCW 1827114(A) or (B)]

CCBA Nuts amp Bolts on Construction Law - 23 of 49

PUBLICATION F625-017-000 [01-2008]

Other formats for persons with disabilities are available on request Call 1-800-647-0982 TDD users call 360-902-5797 LampI is an equal opportunity employer

For more information

How to protect your investment

If you are dealing with a lending institution ask your loan officer what precautions the lending institution takes to verify that subcontractors and material suppliers are being paid when mortgage money is paid to your contractor

Request lender supervision when dealing with a lending institution that provides interim or construction financing

Ask the prime contractor to disclose all potential lien claimants as a condition of payment A lien claimant must mail (by certified or registered mail or by personal service) a copy of the claim of lien to the owner within 14 days of the time the lien is recorded [RCW 6004091(2)] While an action is ongoing an owner may withhold from this prime contractor the amount of money for which a claim is recorded by a subcontractor supplier or laborer [RCW 6004151]

It is recommended that your check be made payable jointly naming the contractor and the subcontractor or supplier as payees

Upon payment and acceptance of the amount due the owner has the right to an executed release of all lien rights by lien claimants [RCW 6004071]

Consider using an escrow agent to protect your interests Find out whether your escrow agent will protect you against liens when disbursing payments If you are interested in this alternative consult your attorney

Request that your contractor post a performance bond in the amount of the project cost That will give you recourse in the event the contractor fails to complete the building agreement

8 On the Web Find more information about hiring a contractor at

wwwLniwagovTradesLicensingContractorsHireCon

Contractor Registration Hotline1-800-647-0982

You may also call your local LampI office See listings under ldquoWashington State ofrdquo in the government section or the white pages of the telephone book

Please note This notice was prepared by the Department of Labor amp Industries Specialty Compliance Services Division for reproduction by lending institutions and contractors for distribution to their clients It explains the basics of the construction lien law to help you protect yourself This information is not a reflection upon the abilities or credit of your contractor

CCBA Nuts amp Bolts on Construction Law - 24 of 49

NOTICE OF CLAIM AGAINST

BOND AND RETAINED PERCENTAGE

RCW 3908030 RCW 6028010

VIA CERTIFIED MAIL ndash RETURN RECEIPT REQUESTED

TO [Public Owner] [Public Ownerrsquos Address]

Project [Project Name amp Address] NOTICE IS HEREBY GIVEN that the undersigned [Claimant] [Claimantrsquos Address] has a claim in the amount of ----- and 00100 Dollars ($XX) (not including attorneysrsquo fees or costs) together with interest at twelve percent (12) against [Public Owner] (ldquoOwnerrdquo) pursuant to RCW 6028 and the payment bond taken from [Prime Contractor] (ldquoContractorrdquo) [Prime Contractorrsquos Address] as principal and [Surety Company] (ldquoSuretyrdquo) [Suretyrsquos Address] as surety Bond No ________ pursuant to RCW 3908 for [describe services material supplies labor furnished] provided on the Project This Notice of Claim Against Bond and Retained Percentage supersedes and replaces previous Notices DATED This ___day of _________ 201_ [Claimant] By ______________________________________ Its ______________________________________ [Claimantrsquos Address]

_________________________________________

[Contractors Registration No if applicable]

(Copies furnished to General Contractor and General Contractorrsquos Bonding Company)

CCBA Nuts amp Bolts on Construction Law - 25 of 49

PRECLAIM NOTICE TO CONTRACTOR BY SUBCONTRACTORS MATERIALMEN OR SUPPLIERS FOR

CLAIM AGAINST BOND AND RETAINED PERCENTAGE

VIA CERTIFIED OR REGISTERED MAIL- RETURN RECEIPT REQUESTED

TO [Name of General Contractor] [Address]

YOU ARE HEREBY NOTIFIED that the undersigned ____________at the request of_________________ commenced to deliver or furnish materials supplies andor equipment for the use in the construction alteration andor repair of that certain project known as____________________ [project name] which is located at ____________________________ [address or description] If the undersigned is not paid for these materials supplies andor equipment it will file a claim against you and your bond andor retainage pursuant to RCW 3908 andor 6028 et seq for payment of any sum that is due and owing to the undersigned

DATED This __ day of _____________ 201_

[Name of Claimant]

By ____________________________________

Its ____________________________________

Address ______________________________

__________________________________________

__________________________________________

[Contractors Registration No if applicable]

(Mail via certified mail return receipt requested or hand deliver and obtain receipt)

CCBA Nuts amp Bolts on Construction Law - 26 of 49

Washington Liens amp Bonds ndash Pertinent Statutes

RCW 1827040 Bond or other security required mdash Actions against mdash Suspension of registration upon impairment (1) Each applicant shall file with the department a surety bond issued by a surety insurer who meets the requirements of chapter 4828 RCW in the sum of twelve thousand dollars if the applicant is a general contractor and six thousand dollars if the applicant is a specialty contractor If no valid bond is already on file with the department at the time the application is filed a bond must accompany the registration application The bond shall have the state of Washington named as obligee with good and sufficient surety in a form to be approved by the department The bond shall be continuous and may be canceled by the surety upon the surety giving written notice to the director A cancellation or revocation of the bond or withdrawal of the surety from the bond automatically suspends the registration issued to the contractor until a new bond or reinstatement notice has been filed and approved as provided in this section The bond shall be conditioned that the applicant will pay all persons performing labor including employee benefits for the contractor will pay all taxes and contributions due to the state of Washington and will pay all persons furnishing material or renting or supplying equipment to the contractor and will pay all amounts that may be adjudged against the contractor by reason of breach of contract including improper work in the conduct of the contracting business A change in the name of a business or a change in the type of business entity shall not impair a bond for the purposes of this section so long as one of the original applicants for such bond maintains partial ownership in the business covered by the bond (2) At the time of initial registration or renewal the contractor shall provide a bond or other security deposit as required by this chapter and comply with all of the other provisions of this chapter before the department shall issue or renew the contractors certificate of registration Any contractor registered as of July 1 2001 who maintains that registration in accordance with this chapter is in compliance with this chapter until the next renewal of the contractors certificate of registration (3) Any person firm or corporation having a claim against the contractor for any of the items referred to in this section may bring suit against the contractor and the bond or deposit in the superior court of the county in which the work was done or of any county in which jurisdiction of the contractor may be had The surety issuing the bond shall be named as a party to any suit upon the bond Action upon the bond or deposit brought by a residential homeowner for breach of contract by a party to the construction contract shall be commenced by filing the summons and complaint with the clerk of the appropriate superior court within two years from the date the claimed contract work was substantially completed or abandoned whichever occurred first Action upon the bond or deposit brought by any other authorized party shall be commenced by filing the summons and complaint with the clerk of the appropriate superior court within one year from the date the claimed labor was performed and benefits accrued taxes and contributions owing the state of Washington became due materials and equipment were furnished or the claimed contract work was substantially completed or abandoned whichever occurred first Service of process in an action filed under this chapter against the contractor and the contractors bond or the deposit shall be exclusively by service upon the department Three

CCBA Nuts amp Bolts on Construction Law - 27 of 49

copies of the summons and complaint and a fee adopted by rule of not less than fifty dollars to cover the costs shall be served by registered or certified mail or other delivery service requiring notice of receipt upon the department at the time suit is started and the department shall maintain a record available for public inspection of all suits so commenced Service is not complete until the department receives the fee and three copies of the summons and complaint The service shall constitute service and confer personal jurisdiction on the contractor and the surety for suit on claimants claim against the contractor and the bond or deposit and the department shall transmit the summons and complaint or a copy thereof to the contractor at the address listed in the contractors application and to the surety within two days after it shall have been received (4) The surety upon the bond shall not be liable in an aggregate amount in excess of the amount named in the bond nor for any monetary penalty assessed pursuant to this chapter for an infraction The liability of the surety shall not cumulate where the bond has been renewed continued reinstated reissued or otherwise extended The surety upon the bond may upon notice to the department and the parties tender to the clerk of the court having jurisdiction of the action an amount equal to the claims thereunder or the amount of the bond less the amount of judgments if any previously satisfied therefrom and to the extent of such tender the surety upon the bond shall be exonerated but if the actions commenced and pending and provided to the department as required in subsection (3) of this section at any one time exceed the amount of the bond then unimpaired claims shall be satisfied from the bond in the following order (a) Employee labor and claims of laborers including employee benefits (b) Claims for breach of contract by a party to the construction contract (c) Registered or licensed subcontractors material and equipment (d) Taxes and contributions due the state of Washington (e) Any court costs interest and attorneys fees plaintiff may be entitled to recover The surety is not liable for any amount in excess of the penal limit of its bond A payment made by the surety in good faith exonerates the bond to the extent of any payment made by the surety (5) The total amount paid from a bond or deposit required of a general contractor by this section to claimants other than residential homeowners must not exceed one-half of the bond amount The total amount paid from a bond or deposit required of a specialty contractor by this section to claimants other than residential homeowners must not exceed one-half of the bond amount or four thousand dollars whichever is greater (6) The prevailing party in an action filed under this section against the contractor and contractors bond or deposit for breach of contract by a party to the construction contract involving a residential homeowner is entitled to costs interest and reasonable attorneys fees The surety upon the bond or deposit is not liable in an aggregate amount in excess of the amount

CCBA Nuts amp Bolts on Construction Law - 28 of 49

named in the bond or deposit nor for any monetary penalty assessed pursuant to this chapter for an infraction (7) If a final judgment impairs the liability of the surety upon the bond or deposit so furnished that there is not in effect a bond or deposit in the full amount prescribed in this section the registration of the contractor is automatically suspended until the bond or deposit liability in the required amount unimpaired by unsatisfied judgment claims is furnished (8) In lieu of the surety bond required by this section the contractor may file with the department an assigned savings account upon forms provided by the department (9) Any person having filed and served a summons and complaint as required by this section having an unsatisfied final judgment against the registrant for any items referred to in this section may execute upon the security held by the department by serving a certified copy of the unsatisfied final judgment by registered or certified mail upon the department within one year of the date of entry of such judgment Upon the receipt of service of such certified copy the department shall pay or order paid from the deposit through the registry of the superior court which rendered judgment towards the amount of the unsatisfied judgment The priority of payment by the department shall be the order of receipt by the department but the department shall have no liability for payment in excess of the amount of the deposit (10) Within ten days after resolution of the case a certified copy of the final judgment and order or any settlement documents where a case is not disposed of by a court trial a certified copy of the dispositive settlement documents must be provided to the department by the prevailing party Failure to provide a copy of the final judgment and order or the dispositive settlement documents to the department within ten days of entry of such an order constitutes a violation of this chapter and a penalty adopted by rule of not less than two hundred fifty dollars may be assessed against the prevailing party (11) The director may require an applicant applying to renew or reinstate a registration or applying for a new registration to file a bond of up to three times the normally required amount if the director determines that an applicant or a previous registration of a corporate officer owner or partner of a current applicant has had in the past five years a total of three final judgments in actions under this chapter involving a residential single-family dwelling on two or more different structures (12) The director may adopt rules necessary for the proper administration of the security RCW 1827114 Disclosure statement required mdash Prerequisite to lien claim

(1) Any contractor agreeing to perform any contracting project (a) For the repair alteration or construction of four or fewer residential units or accessory structures on such residential property when the bid or contract price totals one thousand dollars or more or (b) for the repair alteration or construction of a commercial building when the bid or contract price totals one thousand dollars or more but less than sixty thousand dollars must provide the customer with

CCBA Nuts amp Bolts on Construction Law - 29 of 49

the following disclosure statement in substantially the following form using lower case and upper case twelve-point and bold type where appropriate prior to starting work on the project NOTICE TO CUSTOMER This contractor is registered with the state of Washington registration no and has posted with the state a bond or deposit of for the purpose of satisfying claims against the contractor for breach of contract including negligent or improper work in the conduct of the contractors business The expiration date of this contractors registration is THIS BOND OR DEPOSIT MIGHT NOT BE SUFFICIENT TO COVER A CLAIM THAT MIGHT ARISE FROM THE WORK DONE UNDER YOUR CONTRACT This bond or deposit is not for your exclusive use because it covers all work performed by this contractor The bond or deposit is intended to pay valid claims up to that you and other customers suppliers subcontractors or taxing authorities may have FOR GREATER PROTECTION YOU MAY WITHHOLD A PERCENTAGE OF YOUR CONTRACT You may withhold a contractually defined percentage of your construction contract as retainage for a stated period of time to provide protection to you and help insure that your project will be completed as required by your contract YOUR PROPERTY MAY BE LIENED If a supplier of materials used in your construction project or an employee or subcontractor of your contractor or subcontractors is not paid your property may be liened to force payment and you could pay twice for the same work FOR ADDITIONAL PROTECTION YOU MAY REQUEST THE CONTRACTOR TO PROVIDE YOU WITH ORIGINAL LIEN RELEASE DOCUMENTS FROM EACH SUPPLIER OR SUBCONTRACTOR ON YOUR PROJECT The contractor is required to provide you with further information about lien release documents if you request it General information is also available from the state Department of Labor and Industries I have received a copy of this disclosure statement

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(Signature of customer) (2) The contractor must retain a signed copy of the disclosure statement in his or her files for a minimum of three years and produce a signed or electronic signature copy of the disclosure statement to the department upon request (3) A contractor subject to this section shall notify any consumer to whom notice is required under subsection (1) of this section if the contractors registration has expired or is revoked or suspended by the department prior to completion or other termination of the contract with the consumer (4) No contractor subject to this section may bring or maintain any lien claim under chapter 6004 RCW based on any contract to which this section applies without alleging and proving that the contractor has provided the customer with a copy of the disclosure statement as required in subsection (1) of this section (5) This section does not apply to contracts authorized under chapter 3904 RCW or to contractors contracting with other contractors (6) Failure to comply with this section shall constitute an infraction under the provisions of this chapter (7) The department shall produce model disclosure statements and public service announcements detailing the information needed to assist contractors and contractors customers to comply under this section As necessary the department shall periodically update these education materials RCW 3908010 Bond required mdash Conditions mdash Retention of contract amount in lieu of bond (1)(a) Whenever any board council commission trustees or body acting for the state or any county or municipality or any public body must contract with any person or corporation to do any work for the state county or municipality or other public body city town or district such board council commission trustees or body must require the person or persons with whom such contract is made to make execute and deliver to such board council commission trustees or body a good and sufficient bond with a surety company as surety conditioned that such person or persons must (i) Faithfully perform all the provisions of such contract (ii) Pay all laborers mechanics and subcontractors and material suppliers and all persons who supply such person or persons or subcontractors with provisions and supplies for the carrying on of such work and

CCBA Nuts amp Bolts on Construction Law - 31 of 49

(iii) Pay the taxes increases and penalties incurred on the project under Titles 50 51 and 82 RCW on (A) Projects referred to in RCW 6028011(1)(b) andor (B) projects for which the bond is conditioned on the payment of such taxes increases and penalties (b) The bond in cases of cities and towns must be filed with the clerk or comptroller thereof and any person or persons performing such services or furnishing material to any subcontractor has the same right under the provisions of such bond as if such work services or material was furnished to the original contractor (2) The provisions of RCW 3908010 through 3908030 do not apply to any money loaned or advanced to any such contractor subcontractor or other person in the performance of any such work (3) On contracts of thirty-five thousand dollars or less at the option of the contractor the respective public entity may in lieu of the bond retain fifty percent of the contract amount for a period of thirty days after date of final acceptance or until receipt of all necessary releases from the department of revenue the employment security department and the department of labor and industries and settlement of any liens filed under chapter 6028 RCW whichever is later (4) For contracts of one hundred thousand dollars or less the public entity may accept a full payment and performance bond from an individual surety or sureties (5) The surety must agree to be bound by the laws of the state of Washington and subjected to the jurisdiction of the state of Washington RCW 6004011 Definitions

Unless the context requires otherwise the definitions in this section apply throughout this chapter (1) Construction agent means any registered or licensed contractor registered or licensed subcontractor architect engineer or other person having charge of any improvement to real property who shall be deemed the agent of the owner for the limited purpose of establishing the lien created by this chapter (2) Contract price means the amount agreed upon by the contracting parties or if no amount is agreed upon then the customary and reasonable charge therefor (3) Draws means periodic disbursements of interim or construction financing by a lender (4) Furnishing labor professional services materials or equipment means the performance of any labor or professional services the contribution owed to any employee benefit plan on account of any labor the provision of any supplies or materials and the renting leasing or

CCBA Nuts amp Bolts on Construction Law - 32 of 49

otherwise supplying of equipment for the improvement of real property (5) Improvement means (a) Constructing altering repairing remodeling demolishing clearing grading or filling in of to or upon any real property or street or road in front of or adjoining the same (b) planting of trees vines shrubs plants hedges or lawns or providing other landscaping materials on any real property and (c) providing professional services upon real property or in preparation for or in conjunction with the intended activities in (a) or (b) of this subsection (6) Interim or construction financing means that portion of money secured by a mortgage deed of trust or other encumbrance to finance improvement of or to real property but does not include (a) Funds to acquire real property (b) Funds to pay interest insurance premiums lease deposits taxes assessments or prior encumbrances (c) Funds to pay loan commitment title legal closing recording or appraisal fees (d) Funds to pay other customary fees which pursuant to agreement with the owner or borrower are to be paid by the lender from time to time (e) Funds to acquire personal property for which the potential lien claimant may not claim a lien pursuant to this chapter (7) Labor means exertion of the powers of body or mind performed at the site for compensation Labor includes amounts due and owed to any employee benefit plan on account of such labor performed (8) Mortgagee means a person who has a valid mortgage of record or deed of trust of record securing a loan (9) Owner-occupied means a single-family residence occupied by the owner as his or her principal residence (10) Payment bond means a surety bond issued by a surety licensed to issue surety bonds in the state of Washington that confers upon potential claimants the rights of third party beneficiaries (11) Potential lien claimant means any person or entity entitled to assert lien rights under this chapter who has otherwise complied with the provisions of this chapter and is registered or licensed if required to be licensed or registered by the provisions of the laws of the state of Washington (12) Prime contractor includes all contractors general contractors and specialty

CCBA Nuts amp Bolts on Construction Law - 33 of 49

contractors as defined by chapter 1827 or 1928 RCW or who are otherwise required to be registered or licensed by law who contract directly with a property owner or their common law agent to assume primary responsibility for the creation of an improvement to real property and includes property owners or their common law agents who are contractors general contractors or specialty contractors as defined in chapter 1827 or 1928 RCW or who are otherwise required to be registered or licensed by law who offer to sell their property without occupying or using the structures projects developments or improvements for more than one year (13) Professional services means surveying establishing or marking the boundaries of preparing maps plans or specifications for or inspecting testing or otherwise performing any other architectural or engineering services for the improvement of real property (14) Real property lender means a bank savings bank savings and loan association credit union mortgage company or other corporation association partnership trust or individual that makes loans secured by real property located in the state of Washington (15) Site means the real property which is or is to be improved (16) Subcontractor means a general contractor or specialty contractor as defined by chapter 1827 or 1928 RCW or who is otherwise required to be registered or licensed by law who contracts for the improvement of real property with someone other than the owner of the property or their common law agent

6004021 Lien authorized

Except as provided in RCW 6004031 any person furnishing labor professional services materials or equipment for the improvement of real property shall have a lien upon the improvement for the contract price of labor professional services materials or equipment furnished at the instance of the owner or the agent or construction agent of the owner

6004031 Notices mdash Exceptions

(1) Except as otherwise provided in this section every person furnishing professional services materials or equipment for the improvement of real property shall give the owner or reputed owner notice in writing of the right to claim a lien If the prime contractor is in compliance with the requirements of RCW 1927095 6004230 and 6004261 this notice shall also be given to the prime contractor as described in this subsection unless the potential lien claimant has contracted directly with the prime contractor The notice may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after the date which is sixty days before (a) Mailing the notice by certified or registered mail to the owner or reputed owner or

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(b) Delivering or serving the notice personally upon the owner or reputed owner and obtaining evidence of delivery in the form of a receipt or other acknowledgment signed by the owner or reputed owner or an affidavit of service In the case of new construction of a single-family residence the notice of a right to claim a lien may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after a date which is ten days before the notice is given as described in this subsection (2) Notices of a right to claim a lien shall not be required of (a) Persons who contract directly with the owner or the owners common law agent (b) Laborers whose claim of lien is based solely on performing labor or (c) Subcontractors who contract for the improvement of real property directly with the prime contractor except as provided in subsection (3)(b) of this section (3) Persons who furnish professional services materials or equipment in connection with the repair alteration or remodel of an existing owner-occupied single-family residence or appurtenant garage (a) Who contract directly with the owner-occupier or their common law agent shall not be required to send a written notice of the right to claim a lien and shall have a lien for the full amount due under their contract as provided in RCW 6004021 or (b) Who do not contract directly with the owner-occupier or their common law agent shall give notice of the right to claim a lien to the owner-occupier Liens of persons furnishing professional services materials or equipment who do not contract directly with the owner-occupier or their common law agent may only be satisfied from amounts not yet paid to the prime contractor by the owner at the time the notice described in this section is received regardless of whether amounts not yet paid to the prime contractor are due For the purposes of this subsection received means actual receipt of notice by personal service or registered or certified mail or three days after mailing by registered or certified mail excluding Saturdays Sundays or legal holidays (4) The notice of right to claim a lien described in subsection (1) of this section shall include but not be limited to the following information and shall substantially be in the following form using lower-case and upper-case ten-point type where appropriate

CCBA Nuts amp Bolts on Construction Law - 35 of 49

NOTICE TO OWNER

IMPORTANT READ BOTH SIDES OF THIS NOTICE CAREFULLY

PROTECT YOURSELF FROM PAYING TWICE

To Date

Re (description of property Street address or general location) From AT THE REQUEST OF (Name of person ordering the professional services materials or equipment) THIS IS NOT A LIEN This notice is sent to you to tell you who is providing professional services materials or equipment for the improvement of your property and to advise you of the rights of these persons and your responsibilities Also take note that laborers on your project may claim a lien without sending you a notice

OWNEROCCUPIER OF EXISTING

RESIDENTIAL PROPERTY

Under Washington law those who furnish labor professional services materials or equipment for the repair remodel or alteration of your owner-occupied principal residence and who are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien The law limits the amount that a lien claimant can claim against your property Claims may only be made against that portion of the contract price you have not yet paid to your prime contractor as of the time this notice was given to you or three days after this notice was mailed to you Review the back of this notice for more information and ways to avoid lien claims

COMMERCIAL ANDOR NEW

RESIDENTIAL PROPERTY

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We have or will be providing professional services materials or equipment for the improvement of your commercial or new residential project In the event you or your contractor fail to pay us we may file a lien against your property A lien may be claimed for all professional services materials or equipment furnished after a date that is sixty days before this notice was given to you or mailed to you unless the improvement to your property is the construction of a new single-family residence then ten days before this notice was given to you or mailed to you Sender Address Telephone Brief description of professional services materials or equipment provided or to be provided

IMPORTANT INFORMATION

ON REVERSE SIDE

IMPORTANT INFORMATION

FOR YOUR PROTECTION This notice is sent to inform you that we have or will provide professional services materials or equipment for the improvement of your property We expect to be paid by the person who ordered our services but if we are not paid we have the right to enforce our claim by filing a construction lien against your property LEARN more about the lien laws and the meaning of this notice by discussing them with your contractor suppliers Department of Labor and Industries the firm sending you this notice your lender or your attorney

COMMON METHODS TO AVOID CONSTRUCTION LIENS There are several methods available to protect your property from construction liens The following are two of the more commonly used methods

DUAL PAYCHECKS (Joint Checks) When paying your contractor for services or materials you may make checks payable jointly to the contractor and the firms furnishing you this notice

CCBA Nuts amp Bolts on Construction Law - 37 of 49

LIEN RELEASES You may require your contractor to provide lien releases signed by all the suppliers and subcontractors from whom you have received this notice If they cannot obtain lien releases because you have not paid them you may use the dual payee check method to protect yourself

YOU SHOULD TAKE APPROPRIATE STEPS TO PROTECT YOUR PROPERTY FROM LIENS YOUR PRIME CONTRACTOR AND YOUR CONSTRUCTION LENDER ARE REQUIRED BY LAW TO GIVE YOU WRITTEN INFORMATION ABOUT LIEN CLAIMS IF YOU HAVE NOT RECEIVED IT ASK THEM FOR IT

(5) Every potential lien claimant providing professional services where no improvement as defined in RCW 6004011(5) (a) or (b) has been commenced and the professional services provided are not visible from an inspection of the real property may record in the real property records of the county where the property is located a notice which shall contain the professional service providers name address telephone number legal description of the property the owner or reputed owners name and the general nature of the professional services provided If such notice is not recorded the lien claimed shall be subordinate to the interest of any subsequent mortgagee and invalid as to the interest of any subsequent purchaser if the mortgagee or purchaser acts in good faith and for a valuable consideration acquires an interest in the property prior to the commencement of an improvement as defined in RCW 6004011(5) (a) or (b) without notice of the professional services being provided The notice described in this subsection shall be substantially in the following form

NOTICE OF FURNISHING

PROFESSIONAL SERVICES That on the (day) day of (month and year) (name of provider) began providing professional services upon or for the improvement of real property legally described as follows

[Legal Description is mandatory]

CCBA Nuts amp Bolts on Construction Law - 38 of 49

The general nature of the professional services provided is The owner or reputed owner of the real property is

(Signature)

(Name of Claimant)

(Street Address)

(City State Zip Code)

(Phone Number)

(6) A lien authorized by this chapter shall not be enforced unless the lien claimant has complied with the applicable provisions of this section

6004041 Contractor registration

A contractor or subcontractor required to be registered under chapter 1827 RCW or licensed under chapter 1928 RCW or otherwise required to be registered or licensed by law shall be deemed the construction agent of the owner for the purposes of establishing the lien created by this chapter only if so registered or licensed Persons dealing with contractors or subcontractors may rely for the purposes of this section upon a certificate of registration issued pursuant to chapter 1827 RCW or license issued pursuant to chapter 1928 RCW or other certificate or license issued pursuant to law covering the period when the labor professional services material or equipment shall be furnished and the lien rights shall not be lost by suspension or revocation of registration or license without their knowledge No lien rights described in this

CCBA Nuts amp Bolts on Construction Law - 39 of 49

chapter shall be lost or denied by virtue of the absence suspension or revocation of such registration or license with respect to any contractor or subcontractor not in immediate contractual privity with the lien claimant

6004081 Frivolous claim mdash Procedure

(1) Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who believes the claim of lien to be frivolous and made without reasonable cause or clearly excessive may apply by motion to the superior court for the county where the property or some part thereof is located for an order directing the lien claimant to appear before the court at a time no earlier than six nor later than fifteen days following the date of service of the application and order on the lien claimant and show cause if any he or she has why the relief requested should not be granted The motion shall state the grounds upon which relief is asked and shall be supported by the affidavit of the applicant or his or her attorney setting forth a concise statement of the facts upon which the motion is based (2) The order shall clearly state that if the lien claimant fails to appear at the time and place noted the lien shall be released with prejudice and that the lien claimant shall be ordered to pay the costs requested by the applicant including reasonable attorneys fees (3) If no action to foreclose the lien claim has been filed the clerk of the court shall assign a cause number to the application and obtain from the applicant a filing fee pursuant to RCW 3618016 If an action has been filed to foreclose the lien claim the application shall be made a part of that action (4) If following a hearing on the matter the court determines that the lien is frivolous and made without reasonable cause or clearly excessive the court shall issue an order releasing the lien if frivolous and made without reasonable cause or reducing the lien if clearly excessive and awarding costs and reasonable attorneys fees to the applicant to be paid by the lien claimant If the court determines that the lien is not frivolous and was made with reasonable cause and is not clearly excessive the court shall issue an order so stating and awarding costs and reasonable attorneys fees to the lien claimant to be paid by the applicant (5) Proceedings under this section shall not affect other rights and remedies available to the parties under this chapter or otherwise

6004091 Recording mdash Time mdash Contents of lien

Every person claiming a lien under RCW 6004021 shall file for recording in the county where the subject property is located a notice of claim of lien not later than ninety days after the person

CCBA Nuts amp Bolts on Construction Law - 40 of 49

has ceased to furnish labor professional services materials or equipment or the last date on which employee benefit contributions were due The notice of claim of lien (1) Shall state in substance and effect (a) The name phone number and address of the claimant (b) The first and last date on which the labor professional services materials or equipment was furnished or employee benefit contributions were due (c) The name of the person indebted to the claimant (d) The street address legal description or other description reasonably calculated to identify for a person familiar with the area the location of the real property to be charged with the lien (e) The name of the owner or reputed owner of the property if known and if not known that fact shall be stated and (f) The principal amount for which the lien is claimed (2) Shall be signed by the claimant or some person authorized to act on his or her behalf who shall affirmatively state they have read the notice of claim of lien and believe the notice of claim of lien to be true and correct under penalty of perjury and shall be acknowledged pursuant to chapter 6408 RCW If the lien has been assigned the name of the assignee shall be stated Where an action to foreclose the lien has been commenced such notice of claim of lien may be amended as pleadings may be by order of the court insofar as the interests of third parties are not adversely affected by such amendment A claim of lien substantially in the following form shall be sufficient

CLAIM OF LIEN

claimant vs name of person indebted to claimant

Notice is hereby given that the person named below claims a lien pursuant to chapter 6404 RCW In support of this lien the following information is submitted

1 NAME OF LIEN CLAIMANT

TELEPHONE NUMBER

CCBA Nuts amp Bolts on Construction Law - 41 of 49

ADDRESS

2 DATE ON WHICH THE CLAIMANT BEGAN TO PERFORM LABOR PROVIDE PROFESSIONAL SERVICES SUPPLY MATERIAL OR EQUIPMENT OR THE DATE ON WHICH EMPLOYEE BENEFIT CONTRIBUTIONS BECAME DUE

3 NAME OF PERSON INDEBTED TO THE CLAIMANT

4 DESCRIPTION OF THE PROPERTY AGAINST WHICH A LIEN IS CLAIMED (Street address legal description or other information that will reasonably describe the property)

5 NAME OF THE OWNER OR REPUTED OWNER (If not known state unknown)

6 THE LAST DATE ON WHICH LABOR WAS PERFORMED PROFESSIONAL SERVICES WERE FURNISHED CONTRIBUTIONS TO AN EMPLOYEE BENEFIT PLAN WERE DUE OR MATERIAL OR EQUIPMENT WAS FURNISHED

7 PRINCIPAL AMOUNT FOR WHICH THE LIEN IS CLAIMED IS

8 IF THE CLAIMANT IS THE ASSIGNEE OF THIS CLAIM SO STATE HERE

Claimant

(Phone number address city

CCBA Nuts amp Bolts on Construction Law - 42 of 49

and

state of claimant)

STATE OF WASHINGTON COUNTY OF ss being sworn says I am the claimant (or attorney of the claimant or administrator representative or agent of the trustees of an employee benefit plan) above named I have read or heard the foregoing claim read and know the contents thereof and believe the same to be true and correct and that the claim of lien is not frivolous and is made with reasonable cause and is not clearly excessive under penalty of perjury Subscribed and sworn to before me this day of The period provided for recording the claim of lien is a period of limitation and no action to foreclose a lien shall be maintained unless the claim of lien is filed for recording within the ninety-day period stated The lien claimant shall give a copy of the claim of lien to the owner or reputed owner by mailing it by certified or registered mail or by personal service within fourteen days of the time the claim of lien is filed for recording Failure to do so results in a forfeiture of any right the claimant may have to attorneys fees and costs against the owner under RCW 6004181

6004161 Bond in lieu of claim

Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who disputes the correctness or validity of the claim of lien may record either before or after the commencement of an action to enforce the lien in the office of the county recorder or auditor in the county where the claim of lien was recorded a bond issued by a surety company authorized to issue surety bonds in the state The surety shall be listed in the latest federal department of the treasury list of surety companies acceptable on federal bonds published in the Federal Register as authorized to issue bonds on United States government projects with an underwriting limitation including applicable reinsurance equal to or greater than the amount of the bond to be recorded The bond shall contain a description of the claim of lien and real property involved and be in an amount equal to the greater of five thousand dollars or two times the amount of the lien claimed if it is ten thousand dollars or less and in an amount equal to or greater than one and one-half times the amount of the lien if it is in

CCBA Nuts amp Bolts on Construction Law - 43 of 49

excess of ten thousand dollars If the claim of lien affects more than one parcel of real property and is segregated to each parcel the bond may be segregated the same as in the claim of lien A separate bond shall be required for each claim of lien made by separate claimants However a single bond may be used to guarantee payment of amounts claimed by more than one claim of lien by a single claimant so long as the amount of the bond meets the requirements of this section as applied to the aggregate sum of all claims by such claimant The condition of the bond shall be to guarantee payment of any judgment upon the lien in favor of the lien claimant entered in any action to recover the amount claimed in a claim of lien or on the claim asserted in the claim of lien The effect of recording a bond shall be to release the real property described in the notice of claim of lien from the lien and any action brought to recover the amount claimed Unless otherwise prohibited by law if no action is commenced to recover on a lien within the time specified in RCW 6004141 the surety shall be discharged from liability under the bond If an action is timely commenced then on payment of any judgment entered in the action or on payment of the full amount of the bond to the holder of the judgment whichever is less the surety shall be discharged from liability under the bond Nothing in this section shall in any way prohibit or limit the use of other methods devised by the affected parties to secure the obligation underlying a claim of lien and to obtain a release of real property from a claim of lien

6004181 Rank of lien mdash Application of proceeds mdash Attorneys fees

(1) In every case in which different construction liens are claimed against the same property the court shall declare the rank of such lien or class of liens which liens shall be in the following order (a) Liens for the performance of labor (b) Liens for contributions owed to employee benefit plans (c) Liens for furnishing material supplies or equipment (d) Liens for subcontractors including but not limited to their labor and materials and (e) Liens for prime contractors or for professional services (2) The proceeds of the sale of property must be applied to each lien or class of liens in order of its rank and in an action brought to foreclose a lien pro rata among each claimant in each separate priority class A personal judgment may be rendered against any party personally liable for any debt for which the lien is claimed If the lien is established the judgment shall provide

CCBA Nuts amp Bolts on Construction Law - 44 of 49

for the enforcement thereof upon the property liable as in the case of foreclosure of judgment liens The amount realized by such enforcement of the lien shall be credited upon the proper personal judgment The deficiency if any remaining unsatisfied shall stand as a personal judgment and may be collected by execution against any party liable therefor (3) The court may allow the prevailing party in the action whether plaintiff or defendant as part of the costs of the action the moneys paid for recording the claim of lien costs of title report bond costs and attorneys fees and necessary expenses incurred by the attorney in the superior court court of appeals supreme court or arbitration as the court or arbitrator deems reasonable Such costs shall have the priority of the class of lien to which they are related as established by subsection (1) of this section (4) Real property against which a lien under this chapter is enforced may be ordered sold by the court and the proceeds deposited into the registry of the clerk of the court pending further determination respecting distribution of the proceeds of the sale

6004900 Liberal construction mdash 1991 c 281

RCW 1927095 6004230 and 6004011 through 6004226 and 6004261 are to be liberally construed to provide security for all parties intended to be protected by their provisions

RCW 6028011

Retained percentage mdash Public transportation projects mdash Labor and material lien created mdash Bond in lieu of retained funds mdash Termination before completion mdash Chapter deemed exclusive mdash Release of ferry contract payments mdash Projects of farmers home administration mdash General contractorconstruction manager procedure mdash Definitions

(1)(a) Except as provided in (b) of this subsection public improvement contracts must provide and public bodies must reserve a contract retainage not to exceed five percent of the moneys earned by the contractor as a trust fund for the protection and payment of (i) The claims of any person arising under the contract and (ii) the state with respect to taxes increases and penalties imposed pursuant to Titles 50 51 and 82 RCW which may be due from such contractor (b) Public improvement contracts funded in whole or in part by federal transportation funds must rely upon the contract bond as referred to in chapter 3908 RCW for the protection and payment of (i) The claims of any person or persons arising under the contract to the extent such claims are provided for in RCW 3908010 and (ii) the state with respect to taxes increases and penalties incurred on the public improvement project under Titles 50 51 and 82 RCW which may be due The contract bond must remain in full force and effect until at a minimum all claims filed in compliance with chapter 3908 RCW are resolved

CCBA Nuts amp Bolts on Construction Law - 45 of 49

(2) Every person performing labor or furnishing supplies toward the completion of a public improvement contract has a lien upon moneys reserved by a public body under the provisions of a public improvement contract However the notice of the lien of the claimant must be given within forty-five days of completion of the contract work and in the manner provided in RCW 3908030 (3) The contractor at any time may request the contract retainage be reduced to one hundred percent of the value of the work remaining on the project (a) After completion of all contract work other than landscaping the contractor may request that the public body release and pay in full the amounts retained during the performance of the contract and sixty days thereafter the public body must release and pay in full the amounts retained (other than continuing retention of five percent of the moneys earned for landscaping) subject to the provisions of chapters 3912 and 6028 RCW (b) Sixty days after completion of all contract work the public body must release and pay in full the amounts retained during the performance of the contract subject to the provisions of chapters 3912 and 6028 RCW (4) The moneys reserved by a public body under the provisions of a public improvement contract at the option of the contractor must be (a) Retained in a fund by the public body (b) Deposited by the public body in an interest bearing account in a bank mutual savings bank or savings and loan association Interest on moneys reserved by a public body under the provision of a public improvement contract must be paid to the contractor (c) Placed in escrow with a bank or trust company by the public body When the moneys reserved are placed in escrow the public body must issue a check representing the sum of the moneys reserved payable to the bank or trust company and the contractor jointly This check must be converted into bonds and securities chosen by the contractor and approved by the public body and the bonds and securities must be held in escrow Interest on the bonds and securities must be paid to the contractor as the interest accrues (5) The contractor or subcontractor may withhold payment of not more than five percent from the moneys earned by any subcontractor or sub-subcontractor or supplier contracted with by the contractor to provide labor materials or equipment to the public project Whenever the contractor or subcontractor reserves funds earned by a subcontractor or sub-subcontractor or

CCBA Nuts amp Bolts on Construction Law - 46 of 49

supplier the contractor or subcontractor must pay interest to the subcontractor or sub-subcontractor or supplier at a rate equal to that received by the contractor or subcontractor from reserved funds (6) A contractor may submit a bond for all or any portion of the contract retainage in a form acceptable to the public body and from a bonding company meeting standards established by the public body The public body must accept a bond meeting these requirements unless the public body can demonstrate good cause for refusing to accept it This bond and any proceeds therefrom are subject to all claims and liens and in the same manner and priority as set forth for retained percentages in this chapter The public body must release the bonded portion of the retained funds to the contractor within thirty days of accepting the bond from the contractor Whenever a public body accepts a bond in lieu of retained funds from a contractor the contractor must accept like bonds from any subcontractors or suppliers from which the contractor has retained funds The contractor must then release the funds retained from the subcontractor or supplier to the subcontractor or supplier within thirty days of accepting the bond from the subcontractor or supplier (7) If the public body administering a contract after a substantial portion of the work has been completed finds that an unreasonable delay will occur in the completion of the remaining portion of the contract for any reason not the result of a breach thereof it may if the contractor agrees delete from the contract the remaining work and accept as final the improvement at the stage of completion then attained and make payment in proportion to the amount of the work accomplished and in this case any amounts retained and accumulated under this section must be held for a period of sixty days following the completion In the event that the work is terminated before final completion as provided in this section the public body may thereafter enter into a new contract with the same contractor to perform the remaining work or improvement for an amount equal to or less than the cost of the remaining work as was provided for in the original contract without advertisement or bid The provisions of this chapter are exclusive and supersede all provisions and regulations in conflict herewith (8) Whenever the department of transportation has contracted for the construction of two or more ferry vessels sixty days after completion of all contract work on each ferry vessel the department must release and pay in full the amounts retained in connection with the construction of the vessel subject to the provisions of RCW 6028021 and chapter 3912 RCW However the department of transportation may at its discretion condition the release of funds retained in connection with the completed ferry upon the contractor delivering a good and sufficient bond with two or more sureties or with a surety company in the amount of the retained funds to be released to the contractor conditioned that no taxes may be certified or claims filed for work on the ferry after a period of sixty days following completion of the ferry and if taxes are certified or claims filed recovery may be had on the bond by the department of revenue the employment

CCBA Nuts amp Bolts on Construction Law - 47 of 49

security department the department of labor and industries and the material suppliers and laborers filing claims (9) Except as provided in subsection (1) of this section reservation by a public body for any purpose from the moneys earned by a contractor by fulfilling its responsibilities under public improvement contracts is prohibited (10) Contracts on projects funded in whole or in part by farmers home administration and subject to farmers home administration regulations are not subject to subsections (1) through (9) of this section (11) This subsection applies only to a public body that has contracted for the construction of a facility using the general contractorconstruction manager procedure as defined under RCW 3910210 If the work performed by a subcontractor on the project has been completed within the first half of the time provided in the general contractorconstruction manager contract for completing the work the public body may accept the completion of the subcontract The public body must give public notice of this acceptance After a forty-five day period for giving notice of liens and compliance with the retainage release procedures in RCW 6028021 the public body may release that portion of the retained funds associated with the subcontract Claims against the retained funds after the forty-five day period are not valid (12) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise (a) Contract retainage means an amount reserved by a public body from the moneys earned by a person under a public improvement contract (b) Person means a person or persons mechanic subcontractor or materialperson who performs labor or provides materials for a public improvement contract and any other person who supplies the person with provisions or supplies for the carrying on of a public improvement contract (c) Public body means the state or a county city town district board or other public body (d) Public improvement contract means a contract for public improvements or work other than for professional services or a work order as defined in RCW 3910210

CCBA Nuts amp Bolts on Construction Law - 48 of 49

RCW 6432070 Liens or encumbrances mdash Enforcement mdash Satisfaction

(1) Subsequent to recording the declaration as provided in this chapter and while the property remains subject to this chapter no lien shall thereafter arise or be effective against the property During such period liens or encumbrances shall arise or be created only against each apartment and the percentage of undivided interest in the common areas and facilities and appurtenant to such apartment in the same manner and under the same conditions in every respect as liens or encumbrances may arise or be created upon or against any other separate parcel of real property subject to individual ownership PROVIDED That no labor performed or materials furnished with the consent of or at the request of the owner of any apartment or such owners agent contractor or subcontractor shall be the basis for the filing of a lien against any other apartment or any other property of any other apartment owner not expressly consenting to or requesting the same except that such express consent shall be deemed to be given by any apartment owner in the case of emergency repairs Labor performed or materials furnished for the common areas and facilities if authorized by the association of apartment owners the manager or board of directors shall be deemed to be performed or furnished with the express consent of each apartment owner and shall be the basis for the filing of a lien against each of the apartments and shall be subject to the provisions of subsection (2) of this section (2) In the event a lien against two or more apartments becomes effective the apartment owners of the separate apartments may remove their apartment and the percentage of undivided interest in the common areas and facilities appurtenant to such apartment from the lien by payment of the fractional or proportional amounts attributable to each of the apartments affected Such individual payments shall be computed by reference to the percentages appearing on the declaration Subsequent to any such payment discharge or satisfaction the apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto shall thereafter be free and clear of the liens so paid satisfied or discharged Such partial payment satisfaction or discharge shall not prevent the lienor from proceeding to enforce his or her rights against any apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto not so paid satisfied or discharged

CCBA Nuts amp Bolts on Construction Law - 49 of 49

  • Cover Sheet
  • 20141110 - Washington Lien and Bond CLE
  • LampI Lien Summary
  • Claim of Lien
  • Form Notice to Owner
  • Model Disclosure Statement (Notice to Customer)
  • LampI Facts about Construction Liens
    • What you should know about contracts
    • How to protect your investment
    • For more information
      • Notice of Claim Against Bond and Retained Percentage
      • Preclaim Notice Bond amp Retained Percentage
      • Statute Handout
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 ESP 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ltFEFF9ad854c18cea306a30d730ea30d730ec30b951fa529b7528002000410064006f0062006500200050004400460020658766f8306e4f5c6210306b4f7f75283057307e305930023053306e8a2d5b9a30674f5c62103055308c305f0020005000440046002030d530a130a430eb306f3001004100630072006f0062006100740020304a30883073002000410064006f00620065002000520065006100640065007200200035002e003000204ee5964d3067958b304f30533068304c3067304d307e305930023053306e8a2d5b9a306b306f30d530a930f330c8306e57cb30818fbc307f304c5fc59808306730593002gt KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020ace0d488c9c80020c2dcd5d80020c778c1c4c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200035002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor prepress-afdrukken van hoge kwaliteit De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 50 en hoger) NOR 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 PTB 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 SVE 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(Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false ConvertColors ConvertToCMYK DestinationProfileName () DestinationProfileSelector DocumentCMYK Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles false MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector DocumentCMYK PreserveEditing true UntaggedCMYKHandling LeaveUntagged UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ]gtgt setdistillerparamsltlt HWResolution [2400 2400] PageSize [612000 792000]gtgt setpagedevice

          1. To
          2. Date
          3. Re
          4. From
          5. AT THE REQUEST OF
          6. Sender
          7. Address
          8. Telephone
          9. Brief description of professional services materials or equipment provided or to be provided
          10. 1
          11. 2
          12. 3
          13. reg no
          14. deposit $
          15. expiration date
          16. claims up to $
          17. Reset

SUMMARY OF THE REQUIREMENTS TO BE MET BY A LIEN CLAIMANT ON A WASHINGTON PRIVATE CONSTRUCTION PROJECT

NOTICE TO CUSTOMER

FROM

Prime Contractor working on four or fewer residential units when the contract price is $1000 or more or on a commercial building when the contract price is $1000 or more but less than $60000

TO Owner

WHEN Before starting construction NOTICE OF FURNISHING PROFESSIONAL SERVICES

FROM

Provider of professional services

TO County Recorder

WHEN As soon as professional services are commenced PRECLAIM NOTICE (for all projects except repair and remodeling of owner-occupied single-family residence)

FROM

Provider of professional services materials or equipment except that the following need not provide the notice (1) a provider that contracts directly with the owner or the owners actual agent or (2) a first tier subcontractor

TO Owner and usually also prime contractor

WHEN New single family residence within ten days of first supplying professional services materials or equipment All other projects within 60 days of first supplying professional services materials or equipment

PRECLAIM NOTICE (for repair and remodeling of owner-occupied single-family residence)

FROM

Provider of professional services materials or equipment to anyone other than the owner

TO Owner and usually also prime contractor

WHEN Immediately after agreeing to furnish professional services materials or equipment

FROM

Potential lien claimant to whom payment is five or more days overdue

NOTICE TO REAL PROPERTY LENDER (only applicable where there is not a payment bond of at least 50 of the amount of construction financing)

TO Construction lender owner and prime contractor

WHEN Within 35 days of date payment is due

CLAIM OF LIEN

FROM

Unpaid claimant

TO County Recorder

WHEN Not later than 90 days after the last furnishing of labor professional services materials or equipment or the last date on which employee benefit contributions were due

COPY OF CLAIM OF LIEN

FROM

Unpaid claimant

TO Owner

WHEN Within 14 days of date claim of lien is filed for recording

DEADLINE FOR FILING A LAWSUIT Within eight months of recording claim of lien

F625-055-000 const lien summary 2-96 This summary is intended to generally set forth the requirements applicable to most lien claimants The remainder of the chapter should be consulted for a more detailed discussion

CCBA Nuts amp Bolts on Construction Law - 16 of 49

CLAIM OF LIEN SIGNED BY ATTORNEY

Return Address __________________________ __________________________ __________________________

Document Title Claim of Lien

Reference Number _____________________________

Grantor _____________________________

Grantee _____________________________

Legal Description

Assessors Property Tax Parcel No

CLAIM OF LIEN

________________________ claimant vs _____________________________ name of persons indebted to claimant

Notice is hereby given that the person named below claims a lien pursuant to Chapter 6004 RCW In

support of this lien the following information is submitted

1 NAME OF LIEN CLAIMANT ______________________________________

TELEPHONE NUMBER ______________________________________

ADDRESS ______________________________________

______________________________________

2 DATE ON WHICH THE CLAIMANT BEGAN TO PERFORM LABOR PROVIDE PROFESSIONAL SERVICES SUPPLY MATERIAL OR EQUIPMENT OR THE DATE ON WHICH EMPLOYEE BENEFIT CONTRIBUTIONS BECOMES DUE _________

3 NAME OF PERSON INDEBTED TO THE CLAIMANT _________________

4 DESCRIPTIONOF THE PROPERTY AGAINST WHICH A LIEN IS CLAIMED All fee leasehold and other interests of _______________ and any other owner person or entity in the property commonly known as ___________________________located at _______________________ _________________________ _________________County Washington _______ the legal description of which is believed to be as follows

[Legal Description - andor - The legal description of the underlying real property is described on the attached Exhibit A]

CCBA Nuts amp Bolts on Construction Law - 17 of 49

5 NAME OF THE OWNER OR REPUTED OWNER (if not known state ldquounknownrdquo) ____________________________________________________________________________________________

6 THE LAST DATE ON WHICH LABOR WAS PERFORMED PROFESSIONAL SERVICES WERE FURNISHED CONTRIBUTIONS TO AN EMPLOYEE BENEFIT PLAN WERE DUE OR MATERIAL OR EQUIPMENT WAS FURNISHED _____________________________________________________________

7 PRINCIPAL AMOUNT FOR WHICH THE LIEN IS CLAIMED IS $_______

8 IF THE CLAIMANT IS THE ASSIGNEE OF THIS CLAIM SO STATE HERE ___

___________________ Claimant ___________________________

___________________________ (__)____-______

By ________s________________ Print Name ___________________ Its Attorney

STATE OF WASHINGTON )

SS COUNTYOF ____________ )

________________ being sworn says I am the attorney of the claimant above named I have read or heard the foregoing claim read and know the contents thereof and believe the same to be true and correct and that the claim of lien is not frivolous and is made with reasonable cause and is not clearly excessive under penalty of perjury

__________________________ Print Name _______________

SUBSCRIBED and SWORN to before me this ___day of ___________________ 201_

STATE OF WASHINGTON )

SS COUNTYOF ____________ )

[Seal or Stamp]

__________________________ Print Name _______________ Notary Public in and for the State of Washington residing at________________________________ My Commission Expires __________________

CCBA Nuts amp Bolts on Construction Law - 18 of 49

I certify that I know or have satisfactory evidence that___________________ is the person who appeared before me and said person acknowledged that [heshe] signed this instrument on oath stated that [heshe] was authorized to execute this instrument and acknowledged it as the attorney of___________________ to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument

CCBA Nuts amp Bolts on Construction Law - 19 of 49

F625-054-000 construction lien notice 11-05 IMPORTANT INFORMATION ON PAGE 2

NOTICE TO OWNER IMPORTANT READ BOTH SIDES OF THIS NOTICE CAREFULLY

PROTECT YOURSELF FROM PAYING TWICE

To

Date

Re

From (Description of property street address or general location)

AT THE REQUEST OF Name of person ordering their professional services materials or equipment

THIS IS NOT A LIEN This notice is sent to you to tell you who is providing professional services materials or equipment for the improvement of your property and to advise you of the rights of these persons and your responsibilities Also take notice that laborers on your project may claim a lien without sending you a notice

OWNEROCCUPIER OF EXISTING RESIDENTIAL PROPERTY Under Washington law those who furnish labor professional services materials or equipment for the repair remodel or alteration of you owner-occupied principal residence and who are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien The law limits the amount that a lien claimant can claim against your property Claims may only be made against that portion of the contract price you have not yet paid to your prime contractor as of the time this notice was given to you or three days after this notice was mailed to you Review page 2 of this notice for more information and ways to avoid lien claims

COMMERCIAL ANDOR NEW RESIDENTIAL PROPERTY We have or will be providing professional services materials or equipment for the improvement of your commercial or new residential project In the event you or your contractor fail to pay us we may file a lien against your property A lien may be claimed for all professional services materials or equipment furnished after a date that is sixty days before this notice was given to you or mailed to you unless the improvement to you property is the construction of a new single-family residence then ten days before this notice was given to you or mailed to you

Sender

Address

Telephone

Brief description of professional services materials or equipment provided or to be provided

CCBA Nuts amp Bolts on Construction Law - 20 of 49

F625-054-000 construction lien notice page 2 11-05

Important Information for your Protection

This notice is sent to inform you that we have or will provide professional services materials or equipment for the repair remodel or alteration of you property We expect to be paid by the person who ordered our services but if we are not paid we have the right to enforce our claim by filing a construction lien against your property

LEARN more about the lien laws and the meaning of this notice by

discussing them with our contractor suppliers Department of Labor and Industries the firm sending you this notice your lender or your attorney

COMMON METHODS TO AVOID CONSTRUCTION LIENS

There are several methods available to protect your property from construction liens The following are two of the more commonly used methods

DUAL PAYCHECKS (Joint Checks) When paying your

contractor for services or materials you may make checks payable jointly to the contractor and the firms furnishing you this notice

LIEN RELEASES You may require your contractor to provide

lien releases signed by all the suppliers and subcontractors from whom you have received this notice If they cannot obtain lien releases because you have not paid them you may use the dual payee check method to protect yourself

You should take appropriate steps to protect your property from

liens

Your prime contractor and your construction lender are required by law to give you written information about lien claims If you have not received it ask them for it

CCBA Nuts amp Bolts on Construction Law - 21 of 49

F625-030-000 model disclosure statement notice to customer 09-2007

Department of Labor and Industries Construction Compliance

MODEL DISCLOSURE STATEMENTNOTICE TO CUSTOMER

This contractor is registered with the state of Washington registration no____________________ and has posted with the state a bond or deposit of ______________________ for the purpose of satisfying claims against the contractor for breach of contract including negligent or improper work in the conduct of the contractorrsquos business The expiration date of this contractorrsquos registration is ______________________

THIS BOND OR DEPOSIT MIGHT NOT BE SUFFICIENT TO COVER A CLAIM THAT MIGHT ARISE FROM THE WORK DONE UNDER YOUR CONTRACT This bond or deposit is not for your exclusive use because it covers all work performed by this contractor The bond or deposit is intended to pay valid claims up to ___________________________ that you and other customers suppliers subcontractors or taxing authorities may have FOR GREATER PROTECTION YOU MAY WITHHOLD A PERCENTAGE OF YOUR CONTRACT You may withhold a contractually defined percentage of your construction contract as retainage for a stated period of time to provide protection to you and help insure that your project will be completed as required by your contract

YOUR PROPERTY MAY BE LIENED If a supplier of materials used in your construction project or an employee or subcontractor of your contractor or subcontractors is not paid your property may be liened to force payment and you could pay twice for the same work FOR ADDITIONAL PROTECTION YOU MAY REQUEST THE CONTRACTOR TO PROVIDE YOU WITH ORIGINAL ldquoLIEN RELEASErdquo DOCUMENTS FROM EACH SUPPLIER OR SUBCONTRACTOR AT YOUR PROJECT The contractor is required to provide you with further information about lien release document if you request it General information is also available from the state Department of Labor and Industries I have received a copy of this disclosure statement Dated this _______ day of _______________ of the year __________

_____________________________________________________ Signature of Customer The contractor must retain a signed copy of the disclosure statement in his or her files for a minimum of three years and produce a signed or electronic signature copy of the disclosure statement to the department upon request

CCBA Nuts amp Bolts on Construction Law - 22 of 49

Facts About Construction LiensWhat you should know about contractsIf your contractor fails to pay subcontractors suppliers or laborers or neglects to make other legally required payments those who are owed money can look to your property for payment even if you have paid your contractor in full This is true if you have hired a contractor to build a new home or are buying a newly built home

It is also true when you remodel or improve your property although the amount of your liability may be limited to the amount you owe the prime contractor at the time a lien is filed

Under Washington laws those who work on your property or provide materials and are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien

People who supply materials or labor ordered by your contractor are permitted by law to file a lien only if they do so within 90 days of cessation of performance or delivery of materials The time frame is spelled out in RCW 6004091

If you enter into a contract to buy a newly built home you may not receive a notice of a lien based on a claim by a contractor or material handler Be aware that a lien may be claimed even though you have not received a notice

Before making final payment on the project request a completed lien release form from each contractor and material supplier A sample of this release of lien form is available from the Department of Labor amp Industries Contractor Registration Section

You have final responsibility for seeing that all bills are paid even if you have paid your contractor in full

If you receive a notice to enforce a lien take the notice seriously Let your contractor know you have received the notice Find out what arrangements are being made to pay the sender of the notice

When in doubt or if you need more details consult your attorney When and how to pay your contractor is a decision that requires serious consideration

Reminder Washington laws require contractors to give you a disclosure statement if your contract exceeds $1000 [RCW 1827114(A) or (B)]

CCBA Nuts amp Bolts on Construction Law - 23 of 49

PUBLICATION F625-017-000 [01-2008]

Other formats for persons with disabilities are available on request Call 1-800-647-0982 TDD users call 360-902-5797 LampI is an equal opportunity employer

For more information

How to protect your investment

If you are dealing with a lending institution ask your loan officer what precautions the lending institution takes to verify that subcontractors and material suppliers are being paid when mortgage money is paid to your contractor

Request lender supervision when dealing with a lending institution that provides interim or construction financing

Ask the prime contractor to disclose all potential lien claimants as a condition of payment A lien claimant must mail (by certified or registered mail or by personal service) a copy of the claim of lien to the owner within 14 days of the time the lien is recorded [RCW 6004091(2)] While an action is ongoing an owner may withhold from this prime contractor the amount of money for which a claim is recorded by a subcontractor supplier or laborer [RCW 6004151]

It is recommended that your check be made payable jointly naming the contractor and the subcontractor or supplier as payees

Upon payment and acceptance of the amount due the owner has the right to an executed release of all lien rights by lien claimants [RCW 6004071]

Consider using an escrow agent to protect your interests Find out whether your escrow agent will protect you against liens when disbursing payments If you are interested in this alternative consult your attorney

Request that your contractor post a performance bond in the amount of the project cost That will give you recourse in the event the contractor fails to complete the building agreement

8 On the Web Find more information about hiring a contractor at

wwwLniwagovTradesLicensingContractorsHireCon

Contractor Registration Hotline1-800-647-0982

You may also call your local LampI office See listings under ldquoWashington State ofrdquo in the government section or the white pages of the telephone book

Please note This notice was prepared by the Department of Labor amp Industries Specialty Compliance Services Division for reproduction by lending institutions and contractors for distribution to their clients It explains the basics of the construction lien law to help you protect yourself This information is not a reflection upon the abilities or credit of your contractor

CCBA Nuts amp Bolts on Construction Law - 24 of 49

NOTICE OF CLAIM AGAINST

BOND AND RETAINED PERCENTAGE

RCW 3908030 RCW 6028010

VIA CERTIFIED MAIL ndash RETURN RECEIPT REQUESTED

TO [Public Owner] [Public Ownerrsquos Address]

Project [Project Name amp Address] NOTICE IS HEREBY GIVEN that the undersigned [Claimant] [Claimantrsquos Address] has a claim in the amount of ----- and 00100 Dollars ($XX) (not including attorneysrsquo fees or costs) together with interest at twelve percent (12) against [Public Owner] (ldquoOwnerrdquo) pursuant to RCW 6028 and the payment bond taken from [Prime Contractor] (ldquoContractorrdquo) [Prime Contractorrsquos Address] as principal and [Surety Company] (ldquoSuretyrdquo) [Suretyrsquos Address] as surety Bond No ________ pursuant to RCW 3908 for [describe services material supplies labor furnished] provided on the Project This Notice of Claim Against Bond and Retained Percentage supersedes and replaces previous Notices DATED This ___day of _________ 201_ [Claimant] By ______________________________________ Its ______________________________________ [Claimantrsquos Address]

_________________________________________

[Contractors Registration No if applicable]

(Copies furnished to General Contractor and General Contractorrsquos Bonding Company)

CCBA Nuts amp Bolts on Construction Law - 25 of 49

PRECLAIM NOTICE TO CONTRACTOR BY SUBCONTRACTORS MATERIALMEN OR SUPPLIERS FOR

CLAIM AGAINST BOND AND RETAINED PERCENTAGE

VIA CERTIFIED OR REGISTERED MAIL- RETURN RECEIPT REQUESTED

TO [Name of General Contractor] [Address]

YOU ARE HEREBY NOTIFIED that the undersigned ____________at the request of_________________ commenced to deliver or furnish materials supplies andor equipment for the use in the construction alteration andor repair of that certain project known as____________________ [project name] which is located at ____________________________ [address or description] If the undersigned is not paid for these materials supplies andor equipment it will file a claim against you and your bond andor retainage pursuant to RCW 3908 andor 6028 et seq for payment of any sum that is due and owing to the undersigned

DATED This __ day of _____________ 201_

[Name of Claimant]

By ____________________________________

Its ____________________________________

Address ______________________________

__________________________________________

__________________________________________

[Contractors Registration No if applicable]

(Mail via certified mail return receipt requested or hand deliver and obtain receipt)

CCBA Nuts amp Bolts on Construction Law - 26 of 49

Washington Liens amp Bonds ndash Pertinent Statutes

RCW 1827040 Bond or other security required mdash Actions against mdash Suspension of registration upon impairment (1) Each applicant shall file with the department a surety bond issued by a surety insurer who meets the requirements of chapter 4828 RCW in the sum of twelve thousand dollars if the applicant is a general contractor and six thousand dollars if the applicant is a specialty contractor If no valid bond is already on file with the department at the time the application is filed a bond must accompany the registration application The bond shall have the state of Washington named as obligee with good and sufficient surety in a form to be approved by the department The bond shall be continuous and may be canceled by the surety upon the surety giving written notice to the director A cancellation or revocation of the bond or withdrawal of the surety from the bond automatically suspends the registration issued to the contractor until a new bond or reinstatement notice has been filed and approved as provided in this section The bond shall be conditioned that the applicant will pay all persons performing labor including employee benefits for the contractor will pay all taxes and contributions due to the state of Washington and will pay all persons furnishing material or renting or supplying equipment to the contractor and will pay all amounts that may be adjudged against the contractor by reason of breach of contract including improper work in the conduct of the contracting business A change in the name of a business or a change in the type of business entity shall not impair a bond for the purposes of this section so long as one of the original applicants for such bond maintains partial ownership in the business covered by the bond (2) At the time of initial registration or renewal the contractor shall provide a bond or other security deposit as required by this chapter and comply with all of the other provisions of this chapter before the department shall issue or renew the contractors certificate of registration Any contractor registered as of July 1 2001 who maintains that registration in accordance with this chapter is in compliance with this chapter until the next renewal of the contractors certificate of registration (3) Any person firm or corporation having a claim against the contractor for any of the items referred to in this section may bring suit against the contractor and the bond or deposit in the superior court of the county in which the work was done or of any county in which jurisdiction of the contractor may be had The surety issuing the bond shall be named as a party to any suit upon the bond Action upon the bond or deposit brought by a residential homeowner for breach of contract by a party to the construction contract shall be commenced by filing the summons and complaint with the clerk of the appropriate superior court within two years from the date the claimed contract work was substantially completed or abandoned whichever occurred first Action upon the bond or deposit brought by any other authorized party shall be commenced by filing the summons and complaint with the clerk of the appropriate superior court within one year from the date the claimed labor was performed and benefits accrued taxes and contributions owing the state of Washington became due materials and equipment were furnished or the claimed contract work was substantially completed or abandoned whichever occurred first Service of process in an action filed under this chapter against the contractor and the contractors bond or the deposit shall be exclusively by service upon the department Three

CCBA Nuts amp Bolts on Construction Law - 27 of 49

copies of the summons and complaint and a fee adopted by rule of not less than fifty dollars to cover the costs shall be served by registered or certified mail or other delivery service requiring notice of receipt upon the department at the time suit is started and the department shall maintain a record available for public inspection of all suits so commenced Service is not complete until the department receives the fee and three copies of the summons and complaint The service shall constitute service and confer personal jurisdiction on the contractor and the surety for suit on claimants claim against the contractor and the bond or deposit and the department shall transmit the summons and complaint or a copy thereof to the contractor at the address listed in the contractors application and to the surety within two days after it shall have been received (4) The surety upon the bond shall not be liable in an aggregate amount in excess of the amount named in the bond nor for any monetary penalty assessed pursuant to this chapter for an infraction The liability of the surety shall not cumulate where the bond has been renewed continued reinstated reissued or otherwise extended The surety upon the bond may upon notice to the department and the parties tender to the clerk of the court having jurisdiction of the action an amount equal to the claims thereunder or the amount of the bond less the amount of judgments if any previously satisfied therefrom and to the extent of such tender the surety upon the bond shall be exonerated but if the actions commenced and pending and provided to the department as required in subsection (3) of this section at any one time exceed the amount of the bond then unimpaired claims shall be satisfied from the bond in the following order (a) Employee labor and claims of laborers including employee benefits (b) Claims for breach of contract by a party to the construction contract (c) Registered or licensed subcontractors material and equipment (d) Taxes and contributions due the state of Washington (e) Any court costs interest and attorneys fees plaintiff may be entitled to recover The surety is not liable for any amount in excess of the penal limit of its bond A payment made by the surety in good faith exonerates the bond to the extent of any payment made by the surety (5) The total amount paid from a bond or deposit required of a general contractor by this section to claimants other than residential homeowners must not exceed one-half of the bond amount The total amount paid from a bond or deposit required of a specialty contractor by this section to claimants other than residential homeowners must not exceed one-half of the bond amount or four thousand dollars whichever is greater (6) The prevailing party in an action filed under this section against the contractor and contractors bond or deposit for breach of contract by a party to the construction contract involving a residential homeowner is entitled to costs interest and reasonable attorneys fees The surety upon the bond or deposit is not liable in an aggregate amount in excess of the amount

CCBA Nuts amp Bolts on Construction Law - 28 of 49

named in the bond or deposit nor for any monetary penalty assessed pursuant to this chapter for an infraction (7) If a final judgment impairs the liability of the surety upon the bond or deposit so furnished that there is not in effect a bond or deposit in the full amount prescribed in this section the registration of the contractor is automatically suspended until the bond or deposit liability in the required amount unimpaired by unsatisfied judgment claims is furnished (8) In lieu of the surety bond required by this section the contractor may file with the department an assigned savings account upon forms provided by the department (9) Any person having filed and served a summons and complaint as required by this section having an unsatisfied final judgment against the registrant for any items referred to in this section may execute upon the security held by the department by serving a certified copy of the unsatisfied final judgment by registered or certified mail upon the department within one year of the date of entry of such judgment Upon the receipt of service of such certified copy the department shall pay or order paid from the deposit through the registry of the superior court which rendered judgment towards the amount of the unsatisfied judgment The priority of payment by the department shall be the order of receipt by the department but the department shall have no liability for payment in excess of the amount of the deposit (10) Within ten days after resolution of the case a certified copy of the final judgment and order or any settlement documents where a case is not disposed of by a court trial a certified copy of the dispositive settlement documents must be provided to the department by the prevailing party Failure to provide a copy of the final judgment and order or the dispositive settlement documents to the department within ten days of entry of such an order constitutes a violation of this chapter and a penalty adopted by rule of not less than two hundred fifty dollars may be assessed against the prevailing party (11) The director may require an applicant applying to renew or reinstate a registration or applying for a new registration to file a bond of up to three times the normally required amount if the director determines that an applicant or a previous registration of a corporate officer owner or partner of a current applicant has had in the past five years a total of three final judgments in actions under this chapter involving a residential single-family dwelling on two or more different structures (12) The director may adopt rules necessary for the proper administration of the security RCW 1827114 Disclosure statement required mdash Prerequisite to lien claim

(1) Any contractor agreeing to perform any contracting project (a) For the repair alteration or construction of four or fewer residential units or accessory structures on such residential property when the bid or contract price totals one thousand dollars or more or (b) for the repair alteration or construction of a commercial building when the bid or contract price totals one thousand dollars or more but less than sixty thousand dollars must provide the customer with

CCBA Nuts amp Bolts on Construction Law - 29 of 49

the following disclosure statement in substantially the following form using lower case and upper case twelve-point and bold type where appropriate prior to starting work on the project NOTICE TO CUSTOMER This contractor is registered with the state of Washington registration no and has posted with the state a bond or deposit of for the purpose of satisfying claims against the contractor for breach of contract including negligent or improper work in the conduct of the contractors business The expiration date of this contractors registration is THIS BOND OR DEPOSIT MIGHT NOT BE SUFFICIENT TO COVER A CLAIM THAT MIGHT ARISE FROM THE WORK DONE UNDER YOUR CONTRACT This bond or deposit is not for your exclusive use because it covers all work performed by this contractor The bond or deposit is intended to pay valid claims up to that you and other customers suppliers subcontractors or taxing authorities may have FOR GREATER PROTECTION YOU MAY WITHHOLD A PERCENTAGE OF YOUR CONTRACT You may withhold a contractually defined percentage of your construction contract as retainage for a stated period of time to provide protection to you and help insure that your project will be completed as required by your contract YOUR PROPERTY MAY BE LIENED If a supplier of materials used in your construction project or an employee or subcontractor of your contractor or subcontractors is not paid your property may be liened to force payment and you could pay twice for the same work FOR ADDITIONAL PROTECTION YOU MAY REQUEST THE CONTRACTOR TO PROVIDE YOU WITH ORIGINAL LIEN RELEASE DOCUMENTS FROM EACH SUPPLIER OR SUBCONTRACTOR ON YOUR PROJECT The contractor is required to provide you with further information about lien release documents if you request it General information is also available from the state Department of Labor and Industries I have received a copy of this disclosure statement

CCBA Nuts amp Bolts on Construction Law - 30 of 49

(Signature of customer) (2) The contractor must retain a signed copy of the disclosure statement in his or her files for a minimum of three years and produce a signed or electronic signature copy of the disclosure statement to the department upon request (3) A contractor subject to this section shall notify any consumer to whom notice is required under subsection (1) of this section if the contractors registration has expired or is revoked or suspended by the department prior to completion or other termination of the contract with the consumer (4) No contractor subject to this section may bring or maintain any lien claim under chapter 6004 RCW based on any contract to which this section applies without alleging and proving that the contractor has provided the customer with a copy of the disclosure statement as required in subsection (1) of this section (5) This section does not apply to contracts authorized under chapter 3904 RCW or to contractors contracting with other contractors (6) Failure to comply with this section shall constitute an infraction under the provisions of this chapter (7) The department shall produce model disclosure statements and public service announcements detailing the information needed to assist contractors and contractors customers to comply under this section As necessary the department shall periodically update these education materials RCW 3908010 Bond required mdash Conditions mdash Retention of contract amount in lieu of bond (1)(a) Whenever any board council commission trustees or body acting for the state or any county or municipality or any public body must contract with any person or corporation to do any work for the state county or municipality or other public body city town or district such board council commission trustees or body must require the person or persons with whom such contract is made to make execute and deliver to such board council commission trustees or body a good and sufficient bond with a surety company as surety conditioned that such person or persons must (i) Faithfully perform all the provisions of such contract (ii) Pay all laborers mechanics and subcontractors and material suppliers and all persons who supply such person or persons or subcontractors with provisions and supplies for the carrying on of such work and

CCBA Nuts amp Bolts on Construction Law - 31 of 49

(iii) Pay the taxes increases and penalties incurred on the project under Titles 50 51 and 82 RCW on (A) Projects referred to in RCW 6028011(1)(b) andor (B) projects for which the bond is conditioned on the payment of such taxes increases and penalties (b) The bond in cases of cities and towns must be filed with the clerk or comptroller thereof and any person or persons performing such services or furnishing material to any subcontractor has the same right under the provisions of such bond as if such work services or material was furnished to the original contractor (2) The provisions of RCW 3908010 through 3908030 do not apply to any money loaned or advanced to any such contractor subcontractor or other person in the performance of any such work (3) On contracts of thirty-five thousand dollars or less at the option of the contractor the respective public entity may in lieu of the bond retain fifty percent of the contract amount for a period of thirty days after date of final acceptance or until receipt of all necessary releases from the department of revenue the employment security department and the department of labor and industries and settlement of any liens filed under chapter 6028 RCW whichever is later (4) For contracts of one hundred thousand dollars or less the public entity may accept a full payment and performance bond from an individual surety or sureties (5) The surety must agree to be bound by the laws of the state of Washington and subjected to the jurisdiction of the state of Washington RCW 6004011 Definitions

Unless the context requires otherwise the definitions in this section apply throughout this chapter (1) Construction agent means any registered or licensed contractor registered or licensed subcontractor architect engineer or other person having charge of any improvement to real property who shall be deemed the agent of the owner for the limited purpose of establishing the lien created by this chapter (2) Contract price means the amount agreed upon by the contracting parties or if no amount is agreed upon then the customary and reasonable charge therefor (3) Draws means periodic disbursements of interim or construction financing by a lender (4) Furnishing labor professional services materials or equipment means the performance of any labor or professional services the contribution owed to any employee benefit plan on account of any labor the provision of any supplies or materials and the renting leasing or

CCBA Nuts amp Bolts on Construction Law - 32 of 49

otherwise supplying of equipment for the improvement of real property (5) Improvement means (a) Constructing altering repairing remodeling demolishing clearing grading or filling in of to or upon any real property or street or road in front of or adjoining the same (b) planting of trees vines shrubs plants hedges or lawns or providing other landscaping materials on any real property and (c) providing professional services upon real property or in preparation for or in conjunction with the intended activities in (a) or (b) of this subsection (6) Interim or construction financing means that portion of money secured by a mortgage deed of trust or other encumbrance to finance improvement of or to real property but does not include (a) Funds to acquire real property (b) Funds to pay interest insurance premiums lease deposits taxes assessments or prior encumbrances (c) Funds to pay loan commitment title legal closing recording or appraisal fees (d) Funds to pay other customary fees which pursuant to agreement with the owner or borrower are to be paid by the lender from time to time (e) Funds to acquire personal property for which the potential lien claimant may not claim a lien pursuant to this chapter (7) Labor means exertion of the powers of body or mind performed at the site for compensation Labor includes amounts due and owed to any employee benefit plan on account of such labor performed (8) Mortgagee means a person who has a valid mortgage of record or deed of trust of record securing a loan (9) Owner-occupied means a single-family residence occupied by the owner as his or her principal residence (10) Payment bond means a surety bond issued by a surety licensed to issue surety bonds in the state of Washington that confers upon potential claimants the rights of third party beneficiaries (11) Potential lien claimant means any person or entity entitled to assert lien rights under this chapter who has otherwise complied with the provisions of this chapter and is registered or licensed if required to be licensed or registered by the provisions of the laws of the state of Washington (12) Prime contractor includes all contractors general contractors and specialty

CCBA Nuts amp Bolts on Construction Law - 33 of 49

contractors as defined by chapter 1827 or 1928 RCW or who are otherwise required to be registered or licensed by law who contract directly with a property owner or their common law agent to assume primary responsibility for the creation of an improvement to real property and includes property owners or their common law agents who are contractors general contractors or specialty contractors as defined in chapter 1827 or 1928 RCW or who are otherwise required to be registered or licensed by law who offer to sell their property without occupying or using the structures projects developments or improvements for more than one year (13) Professional services means surveying establishing or marking the boundaries of preparing maps plans or specifications for or inspecting testing or otherwise performing any other architectural or engineering services for the improvement of real property (14) Real property lender means a bank savings bank savings and loan association credit union mortgage company or other corporation association partnership trust or individual that makes loans secured by real property located in the state of Washington (15) Site means the real property which is or is to be improved (16) Subcontractor means a general contractor or specialty contractor as defined by chapter 1827 or 1928 RCW or who is otherwise required to be registered or licensed by law who contracts for the improvement of real property with someone other than the owner of the property or their common law agent

6004021 Lien authorized

Except as provided in RCW 6004031 any person furnishing labor professional services materials or equipment for the improvement of real property shall have a lien upon the improvement for the contract price of labor professional services materials or equipment furnished at the instance of the owner or the agent or construction agent of the owner

6004031 Notices mdash Exceptions

(1) Except as otherwise provided in this section every person furnishing professional services materials or equipment for the improvement of real property shall give the owner or reputed owner notice in writing of the right to claim a lien If the prime contractor is in compliance with the requirements of RCW 1927095 6004230 and 6004261 this notice shall also be given to the prime contractor as described in this subsection unless the potential lien claimant has contracted directly with the prime contractor The notice may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after the date which is sixty days before (a) Mailing the notice by certified or registered mail to the owner or reputed owner or

CCBA Nuts amp Bolts on Construction Law - 34 of 49

(b) Delivering or serving the notice personally upon the owner or reputed owner and obtaining evidence of delivery in the form of a receipt or other acknowledgment signed by the owner or reputed owner or an affidavit of service In the case of new construction of a single-family residence the notice of a right to claim a lien may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after a date which is ten days before the notice is given as described in this subsection (2) Notices of a right to claim a lien shall not be required of (a) Persons who contract directly with the owner or the owners common law agent (b) Laborers whose claim of lien is based solely on performing labor or (c) Subcontractors who contract for the improvement of real property directly with the prime contractor except as provided in subsection (3)(b) of this section (3) Persons who furnish professional services materials or equipment in connection with the repair alteration or remodel of an existing owner-occupied single-family residence or appurtenant garage (a) Who contract directly with the owner-occupier or their common law agent shall not be required to send a written notice of the right to claim a lien and shall have a lien for the full amount due under their contract as provided in RCW 6004021 or (b) Who do not contract directly with the owner-occupier or their common law agent shall give notice of the right to claim a lien to the owner-occupier Liens of persons furnishing professional services materials or equipment who do not contract directly with the owner-occupier or their common law agent may only be satisfied from amounts not yet paid to the prime contractor by the owner at the time the notice described in this section is received regardless of whether amounts not yet paid to the prime contractor are due For the purposes of this subsection received means actual receipt of notice by personal service or registered or certified mail or three days after mailing by registered or certified mail excluding Saturdays Sundays or legal holidays (4) The notice of right to claim a lien described in subsection (1) of this section shall include but not be limited to the following information and shall substantially be in the following form using lower-case and upper-case ten-point type where appropriate

CCBA Nuts amp Bolts on Construction Law - 35 of 49

NOTICE TO OWNER

IMPORTANT READ BOTH SIDES OF THIS NOTICE CAREFULLY

PROTECT YOURSELF FROM PAYING TWICE

To Date

Re (description of property Street address or general location) From AT THE REQUEST OF (Name of person ordering the professional services materials or equipment) THIS IS NOT A LIEN This notice is sent to you to tell you who is providing professional services materials or equipment for the improvement of your property and to advise you of the rights of these persons and your responsibilities Also take note that laborers on your project may claim a lien without sending you a notice

OWNEROCCUPIER OF EXISTING

RESIDENTIAL PROPERTY

Under Washington law those who furnish labor professional services materials or equipment for the repair remodel or alteration of your owner-occupied principal residence and who are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien The law limits the amount that a lien claimant can claim against your property Claims may only be made against that portion of the contract price you have not yet paid to your prime contractor as of the time this notice was given to you or three days after this notice was mailed to you Review the back of this notice for more information and ways to avoid lien claims

COMMERCIAL ANDOR NEW

RESIDENTIAL PROPERTY

CCBA Nuts amp Bolts on Construction Law - 36 of 49

We have or will be providing professional services materials or equipment for the improvement of your commercial or new residential project In the event you or your contractor fail to pay us we may file a lien against your property A lien may be claimed for all professional services materials or equipment furnished after a date that is sixty days before this notice was given to you or mailed to you unless the improvement to your property is the construction of a new single-family residence then ten days before this notice was given to you or mailed to you Sender Address Telephone Brief description of professional services materials or equipment provided or to be provided

IMPORTANT INFORMATION

ON REVERSE SIDE

IMPORTANT INFORMATION

FOR YOUR PROTECTION This notice is sent to inform you that we have or will provide professional services materials or equipment for the improvement of your property We expect to be paid by the person who ordered our services but if we are not paid we have the right to enforce our claim by filing a construction lien against your property LEARN more about the lien laws and the meaning of this notice by discussing them with your contractor suppliers Department of Labor and Industries the firm sending you this notice your lender or your attorney

COMMON METHODS TO AVOID CONSTRUCTION LIENS There are several methods available to protect your property from construction liens The following are two of the more commonly used methods

DUAL PAYCHECKS (Joint Checks) When paying your contractor for services or materials you may make checks payable jointly to the contractor and the firms furnishing you this notice

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LIEN RELEASES You may require your contractor to provide lien releases signed by all the suppliers and subcontractors from whom you have received this notice If they cannot obtain lien releases because you have not paid them you may use the dual payee check method to protect yourself

YOU SHOULD TAKE APPROPRIATE STEPS TO PROTECT YOUR PROPERTY FROM LIENS YOUR PRIME CONTRACTOR AND YOUR CONSTRUCTION LENDER ARE REQUIRED BY LAW TO GIVE YOU WRITTEN INFORMATION ABOUT LIEN CLAIMS IF YOU HAVE NOT RECEIVED IT ASK THEM FOR IT

(5) Every potential lien claimant providing professional services where no improvement as defined in RCW 6004011(5) (a) or (b) has been commenced and the professional services provided are not visible from an inspection of the real property may record in the real property records of the county where the property is located a notice which shall contain the professional service providers name address telephone number legal description of the property the owner or reputed owners name and the general nature of the professional services provided If such notice is not recorded the lien claimed shall be subordinate to the interest of any subsequent mortgagee and invalid as to the interest of any subsequent purchaser if the mortgagee or purchaser acts in good faith and for a valuable consideration acquires an interest in the property prior to the commencement of an improvement as defined in RCW 6004011(5) (a) or (b) without notice of the professional services being provided The notice described in this subsection shall be substantially in the following form

NOTICE OF FURNISHING

PROFESSIONAL SERVICES That on the (day) day of (month and year) (name of provider) began providing professional services upon or for the improvement of real property legally described as follows

[Legal Description is mandatory]

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The general nature of the professional services provided is The owner or reputed owner of the real property is

(Signature)

(Name of Claimant)

(Street Address)

(City State Zip Code)

(Phone Number)

(6) A lien authorized by this chapter shall not be enforced unless the lien claimant has complied with the applicable provisions of this section

6004041 Contractor registration

A contractor or subcontractor required to be registered under chapter 1827 RCW or licensed under chapter 1928 RCW or otherwise required to be registered or licensed by law shall be deemed the construction agent of the owner for the purposes of establishing the lien created by this chapter only if so registered or licensed Persons dealing with contractors or subcontractors may rely for the purposes of this section upon a certificate of registration issued pursuant to chapter 1827 RCW or license issued pursuant to chapter 1928 RCW or other certificate or license issued pursuant to law covering the period when the labor professional services material or equipment shall be furnished and the lien rights shall not be lost by suspension or revocation of registration or license without their knowledge No lien rights described in this

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chapter shall be lost or denied by virtue of the absence suspension or revocation of such registration or license with respect to any contractor or subcontractor not in immediate contractual privity with the lien claimant

6004081 Frivolous claim mdash Procedure

(1) Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who believes the claim of lien to be frivolous and made without reasonable cause or clearly excessive may apply by motion to the superior court for the county where the property or some part thereof is located for an order directing the lien claimant to appear before the court at a time no earlier than six nor later than fifteen days following the date of service of the application and order on the lien claimant and show cause if any he or she has why the relief requested should not be granted The motion shall state the grounds upon which relief is asked and shall be supported by the affidavit of the applicant or his or her attorney setting forth a concise statement of the facts upon which the motion is based (2) The order shall clearly state that if the lien claimant fails to appear at the time and place noted the lien shall be released with prejudice and that the lien claimant shall be ordered to pay the costs requested by the applicant including reasonable attorneys fees (3) If no action to foreclose the lien claim has been filed the clerk of the court shall assign a cause number to the application and obtain from the applicant a filing fee pursuant to RCW 3618016 If an action has been filed to foreclose the lien claim the application shall be made a part of that action (4) If following a hearing on the matter the court determines that the lien is frivolous and made without reasonable cause or clearly excessive the court shall issue an order releasing the lien if frivolous and made without reasonable cause or reducing the lien if clearly excessive and awarding costs and reasonable attorneys fees to the applicant to be paid by the lien claimant If the court determines that the lien is not frivolous and was made with reasonable cause and is not clearly excessive the court shall issue an order so stating and awarding costs and reasonable attorneys fees to the lien claimant to be paid by the applicant (5) Proceedings under this section shall not affect other rights and remedies available to the parties under this chapter or otherwise

6004091 Recording mdash Time mdash Contents of lien

Every person claiming a lien under RCW 6004021 shall file for recording in the county where the subject property is located a notice of claim of lien not later than ninety days after the person

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has ceased to furnish labor professional services materials or equipment or the last date on which employee benefit contributions were due The notice of claim of lien (1) Shall state in substance and effect (a) The name phone number and address of the claimant (b) The first and last date on which the labor professional services materials or equipment was furnished or employee benefit contributions were due (c) The name of the person indebted to the claimant (d) The street address legal description or other description reasonably calculated to identify for a person familiar with the area the location of the real property to be charged with the lien (e) The name of the owner or reputed owner of the property if known and if not known that fact shall be stated and (f) The principal amount for which the lien is claimed (2) Shall be signed by the claimant or some person authorized to act on his or her behalf who shall affirmatively state they have read the notice of claim of lien and believe the notice of claim of lien to be true and correct under penalty of perjury and shall be acknowledged pursuant to chapter 6408 RCW If the lien has been assigned the name of the assignee shall be stated Where an action to foreclose the lien has been commenced such notice of claim of lien may be amended as pleadings may be by order of the court insofar as the interests of third parties are not adversely affected by such amendment A claim of lien substantially in the following form shall be sufficient

CLAIM OF LIEN

claimant vs name of person indebted to claimant

Notice is hereby given that the person named below claims a lien pursuant to chapter 6404 RCW In support of this lien the following information is submitted

1 NAME OF LIEN CLAIMANT

TELEPHONE NUMBER

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ADDRESS

2 DATE ON WHICH THE CLAIMANT BEGAN TO PERFORM LABOR PROVIDE PROFESSIONAL SERVICES SUPPLY MATERIAL OR EQUIPMENT OR THE DATE ON WHICH EMPLOYEE BENEFIT CONTRIBUTIONS BECAME DUE

3 NAME OF PERSON INDEBTED TO THE CLAIMANT

4 DESCRIPTION OF THE PROPERTY AGAINST WHICH A LIEN IS CLAIMED (Street address legal description or other information that will reasonably describe the property)

5 NAME OF THE OWNER OR REPUTED OWNER (If not known state unknown)

6 THE LAST DATE ON WHICH LABOR WAS PERFORMED PROFESSIONAL SERVICES WERE FURNISHED CONTRIBUTIONS TO AN EMPLOYEE BENEFIT PLAN WERE DUE OR MATERIAL OR EQUIPMENT WAS FURNISHED

7 PRINCIPAL AMOUNT FOR WHICH THE LIEN IS CLAIMED IS

8 IF THE CLAIMANT IS THE ASSIGNEE OF THIS CLAIM SO STATE HERE

Claimant

(Phone number address city

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and

state of claimant)

STATE OF WASHINGTON COUNTY OF ss being sworn says I am the claimant (or attorney of the claimant or administrator representative or agent of the trustees of an employee benefit plan) above named I have read or heard the foregoing claim read and know the contents thereof and believe the same to be true and correct and that the claim of lien is not frivolous and is made with reasonable cause and is not clearly excessive under penalty of perjury Subscribed and sworn to before me this day of The period provided for recording the claim of lien is a period of limitation and no action to foreclose a lien shall be maintained unless the claim of lien is filed for recording within the ninety-day period stated The lien claimant shall give a copy of the claim of lien to the owner or reputed owner by mailing it by certified or registered mail or by personal service within fourteen days of the time the claim of lien is filed for recording Failure to do so results in a forfeiture of any right the claimant may have to attorneys fees and costs against the owner under RCW 6004181

6004161 Bond in lieu of claim

Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who disputes the correctness or validity of the claim of lien may record either before or after the commencement of an action to enforce the lien in the office of the county recorder or auditor in the county where the claim of lien was recorded a bond issued by a surety company authorized to issue surety bonds in the state The surety shall be listed in the latest federal department of the treasury list of surety companies acceptable on federal bonds published in the Federal Register as authorized to issue bonds on United States government projects with an underwriting limitation including applicable reinsurance equal to or greater than the amount of the bond to be recorded The bond shall contain a description of the claim of lien and real property involved and be in an amount equal to the greater of five thousand dollars or two times the amount of the lien claimed if it is ten thousand dollars or less and in an amount equal to or greater than one and one-half times the amount of the lien if it is in

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excess of ten thousand dollars If the claim of lien affects more than one parcel of real property and is segregated to each parcel the bond may be segregated the same as in the claim of lien A separate bond shall be required for each claim of lien made by separate claimants However a single bond may be used to guarantee payment of amounts claimed by more than one claim of lien by a single claimant so long as the amount of the bond meets the requirements of this section as applied to the aggregate sum of all claims by such claimant The condition of the bond shall be to guarantee payment of any judgment upon the lien in favor of the lien claimant entered in any action to recover the amount claimed in a claim of lien or on the claim asserted in the claim of lien The effect of recording a bond shall be to release the real property described in the notice of claim of lien from the lien and any action brought to recover the amount claimed Unless otherwise prohibited by law if no action is commenced to recover on a lien within the time specified in RCW 6004141 the surety shall be discharged from liability under the bond If an action is timely commenced then on payment of any judgment entered in the action or on payment of the full amount of the bond to the holder of the judgment whichever is less the surety shall be discharged from liability under the bond Nothing in this section shall in any way prohibit or limit the use of other methods devised by the affected parties to secure the obligation underlying a claim of lien and to obtain a release of real property from a claim of lien

6004181 Rank of lien mdash Application of proceeds mdash Attorneys fees

(1) In every case in which different construction liens are claimed against the same property the court shall declare the rank of such lien or class of liens which liens shall be in the following order (a) Liens for the performance of labor (b) Liens for contributions owed to employee benefit plans (c) Liens for furnishing material supplies or equipment (d) Liens for subcontractors including but not limited to their labor and materials and (e) Liens for prime contractors or for professional services (2) The proceeds of the sale of property must be applied to each lien or class of liens in order of its rank and in an action brought to foreclose a lien pro rata among each claimant in each separate priority class A personal judgment may be rendered against any party personally liable for any debt for which the lien is claimed If the lien is established the judgment shall provide

CCBA Nuts amp Bolts on Construction Law - 44 of 49

for the enforcement thereof upon the property liable as in the case of foreclosure of judgment liens The amount realized by such enforcement of the lien shall be credited upon the proper personal judgment The deficiency if any remaining unsatisfied shall stand as a personal judgment and may be collected by execution against any party liable therefor (3) The court may allow the prevailing party in the action whether plaintiff or defendant as part of the costs of the action the moneys paid for recording the claim of lien costs of title report bond costs and attorneys fees and necessary expenses incurred by the attorney in the superior court court of appeals supreme court or arbitration as the court or arbitrator deems reasonable Such costs shall have the priority of the class of lien to which they are related as established by subsection (1) of this section (4) Real property against which a lien under this chapter is enforced may be ordered sold by the court and the proceeds deposited into the registry of the clerk of the court pending further determination respecting distribution of the proceeds of the sale

6004900 Liberal construction mdash 1991 c 281

RCW 1927095 6004230 and 6004011 through 6004226 and 6004261 are to be liberally construed to provide security for all parties intended to be protected by their provisions

RCW 6028011

Retained percentage mdash Public transportation projects mdash Labor and material lien created mdash Bond in lieu of retained funds mdash Termination before completion mdash Chapter deemed exclusive mdash Release of ferry contract payments mdash Projects of farmers home administration mdash General contractorconstruction manager procedure mdash Definitions

(1)(a) Except as provided in (b) of this subsection public improvement contracts must provide and public bodies must reserve a contract retainage not to exceed five percent of the moneys earned by the contractor as a trust fund for the protection and payment of (i) The claims of any person arising under the contract and (ii) the state with respect to taxes increases and penalties imposed pursuant to Titles 50 51 and 82 RCW which may be due from such contractor (b) Public improvement contracts funded in whole or in part by federal transportation funds must rely upon the contract bond as referred to in chapter 3908 RCW for the protection and payment of (i) The claims of any person or persons arising under the contract to the extent such claims are provided for in RCW 3908010 and (ii) the state with respect to taxes increases and penalties incurred on the public improvement project under Titles 50 51 and 82 RCW which may be due The contract bond must remain in full force and effect until at a minimum all claims filed in compliance with chapter 3908 RCW are resolved

CCBA Nuts amp Bolts on Construction Law - 45 of 49

(2) Every person performing labor or furnishing supplies toward the completion of a public improvement contract has a lien upon moneys reserved by a public body under the provisions of a public improvement contract However the notice of the lien of the claimant must be given within forty-five days of completion of the contract work and in the manner provided in RCW 3908030 (3) The contractor at any time may request the contract retainage be reduced to one hundred percent of the value of the work remaining on the project (a) After completion of all contract work other than landscaping the contractor may request that the public body release and pay in full the amounts retained during the performance of the contract and sixty days thereafter the public body must release and pay in full the amounts retained (other than continuing retention of five percent of the moneys earned for landscaping) subject to the provisions of chapters 3912 and 6028 RCW (b) Sixty days after completion of all contract work the public body must release and pay in full the amounts retained during the performance of the contract subject to the provisions of chapters 3912 and 6028 RCW (4) The moneys reserved by a public body under the provisions of a public improvement contract at the option of the contractor must be (a) Retained in a fund by the public body (b) Deposited by the public body in an interest bearing account in a bank mutual savings bank or savings and loan association Interest on moneys reserved by a public body under the provision of a public improvement contract must be paid to the contractor (c) Placed in escrow with a bank or trust company by the public body When the moneys reserved are placed in escrow the public body must issue a check representing the sum of the moneys reserved payable to the bank or trust company and the contractor jointly This check must be converted into bonds and securities chosen by the contractor and approved by the public body and the bonds and securities must be held in escrow Interest on the bonds and securities must be paid to the contractor as the interest accrues (5) The contractor or subcontractor may withhold payment of not more than five percent from the moneys earned by any subcontractor or sub-subcontractor or supplier contracted with by the contractor to provide labor materials or equipment to the public project Whenever the contractor or subcontractor reserves funds earned by a subcontractor or sub-subcontractor or

CCBA Nuts amp Bolts on Construction Law - 46 of 49

supplier the contractor or subcontractor must pay interest to the subcontractor or sub-subcontractor or supplier at a rate equal to that received by the contractor or subcontractor from reserved funds (6) A contractor may submit a bond for all or any portion of the contract retainage in a form acceptable to the public body and from a bonding company meeting standards established by the public body The public body must accept a bond meeting these requirements unless the public body can demonstrate good cause for refusing to accept it This bond and any proceeds therefrom are subject to all claims and liens and in the same manner and priority as set forth for retained percentages in this chapter The public body must release the bonded portion of the retained funds to the contractor within thirty days of accepting the bond from the contractor Whenever a public body accepts a bond in lieu of retained funds from a contractor the contractor must accept like bonds from any subcontractors or suppliers from which the contractor has retained funds The contractor must then release the funds retained from the subcontractor or supplier to the subcontractor or supplier within thirty days of accepting the bond from the subcontractor or supplier (7) If the public body administering a contract after a substantial portion of the work has been completed finds that an unreasonable delay will occur in the completion of the remaining portion of the contract for any reason not the result of a breach thereof it may if the contractor agrees delete from the contract the remaining work and accept as final the improvement at the stage of completion then attained and make payment in proportion to the amount of the work accomplished and in this case any amounts retained and accumulated under this section must be held for a period of sixty days following the completion In the event that the work is terminated before final completion as provided in this section the public body may thereafter enter into a new contract with the same contractor to perform the remaining work or improvement for an amount equal to or less than the cost of the remaining work as was provided for in the original contract without advertisement or bid The provisions of this chapter are exclusive and supersede all provisions and regulations in conflict herewith (8) Whenever the department of transportation has contracted for the construction of two or more ferry vessels sixty days after completion of all contract work on each ferry vessel the department must release and pay in full the amounts retained in connection with the construction of the vessel subject to the provisions of RCW 6028021 and chapter 3912 RCW However the department of transportation may at its discretion condition the release of funds retained in connection with the completed ferry upon the contractor delivering a good and sufficient bond with two or more sureties or with a surety company in the amount of the retained funds to be released to the contractor conditioned that no taxes may be certified or claims filed for work on the ferry after a period of sixty days following completion of the ferry and if taxes are certified or claims filed recovery may be had on the bond by the department of revenue the employment

CCBA Nuts amp Bolts on Construction Law - 47 of 49

security department the department of labor and industries and the material suppliers and laborers filing claims (9) Except as provided in subsection (1) of this section reservation by a public body for any purpose from the moneys earned by a contractor by fulfilling its responsibilities under public improvement contracts is prohibited (10) Contracts on projects funded in whole or in part by farmers home administration and subject to farmers home administration regulations are not subject to subsections (1) through (9) of this section (11) This subsection applies only to a public body that has contracted for the construction of a facility using the general contractorconstruction manager procedure as defined under RCW 3910210 If the work performed by a subcontractor on the project has been completed within the first half of the time provided in the general contractorconstruction manager contract for completing the work the public body may accept the completion of the subcontract The public body must give public notice of this acceptance After a forty-five day period for giving notice of liens and compliance with the retainage release procedures in RCW 6028021 the public body may release that portion of the retained funds associated with the subcontract Claims against the retained funds after the forty-five day period are not valid (12) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise (a) Contract retainage means an amount reserved by a public body from the moneys earned by a person under a public improvement contract (b) Person means a person or persons mechanic subcontractor or materialperson who performs labor or provides materials for a public improvement contract and any other person who supplies the person with provisions or supplies for the carrying on of a public improvement contract (c) Public body means the state or a county city town district board or other public body (d) Public improvement contract means a contract for public improvements or work other than for professional services or a work order as defined in RCW 3910210

CCBA Nuts amp Bolts on Construction Law - 48 of 49

RCW 6432070 Liens or encumbrances mdash Enforcement mdash Satisfaction

(1) Subsequent to recording the declaration as provided in this chapter and while the property remains subject to this chapter no lien shall thereafter arise or be effective against the property During such period liens or encumbrances shall arise or be created only against each apartment and the percentage of undivided interest in the common areas and facilities and appurtenant to such apartment in the same manner and under the same conditions in every respect as liens or encumbrances may arise or be created upon or against any other separate parcel of real property subject to individual ownership PROVIDED That no labor performed or materials furnished with the consent of or at the request of the owner of any apartment or such owners agent contractor or subcontractor shall be the basis for the filing of a lien against any other apartment or any other property of any other apartment owner not expressly consenting to or requesting the same except that such express consent shall be deemed to be given by any apartment owner in the case of emergency repairs Labor performed or materials furnished for the common areas and facilities if authorized by the association of apartment owners the manager or board of directors shall be deemed to be performed or furnished with the express consent of each apartment owner and shall be the basis for the filing of a lien against each of the apartments and shall be subject to the provisions of subsection (2) of this section (2) In the event a lien against two or more apartments becomes effective the apartment owners of the separate apartments may remove their apartment and the percentage of undivided interest in the common areas and facilities appurtenant to such apartment from the lien by payment of the fractional or proportional amounts attributable to each of the apartments affected Such individual payments shall be computed by reference to the percentages appearing on the declaration Subsequent to any such payment discharge or satisfaction the apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto shall thereafter be free and clear of the liens so paid satisfied or discharged Such partial payment satisfaction or discharge shall not prevent the lienor from proceeding to enforce his or her rights against any apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto not so paid satisfied or discharged

CCBA Nuts amp Bolts on Construction Law - 49 of 49

  • Cover Sheet
  • 20141110 - Washington Lien and Bond CLE
  • LampI Lien Summary
  • Claim of Lien
  • Form Notice to Owner
  • Model Disclosure Statement (Notice to Customer)
  • LampI Facts about Construction Liens
    • What you should know about contracts
    • How to protect your investment
    • For more information
      • Notice of Claim Against Bond and Retained Percentage
      • Preclaim Notice Bond amp Retained Percentage
      • Statute Handout
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 ESP ltFEFF005500740069006c0069006300650020006500730074006100200063006f006e0066006900670075007200610063006900f3006e0020007000610072006100200063007200650061007200200064006f00630075006d0065006e0074006f00730020005000440046002000640065002000410064006f0062006500200061006400650063007500610064006f00730020007000610072006100200069006d0070007200650073006900f3006e0020007000720065002d0065006400690074006f007200690061006c00200064006500200061006c00740061002000630061006c0069006400610064002e002000530065002000700075006500640065006e00200061006200720069007200200064006f00630075006d0065006e0074006f00730020005000440046002000630072006500610064006f007300200063006f006e0020004100630072006f006200610074002c002000410064006f00620065002000520065006100640065007200200035002e003000200079002000760065007200730069006f006e0065007300200070006f00730074006500720069006f007200650073002egt FRA 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 ITA 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 JPN ltFEFF9ad854c18cea306a30d730ea30d730ec30b951fa529b7528002000410064006f0062006500200050004400460020658766f8306e4f5c6210306b4f7f75283057307e305930023053306e8a2d5b9a30674f5c62103055308c305f0020005000440046002030d530a130a430eb306f3001004100630072006f0062006100740020304a30883073002000410064006f00620065002000520065006100640065007200200035002e003000204ee5964d3067958b304f30533068304c3067304d307e305930023053306e8a2d5b9a306b306f30d530a930f330c8306e57cb30818fbc307f304c5fc59808306730593002gt KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020ace0d488c9c80020c2dcd5d80020c778c1c4c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200035002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor prepress-afdrukken van hoge kwaliteit De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 50 en hoger) NOR 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 PTB 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 SUO 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 SVE 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 ENU (Use these settings to create Adobe PDF documents best suited for high-quality prepress printing Created PDF documents can be opened with Acrobat and Adobe Reader 50 and later) gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false ConvertColors ConvertToCMYK DestinationProfileName () DestinationProfileSelector DocumentCMYK Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles false MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector DocumentCMYK PreserveEditing true UntaggedCMYKHandling LeaveUntagged UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ]gtgt setdistillerparamsltlt HWResolution [2400 2400] PageSize [612000 792000]gtgt setpagedevice

          ltlt ASCII85EncodePages false AllowTransparency false AutoPositionEPSFiles true AutoRotatePages None Binding Left CalGrayProfile (Dot Gain 20) CalRGBProfile (sRGB IEC61966-21) CalCMYKProfile (US Web Coated 050SWOP051 v2) sRGBProfile (sRGB IEC61966-21) CannotEmbedFontPolicy Warning CompatibilityLevel 14 CompressObjects Tags CompressPages true ConvertImagesToIndexed true PassThroughJPEGImages true CreateJDFFile false CreateJobTicket false DefaultRenderingIntent Default DetectBlends true DetectCurves 00000 ColorConversionStrategy LeaveColorUnchanged DoThumbnails false EmbedAllFonts true EmbedOpenType false ParseICCProfilesInComments true EmbedJobOptions true DSCReportingLevel 0 EmitDSCWarnings false EndPage -1 ImageMemory 1048576 LockDistillerParams true MaxSubsetPct 100 Optimize true OPM 1 ParseDSCComments true ParseDSCCommentsForDocInfo true PreserveCopyPage true PreserveDICMYKValues true PreserveEPSInfo true PreserveFlatness true PreserveHalftoneInfo false PreserveOPIComments true PreserveOverprintSettings true StartPage 1 SubsetFonts true TransferFunctionInfo Apply UCRandBGInfo Preserve UsePrologue false ColorSettingsFile () AlwaysEmbed [ true Algerian Arial-Black Arial-BoldItalicMT Arial-BoldMT Arial-ItalicMT ArialMT ArialNarrow ArialNarrow-Bold ArialNarrow-BoldItalic ArialNarrow-Italic BaskOldFace Bauhaus93 BellMT BellMTBold BellMTItalic BerlinSansFB-Bold BerlinSansFBDemi-Bold BerlinSansFB-Reg BernardMT-Condensed BodoniMTPosterCompressed BookAntiqua BookAntiqua-Bold BookAntiqua-BoldItalic BookAntiqua-Italic BookmanOldStyle BookmanOldStyle-Bold BookmanOldStyle-BoldItalic BookmanOldStyle-Italic BookshelfSymbolSeven BritannicBold Broadway BrushScriptMT CalifornianFB-Bold CalifornianFB-Italic CalifornianFB-Reg Centaur CenturyGothic CenturyGothic-Bold CenturyGothic-BoldItalic CenturyGothic-Italic Chiller-Regular ColonnaMT ComicSansMS ComicSansMS-Bold CooperBlack CourierNewPS-BoldItalicMT CourierNewPS-BoldMT CourierNewPS-ItalicMT CourierNewPSMT EstrangeloEdessa EXTRAAPLNew-Regular EXTRAOIANew-Regular FootlightMTLight FranklinGothic-Medium FranklinGothic-MediumItalic FreestyleScript-Regular Garamond Garamond-Bold Garamond-Italic Gautami Georgia Georgia-Bold Georgia-BoldItalic Georgia-Italic HarlowSolid Harrington HighTowerText-Italic HighTowerText-Reg Impact InformalRoman-Regular Jokerman-Regular JuiceITC-Regular Kartika KristenITC-Regular KunstlerScript Latha LatinWide LucidaATTMSpecial LucidaBright LucidaBright-Demi LucidaBright-DemiItalic LucidaBright-Italic LucidaCalligraphy-Italic LucidaConsole LucidaFax LucidaFax-Demi LucidaFax-DemiItalic LucidaFax-Italic LucidaforAttachmate LucidaHandwriting-Italic LucidaSans LucidaSans-Demi LucidaSans-DemiItalic LucidaSans-Italic LucidaSansUnicode Magneto-Bold Mangal-Regular MaturaMTScriptCapitals MicrosoftSansSerif Mistral Modern-Regular Monospace821BT-Roman MonotypeCorsiva MSOutlook MSReferenceSansSerif MSReferenceSpecialty MVBoli NiagaraEngraved-Reg NiagaraSolid-Reg OldEnglishTextMT Onyx PalatinoLinotype-Bold PalatinoLinotype-BoldItalic PalatinoLinotype-Italic PalatinoLinotype-Roman Parchment-Regular Playbill PoorRichard-Regular Raavi Ravie ShowcardGothic-Reg Shruti SnapITC-Regular Stencil Sylfaen SymbolMT Tahoma Tahoma-Bold TempusSansITC TimesNewRomanPS-BoldItalicMT TimesNewRomanPS-BoldMT TimesNewRomanPS-ItalicMT TimesNewRomanPSMT Trebuchet-BoldItalic TrebuchetMS TrebuchetMS-Bold TrebuchetMS-Italic Tunga-Regular Verdana Verdana-Bold Verdana-BoldItalic Verdana-Italic VinerHandITC Vivaldii VladimirScript Vrinda Webdings Wingdings2 Wingdings3 Wingdings-Regular ZWAdobeF ] NeverEmbed [ true ] AntiAliasColorImages false CropColorImages true ColorImageMinResolution 300 ColorImageMinResolutionPolicy OK DownsampleColorImages true ColorImageDownsampleType Bicubic ColorImageResolution 300 ColorImageDepth -1 ColorImageMinDownsampleDepth 1 ColorImageDownsampleThreshold 150000 EncodeColorImages false ColorImageFilter DCTEncode AutoFilterColorImages true ColorImageAutoFilterStrategy JPEG ColorACSImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt ColorImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000ColorACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000ColorImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasGrayImages false CropGrayImages true GrayImageMinResolution 300 GrayImageMinResolutionPolicy OK DownsampleGrayImages true GrayImageDownsampleType Bicubic GrayImageResolution 300 GrayImageDepth -1 GrayImageMinDownsampleDepth 2 GrayImageDownsampleThreshold 150000 EncodeGrayImages false GrayImageFilter DCTEncode AutoFilterGrayImages true GrayImageAutoFilterStrategy JPEG GrayACSImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt GrayImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000GrayACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000GrayImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasMonoImages false CropMonoImages true MonoImageMinResolution 1200 MonoImageMinResolutionPolicy OK DownsampleMonoImages true MonoImageDownsampleType Bicubic MonoImageResolution 1200 MonoImageDepth -1 MonoImageDownsampleThreshold 150000 EncodeMonoImages false MonoImageFilter CCITTFaxEncode MonoImageDict ltlt K -1 gtgt AllowPSXObjects false CheckCompliance [ None ] PDFX1aCheck false PDFX3Check false PDFXCompliantPDFOnly false PDFXNoTrimBoxError true PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile (None) PDFXOutputConditionIdentifier () PDFXOutputCondition () PDFXRegistryName () PDFXTrapped False Description ltlt CHS ltFEFF4f7f75288fd94e9b8bbe5b9a521b5efa7684002000410064006f006200650020005000440046002065876863900275284e8e9ad88d2891cf76845370524d53705237300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200035002e003000204ee553ca66f49ad87248672c676562535f00521b5efa768400200050004400460020658768633002gt CHT ltFEFF4f7f752890194e9b8a2d7f6e5efa7acb7684002000410064006f006200650020005000440046002065874ef69069752865bc9ad854c18cea76845370524d5370523786557406300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200035002e003000204ee553ca66f49ad87248672c4f86958b555f5df25efa7acb76840020005000440046002065874ef63002gt DAN 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 DEU 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 ESP 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 FRA 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 ITA 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 JPN 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geoptimaliseerd voor prepress-afdrukken van hoge kwaliteit De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 50 en hoger) NOR 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 PTB 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 SUO ltFEFF004b00e40079007400e40020006e00e40069007400e4002000610073006500740075006b007300690061002c0020006b0075006e0020006c0075006f00740020006c00e400680069006e006e00e4002000760061006100740069007600610061006e0020007000610069006e006100740075006b00730065006e002000760061006c006d0069007300740065006c00750074007900f6006800f6006e00200073006f00700069007600690061002000410064006f0062006500200050004400460020002d0064006f006b0075006d0065006e007400740065006a0061002e0020004c0075006f0064007500740020005000440046002d0064006f006b0075006d0065006e00740069007400200076006f0069006400610061006e0020006100760061007400610020004100630072006f0062006100740069006c006c00610020006a0061002000410064006f00620065002000520065006100640065007200200035002e0030003a006c006c00610020006a006100200075007500640065006d006d0069006c006c0061002egt SVE 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          1. To
          2. Date
          3. Re
          4. From
          5. AT THE REQUEST OF
          6. Sender
          7. Address
          8. Telephone
          9. Brief description of professional services materials or equipment provided or to be provided
          10. 1
          11. 2
          12. 3
          13. reg no
          14. deposit $
          15. expiration date
          16. claims up to $
          17. Reset

CLAIM OF LIEN SIGNED BY ATTORNEY

Return Address __________________________ __________________________ __________________________

Document Title Claim of Lien

Reference Number _____________________________

Grantor _____________________________

Grantee _____________________________

Legal Description

Assessors Property Tax Parcel No

CLAIM OF LIEN

________________________ claimant vs _____________________________ name of persons indebted to claimant

Notice is hereby given that the person named below claims a lien pursuant to Chapter 6004 RCW In

support of this lien the following information is submitted

1 NAME OF LIEN CLAIMANT ______________________________________

TELEPHONE NUMBER ______________________________________

ADDRESS ______________________________________

______________________________________

2 DATE ON WHICH THE CLAIMANT BEGAN TO PERFORM LABOR PROVIDE PROFESSIONAL SERVICES SUPPLY MATERIAL OR EQUIPMENT OR THE DATE ON WHICH EMPLOYEE BENEFIT CONTRIBUTIONS BECOMES DUE _________

3 NAME OF PERSON INDEBTED TO THE CLAIMANT _________________

4 DESCRIPTIONOF THE PROPERTY AGAINST WHICH A LIEN IS CLAIMED All fee leasehold and other interests of _______________ and any other owner person or entity in the property commonly known as ___________________________located at _______________________ _________________________ _________________County Washington _______ the legal description of which is believed to be as follows

[Legal Description - andor - The legal description of the underlying real property is described on the attached Exhibit A]

CCBA Nuts amp Bolts on Construction Law - 17 of 49

5 NAME OF THE OWNER OR REPUTED OWNER (if not known state ldquounknownrdquo) ____________________________________________________________________________________________

6 THE LAST DATE ON WHICH LABOR WAS PERFORMED PROFESSIONAL SERVICES WERE FURNISHED CONTRIBUTIONS TO AN EMPLOYEE BENEFIT PLAN WERE DUE OR MATERIAL OR EQUIPMENT WAS FURNISHED _____________________________________________________________

7 PRINCIPAL AMOUNT FOR WHICH THE LIEN IS CLAIMED IS $_______

8 IF THE CLAIMANT IS THE ASSIGNEE OF THIS CLAIM SO STATE HERE ___

___________________ Claimant ___________________________

___________________________ (__)____-______

By ________s________________ Print Name ___________________ Its Attorney

STATE OF WASHINGTON )

SS COUNTYOF ____________ )

________________ being sworn says I am the attorney of the claimant above named I have read or heard the foregoing claim read and know the contents thereof and believe the same to be true and correct and that the claim of lien is not frivolous and is made with reasonable cause and is not clearly excessive under penalty of perjury

__________________________ Print Name _______________

SUBSCRIBED and SWORN to before me this ___day of ___________________ 201_

STATE OF WASHINGTON )

SS COUNTYOF ____________ )

[Seal or Stamp]

__________________________ Print Name _______________ Notary Public in and for the State of Washington residing at________________________________ My Commission Expires __________________

CCBA Nuts amp Bolts on Construction Law - 18 of 49

I certify that I know or have satisfactory evidence that___________________ is the person who appeared before me and said person acknowledged that [heshe] signed this instrument on oath stated that [heshe] was authorized to execute this instrument and acknowledged it as the attorney of___________________ to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument

CCBA Nuts amp Bolts on Construction Law - 19 of 49

F625-054-000 construction lien notice 11-05 IMPORTANT INFORMATION ON PAGE 2

NOTICE TO OWNER IMPORTANT READ BOTH SIDES OF THIS NOTICE CAREFULLY

PROTECT YOURSELF FROM PAYING TWICE

To

Date

Re

From (Description of property street address or general location)

AT THE REQUEST OF Name of person ordering their professional services materials or equipment

THIS IS NOT A LIEN This notice is sent to you to tell you who is providing professional services materials or equipment for the improvement of your property and to advise you of the rights of these persons and your responsibilities Also take notice that laborers on your project may claim a lien without sending you a notice

OWNEROCCUPIER OF EXISTING RESIDENTIAL PROPERTY Under Washington law those who furnish labor professional services materials or equipment for the repair remodel or alteration of you owner-occupied principal residence and who are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien The law limits the amount that a lien claimant can claim against your property Claims may only be made against that portion of the contract price you have not yet paid to your prime contractor as of the time this notice was given to you or three days after this notice was mailed to you Review page 2 of this notice for more information and ways to avoid lien claims

COMMERCIAL ANDOR NEW RESIDENTIAL PROPERTY We have or will be providing professional services materials or equipment for the improvement of your commercial or new residential project In the event you or your contractor fail to pay us we may file a lien against your property A lien may be claimed for all professional services materials or equipment furnished after a date that is sixty days before this notice was given to you or mailed to you unless the improvement to you property is the construction of a new single-family residence then ten days before this notice was given to you or mailed to you

Sender

Address

Telephone

Brief description of professional services materials or equipment provided or to be provided

CCBA Nuts amp Bolts on Construction Law - 20 of 49

F625-054-000 construction lien notice page 2 11-05

Important Information for your Protection

This notice is sent to inform you that we have or will provide professional services materials or equipment for the repair remodel or alteration of you property We expect to be paid by the person who ordered our services but if we are not paid we have the right to enforce our claim by filing a construction lien against your property

LEARN more about the lien laws and the meaning of this notice by

discussing them with our contractor suppliers Department of Labor and Industries the firm sending you this notice your lender or your attorney

COMMON METHODS TO AVOID CONSTRUCTION LIENS

There are several methods available to protect your property from construction liens The following are two of the more commonly used methods

DUAL PAYCHECKS (Joint Checks) When paying your

contractor for services or materials you may make checks payable jointly to the contractor and the firms furnishing you this notice

LIEN RELEASES You may require your contractor to provide

lien releases signed by all the suppliers and subcontractors from whom you have received this notice If they cannot obtain lien releases because you have not paid them you may use the dual payee check method to protect yourself

You should take appropriate steps to protect your property from

liens

Your prime contractor and your construction lender are required by law to give you written information about lien claims If you have not received it ask them for it

CCBA Nuts amp Bolts on Construction Law - 21 of 49

F625-030-000 model disclosure statement notice to customer 09-2007

Department of Labor and Industries Construction Compliance

MODEL DISCLOSURE STATEMENTNOTICE TO CUSTOMER

This contractor is registered with the state of Washington registration no____________________ and has posted with the state a bond or deposit of ______________________ for the purpose of satisfying claims against the contractor for breach of contract including negligent or improper work in the conduct of the contractorrsquos business The expiration date of this contractorrsquos registration is ______________________

THIS BOND OR DEPOSIT MIGHT NOT BE SUFFICIENT TO COVER A CLAIM THAT MIGHT ARISE FROM THE WORK DONE UNDER YOUR CONTRACT This bond or deposit is not for your exclusive use because it covers all work performed by this contractor The bond or deposit is intended to pay valid claims up to ___________________________ that you and other customers suppliers subcontractors or taxing authorities may have FOR GREATER PROTECTION YOU MAY WITHHOLD A PERCENTAGE OF YOUR CONTRACT You may withhold a contractually defined percentage of your construction contract as retainage for a stated period of time to provide protection to you and help insure that your project will be completed as required by your contract

YOUR PROPERTY MAY BE LIENED If a supplier of materials used in your construction project or an employee or subcontractor of your contractor or subcontractors is not paid your property may be liened to force payment and you could pay twice for the same work FOR ADDITIONAL PROTECTION YOU MAY REQUEST THE CONTRACTOR TO PROVIDE YOU WITH ORIGINAL ldquoLIEN RELEASErdquo DOCUMENTS FROM EACH SUPPLIER OR SUBCONTRACTOR AT YOUR PROJECT The contractor is required to provide you with further information about lien release document if you request it General information is also available from the state Department of Labor and Industries I have received a copy of this disclosure statement Dated this _______ day of _______________ of the year __________

_____________________________________________________ Signature of Customer The contractor must retain a signed copy of the disclosure statement in his or her files for a minimum of three years and produce a signed or electronic signature copy of the disclosure statement to the department upon request

CCBA Nuts amp Bolts on Construction Law - 22 of 49

Facts About Construction LiensWhat you should know about contractsIf your contractor fails to pay subcontractors suppliers or laborers or neglects to make other legally required payments those who are owed money can look to your property for payment even if you have paid your contractor in full This is true if you have hired a contractor to build a new home or are buying a newly built home

It is also true when you remodel or improve your property although the amount of your liability may be limited to the amount you owe the prime contractor at the time a lien is filed

Under Washington laws those who work on your property or provide materials and are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien

People who supply materials or labor ordered by your contractor are permitted by law to file a lien only if they do so within 90 days of cessation of performance or delivery of materials The time frame is spelled out in RCW 6004091

If you enter into a contract to buy a newly built home you may not receive a notice of a lien based on a claim by a contractor or material handler Be aware that a lien may be claimed even though you have not received a notice

Before making final payment on the project request a completed lien release form from each contractor and material supplier A sample of this release of lien form is available from the Department of Labor amp Industries Contractor Registration Section

You have final responsibility for seeing that all bills are paid even if you have paid your contractor in full

If you receive a notice to enforce a lien take the notice seriously Let your contractor know you have received the notice Find out what arrangements are being made to pay the sender of the notice

When in doubt or if you need more details consult your attorney When and how to pay your contractor is a decision that requires serious consideration

Reminder Washington laws require contractors to give you a disclosure statement if your contract exceeds $1000 [RCW 1827114(A) or (B)]

CCBA Nuts amp Bolts on Construction Law - 23 of 49

PUBLICATION F625-017-000 [01-2008]

Other formats for persons with disabilities are available on request Call 1-800-647-0982 TDD users call 360-902-5797 LampI is an equal opportunity employer

For more information

How to protect your investment

If you are dealing with a lending institution ask your loan officer what precautions the lending institution takes to verify that subcontractors and material suppliers are being paid when mortgage money is paid to your contractor

Request lender supervision when dealing with a lending institution that provides interim or construction financing

Ask the prime contractor to disclose all potential lien claimants as a condition of payment A lien claimant must mail (by certified or registered mail or by personal service) a copy of the claim of lien to the owner within 14 days of the time the lien is recorded [RCW 6004091(2)] While an action is ongoing an owner may withhold from this prime contractor the amount of money for which a claim is recorded by a subcontractor supplier or laborer [RCW 6004151]

It is recommended that your check be made payable jointly naming the contractor and the subcontractor or supplier as payees

Upon payment and acceptance of the amount due the owner has the right to an executed release of all lien rights by lien claimants [RCW 6004071]

Consider using an escrow agent to protect your interests Find out whether your escrow agent will protect you against liens when disbursing payments If you are interested in this alternative consult your attorney

Request that your contractor post a performance bond in the amount of the project cost That will give you recourse in the event the contractor fails to complete the building agreement

8 On the Web Find more information about hiring a contractor at

wwwLniwagovTradesLicensingContractorsHireCon

Contractor Registration Hotline1-800-647-0982

You may also call your local LampI office See listings under ldquoWashington State ofrdquo in the government section or the white pages of the telephone book

Please note This notice was prepared by the Department of Labor amp Industries Specialty Compliance Services Division for reproduction by lending institutions and contractors for distribution to their clients It explains the basics of the construction lien law to help you protect yourself This information is not a reflection upon the abilities or credit of your contractor

CCBA Nuts amp Bolts on Construction Law - 24 of 49

NOTICE OF CLAIM AGAINST

BOND AND RETAINED PERCENTAGE

RCW 3908030 RCW 6028010

VIA CERTIFIED MAIL ndash RETURN RECEIPT REQUESTED

TO [Public Owner] [Public Ownerrsquos Address]

Project [Project Name amp Address] NOTICE IS HEREBY GIVEN that the undersigned [Claimant] [Claimantrsquos Address] has a claim in the amount of ----- and 00100 Dollars ($XX) (not including attorneysrsquo fees or costs) together with interest at twelve percent (12) against [Public Owner] (ldquoOwnerrdquo) pursuant to RCW 6028 and the payment bond taken from [Prime Contractor] (ldquoContractorrdquo) [Prime Contractorrsquos Address] as principal and [Surety Company] (ldquoSuretyrdquo) [Suretyrsquos Address] as surety Bond No ________ pursuant to RCW 3908 for [describe services material supplies labor furnished] provided on the Project This Notice of Claim Against Bond and Retained Percentage supersedes and replaces previous Notices DATED This ___day of _________ 201_ [Claimant] By ______________________________________ Its ______________________________________ [Claimantrsquos Address]

_________________________________________

[Contractors Registration No if applicable]

(Copies furnished to General Contractor and General Contractorrsquos Bonding Company)

CCBA Nuts amp Bolts on Construction Law - 25 of 49

PRECLAIM NOTICE TO CONTRACTOR BY SUBCONTRACTORS MATERIALMEN OR SUPPLIERS FOR

CLAIM AGAINST BOND AND RETAINED PERCENTAGE

VIA CERTIFIED OR REGISTERED MAIL- RETURN RECEIPT REQUESTED

TO [Name of General Contractor] [Address]

YOU ARE HEREBY NOTIFIED that the undersigned ____________at the request of_________________ commenced to deliver or furnish materials supplies andor equipment for the use in the construction alteration andor repair of that certain project known as____________________ [project name] which is located at ____________________________ [address or description] If the undersigned is not paid for these materials supplies andor equipment it will file a claim against you and your bond andor retainage pursuant to RCW 3908 andor 6028 et seq for payment of any sum that is due and owing to the undersigned

DATED This __ day of _____________ 201_

[Name of Claimant]

By ____________________________________

Its ____________________________________

Address ______________________________

__________________________________________

__________________________________________

[Contractors Registration No if applicable]

(Mail via certified mail return receipt requested or hand deliver and obtain receipt)

CCBA Nuts amp Bolts on Construction Law - 26 of 49

Washington Liens amp Bonds ndash Pertinent Statutes

RCW 1827040 Bond or other security required mdash Actions against mdash Suspension of registration upon impairment (1) Each applicant shall file with the department a surety bond issued by a surety insurer who meets the requirements of chapter 4828 RCW in the sum of twelve thousand dollars if the applicant is a general contractor and six thousand dollars if the applicant is a specialty contractor If no valid bond is already on file with the department at the time the application is filed a bond must accompany the registration application The bond shall have the state of Washington named as obligee with good and sufficient surety in a form to be approved by the department The bond shall be continuous and may be canceled by the surety upon the surety giving written notice to the director A cancellation or revocation of the bond or withdrawal of the surety from the bond automatically suspends the registration issued to the contractor until a new bond or reinstatement notice has been filed and approved as provided in this section The bond shall be conditioned that the applicant will pay all persons performing labor including employee benefits for the contractor will pay all taxes and contributions due to the state of Washington and will pay all persons furnishing material or renting or supplying equipment to the contractor and will pay all amounts that may be adjudged against the contractor by reason of breach of contract including improper work in the conduct of the contracting business A change in the name of a business or a change in the type of business entity shall not impair a bond for the purposes of this section so long as one of the original applicants for such bond maintains partial ownership in the business covered by the bond (2) At the time of initial registration or renewal the contractor shall provide a bond or other security deposit as required by this chapter and comply with all of the other provisions of this chapter before the department shall issue or renew the contractors certificate of registration Any contractor registered as of July 1 2001 who maintains that registration in accordance with this chapter is in compliance with this chapter until the next renewal of the contractors certificate of registration (3) Any person firm or corporation having a claim against the contractor for any of the items referred to in this section may bring suit against the contractor and the bond or deposit in the superior court of the county in which the work was done or of any county in which jurisdiction of the contractor may be had The surety issuing the bond shall be named as a party to any suit upon the bond Action upon the bond or deposit brought by a residential homeowner for breach of contract by a party to the construction contract shall be commenced by filing the summons and complaint with the clerk of the appropriate superior court within two years from the date the claimed contract work was substantially completed or abandoned whichever occurred first Action upon the bond or deposit brought by any other authorized party shall be commenced by filing the summons and complaint with the clerk of the appropriate superior court within one year from the date the claimed labor was performed and benefits accrued taxes and contributions owing the state of Washington became due materials and equipment were furnished or the claimed contract work was substantially completed or abandoned whichever occurred first Service of process in an action filed under this chapter against the contractor and the contractors bond or the deposit shall be exclusively by service upon the department Three

CCBA Nuts amp Bolts on Construction Law - 27 of 49

copies of the summons and complaint and a fee adopted by rule of not less than fifty dollars to cover the costs shall be served by registered or certified mail or other delivery service requiring notice of receipt upon the department at the time suit is started and the department shall maintain a record available for public inspection of all suits so commenced Service is not complete until the department receives the fee and three copies of the summons and complaint The service shall constitute service and confer personal jurisdiction on the contractor and the surety for suit on claimants claim against the contractor and the bond or deposit and the department shall transmit the summons and complaint or a copy thereof to the contractor at the address listed in the contractors application and to the surety within two days after it shall have been received (4) The surety upon the bond shall not be liable in an aggregate amount in excess of the amount named in the bond nor for any monetary penalty assessed pursuant to this chapter for an infraction The liability of the surety shall not cumulate where the bond has been renewed continued reinstated reissued or otherwise extended The surety upon the bond may upon notice to the department and the parties tender to the clerk of the court having jurisdiction of the action an amount equal to the claims thereunder or the amount of the bond less the amount of judgments if any previously satisfied therefrom and to the extent of such tender the surety upon the bond shall be exonerated but if the actions commenced and pending and provided to the department as required in subsection (3) of this section at any one time exceed the amount of the bond then unimpaired claims shall be satisfied from the bond in the following order (a) Employee labor and claims of laborers including employee benefits (b) Claims for breach of contract by a party to the construction contract (c) Registered or licensed subcontractors material and equipment (d) Taxes and contributions due the state of Washington (e) Any court costs interest and attorneys fees plaintiff may be entitled to recover The surety is not liable for any amount in excess of the penal limit of its bond A payment made by the surety in good faith exonerates the bond to the extent of any payment made by the surety (5) The total amount paid from a bond or deposit required of a general contractor by this section to claimants other than residential homeowners must not exceed one-half of the bond amount The total amount paid from a bond or deposit required of a specialty contractor by this section to claimants other than residential homeowners must not exceed one-half of the bond amount or four thousand dollars whichever is greater (6) The prevailing party in an action filed under this section against the contractor and contractors bond or deposit for breach of contract by a party to the construction contract involving a residential homeowner is entitled to costs interest and reasonable attorneys fees The surety upon the bond or deposit is not liable in an aggregate amount in excess of the amount

CCBA Nuts amp Bolts on Construction Law - 28 of 49

named in the bond or deposit nor for any monetary penalty assessed pursuant to this chapter for an infraction (7) If a final judgment impairs the liability of the surety upon the bond or deposit so furnished that there is not in effect a bond or deposit in the full amount prescribed in this section the registration of the contractor is automatically suspended until the bond or deposit liability in the required amount unimpaired by unsatisfied judgment claims is furnished (8) In lieu of the surety bond required by this section the contractor may file with the department an assigned savings account upon forms provided by the department (9) Any person having filed and served a summons and complaint as required by this section having an unsatisfied final judgment against the registrant for any items referred to in this section may execute upon the security held by the department by serving a certified copy of the unsatisfied final judgment by registered or certified mail upon the department within one year of the date of entry of such judgment Upon the receipt of service of such certified copy the department shall pay or order paid from the deposit through the registry of the superior court which rendered judgment towards the amount of the unsatisfied judgment The priority of payment by the department shall be the order of receipt by the department but the department shall have no liability for payment in excess of the amount of the deposit (10) Within ten days after resolution of the case a certified copy of the final judgment and order or any settlement documents where a case is not disposed of by a court trial a certified copy of the dispositive settlement documents must be provided to the department by the prevailing party Failure to provide a copy of the final judgment and order or the dispositive settlement documents to the department within ten days of entry of such an order constitutes a violation of this chapter and a penalty adopted by rule of not less than two hundred fifty dollars may be assessed against the prevailing party (11) The director may require an applicant applying to renew or reinstate a registration or applying for a new registration to file a bond of up to three times the normally required amount if the director determines that an applicant or a previous registration of a corporate officer owner or partner of a current applicant has had in the past five years a total of three final judgments in actions under this chapter involving a residential single-family dwelling on two or more different structures (12) The director may adopt rules necessary for the proper administration of the security RCW 1827114 Disclosure statement required mdash Prerequisite to lien claim

(1) Any contractor agreeing to perform any contracting project (a) For the repair alteration or construction of four or fewer residential units or accessory structures on such residential property when the bid or contract price totals one thousand dollars or more or (b) for the repair alteration or construction of a commercial building when the bid or contract price totals one thousand dollars or more but less than sixty thousand dollars must provide the customer with

CCBA Nuts amp Bolts on Construction Law - 29 of 49

the following disclosure statement in substantially the following form using lower case and upper case twelve-point and bold type where appropriate prior to starting work on the project NOTICE TO CUSTOMER This contractor is registered with the state of Washington registration no and has posted with the state a bond or deposit of for the purpose of satisfying claims against the contractor for breach of contract including negligent or improper work in the conduct of the contractors business The expiration date of this contractors registration is THIS BOND OR DEPOSIT MIGHT NOT BE SUFFICIENT TO COVER A CLAIM THAT MIGHT ARISE FROM THE WORK DONE UNDER YOUR CONTRACT This bond or deposit is not for your exclusive use because it covers all work performed by this contractor The bond or deposit is intended to pay valid claims up to that you and other customers suppliers subcontractors or taxing authorities may have FOR GREATER PROTECTION YOU MAY WITHHOLD A PERCENTAGE OF YOUR CONTRACT You may withhold a contractually defined percentage of your construction contract as retainage for a stated period of time to provide protection to you and help insure that your project will be completed as required by your contract YOUR PROPERTY MAY BE LIENED If a supplier of materials used in your construction project or an employee or subcontractor of your contractor or subcontractors is not paid your property may be liened to force payment and you could pay twice for the same work FOR ADDITIONAL PROTECTION YOU MAY REQUEST THE CONTRACTOR TO PROVIDE YOU WITH ORIGINAL LIEN RELEASE DOCUMENTS FROM EACH SUPPLIER OR SUBCONTRACTOR ON YOUR PROJECT The contractor is required to provide you with further information about lien release documents if you request it General information is also available from the state Department of Labor and Industries I have received a copy of this disclosure statement

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(Signature of customer) (2) The contractor must retain a signed copy of the disclosure statement in his or her files for a minimum of three years and produce a signed or electronic signature copy of the disclosure statement to the department upon request (3) A contractor subject to this section shall notify any consumer to whom notice is required under subsection (1) of this section if the contractors registration has expired or is revoked or suspended by the department prior to completion or other termination of the contract with the consumer (4) No contractor subject to this section may bring or maintain any lien claim under chapter 6004 RCW based on any contract to which this section applies without alleging and proving that the contractor has provided the customer with a copy of the disclosure statement as required in subsection (1) of this section (5) This section does not apply to contracts authorized under chapter 3904 RCW or to contractors contracting with other contractors (6) Failure to comply with this section shall constitute an infraction under the provisions of this chapter (7) The department shall produce model disclosure statements and public service announcements detailing the information needed to assist contractors and contractors customers to comply under this section As necessary the department shall periodically update these education materials RCW 3908010 Bond required mdash Conditions mdash Retention of contract amount in lieu of bond (1)(a) Whenever any board council commission trustees or body acting for the state or any county or municipality or any public body must contract with any person or corporation to do any work for the state county or municipality or other public body city town or district such board council commission trustees or body must require the person or persons with whom such contract is made to make execute and deliver to such board council commission trustees or body a good and sufficient bond with a surety company as surety conditioned that such person or persons must (i) Faithfully perform all the provisions of such contract (ii) Pay all laborers mechanics and subcontractors and material suppliers and all persons who supply such person or persons or subcontractors with provisions and supplies for the carrying on of such work and

CCBA Nuts amp Bolts on Construction Law - 31 of 49

(iii) Pay the taxes increases and penalties incurred on the project under Titles 50 51 and 82 RCW on (A) Projects referred to in RCW 6028011(1)(b) andor (B) projects for which the bond is conditioned on the payment of such taxes increases and penalties (b) The bond in cases of cities and towns must be filed with the clerk or comptroller thereof and any person or persons performing such services or furnishing material to any subcontractor has the same right under the provisions of such bond as if such work services or material was furnished to the original contractor (2) The provisions of RCW 3908010 through 3908030 do not apply to any money loaned or advanced to any such contractor subcontractor or other person in the performance of any such work (3) On contracts of thirty-five thousand dollars or less at the option of the contractor the respective public entity may in lieu of the bond retain fifty percent of the contract amount for a period of thirty days after date of final acceptance or until receipt of all necessary releases from the department of revenue the employment security department and the department of labor and industries and settlement of any liens filed under chapter 6028 RCW whichever is later (4) For contracts of one hundred thousand dollars or less the public entity may accept a full payment and performance bond from an individual surety or sureties (5) The surety must agree to be bound by the laws of the state of Washington and subjected to the jurisdiction of the state of Washington RCW 6004011 Definitions

Unless the context requires otherwise the definitions in this section apply throughout this chapter (1) Construction agent means any registered or licensed contractor registered or licensed subcontractor architect engineer or other person having charge of any improvement to real property who shall be deemed the agent of the owner for the limited purpose of establishing the lien created by this chapter (2) Contract price means the amount agreed upon by the contracting parties or if no amount is agreed upon then the customary and reasonable charge therefor (3) Draws means periodic disbursements of interim or construction financing by a lender (4) Furnishing labor professional services materials or equipment means the performance of any labor or professional services the contribution owed to any employee benefit plan on account of any labor the provision of any supplies or materials and the renting leasing or

CCBA Nuts amp Bolts on Construction Law - 32 of 49

otherwise supplying of equipment for the improvement of real property (5) Improvement means (a) Constructing altering repairing remodeling demolishing clearing grading or filling in of to or upon any real property or street or road in front of or adjoining the same (b) planting of trees vines shrubs plants hedges or lawns or providing other landscaping materials on any real property and (c) providing professional services upon real property or in preparation for or in conjunction with the intended activities in (a) or (b) of this subsection (6) Interim or construction financing means that portion of money secured by a mortgage deed of trust or other encumbrance to finance improvement of or to real property but does not include (a) Funds to acquire real property (b) Funds to pay interest insurance premiums lease deposits taxes assessments or prior encumbrances (c) Funds to pay loan commitment title legal closing recording or appraisal fees (d) Funds to pay other customary fees which pursuant to agreement with the owner or borrower are to be paid by the lender from time to time (e) Funds to acquire personal property for which the potential lien claimant may not claim a lien pursuant to this chapter (7) Labor means exertion of the powers of body or mind performed at the site for compensation Labor includes amounts due and owed to any employee benefit plan on account of such labor performed (8) Mortgagee means a person who has a valid mortgage of record or deed of trust of record securing a loan (9) Owner-occupied means a single-family residence occupied by the owner as his or her principal residence (10) Payment bond means a surety bond issued by a surety licensed to issue surety bonds in the state of Washington that confers upon potential claimants the rights of third party beneficiaries (11) Potential lien claimant means any person or entity entitled to assert lien rights under this chapter who has otherwise complied with the provisions of this chapter and is registered or licensed if required to be licensed or registered by the provisions of the laws of the state of Washington (12) Prime contractor includes all contractors general contractors and specialty

CCBA Nuts amp Bolts on Construction Law - 33 of 49

contractors as defined by chapter 1827 or 1928 RCW or who are otherwise required to be registered or licensed by law who contract directly with a property owner or their common law agent to assume primary responsibility for the creation of an improvement to real property and includes property owners or their common law agents who are contractors general contractors or specialty contractors as defined in chapter 1827 or 1928 RCW or who are otherwise required to be registered or licensed by law who offer to sell their property without occupying or using the structures projects developments or improvements for more than one year (13) Professional services means surveying establishing or marking the boundaries of preparing maps plans or specifications for or inspecting testing or otherwise performing any other architectural or engineering services for the improvement of real property (14) Real property lender means a bank savings bank savings and loan association credit union mortgage company or other corporation association partnership trust or individual that makes loans secured by real property located in the state of Washington (15) Site means the real property which is or is to be improved (16) Subcontractor means a general contractor or specialty contractor as defined by chapter 1827 or 1928 RCW or who is otherwise required to be registered or licensed by law who contracts for the improvement of real property with someone other than the owner of the property or their common law agent

6004021 Lien authorized

Except as provided in RCW 6004031 any person furnishing labor professional services materials or equipment for the improvement of real property shall have a lien upon the improvement for the contract price of labor professional services materials or equipment furnished at the instance of the owner or the agent or construction agent of the owner

6004031 Notices mdash Exceptions

(1) Except as otherwise provided in this section every person furnishing professional services materials or equipment for the improvement of real property shall give the owner or reputed owner notice in writing of the right to claim a lien If the prime contractor is in compliance with the requirements of RCW 1927095 6004230 and 6004261 this notice shall also be given to the prime contractor as described in this subsection unless the potential lien claimant has contracted directly with the prime contractor The notice may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after the date which is sixty days before (a) Mailing the notice by certified or registered mail to the owner or reputed owner or

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(b) Delivering or serving the notice personally upon the owner or reputed owner and obtaining evidence of delivery in the form of a receipt or other acknowledgment signed by the owner or reputed owner or an affidavit of service In the case of new construction of a single-family residence the notice of a right to claim a lien may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after a date which is ten days before the notice is given as described in this subsection (2) Notices of a right to claim a lien shall not be required of (a) Persons who contract directly with the owner or the owners common law agent (b) Laborers whose claim of lien is based solely on performing labor or (c) Subcontractors who contract for the improvement of real property directly with the prime contractor except as provided in subsection (3)(b) of this section (3) Persons who furnish professional services materials or equipment in connection with the repair alteration or remodel of an existing owner-occupied single-family residence or appurtenant garage (a) Who contract directly with the owner-occupier or their common law agent shall not be required to send a written notice of the right to claim a lien and shall have a lien for the full amount due under their contract as provided in RCW 6004021 or (b) Who do not contract directly with the owner-occupier or their common law agent shall give notice of the right to claim a lien to the owner-occupier Liens of persons furnishing professional services materials or equipment who do not contract directly with the owner-occupier or their common law agent may only be satisfied from amounts not yet paid to the prime contractor by the owner at the time the notice described in this section is received regardless of whether amounts not yet paid to the prime contractor are due For the purposes of this subsection received means actual receipt of notice by personal service or registered or certified mail or three days after mailing by registered or certified mail excluding Saturdays Sundays or legal holidays (4) The notice of right to claim a lien described in subsection (1) of this section shall include but not be limited to the following information and shall substantially be in the following form using lower-case and upper-case ten-point type where appropriate

CCBA Nuts amp Bolts on Construction Law - 35 of 49

NOTICE TO OWNER

IMPORTANT READ BOTH SIDES OF THIS NOTICE CAREFULLY

PROTECT YOURSELF FROM PAYING TWICE

To Date

Re (description of property Street address or general location) From AT THE REQUEST OF (Name of person ordering the professional services materials or equipment) THIS IS NOT A LIEN This notice is sent to you to tell you who is providing professional services materials or equipment for the improvement of your property and to advise you of the rights of these persons and your responsibilities Also take note that laborers on your project may claim a lien without sending you a notice

OWNEROCCUPIER OF EXISTING

RESIDENTIAL PROPERTY

Under Washington law those who furnish labor professional services materials or equipment for the repair remodel or alteration of your owner-occupied principal residence and who are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien The law limits the amount that a lien claimant can claim against your property Claims may only be made against that portion of the contract price you have not yet paid to your prime contractor as of the time this notice was given to you or three days after this notice was mailed to you Review the back of this notice for more information and ways to avoid lien claims

COMMERCIAL ANDOR NEW

RESIDENTIAL PROPERTY

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We have or will be providing professional services materials or equipment for the improvement of your commercial or new residential project In the event you or your contractor fail to pay us we may file a lien against your property A lien may be claimed for all professional services materials or equipment furnished after a date that is sixty days before this notice was given to you or mailed to you unless the improvement to your property is the construction of a new single-family residence then ten days before this notice was given to you or mailed to you Sender Address Telephone Brief description of professional services materials or equipment provided or to be provided

IMPORTANT INFORMATION

ON REVERSE SIDE

IMPORTANT INFORMATION

FOR YOUR PROTECTION This notice is sent to inform you that we have or will provide professional services materials or equipment for the improvement of your property We expect to be paid by the person who ordered our services but if we are not paid we have the right to enforce our claim by filing a construction lien against your property LEARN more about the lien laws and the meaning of this notice by discussing them with your contractor suppliers Department of Labor and Industries the firm sending you this notice your lender or your attorney

COMMON METHODS TO AVOID CONSTRUCTION LIENS There are several methods available to protect your property from construction liens The following are two of the more commonly used methods

DUAL PAYCHECKS (Joint Checks) When paying your contractor for services or materials you may make checks payable jointly to the contractor and the firms furnishing you this notice

CCBA Nuts amp Bolts on Construction Law - 37 of 49

LIEN RELEASES You may require your contractor to provide lien releases signed by all the suppliers and subcontractors from whom you have received this notice If they cannot obtain lien releases because you have not paid them you may use the dual payee check method to protect yourself

YOU SHOULD TAKE APPROPRIATE STEPS TO PROTECT YOUR PROPERTY FROM LIENS YOUR PRIME CONTRACTOR AND YOUR CONSTRUCTION LENDER ARE REQUIRED BY LAW TO GIVE YOU WRITTEN INFORMATION ABOUT LIEN CLAIMS IF YOU HAVE NOT RECEIVED IT ASK THEM FOR IT

(5) Every potential lien claimant providing professional services where no improvement as defined in RCW 6004011(5) (a) or (b) has been commenced and the professional services provided are not visible from an inspection of the real property may record in the real property records of the county where the property is located a notice which shall contain the professional service providers name address telephone number legal description of the property the owner or reputed owners name and the general nature of the professional services provided If such notice is not recorded the lien claimed shall be subordinate to the interest of any subsequent mortgagee and invalid as to the interest of any subsequent purchaser if the mortgagee or purchaser acts in good faith and for a valuable consideration acquires an interest in the property prior to the commencement of an improvement as defined in RCW 6004011(5) (a) or (b) without notice of the professional services being provided The notice described in this subsection shall be substantially in the following form

NOTICE OF FURNISHING

PROFESSIONAL SERVICES That on the (day) day of (month and year) (name of provider) began providing professional services upon or for the improvement of real property legally described as follows

[Legal Description is mandatory]

CCBA Nuts amp Bolts on Construction Law - 38 of 49

The general nature of the professional services provided is The owner or reputed owner of the real property is

(Signature)

(Name of Claimant)

(Street Address)

(City State Zip Code)

(Phone Number)

(6) A lien authorized by this chapter shall not be enforced unless the lien claimant has complied with the applicable provisions of this section

6004041 Contractor registration

A contractor or subcontractor required to be registered under chapter 1827 RCW or licensed under chapter 1928 RCW or otherwise required to be registered or licensed by law shall be deemed the construction agent of the owner for the purposes of establishing the lien created by this chapter only if so registered or licensed Persons dealing with contractors or subcontractors may rely for the purposes of this section upon a certificate of registration issued pursuant to chapter 1827 RCW or license issued pursuant to chapter 1928 RCW or other certificate or license issued pursuant to law covering the period when the labor professional services material or equipment shall be furnished and the lien rights shall not be lost by suspension or revocation of registration or license without their knowledge No lien rights described in this

CCBA Nuts amp Bolts on Construction Law - 39 of 49

chapter shall be lost or denied by virtue of the absence suspension or revocation of such registration or license with respect to any contractor or subcontractor not in immediate contractual privity with the lien claimant

6004081 Frivolous claim mdash Procedure

(1) Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who believes the claim of lien to be frivolous and made without reasonable cause or clearly excessive may apply by motion to the superior court for the county where the property or some part thereof is located for an order directing the lien claimant to appear before the court at a time no earlier than six nor later than fifteen days following the date of service of the application and order on the lien claimant and show cause if any he or she has why the relief requested should not be granted The motion shall state the grounds upon which relief is asked and shall be supported by the affidavit of the applicant or his or her attorney setting forth a concise statement of the facts upon which the motion is based (2) The order shall clearly state that if the lien claimant fails to appear at the time and place noted the lien shall be released with prejudice and that the lien claimant shall be ordered to pay the costs requested by the applicant including reasonable attorneys fees (3) If no action to foreclose the lien claim has been filed the clerk of the court shall assign a cause number to the application and obtain from the applicant a filing fee pursuant to RCW 3618016 If an action has been filed to foreclose the lien claim the application shall be made a part of that action (4) If following a hearing on the matter the court determines that the lien is frivolous and made without reasonable cause or clearly excessive the court shall issue an order releasing the lien if frivolous and made without reasonable cause or reducing the lien if clearly excessive and awarding costs and reasonable attorneys fees to the applicant to be paid by the lien claimant If the court determines that the lien is not frivolous and was made with reasonable cause and is not clearly excessive the court shall issue an order so stating and awarding costs and reasonable attorneys fees to the lien claimant to be paid by the applicant (5) Proceedings under this section shall not affect other rights and remedies available to the parties under this chapter or otherwise

6004091 Recording mdash Time mdash Contents of lien

Every person claiming a lien under RCW 6004021 shall file for recording in the county where the subject property is located a notice of claim of lien not later than ninety days after the person

CCBA Nuts amp Bolts on Construction Law - 40 of 49

has ceased to furnish labor professional services materials or equipment or the last date on which employee benefit contributions were due The notice of claim of lien (1) Shall state in substance and effect (a) The name phone number and address of the claimant (b) The first and last date on which the labor professional services materials or equipment was furnished or employee benefit contributions were due (c) The name of the person indebted to the claimant (d) The street address legal description or other description reasonably calculated to identify for a person familiar with the area the location of the real property to be charged with the lien (e) The name of the owner or reputed owner of the property if known and if not known that fact shall be stated and (f) The principal amount for which the lien is claimed (2) Shall be signed by the claimant or some person authorized to act on his or her behalf who shall affirmatively state they have read the notice of claim of lien and believe the notice of claim of lien to be true and correct under penalty of perjury and shall be acknowledged pursuant to chapter 6408 RCW If the lien has been assigned the name of the assignee shall be stated Where an action to foreclose the lien has been commenced such notice of claim of lien may be amended as pleadings may be by order of the court insofar as the interests of third parties are not adversely affected by such amendment A claim of lien substantially in the following form shall be sufficient

CLAIM OF LIEN

claimant vs name of person indebted to claimant

Notice is hereby given that the person named below claims a lien pursuant to chapter 6404 RCW In support of this lien the following information is submitted

1 NAME OF LIEN CLAIMANT

TELEPHONE NUMBER

CCBA Nuts amp Bolts on Construction Law - 41 of 49

ADDRESS

2 DATE ON WHICH THE CLAIMANT BEGAN TO PERFORM LABOR PROVIDE PROFESSIONAL SERVICES SUPPLY MATERIAL OR EQUIPMENT OR THE DATE ON WHICH EMPLOYEE BENEFIT CONTRIBUTIONS BECAME DUE

3 NAME OF PERSON INDEBTED TO THE CLAIMANT

4 DESCRIPTION OF THE PROPERTY AGAINST WHICH A LIEN IS CLAIMED (Street address legal description or other information that will reasonably describe the property)

5 NAME OF THE OWNER OR REPUTED OWNER (If not known state unknown)

6 THE LAST DATE ON WHICH LABOR WAS PERFORMED PROFESSIONAL SERVICES WERE FURNISHED CONTRIBUTIONS TO AN EMPLOYEE BENEFIT PLAN WERE DUE OR MATERIAL OR EQUIPMENT WAS FURNISHED

7 PRINCIPAL AMOUNT FOR WHICH THE LIEN IS CLAIMED IS

8 IF THE CLAIMANT IS THE ASSIGNEE OF THIS CLAIM SO STATE HERE

Claimant

(Phone number address city

CCBA Nuts amp Bolts on Construction Law - 42 of 49

and

state of claimant)

STATE OF WASHINGTON COUNTY OF ss being sworn says I am the claimant (or attorney of the claimant or administrator representative or agent of the trustees of an employee benefit plan) above named I have read or heard the foregoing claim read and know the contents thereof and believe the same to be true and correct and that the claim of lien is not frivolous and is made with reasonable cause and is not clearly excessive under penalty of perjury Subscribed and sworn to before me this day of The period provided for recording the claim of lien is a period of limitation and no action to foreclose a lien shall be maintained unless the claim of lien is filed for recording within the ninety-day period stated The lien claimant shall give a copy of the claim of lien to the owner or reputed owner by mailing it by certified or registered mail or by personal service within fourteen days of the time the claim of lien is filed for recording Failure to do so results in a forfeiture of any right the claimant may have to attorneys fees and costs against the owner under RCW 6004181

6004161 Bond in lieu of claim

Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who disputes the correctness or validity of the claim of lien may record either before or after the commencement of an action to enforce the lien in the office of the county recorder or auditor in the county where the claim of lien was recorded a bond issued by a surety company authorized to issue surety bonds in the state The surety shall be listed in the latest federal department of the treasury list of surety companies acceptable on federal bonds published in the Federal Register as authorized to issue bonds on United States government projects with an underwriting limitation including applicable reinsurance equal to or greater than the amount of the bond to be recorded The bond shall contain a description of the claim of lien and real property involved and be in an amount equal to the greater of five thousand dollars or two times the amount of the lien claimed if it is ten thousand dollars or less and in an amount equal to or greater than one and one-half times the amount of the lien if it is in

CCBA Nuts amp Bolts on Construction Law - 43 of 49

excess of ten thousand dollars If the claim of lien affects more than one parcel of real property and is segregated to each parcel the bond may be segregated the same as in the claim of lien A separate bond shall be required for each claim of lien made by separate claimants However a single bond may be used to guarantee payment of amounts claimed by more than one claim of lien by a single claimant so long as the amount of the bond meets the requirements of this section as applied to the aggregate sum of all claims by such claimant The condition of the bond shall be to guarantee payment of any judgment upon the lien in favor of the lien claimant entered in any action to recover the amount claimed in a claim of lien or on the claim asserted in the claim of lien The effect of recording a bond shall be to release the real property described in the notice of claim of lien from the lien and any action brought to recover the amount claimed Unless otherwise prohibited by law if no action is commenced to recover on a lien within the time specified in RCW 6004141 the surety shall be discharged from liability under the bond If an action is timely commenced then on payment of any judgment entered in the action or on payment of the full amount of the bond to the holder of the judgment whichever is less the surety shall be discharged from liability under the bond Nothing in this section shall in any way prohibit or limit the use of other methods devised by the affected parties to secure the obligation underlying a claim of lien and to obtain a release of real property from a claim of lien

6004181 Rank of lien mdash Application of proceeds mdash Attorneys fees

(1) In every case in which different construction liens are claimed against the same property the court shall declare the rank of such lien or class of liens which liens shall be in the following order (a) Liens for the performance of labor (b) Liens for contributions owed to employee benefit plans (c) Liens for furnishing material supplies or equipment (d) Liens for subcontractors including but not limited to their labor and materials and (e) Liens for prime contractors or for professional services (2) The proceeds of the sale of property must be applied to each lien or class of liens in order of its rank and in an action brought to foreclose a lien pro rata among each claimant in each separate priority class A personal judgment may be rendered against any party personally liable for any debt for which the lien is claimed If the lien is established the judgment shall provide

CCBA Nuts amp Bolts on Construction Law - 44 of 49

for the enforcement thereof upon the property liable as in the case of foreclosure of judgment liens The amount realized by such enforcement of the lien shall be credited upon the proper personal judgment The deficiency if any remaining unsatisfied shall stand as a personal judgment and may be collected by execution against any party liable therefor (3) The court may allow the prevailing party in the action whether plaintiff or defendant as part of the costs of the action the moneys paid for recording the claim of lien costs of title report bond costs and attorneys fees and necessary expenses incurred by the attorney in the superior court court of appeals supreme court or arbitration as the court or arbitrator deems reasonable Such costs shall have the priority of the class of lien to which they are related as established by subsection (1) of this section (4) Real property against which a lien under this chapter is enforced may be ordered sold by the court and the proceeds deposited into the registry of the clerk of the court pending further determination respecting distribution of the proceeds of the sale

6004900 Liberal construction mdash 1991 c 281

RCW 1927095 6004230 and 6004011 through 6004226 and 6004261 are to be liberally construed to provide security for all parties intended to be protected by their provisions

RCW 6028011

Retained percentage mdash Public transportation projects mdash Labor and material lien created mdash Bond in lieu of retained funds mdash Termination before completion mdash Chapter deemed exclusive mdash Release of ferry contract payments mdash Projects of farmers home administration mdash General contractorconstruction manager procedure mdash Definitions

(1)(a) Except as provided in (b) of this subsection public improvement contracts must provide and public bodies must reserve a contract retainage not to exceed five percent of the moneys earned by the contractor as a trust fund for the protection and payment of (i) The claims of any person arising under the contract and (ii) the state with respect to taxes increases and penalties imposed pursuant to Titles 50 51 and 82 RCW which may be due from such contractor (b) Public improvement contracts funded in whole or in part by federal transportation funds must rely upon the contract bond as referred to in chapter 3908 RCW for the protection and payment of (i) The claims of any person or persons arising under the contract to the extent such claims are provided for in RCW 3908010 and (ii) the state with respect to taxes increases and penalties incurred on the public improvement project under Titles 50 51 and 82 RCW which may be due The contract bond must remain in full force and effect until at a minimum all claims filed in compliance with chapter 3908 RCW are resolved

CCBA Nuts amp Bolts on Construction Law - 45 of 49

(2) Every person performing labor or furnishing supplies toward the completion of a public improvement contract has a lien upon moneys reserved by a public body under the provisions of a public improvement contract However the notice of the lien of the claimant must be given within forty-five days of completion of the contract work and in the manner provided in RCW 3908030 (3) The contractor at any time may request the contract retainage be reduced to one hundred percent of the value of the work remaining on the project (a) After completion of all contract work other than landscaping the contractor may request that the public body release and pay in full the amounts retained during the performance of the contract and sixty days thereafter the public body must release and pay in full the amounts retained (other than continuing retention of five percent of the moneys earned for landscaping) subject to the provisions of chapters 3912 and 6028 RCW (b) Sixty days after completion of all contract work the public body must release and pay in full the amounts retained during the performance of the contract subject to the provisions of chapters 3912 and 6028 RCW (4) The moneys reserved by a public body under the provisions of a public improvement contract at the option of the contractor must be (a) Retained in a fund by the public body (b) Deposited by the public body in an interest bearing account in a bank mutual savings bank or savings and loan association Interest on moneys reserved by a public body under the provision of a public improvement contract must be paid to the contractor (c) Placed in escrow with a bank or trust company by the public body When the moneys reserved are placed in escrow the public body must issue a check representing the sum of the moneys reserved payable to the bank or trust company and the contractor jointly This check must be converted into bonds and securities chosen by the contractor and approved by the public body and the bonds and securities must be held in escrow Interest on the bonds and securities must be paid to the contractor as the interest accrues (5) The contractor or subcontractor may withhold payment of not more than five percent from the moneys earned by any subcontractor or sub-subcontractor or supplier contracted with by the contractor to provide labor materials or equipment to the public project Whenever the contractor or subcontractor reserves funds earned by a subcontractor or sub-subcontractor or

CCBA Nuts amp Bolts on Construction Law - 46 of 49

supplier the contractor or subcontractor must pay interest to the subcontractor or sub-subcontractor or supplier at a rate equal to that received by the contractor or subcontractor from reserved funds (6) A contractor may submit a bond for all or any portion of the contract retainage in a form acceptable to the public body and from a bonding company meeting standards established by the public body The public body must accept a bond meeting these requirements unless the public body can demonstrate good cause for refusing to accept it This bond and any proceeds therefrom are subject to all claims and liens and in the same manner and priority as set forth for retained percentages in this chapter The public body must release the bonded portion of the retained funds to the contractor within thirty days of accepting the bond from the contractor Whenever a public body accepts a bond in lieu of retained funds from a contractor the contractor must accept like bonds from any subcontractors or suppliers from which the contractor has retained funds The contractor must then release the funds retained from the subcontractor or supplier to the subcontractor or supplier within thirty days of accepting the bond from the subcontractor or supplier (7) If the public body administering a contract after a substantial portion of the work has been completed finds that an unreasonable delay will occur in the completion of the remaining portion of the contract for any reason not the result of a breach thereof it may if the contractor agrees delete from the contract the remaining work and accept as final the improvement at the stage of completion then attained and make payment in proportion to the amount of the work accomplished and in this case any amounts retained and accumulated under this section must be held for a period of sixty days following the completion In the event that the work is terminated before final completion as provided in this section the public body may thereafter enter into a new contract with the same contractor to perform the remaining work or improvement for an amount equal to or less than the cost of the remaining work as was provided for in the original contract without advertisement or bid The provisions of this chapter are exclusive and supersede all provisions and regulations in conflict herewith (8) Whenever the department of transportation has contracted for the construction of two or more ferry vessels sixty days after completion of all contract work on each ferry vessel the department must release and pay in full the amounts retained in connection with the construction of the vessel subject to the provisions of RCW 6028021 and chapter 3912 RCW However the department of transportation may at its discretion condition the release of funds retained in connection with the completed ferry upon the contractor delivering a good and sufficient bond with two or more sureties or with a surety company in the amount of the retained funds to be released to the contractor conditioned that no taxes may be certified or claims filed for work on the ferry after a period of sixty days following completion of the ferry and if taxes are certified or claims filed recovery may be had on the bond by the department of revenue the employment

CCBA Nuts amp Bolts on Construction Law - 47 of 49

security department the department of labor and industries and the material suppliers and laborers filing claims (9) Except as provided in subsection (1) of this section reservation by a public body for any purpose from the moneys earned by a contractor by fulfilling its responsibilities under public improvement contracts is prohibited (10) Contracts on projects funded in whole or in part by farmers home administration and subject to farmers home administration regulations are not subject to subsections (1) through (9) of this section (11) This subsection applies only to a public body that has contracted for the construction of a facility using the general contractorconstruction manager procedure as defined under RCW 3910210 If the work performed by a subcontractor on the project has been completed within the first half of the time provided in the general contractorconstruction manager contract for completing the work the public body may accept the completion of the subcontract The public body must give public notice of this acceptance After a forty-five day period for giving notice of liens and compliance with the retainage release procedures in RCW 6028021 the public body may release that portion of the retained funds associated with the subcontract Claims against the retained funds after the forty-five day period are not valid (12) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise (a) Contract retainage means an amount reserved by a public body from the moneys earned by a person under a public improvement contract (b) Person means a person or persons mechanic subcontractor or materialperson who performs labor or provides materials for a public improvement contract and any other person who supplies the person with provisions or supplies for the carrying on of a public improvement contract (c) Public body means the state or a county city town district board or other public body (d) Public improvement contract means a contract for public improvements or work other than for professional services or a work order as defined in RCW 3910210

CCBA Nuts amp Bolts on Construction Law - 48 of 49

RCW 6432070 Liens or encumbrances mdash Enforcement mdash Satisfaction

(1) Subsequent to recording the declaration as provided in this chapter and while the property remains subject to this chapter no lien shall thereafter arise or be effective against the property During such period liens or encumbrances shall arise or be created only against each apartment and the percentage of undivided interest in the common areas and facilities and appurtenant to such apartment in the same manner and under the same conditions in every respect as liens or encumbrances may arise or be created upon or against any other separate parcel of real property subject to individual ownership PROVIDED That no labor performed or materials furnished with the consent of or at the request of the owner of any apartment or such owners agent contractor or subcontractor shall be the basis for the filing of a lien against any other apartment or any other property of any other apartment owner not expressly consenting to or requesting the same except that such express consent shall be deemed to be given by any apartment owner in the case of emergency repairs Labor performed or materials furnished for the common areas and facilities if authorized by the association of apartment owners the manager or board of directors shall be deemed to be performed or furnished with the express consent of each apartment owner and shall be the basis for the filing of a lien against each of the apartments and shall be subject to the provisions of subsection (2) of this section (2) In the event a lien against two or more apartments becomes effective the apartment owners of the separate apartments may remove their apartment and the percentage of undivided interest in the common areas and facilities appurtenant to such apartment from the lien by payment of the fractional or proportional amounts attributable to each of the apartments affected Such individual payments shall be computed by reference to the percentages appearing on the declaration Subsequent to any such payment discharge or satisfaction the apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto shall thereafter be free and clear of the liens so paid satisfied or discharged Such partial payment satisfaction or discharge shall not prevent the lienor from proceeding to enforce his or her rights against any apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto not so paid satisfied or discharged

CCBA Nuts amp Bolts on Construction Law - 49 of 49

  • Cover Sheet
  • 20141110 - Washington Lien and Bond CLE
  • LampI Lien Summary
  • Claim of Lien
  • Form Notice to Owner
  • Model Disclosure Statement (Notice to Customer)
  • LampI Facts about Construction Liens
    • What you should know about contracts
    • How to protect your investment
    • For more information
      • Notice of Claim Against Bond and Retained Percentage
      • Preclaim Notice Bond amp Retained Percentage
      • Statute Handout
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          1. To
          2. Date
          3. Re
          4. From
          5. AT THE REQUEST OF
          6. Sender
          7. Address
          8. Telephone
          9. Brief description of professional services materials or equipment provided or to be provided
          10. 1
          11. 2
          12. 3
          13. reg no
          14. deposit $
          15. expiration date
          16. claims up to $
          17. Reset

5 NAME OF THE OWNER OR REPUTED OWNER (if not known state ldquounknownrdquo) ____________________________________________________________________________________________

6 THE LAST DATE ON WHICH LABOR WAS PERFORMED PROFESSIONAL SERVICES WERE FURNISHED CONTRIBUTIONS TO AN EMPLOYEE BENEFIT PLAN WERE DUE OR MATERIAL OR EQUIPMENT WAS FURNISHED _____________________________________________________________

7 PRINCIPAL AMOUNT FOR WHICH THE LIEN IS CLAIMED IS $_______

8 IF THE CLAIMANT IS THE ASSIGNEE OF THIS CLAIM SO STATE HERE ___

___________________ Claimant ___________________________

___________________________ (__)____-______

By ________s________________ Print Name ___________________ Its Attorney

STATE OF WASHINGTON )

SS COUNTYOF ____________ )

________________ being sworn says I am the attorney of the claimant above named I have read or heard the foregoing claim read and know the contents thereof and believe the same to be true and correct and that the claim of lien is not frivolous and is made with reasonable cause and is not clearly excessive under penalty of perjury

__________________________ Print Name _______________

SUBSCRIBED and SWORN to before me this ___day of ___________________ 201_

STATE OF WASHINGTON )

SS COUNTYOF ____________ )

[Seal or Stamp]

__________________________ Print Name _______________ Notary Public in and for the State of Washington residing at________________________________ My Commission Expires __________________

CCBA Nuts amp Bolts on Construction Law - 18 of 49

I certify that I know or have satisfactory evidence that___________________ is the person who appeared before me and said person acknowledged that [heshe] signed this instrument on oath stated that [heshe] was authorized to execute this instrument and acknowledged it as the attorney of___________________ to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument

CCBA Nuts amp Bolts on Construction Law - 19 of 49

F625-054-000 construction lien notice 11-05 IMPORTANT INFORMATION ON PAGE 2

NOTICE TO OWNER IMPORTANT READ BOTH SIDES OF THIS NOTICE CAREFULLY

PROTECT YOURSELF FROM PAYING TWICE

To

Date

Re

From (Description of property street address or general location)

AT THE REQUEST OF Name of person ordering their professional services materials or equipment

THIS IS NOT A LIEN This notice is sent to you to tell you who is providing professional services materials or equipment for the improvement of your property and to advise you of the rights of these persons and your responsibilities Also take notice that laborers on your project may claim a lien without sending you a notice

OWNEROCCUPIER OF EXISTING RESIDENTIAL PROPERTY Under Washington law those who furnish labor professional services materials or equipment for the repair remodel or alteration of you owner-occupied principal residence and who are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien The law limits the amount that a lien claimant can claim against your property Claims may only be made against that portion of the contract price you have not yet paid to your prime contractor as of the time this notice was given to you or three days after this notice was mailed to you Review page 2 of this notice for more information and ways to avoid lien claims

COMMERCIAL ANDOR NEW RESIDENTIAL PROPERTY We have or will be providing professional services materials or equipment for the improvement of your commercial or new residential project In the event you or your contractor fail to pay us we may file a lien against your property A lien may be claimed for all professional services materials or equipment furnished after a date that is sixty days before this notice was given to you or mailed to you unless the improvement to you property is the construction of a new single-family residence then ten days before this notice was given to you or mailed to you

Sender

Address

Telephone

Brief description of professional services materials or equipment provided or to be provided

CCBA Nuts amp Bolts on Construction Law - 20 of 49

F625-054-000 construction lien notice page 2 11-05

Important Information for your Protection

This notice is sent to inform you that we have or will provide professional services materials or equipment for the repair remodel or alteration of you property We expect to be paid by the person who ordered our services but if we are not paid we have the right to enforce our claim by filing a construction lien against your property

LEARN more about the lien laws and the meaning of this notice by

discussing them with our contractor suppliers Department of Labor and Industries the firm sending you this notice your lender or your attorney

COMMON METHODS TO AVOID CONSTRUCTION LIENS

There are several methods available to protect your property from construction liens The following are two of the more commonly used methods

DUAL PAYCHECKS (Joint Checks) When paying your

contractor for services or materials you may make checks payable jointly to the contractor and the firms furnishing you this notice

LIEN RELEASES You may require your contractor to provide

lien releases signed by all the suppliers and subcontractors from whom you have received this notice If they cannot obtain lien releases because you have not paid them you may use the dual payee check method to protect yourself

You should take appropriate steps to protect your property from

liens

Your prime contractor and your construction lender are required by law to give you written information about lien claims If you have not received it ask them for it

CCBA Nuts amp Bolts on Construction Law - 21 of 49

F625-030-000 model disclosure statement notice to customer 09-2007

Department of Labor and Industries Construction Compliance

MODEL DISCLOSURE STATEMENTNOTICE TO CUSTOMER

This contractor is registered with the state of Washington registration no____________________ and has posted with the state a bond or deposit of ______________________ for the purpose of satisfying claims against the contractor for breach of contract including negligent or improper work in the conduct of the contractorrsquos business The expiration date of this contractorrsquos registration is ______________________

THIS BOND OR DEPOSIT MIGHT NOT BE SUFFICIENT TO COVER A CLAIM THAT MIGHT ARISE FROM THE WORK DONE UNDER YOUR CONTRACT This bond or deposit is not for your exclusive use because it covers all work performed by this contractor The bond or deposit is intended to pay valid claims up to ___________________________ that you and other customers suppliers subcontractors or taxing authorities may have FOR GREATER PROTECTION YOU MAY WITHHOLD A PERCENTAGE OF YOUR CONTRACT You may withhold a contractually defined percentage of your construction contract as retainage for a stated period of time to provide protection to you and help insure that your project will be completed as required by your contract

YOUR PROPERTY MAY BE LIENED If a supplier of materials used in your construction project or an employee or subcontractor of your contractor or subcontractors is not paid your property may be liened to force payment and you could pay twice for the same work FOR ADDITIONAL PROTECTION YOU MAY REQUEST THE CONTRACTOR TO PROVIDE YOU WITH ORIGINAL ldquoLIEN RELEASErdquo DOCUMENTS FROM EACH SUPPLIER OR SUBCONTRACTOR AT YOUR PROJECT The contractor is required to provide you with further information about lien release document if you request it General information is also available from the state Department of Labor and Industries I have received a copy of this disclosure statement Dated this _______ day of _______________ of the year __________

_____________________________________________________ Signature of Customer The contractor must retain a signed copy of the disclosure statement in his or her files for a minimum of three years and produce a signed or electronic signature copy of the disclosure statement to the department upon request

CCBA Nuts amp Bolts on Construction Law - 22 of 49

Facts About Construction LiensWhat you should know about contractsIf your contractor fails to pay subcontractors suppliers or laborers or neglects to make other legally required payments those who are owed money can look to your property for payment even if you have paid your contractor in full This is true if you have hired a contractor to build a new home or are buying a newly built home

It is also true when you remodel or improve your property although the amount of your liability may be limited to the amount you owe the prime contractor at the time a lien is filed

Under Washington laws those who work on your property or provide materials and are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien

People who supply materials or labor ordered by your contractor are permitted by law to file a lien only if they do so within 90 days of cessation of performance or delivery of materials The time frame is spelled out in RCW 6004091

If you enter into a contract to buy a newly built home you may not receive a notice of a lien based on a claim by a contractor or material handler Be aware that a lien may be claimed even though you have not received a notice

Before making final payment on the project request a completed lien release form from each contractor and material supplier A sample of this release of lien form is available from the Department of Labor amp Industries Contractor Registration Section

You have final responsibility for seeing that all bills are paid even if you have paid your contractor in full

If you receive a notice to enforce a lien take the notice seriously Let your contractor know you have received the notice Find out what arrangements are being made to pay the sender of the notice

When in doubt or if you need more details consult your attorney When and how to pay your contractor is a decision that requires serious consideration

Reminder Washington laws require contractors to give you a disclosure statement if your contract exceeds $1000 [RCW 1827114(A) or (B)]

CCBA Nuts amp Bolts on Construction Law - 23 of 49

PUBLICATION F625-017-000 [01-2008]

Other formats for persons with disabilities are available on request Call 1-800-647-0982 TDD users call 360-902-5797 LampI is an equal opportunity employer

For more information

How to protect your investment

If you are dealing with a lending institution ask your loan officer what precautions the lending institution takes to verify that subcontractors and material suppliers are being paid when mortgage money is paid to your contractor

Request lender supervision when dealing with a lending institution that provides interim or construction financing

Ask the prime contractor to disclose all potential lien claimants as a condition of payment A lien claimant must mail (by certified or registered mail or by personal service) a copy of the claim of lien to the owner within 14 days of the time the lien is recorded [RCW 6004091(2)] While an action is ongoing an owner may withhold from this prime contractor the amount of money for which a claim is recorded by a subcontractor supplier or laborer [RCW 6004151]

It is recommended that your check be made payable jointly naming the contractor and the subcontractor or supplier as payees

Upon payment and acceptance of the amount due the owner has the right to an executed release of all lien rights by lien claimants [RCW 6004071]

Consider using an escrow agent to protect your interests Find out whether your escrow agent will protect you against liens when disbursing payments If you are interested in this alternative consult your attorney

Request that your contractor post a performance bond in the amount of the project cost That will give you recourse in the event the contractor fails to complete the building agreement

8 On the Web Find more information about hiring a contractor at

wwwLniwagovTradesLicensingContractorsHireCon

Contractor Registration Hotline1-800-647-0982

You may also call your local LampI office See listings under ldquoWashington State ofrdquo in the government section or the white pages of the telephone book

Please note This notice was prepared by the Department of Labor amp Industries Specialty Compliance Services Division for reproduction by lending institutions and contractors for distribution to their clients It explains the basics of the construction lien law to help you protect yourself This information is not a reflection upon the abilities or credit of your contractor

CCBA Nuts amp Bolts on Construction Law - 24 of 49

NOTICE OF CLAIM AGAINST

BOND AND RETAINED PERCENTAGE

RCW 3908030 RCW 6028010

VIA CERTIFIED MAIL ndash RETURN RECEIPT REQUESTED

TO [Public Owner] [Public Ownerrsquos Address]

Project [Project Name amp Address] NOTICE IS HEREBY GIVEN that the undersigned [Claimant] [Claimantrsquos Address] has a claim in the amount of ----- and 00100 Dollars ($XX) (not including attorneysrsquo fees or costs) together with interest at twelve percent (12) against [Public Owner] (ldquoOwnerrdquo) pursuant to RCW 6028 and the payment bond taken from [Prime Contractor] (ldquoContractorrdquo) [Prime Contractorrsquos Address] as principal and [Surety Company] (ldquoSuretyrdquo) [Suretyrsquos Address] as surety Bond No ________ pursuant to RCW 3908 for [describe services material supplies labor furnished] provided on the Project This Notice of Claim Against Bond and Retained Percentage supersedes and replaces previous Notices DATED This ___day of _________ 201_ [Claimant] By ______________________________________ Its ______________________________________ [Claimantrsquos Address]

_________________________________________

[Contractors Registration No if applicable]

(Copies furnished to General Contractor and General Contractorrsquos Bonding Company)

CCBA Nuts amp Bolts on Construction Law - 25 of 49

PRECLAIM NOTICE TO CONTRACTOR BY SUBCONTRACTORS MATERIALMEN OR SUPPLIERS FOR

CLAIM AGAINST BOND AND RETAINED PERCENTAGE

VIA CERTIFIED OR REGISTERED MAIL- RETURN RECEIPT REQUESTED

TO [Name of General Contractor] [Address]

YOU ARE HEREBY NOTIFIED that the undersigned ____________at the request of_________________ commenced to deliver or furnish materials supplies andor equipment for the use in the construction alteration andor repair of that certain project known as____________________ [project name] which is located at ____________________________ [address or description] If the undersigned is not paid for these materials supplies andor equipment it will file a claim against you and your bond andor retainage pursuant to RCW 3908 andor 6028 et seq for payment of any sum that is due and owing to the undersigned

DATED This __ day of _____________ 201_

[Name of Claimant]

By ____________________________________

Its ____________________________________

Address ______________________________

__________________________________________

__________________________________________

[Contractors Registration No if applicable]

(Mail via certified mail return receipt requested or hand deliver and obtain receipt)

CCBA Nuts amp Bolts on Construction Law - 26 of 49

Washington Liens amp Bonds ndash Pertinent Statutes

RCW 1827040 Bond or other security required mdash Actions against mdash Suspension of registration upon impairment (1) Each applicant shall file with the department a surety bond issued by a surety insurer who meets the requirements of chapter 4828 RCW in the sum of twelve thousand dollars if the applicant is a general contractor and six thousand dollars if the applicant is a specialty contractor If no valid bond is already on file with the department at the time the application is filed a bond must accompany the registration application The bond shall have the state of Washington named as obligee with good and sufficient surety in a form to be approved by the department The bond shall be continuous and may be canceled by the surety upon the surety giving written notice to the director A cancellation or revocation of the bond or withdrawal of the surety from the bond automatically suspends the registration issued to the contractor until a new bond or reinstatement notice has been filed and approved as provided in this section The bond shall be conditioned that the applicant will pay all persons performing labor including employee benefits for the contractor will pay all taxes and contributions due to the state of Washington and will pay all persons furnishing material or renting or supplying equipment to the contractor and will pay all amounts that may be adjudged against the contractor by reason of breach of contract including improper work in the conduct of the contracting business A change in the name of a business or a change in the type of business entity shall not impair a bond for the purposes of this section so long as one of the original applicants for such bond maintains partial ownership in the business covered by the bond (2) At the time of initial registration or renewal the contractor shall provide a bond or other security deposit as required by this chapter and comply with all of the other provisions of this chapter before the department shall issue or renew the contractors certificate of registration Any contractor registered as of July 1 2001 who maintains that registration in accordance with this chapter is in compliance with this chapter until the next renewal of the contractors certificate of registration (3) Any person firm or corporation having a claim against the contractor for any of the items referred to in this section may bring suit against the contractor and the bond or deposit in the superior court of the county in which the work was done or of any county in which jurisdiction of the contractor may be had The surety issuing the bond shall be named as a party to any suit upon the bond Action upon the bond or deposit brought by a residential homeowner for breach of contract by a party to the construction contract shall be commenced by filing the summons and complaint with the clerk of the appropriate superior court within two years from the date the claimed contract work was substantially completed or abandoned whichever occurred first Action upon the bond or deposit brought by any other authorized party shall be commenced by filing the summons and complaint with the clerk of the appropriate superior court within one year from the date the claimed labor was performed and benefits accrued taxes and contributions owing the state of Washington became due materials and equipment were furnished or the claimed contract work was substantially completed or abandoned whichever occurred first Service of process in an action filed under this chapter against the contractor and the contractors bond or the deposit shall be exclusively by service upon the department Three

CCBA Nuts amp Bolts on Construction Law - 27 of 49

copies of the summons and complaint and a fee adopted by rule of not less than fifty dollars to cover the costs shall be served by registered or certified mail or other delivery service requiring notice of receipt upon the department at the time suit is started and the department shall maintain a record available for public inspection of all suits so commenced Service is not complete until the department receives the fee and three copies of the summons and complaint The service shall constitute service and confer personal jurisdiction on the contractor and the surety for suit on claimants claim against the contractor and the bond or deposit and the department shall transmit the summons and complaint or a copy thereof to the contractor at the address listed in the contractors application and to the surety within two days after it shall have been received (4) The surety upon the bond shall not be liable in an aggregate amount in excess of the amount named in the bond nor for any monetary penalty assessed pursuant to this chapter for an infraction The liability of the surety shall not cumulate where the bond has been renewed continued reinstated reissued or otherwise extended The surety upon the bond may upon notice to the department and the parties tender to the clerk of the court having jurisdiction of the action an amount equal to the claims thereunder or the amount of the bond less the amount of judgments if any previously satisfied therefrom and to the extent of such tender the surety upon the bond shall be exonerated but if the actions commenced and pending and provided to the department as required in subsection (3) of this section at any one time exceed the amount of the bond then unimpaired claims shall be satisfied from the bond in the following order (a) Employee labor and claims of laborers including employee benefits (b) Claims for breach of contract by a party to the construction contract (c) Registered or licensed subcontractors material and equipment (d) Taxes and contributions due the state of Washington (e) Any court costs interest and attorneys fees plaintiff may be entitled to recover The surety is not liable for any amount in excess of the penal limit of its bond A payment made by the surety in good faith exonerates the bond to the extent of any payment made by the surety (5) The total amount paid from a bond or deposit required of a general contractor by this section to claimants other than residential homeowners must not exceed one-half of the bond amount The total amount paid from a bond or deposit required of a specialty contractor by this section to claimants other than residential homeowners must not exceed one-half of the bond amount or four thousand dollars whichever is greater (6) The prevailing party in an action filed under this section against the contractor and contractors bond or deposit for breach of contract by a party to the construction contract involving a residential homeowner is entitled to costs interest and reasonable attorneys fees The surety upon the bond or deposit is not liable in an aggregate amount in excess of the amount

CCBA Nuts amp Bolts on Construction Law - 28 of 49

named in the bond or deposit nor for any monetary penalty assessed pursuant to this chapter for an infraction (7) If a final judgment impairs the liability of the surety upon the bond or deposit so furnished that there is not in effect a bond or deposit in the full amount prescribed in this section the registration of the contractor is automatically suspended until the bond or deposit liability in the required amount unimpaired by unsatisfied judgment claims is furnished (8) In lieu of the surety bond required by this section the contractor may file with the department an assigned savings account upon forms provided by the department (9) Any person having filed and served a summons and complaint as required by this section having an unsatisfied final judgment against the registrant for any items referred to in this section may execute upon the security held by the department by serving a certified copy of the unsatisfied final judgment by registered or certified mail upon the department within one year of the date of entry of such judgment Upon the receipt of service of such certified copy the department shall pay or order paid from the deposit through the registry of the superior court which rendered judgment towards the amount of the unsatisfied judgment The priority of payment by the department shall be the order of receipt by the department but the department shall have no liability for payment in excess of the amount of the deposit (10) Within ten days after resolution of the case a certified copy of the final judgment and order or any settlement documents where a case is not disposed of by a court trial a certified copy of the dispositive settlement documents must be provided to the department by the prevailing party Failure to provide a copy of the final judgment and order or the dispositive settlement documents to the department within ten days of entry of such an order constitutes a violation of this chapter and a penalty adopted by rule of not less than two hundred fifty dollars may be assessed against the prevailing party (11) The director may require an applicant applying to renew or reinstate a registration or applying for a new registration to file a bond of up to three times the normally required amount if the director determines that an applicant or a previous registration of a corporate officer owner or partner of a current applicant has had in the past five years a total of three final judgments in actions under this chapter involving a residential single-family dwelling on two or more different structures (12) The director may adopt rules necessary for the proper administration of the security RCW 1827114 Disclosure statement required mdash Prerequisite to lien claim

(1) Any contractor agreeing to perform any contracting project (a) For the repair alteration or construction of four or fewer residential units or accessory structures on such residential property when the bid or contract price totals one thousand dollars or more or (b) for the repair alteration or construction of a commercial building when the bid or contract price totals one thousand dollars or more but less than sixty thousand dollars must provide the customer with

CCBA Nuts amp Bolts on Construction Law - 29 of 49

the following disclosure statement in substantially the following form using lower case and upper case twelve-point and bold type where appropriate prior to starting work on the project NOTICE TO CUSTOMER This contractor is registered with the state of Washington registration no and has posted with the state a bond or deposit of for the purpose of satisfying claims against the contractor for breach of contract including negligent or improper work in the conduct of the contractors business The expiration date of this contractors registration is THIS BOND OR DEPOSIT MIGHT NOT BE SUFFICIENT TO COVER A CLAIM THAT MIGHT ARISE FROM THE WORK DONE UNDER YOUR CONTRACT This bond or deposit is not for your exclusive use because it covers all work performed by this contractor The bond or deposit is intended to pay valid claims up to that you and other customers suppliers subcontractors or taxing authorities may have FOR GREATER PROTECTION YOU MAY WITHHOLD A PERCENTAGE OF YOUR CONTRACT You may withhold a contractually defined percentage of your construction contract as retainage for a stated period of time to provide protection to you and help insure that your project will be completed as required by your contract YOUR PROPERTY MAY BE LIENED If a supplier of materials used in your construction project or an employee or subcontractor of your contractor or subcontractors is not paid your property may be liened to force payment and you could pay twice for the same work FOR ADDITIONAL PROTECTION YOU MAY REQUEST THE CONTRACTOR TO PROVIDE YOU WITH ORIGINAL LIEN RELEASE DOCUMENTS FROM EACH SUPPLIER OR SUBCONTRACTOR ON YOUR PROJECT The contractor is required to provide you with further information about lien release documents if you request it General information is also available from the state Department of Labor and Industries I have received a copy of this disclosure statement

CCBA Nuts amp Bolts on Construction Law - 30 of 49

(Signature of customer) (2) The contractor must retain a signed copy of the disclosure statement in his or her files for a minimum of three years and produce a signed or electronic signature copy of the disclosure statement to the department upon request (3) A contractor subject to this section shall notify any consumer to whom notice is required under subsection (1) of this section if the contractors registration has expired or is revoked or suspended by the department prior to completion or other termination of the contract with the consumer (4) No contractor subject to this section may bring or maintain any lien claim under chapter 6004 RCW based on any contract to which this section applies without alleging and proving that the contractor has provided the customer with a copy of the disclosure statement as required in subsection (1) of this section (5) This section does not apply to contracts authorized under chapter 3904 RCW or to contractors contracting with other contractors (6) Failure to comply with this section shall constitute an infraction under the provisions of this chapter (7) The department shall produce model disclosure statements and public service announcements detailing the information needed to assist contractors and contractors customers to comply under this section As necessary the department shall periodically update these education materials RCW 3908010 Bond required mdash Conditions mdash Retention of contract amount in lieu of bond (1)(a) Whenever any board council commission trustees or body acting for the state or any county or municipality or any public body must contract with any person or corporation to do any work for the state county or municipality or other public body city town or district such board council commission trustees or body must require the person or persons with whom such contract is made to make execute and deliver to such board council commission trustees or body a good and sufficient bond with a surety company as surety conditioned that such person or persons must (i) Faithfully perform all the provisions of such contract (ii) Pay all laborers mechanics and subcontractors and material suppliers and all persons who supply such person or persons or subcontractors with provisions and supplies for the carrying on of such work and

CCBA Nuts amp Bolts on Construction Law - 31 of 49

(iii) Pay the taxes increases and penalties incurred on the project under Titles 50 51 and 82 RCW on (A) Projects referred to in RCW 6028011(1)(b) andor (B) projects for which the bond is conditioned on the payment of such taxes increases and penalties (b) The bond in cases of cities and towns must be filed with the clerk or comptroller thereof and any person or persons performing such services or furnishing material to any subcontractor has the same right under the provisions of such bond as if such work services or material was furnished to the original contractor (2) The provisions of RCW 3908010 through 3908030 do not apply to any money loaned or advanced to any such contractor subcontractor or other person in the performance of any such work (3) On contracts of thirty-five thousand dollars or less at the option of the contractor the respective public entity may in lieu of the bond retain fifty percent of the contract amount for a period of thirty days after date of final acceptance or until receipt of all necessary releases from the department of revenue the employment security department and the department of labor and industries and settlement of any liens filed under chapter 6028 RCW whichever is later (4) For contracts of one hundred thousand dollars or less the public entity may accept a full payment and performance bond from an individual surety or sureties (5) The surety must agree to be bound by the laws of the state of Washington and subjected to the jurisdiction of the state of Washington RCW 6004011 Definitions

Unless the context requires otherwise the definitions in this section apply throughout this chapter (1) Construction agent means any registered or licensed contractor registered or licensed subcontractor architect engineer or other person having charge of any improvement to real property who shall be deemed the agent of the owner for the limited purpose of establishing the lien created by this chapter (2) Contract price means the amount agreed upon by the contracting parties or if no amount is agreed upon then the customary and reasonable charge therefor (3) Draws means periodic disbursements of interim or construction financing by a lender (4) Furnishing labor professional services materials or equipment means the performance of any labor or professional services the contribution owed to any employee benefit plan on account of any labor the provision of any supplies or materials and the renting leasing or

CCBA Nuts amp Bolts on Construction Law - 32 of 49

otherwise supplying of equipment for the improvement of real property (5) Improvement means (a) Constructing altering repairing remodeling demolishing clearing grading or filling in of to or upon any real property or street or road in front of or adjoining the same (b) planting of trees vines shrubs plants hedges or lawns or providing other landscaping materials on any real property and (c) providing professional services upon real property or in preparation for or in conjunction with the intended activities in (a) or (b) of this subsection (6) Interim or construction financing means that portion of money secured by a mortgage deed of trust or other encumbrance to finance improvement of or to real property but does not include (a) Funds to acquire real property (b) Funds to pay interest insurance premiums lease deposits taxes assessments or prior encumbrances (c) Funds to pay loan commitment title legal closing recording or appraisal fees (d) Funds to pay other customary fees which pursuant to agreement with the owner or borrower are to be paid by the lender from time to time (e) Funds to acquire personal property for which the potential lien claimant may not claim a lien pursuant to this chapter (7) Labor means exertion of the powers of body or mind performed at the site for compensation Labor includes amounts due and owed to any employee benefit plan on account of such labor performed (8) Mortgagee means a person who has a valid mortgage of record or deed of trust of record securing a loan (9) Owner-occupied means a single-family residence occupied by the owner as his or her principal residence (10) Payment bond means a surety bond issued by a surety licensed to issue surety bonds in the state of Washington that confers upon potential claimants the rights of third party beneficiaries (11) Potential lien claimant means any person or entity entitled to assert lien rights under this chapter who has otherwise complied with the provisions of this chapter and is registered or licensed if required to be licensed or registered by the provisions of the laws of the state of Washington (12) Prime contractor includes all contractors general contractors and specialty

CCBA Nuts amp Bolts on Construction Law - 33 of 49

contractors as defined by chapter 1827 or 1928 RCW or who are otherwise required to be registered or licensed by law who contract directly with a property owner or their common law agent to assume primary responsibility for the creation of an improvement to real property and includes property owners or their common law agents who are contractors general contractors or specialty contractors as defined in chapter 1827 or 1928 RCW or who are otherwise required to be registered or licensed by law who offer to sell their property without occupying or using the structures projects developments or improvements for more than one year (13) Professional services means surveying establishing or marking the boundaries of preparing maps plans or specifications for or inspecting testing or otherwise performing any other architectural or engineering services for the improvement of real property (14) Real property lender means a bank savings bank savings and loan association credit union mortgage company or other corporation association partnership trust or individual that makes loans secured by real property located in the state of Washington (15) Site means the real property which is or is to be improved (16) Subcontractor means a general contractor or specialty contractor as defined by chapter 1827 or 1928 RCW or who is otherwise required to be registered or licensed by law who contracts for the improvement of real property with someone other than the owner of the property or their common law agent

6004021 Lien authorized

Except as provided in RCW 6004031 any person furnishing labor professional services materials or equipment for the improvement of real property shall have a lien upon the improvement for the contract price of labor professional services materials or equipment furnished at the instance of the owner or the agent or construction agent of the owner

6004031 Notices mdash Exceptions

(1) Except as otherwise provided in this section every person furnishing professional services materials or equipment for the improvement of real property shall give the owner or reputed owner notice in writing of the right to claim a lien If the prime contractor is in compliance with the requirements of RCW 1927095 6004230 and 6004261 this notice shall also be given to the prime contractor as described in this subsection unless the potential lien claimant has contracted directly with the prime contractor The notice may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after the date which is sixty days before (a) Mailing the notice by certified or registered mail to the owner or reputed owner or

CCBA Nuts amp Bolts on Construction Law - 34 of 49

(b) Delivering or serving the notice personally upon the owner or reputed owner and obtaining evidence of delivery in the form of a receipt or other acknowledgment signed by the owner or reputed owner or an affidavit of service In the case of new construction of a single-family residence the notice of a right to claim a lien may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after a date which is ten days before the notice is given as described in this subsection (2) Notices of a right to claim a lien shall not be required of (a) Persons who contract directly with the owner or the owners common law agent (b) Laborers whose claim of lien is based solely on performing labor or (c) Subcontractors who contract for the improvement of real property directly with the prime contractor except as provided in subsection (3)(b) of this section (3) Persons who furnish professional services materials or equipment in connection with the repair alteration or remodel of an existing owner-occupied single-family residence or appurtenant garage (a) Who contract directly with the owner-occupier or their common law agent shall not be required to send a written notice of the right to claim a lien and shall have a lien for the full amount due under their contract as provided in RCW 6004021 or (b) Who do not contract directly with the owner-occupier or their common law agent shall give notice of the right to claim a lien to the owner-occupier Liens of persons furnishing professional services materials or equipment who do not contract directly with the owner-occupier or their common law agent may only be satisfied from amounts not yet paid to the prime contractor by the owner at the time the notice described in this section is received regardless of whether amounts not yet paid to the prime contractor are due For the purposes of this subsection received means actual receipt of notice by personal service or registered or certified mail or three days after mailing by registered or certified mail excluding Saturdays Sundays or legal holidays (4) The notice of right to claim a lien described in subsection (1) of this section shall include but not be limited to the following information and shall substantially be in the following form using lower-case and upper-case ten-point type where appropriate

CCBA Nuts amp Bolts on Construction Law - 35 of 49

NOTICE TO OWNER

IMPORTANT READ BOTH SIDES OF THIS NOTICE CAREFULLY

PROTECT YOURSELF FROM PAYING TWICE

To Date

Re (description of property Street address or general location) From AT THE REQUEST OF (Name of person ordering the professional services materials or equipment) THIS IS NOT A LIEN This notice is sent to you to tell you who is providing professional services materials or equipment for the improvement of your property and to advise you of the rights of these persons and your responsibilities Also take note that laborers on your project may claim a lien without sending you a notice

OWNEROCCUPIER OF EXISTING

RESIDENTIAL PROPERTY

Under Washington law those who furnish labor professional services materials or equipment for the repair remodel or alteration of your owner-occupied principal residence and who are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien The law limits the amount that a lien claimant can claim against your property Claims may only be made against that portion of the contract price you have not yet paid to your prime contractor as of the time this notice was given to you or three days after this notice was mailed to you Review the back of this notice for more information and ways to avoid lien claims

COMMERCIAL ANDOR NEW

RESIDENTIAL PROPERTY

CCBA Nuts amp Bolts on Construction Law - 36 of 49

We have or will be providing professional services materials or equipment for the improvement of your commercial or new residential project In the event you or your contractor fail to pay us we may file a lien against your property A lien may be claimed for all professional services materials or equipment furnished after a date that is sixty days before this notice was given to you or mailed to you unless the improvement to your property is the construction of a new single-family residence then ten days before this notice was given to you or mailed to you Sender Address Telephone Brief description of professional services materials or equipment provided or to be provided

IMPORTANT INFORMATION

ON REVERSE SIDE

IMPORTANT INFORMATION

FOR YOUR PROTECTION This notice is sent to inform you that we have or will provide professional services materials or equipment for the improvement of your property We expect to be paid by the person who ordered our services but if we are not paid we have the right to enforce our claim by filing a construction lien against your property LEARN more about the lien laws and the meaning of this notice by discussing them with your contractor suppliers Department of Labor and Industries the firm sending you this notice your lender or your attorney

COMMON METHODS TO AVOID CONSTRUCTION LIENS There are several methods available to protect your property from construction liens The following are two of the more commonly used methods

DUAL PAYCHECKS (Joint Checks) When paying your contractor for services or materials you may make checks payable jointly to the contractor and the firms furnishing you this notice

CCBA Nuts amp Bolts on Construction Law - 37 of 49

LIEN RELEASES You may require your contractor to provide lien releases signed by all the suppliers and subcontractors from whom you have received this notice If they cannot obtain lien releases because you have not paid them you may use the dual payee check method to protect yourself

YOU SHOULD TAKE APPROPRIATE STEPS TO PROTECT YOUR PROPERTY FROM LIENS YOUR PRIME CONTRACTOR AND YOUR CONSTRUCTION LENDER ARE REQUIRED BY LAW TO GIVE YOU WRITTEN INFORMATION ABOUT LIEN CLAIMS IF YOU HAVE NOT RECEIVED IT ASK THEM FOR IT

(5) Every potential lien claimant providing professional services where no improvement as defined in RCW 6004011(5) (a) or (b) has been commenced and the professional services provided are not visible from an inspection of the real property may record in the real property records of the county where the property is located a notice which shall contain the professional service providers name address telephone number legal description of the property the owner or reputed owners name and the general nature of the professional services provided If such notice is not recorded the lien claimed shall be subordinate to the interest of any subsequent mortgagee and invalid as to the interest of any subsequent purchaser if the mortgagee or purchaser acts in good faith and for a valuable consideration acquires an interest in the property prior to the commencement of an improvement as defined in RCW 6004011(5) (a) or (b) without notice of the professional services being provided The notice described in this subsection shall be substantially in the following form

NOTICE OF FURNISHING

PROFESSIONAL SERVICES That on the (day) day of (month and year) (name of provider) began providing professional services upon or for the improvement of real property legally described as follows

[Legal Description is mandatory]

CCBA Nuts amp Bolts on Construction Law - 38 of 49

The general nature of the professional services provided is The owner or reputed owner of the real property is

(Signature)

(Name of Claimant)

(Street Address)

(City State Zip Code)

(Phone Number)

(6) A lien authorized by this chapter shall not be enforced unless the lien claimant has complied with the applicable provisions of this section

6004041 Contractor registration

A contractor or subcontractor required to be registered under chapter 1827 RCW or licensed under chapter 1928 RCW or otherwise required to be registered or licensed by law shall be deemed the construction agent of the owner for the purposes of establishing the lien created by this chapter only if so registered or licensed Persons dealing with contractors or subcontractors may rely for the purposes of this section upon a certificate of registration issued pursuant to chapter 1827 RCW or license issued pursuant to chapter 1928 RCW or other certificate or license issued pursuant to law covering the period when the labor professional services material or equipment shall be furnished and the lien rights shall not be lost by suspension or revocation of registration or license without their knowledge No lien rights described in this

CCBA Nuts amp Bolts on Construction Law - 39 of 49

chapter shall be lost or denied by virtue of the absence suspension or revocation of such registration or license with respect to any contractor or subcontractor not in immediate contractual privity with the lien claimant

6004081 Frivolous claim mdash Procedure

(1) Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who believes the claim of lien to be frivolous and made without reasonable cause or clearly excessive may apply by motion to the superior court for the county where the property or some part thereof is located for an order directing the lien claimant to appear before the court at a time no earlier than six nor later than fifteen days following the date of service of the application and order on the lien claimant and show cause if any he or she has why the relief requested should not be granted The motion shall state the grounds upon which relief is asked and shall be supported by the affidavit of the applicant or his or her attorney setting forth a concise statement of the facts upon which the motion is based (2) The order shall clearly state that if the lien claimant fails to appear at the time and place noted the lien shall be released with prejudice and that the lien claimant shall be ordered to pay the costs requested by the applicant including reasonable attorneys fees (3) If no action to foreclose the lien claim has been filed the clerk of the court shall assign a cause number to the application and obtain from the applicant a filing fee pursuant to RCW 3618016 If an action has been filed to foreclose the lien claim the application shall be made a part of that action (4) If following a hearing on the matter the court determines that the lien is frivolous and made without reasonable cause or clearly excessive the court shall issue an order releasing the lien if frivolous and made without reasonable cause or reducing the lien if clearly excessive and awarding costs and reasonable attorneys fees to the applicant to be paid by the lien claimant If the court determines that the lien is not frivolous and was made with reasonable cause and is not clearly excessive the court shall issue an order so stating and awarding costs and reasonable attorneys fees to the lien claimant to be paid by the applicant (5) Proceedings under this section shall not affect other rights and remedies available to the parties under this chapter or otherwise

6004091 Recording mdash Time mdash Contents of lien

Every person claiming a lien under RCW 6004021 shall file for recording in the county where the subject property is located a notice of claim of lien not later than ninety days after the person

CCBA Nuts amp Bolts on Construction Law - 40 of 49

has ceased to furnish labor professional services materials or equipment or the last date on which employee benefit contributions were due The notice of claim of lien (1) Shall state in substance and effect (a) The name phone number and address of the claimant (b) The first and last date on which the labor professional services materials or equipment was furnished or employee benefit contributions were due (c) The name of the person indebted to the claimant (d) The street address legal description or other description reasonably calculated to identify for a person familiar with the area the location of the real property to be charged with the lien (e) The name of the owner or reputed owner of the property if known and if not known that fact shall be stated and (f) The principal amount for which the lien is claimed (2) Shall be signed by the claimant or some person authorized to act on his or her behalf who shall affirmatively state they have read the notice of claim of lien and believe the notice of claim of lien to be true and correct under penalty of perjury and shall be acknowledged pursuant to chapter 6408 RCW If the lien has been assigned the name of the assignee shall be stated Where an action to foreclose the lien has been commenced such notice of claim of lien may be amended as pleadings may be by order of the court insofar as the interests of third parties are not adversely affected by such amendment A claim of lien substantially in the following form shall be sufficient

CLAIM OF LIEN

claimant vs name of person indebted to claimant

Notice is hereby given that the person named below claims a lien pursuant to chapter 6404 RCW In support of this lien the following information is submitted

1 NAME OF LIEN CLAIMANT

TELEPHONE NUMBER

CCBA Nuts amp Bolts on Construction Law - 41 of 49

ADDRESS

2 DATE ON WHICH THE CLAIMANT BEGAN TO PERFORM LABOR PROVIDE PROFESSIONAL SERVICES SUPPLY MATERIAL OR EQUIPMENT OR THE DATE ON WHICH EMPLOYEE BENEFIT CONTRIBUTIONS BECAME DUE

3 NAME OF PERSON INDEBTED TO THE CLAIMANT

4 DESCRIPTION OF THE PROPERTY AGAINST WHICH A LIEN IS CLAIMED (Street address legal description or other information that will reasonably describe the property)

5 NAME OF THE OWNER OR REPUTED OWNER (If not known state unknown)

6 THE LAST DATE ON WHICH LABOR WAS PERFORMED PROFESSIONAL SERVICES WERE FURNISHED CONTRIBUTIONS TO AN EMPLOYEE BENEFIT PLAN WERE DUE OR MATERIAL OR EQUIPMENT WAS FURNISHED

7 PRINCIPAL AMOUNT FOR WHICH THE LIEN IS CLAIMED IS

8 IF THE CLAIMANT IS THE ASSIGNEE OF THIS CLAIM SO STATE HERE

Claimant

(Phone number address city

CCBA Nuts amp Bolts on Construction Law - 42 of 49

and

state of claimant)

STATE OF WASHINGTON COUNTY OF ss being sworn says I am the claimant (or attorney of the claimant or administrator representative or agent of the trustees of an employee benefit plan) above named I have read or heard the foregoing claim read and know the contents thereof and believe the same to be true and correct and that the claim of lien is not frivolous and is made with reasonable cause and is not clearly excessive under penalty of perjury Subscribed and sworn to before me this day of The period provided for recording the claim of lien is a period of limitation and no action to foreclose a lien shall be maintained unless the claim of lien is filed for recording within the ninety-day period stated The lien claimant shall give a copy of the claim of lien to the owner or reputed owner by mailing it by certified or registered mail or by personal service within fourteen days of the time the claim of lien is filed for recording Failure to do so results in a forfeiture of any right the claimant may have to attorneys fees and costs against the owner under RCW 6004181

6004161 Bond in lieu of claim

Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who disputes the correctness or validity of the claim of lien may record either before or after the commencement of an action to enforce the lien in the office of the county recorder or auditor in the county where the claim of lien was recorded a bond issued by a surety company authorized to issue surety bonds in the state The surety shall be listed in the latest federal department of the treasury list of surety companies acceptable on federal bonds published in the Federal Register as authorized to issue bonds on United States government projects with an underwriting limitation including applicable reinsurance equal to or greater than the amount of the bond to be recorded The bond shall contain a description of the claim of lien and real property involved and be in an amount equal to the greater of five thousand dollars or two times the amount of the lien claimed if it is ten thousand dollars or less and in an amount equal to or greater than one and one-half times the amount of the lien if it is in

CCBA Nuts amp Bolts on Construction Law - 43 of 49

excess of ten thousand dollars If the claim of lien affects more than one parcel of real property and is segregated to each parcel the bond may be segregated the same as in the claim of lien A separate bond shall be required for each claim of lien made by separate claimants However a single bond may be used to guarantee payment of amounts claimed by more than one claim of lien by a single claimant so long as the amount of the bond meets the requirements of this section as applied to the aggregate sum of all claims by such claimant The condition of the bond shall be to guarantee payment of any judgment upon the lien in favor of the lien claimant entered in any action to recover the amount claimed in a claim of lien or on the claim asserted in the claim of lien The effect of recording a bond shall be to release the real property described in the notice of claim of lien from the lien and any action brought to recover the amount claimed Unless otherwise prohibited by law if no action is commenced to recover on a lien within the time specified in RCW 6004141 the surety shall be discharged from liability under the bond If an action is timely commenced then on payment of any judgment entered in the action or on payment of the full amount of the bond to the holder of the judgment whichever is less the surety shall be discharged from liability under the bond Nothing in this section shall in any way prohibit or limit the use of other methods devised by the affected parties to secure the obligation underlying a claim of lien and to obtain a release of real property from a claim of lien

6004181 Rank of lien mdash Application of proceeds mdash Attorneys fees

(1) In every case in which different construction liens are claimed against the same property the court shall declare the rank of such lien or class of liens which liens shall be in the following order (a) Liens for the performance of labor (b) Liens for contributions owed to employee benefit plans (c) Liens for furnishing material supplies or equipment (d) Liens for subcontractors including but not limited to their labor and materials and (e) Liens for prime contractors or for professional services (2) The proceeds of the sale of property must be applied to each lien or class of liens in order of its rank and in an action brought to foreclose a lien pro rata among each claimant in each separate priority class A personal judgment may be rendered against any party personally liable for any debt for which the lien is claimed If the lien is established the judgment shall provide

CCBA Nuts amp Bolts on Construction Law - 44 of 49

for the enforcement thereof upon the property liable as in the case of foreclosure of judgment liens The amount realized by such enforcement of the lien shall be credited upon the proper personal judgment The deficiency if any remaining unsatisfied shall stand as a personal judgment and may be collected by execution against any party liable therefor (3) The court may allow the prevailing party in the action whether plaintiff or defendant as part of the costs of the action the moneys paid for recording the claim of lien costs of title report bond costs and attorneys fees and necessary expenses incurred by the attorney in the superior court court of appeals supreme court or arbitration as the court or arbitrator deems reasonable Such costs shall have the priority of the class of lien to which they are related as established by subsection (1) of this section (4) Real property against which a lien under this chapter is enforced may be ordered sold by the court and the proceeds deposited into the registry of the clerk of the court pending further determination respecting distribution of the proceeds of the sale

6004900 Liberal construction mdash 1991 c 281

RCW 1927095 6004230 and 6004011 through 6004226 and 6004261 are to be liberally construed to provide security for all parties intended to be protected by their provisions

RCW 6028011

Retained percentage mdash Public transportation projects mdash Labor and material lien created mdash Bond in lieu of retained funds mdash Termination before completion mdash Chapter deemed exclusive mdash Release of ferry contract payments mdash Projects of farmers home administration mdash General contractorconstruction manager procedure mdash Definitions

(1)(a) Except as provided in (b) of this subsection public improvement contracts must provide and public bodies must reserve a contract retainage not to exceed five percent of the moneys earned by the contractor as a trust fund for the protection and payment of (i) The claims of any person arising under the contract and (ii) the state with respect to taxes increases and penalties imposed pursuant to Titles 50 51 and 82 RCW which may be due from such contractor (b) Public improvement contracts funded in whole or in part by federal transportation funds must rely upon the contract bond as referred to in chapter 3908 RCW for the protection and payment of (i) The claims of any person or persons arising under the contract to the extent such claims are provided for in RCW 3908010 and (ii) the state with respect to taxes increases and penalties incurred on the public improvement project under Titles 50 51 and 82 RCW which may be due The contract bond must remain in full force and effect until at a minimum all claims filed in compliance with chapter 3908 RCW are resolved

CCBA Nuts amp Bolts on Construction Law - 45 of 49

(2) Every person performing labor or furnishing supplies toward the completion of a public improvement contract has a lien upon moneys reserved by a public body under the provisions of a public improvement contract However the notice of the lien of the claimant must be given within forty-five days of completion of the contract work and in the manner provided in RCW 3908030 (3) The contractor at any time may request the contract retainage be reduced to one hundred percent of the value of the work remaining on the project (a) After completion of all contract work other than landscaping the contractor may request that the public body release and pay in full the amounts retained during the performance of the contract and sixty days thereafter the public body must release and pay in full the amounts retained (other than continuing retention of five percent of the moneys earned for landscaping) subject to the provisions of chapters 3912 and 6028 RCW (b) Sixty days after completion of all contract work the public body must release and pay in full the amounts retained during the performance of the contract subject to the provisions of chapters 3912 and 6028 RCW (4) The moneys reserved by a public body under the provisions of a public improvement contract at the option of the contractor must be (a) Retained in a fund by the public body (b) Deposited by the public body in an interest bearing account in a bank mutual savings bank or savings and loan association Interest on moneys reserved by a public body under the provision of a public improvement contract must be paid to the contractor (c) Placed in escrow with a bank or trust company by the public body When the moneys reserved are placed in escrow the public body must issue a check representing the sum of the moneys reserved payable to the bank or trust company and the contractor jointly This check must be converted into bonds and securities chosen by the contractor and approved by the public body and the bonds and securities must be held in escrow Interest on the bonds and securities must be paid to the contractor as the interest accrues (5) The contractor or subcontractor may withhold payment of not more than five percent from the moneys earned by any subcontractor or sub-subcontractor or supplier contracted with by the contractor to provide labor materials or equipment to the public project Whenever the contractor or subcontractor reserves funds earned by a subcontractor or sub-subcontractor or

CCBA Nuts amp Bolts on Construction Law - 46 of 49

supplier the contractor or subcontractor must pay interest to the subcontractor or sub-subcontractor or supplier at a rate equal to that received by the contractor or subcontractor from reserved funds (6) A contractor may submit a bond for all or any portion of the contract retainage in a form acceptable to the public body and from a bonding company meeting standards established by the public body The public body must accept a bond meeting these requirements unless the public body can demonstrate good cause for refusing to accept it This bond and any proceeds therefrom are subject to all claims and liens and in the same manner and priority as set forth for retained percentages in this chapter The public body must release the bonded portion of the retained funds to the contractor within thirty days of accepting the bond from the contractor Whenever a public body accepts a bond in lieu of retained funds from a contractor the contractor must accept like bonds from any subcontractors or suppliers from which the contractor has retained funds The contractor must then release the funds retained from the subcontractor or supplier to the subcontractor or supplier within thirty days of accepting the bond from the subcontractor or supplier (7) If the public body administering a contract after a substantial portion of the work has been completed finds that an unreasonable delay will occur in the completion of the remaining portion of the contract for any reason not the result of a breach thereof it may if the contractor agrees delete from the contract the remaining work and accept as final the improvement at the stage of completion then attained and make payment in proportion to the amount of the work accomplished and in this case any amounts retained and accumulated under this section must be held for a period of sixty days following the completion In the event that the work is terminated before final completion as provided in this section the public body may thereafter enter into a new contract with the same contractor to perform the remaining work or improvement for an amount equal to or less than the cost of the remaining work as was provided for in the original contract without advertisement or bid The provisions of this chapter are exclusive and supersede all provisions and regulations in conflict herewith (8) Whenever the department of transportation has contracted for the construction of two or more ferry vessels sixty days after completion of all contract work on each ferry vessel the department must release and pay in full the amounts retained in connection with the construction of the vessel subject to the provisions of RCW 6028021 and chapter 3912 RCW However the department of transportation may at its discretion condition the release of funds retained in connection with the completed ferry upon the contractor delivering a good and sufficient bond with two or more sureties or with a surety company in the amount of the retained funds to be released to the contractor conditioned that no taxes may be certified or claims filed for work on the ferry after a period of sixty days following completion of the ferry and if taxes are certified or claims filed recovery may be had on the bond by the department of revenue the employment

CCBA Nuts amp Bolts on Construction Law - 47 of 49

security department the department of labor and industries and the material suppliers and laborers filing claims (9) Except as provided in subsection (1) of this section reservation by a public body for any purpose from the moneys earned by a contractor by fulfilling its responsibilities under public improvement contracts is prohibited (10) Contracts on projects funded in whole or in part by farmers home administration and subject to farmers home administration regulations are not subject to subsections (1) through (9) of this section (11) This subsection applies only to a public body that has contracted for the construction of a facility using the general contractorconstruction manager procedure as defined under RCW 3910210 If the work performed by a subcontractor on the project has been completed within the first half of the time provided in the general contractorconstruction manager contract for completing the work the public body may accept the completion of the subcontract The public body must give public notice of this acceptance After a forty-five day period for giving notice of liens and compliance with the retainage release procedures in RCW 6028021 the public body may release that portion of the retained funds associated with the subcontract Claims against the retained funds after the forty-five day period are not valid (12) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise (a) Contract retainage means an amount reserved by a public body from the moneys earned by a person under a public improvement contract (b) Person means a person or persons mechanic subcontractor or materialperson who performs labor or provides materials for a public improvement contract and any other person who supplies the person with provisions or supplies for the carrying on of a public improvement contract (c) Public body means the state or a county city town district board or other public body (d) Public improvement contract means a contract for public improvements or work other than for professional services or a work order as defined in RCW 3910210

CCBA Nuts amp Bolts on Construction Law - 48 of 49

RCW 6432070 Liens or encumbrances mdash Enforcement mdash Satisfaction

(1) Subsequent to recording the declaration as provided in this chapter and while the property remains subject to this chapter no lien shall thereafter arise or be effective against the property During such period liens or encumbrances shall arise or be created only against each apartment and the percentage of undivided interest in the common areas and facilities and appurtenant to such apartment in the same manner and under the same conditions in every respect as liens or encumbrances may arise or be created upon or against any other separate parcel of real property subject to individual ownership PROVIDED That no labor performed or materials furnished with the consent of or at the request of the owner of any apartment or such owners agent contractor or subcontractor shall be the basis for the filing of a lien against any other apartment or any other property of any other apartment owner not expressly consenting to or requesting the same except that such express consent shall be deemed to be given by any apartment owner in the case of emergency repairs Labor performed or materials furnished for the common areas and facilities if authorized by the association of apartment owners the manager or board of directors shall be deemed to be performed or furnished with the express consent of each apartment owner and shall be the basis for the filing of a lien against each of the apartments and shall be subject to the provisions of subsection (2) of this section (2) In the event a lien against two or more apartments becomes effective the apartment owners of the separate apartments may remove their apartment and the percentage of undivided interest in the common areas and facilities appurtenant to such apartment from the lien by payment of the fractional or proportional amounts attributable to each of the apartments affected Such individual payments shall be computed by reference to the percentages appearing on the declaration Subsequent to any such payment discharge or satisfaction the apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto shall thereafter be free and clear of the liens so paid satisfied or discharged Such partial payment satisfaction or discharge shall not prevent the lienor from proceeding to enforce his or her rights against any apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto not so paid satisfied or discharged

CCBA Nuts amp Bolts on Construction Law - 49 of 49

  • Cover Sheet
  • 20141110 - Washington Lien and Bond CLE
  • LampI Lien Summary
  • Claim of Lien
  • Form Notice to Owner
  • Model Disclosure Statement (Notice to Customer)
  • LampI Facts about Construction Liens
    • What you should know about contracts
    • How to protect your investment
    • For more information
      • Notice of Claim Against Bond and Retained Percentage
      • Preclaim Notice Bond amp Retained Percentage
      • Statute Handout
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 ITA 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 JPN ltFEFF9ad854c18cea306a30d730ea30d730ec30b951fa529b7528002000410064006f0062006500200050004400460020658766f8306e4f5c6210306b4f7f75283057307e305930023053306e8a2d5b9a30674f5c62103055308c305f0020005000440046002030d530a130a430eb306f3001004100630072006f0062006100740020304a30883073002000410064006f00620065002000520065006100640065007200200035002e003000204ee5964d3067958b304f30533068304c3067304d307e305930023053306e8a2d5b9a306b306f30d530a930f330c8306e57cb30818fbc307f304c5fc59808306730593002gt KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020ace0d488c9c80020c2dcd5d80020c778c1c4c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200035002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor prepress-afdrukken van hoge kwaliteit De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 50 en hoger) NOR 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 PTB ltFEFF005500740069006c0069007a006500200065007300730061007300200063006f006e00660069006700750072006100e700f50065007300200064006500200066006f0072006d00610020006100200063007200690061007200200064006f00630075006d0065006e0074006f0073002000410064006f0062006500200050004400460020006d00610069007300200061006400650071007500610064006f00730020007000610072006100200070007200e9002d0069006d0070007200650073007300f50065007300200064006500200061006c007400610020007100750061006c00690064006100640065002e0020004f007300200064006f00630075006d0065006e0074006f00730020005000440046002000630072006900610064006f007300200070006f00640065006d0020007300650072002000610062006500720074006f007300200063006f006d0020006f0020004100630072006f006200610074002000650020006f002000410064006f00620065002000520065006100640065007200200035002e0030002000650020007600650072007300f50065007300200070006f00730074006500720069006f007200650073002egt SUO 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 SVE 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 ENU (Use these settings to create Adobe PDF documents best suited for high-quality prepress printing Created PDF documents can be opened with Acrobat and Adobe Reader 50 and later) gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false ConvertColors ConvertToCMYK DestinationProfileName () DestinationProfileSelector DocumentCMYK Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles false MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector DocumentCMYK PreserveEditing true UntaggedCMYKHandling LeaveUntagged UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ]gtgt setdistillerparamsltlt HWResolution [2400 2400] PageSize [612000 792000]gtgt setpagedevice

          ltlt ASCII85EncodePages false AllowTransparency false AutoPositionEPSFiles true AutoRotatePages None Binding Left CalGrayProfile (Dot Gain 20) CalRGBProfile (sRGB IEC61966-21) CalCMYKProfile (US Web Coated 050SWOP051 v2) sRGBProfile (sRGB IEC61966-21) CannotEmbedFontPolicy Warning CompatibilityLevel 14 CompressObjects Tags CompressPages true ConvertImagesToIndexed true PassThroughJPEGImages true CreateJDFFile false CreateJobTicket false DefaultRenderingIntent Default DetectBlends true DetectCurves 00000 ColorConversionStrategy LeaveColorUnchanged DoThumbnails false EmbedAllFonts true EmbedOpenType false ParseICCProfilesInComments true EmbedJobOptions true DSCReportingLevel 0 EmitDSCWarnings false EndPage -1 ImageMemory 1048576 LockDistillerParams true MaxSubsetPct 100 Optimize true OPM 1 ParseDSCComments true ParseDSCCommentsForDocInfo true PreserveCopyPage true PreserveDICMYKValues true PreserveEPSInfo true PreserveFlatness true PreserveHalftoneInfo false PreserveOPIComments true PreserveOverprintSettings true StartPage 1 SubsetFonts true TransferFunctionInfo Apply UCRandBGInfo Preserve UsePrologue false ColorSettingsFile () AlwaysEmbed [ true Algerian Arial-Black Arial-BoldItalicMT Arial-BoldMT Arial-ItalicMT ArialMT ArialNarrow ArialNarrow-Bold ArialNarrow-BoldItalic ArialNarrow-Italic BaskOldFace Bauhaus93 BellMT BellMTBold BellMTItalic BerlinSansFB-Bold BerlinSansFBDemi-Bold BerlinSansFB-Reg BernardMT-Condensed BodoniMTPosterCompressed BookAntiqua BookAntiqua-Bold BookAntiqua-BoldItalic BookAntiqua-Italic BookmanOldStyle BookmanOldStyle-Bold BookmanOldStyle-BoldItalic BookmanOldStyle-Italic BookshelfSymbolSeven BritannicBold Broadway BrushScriptMT CalifornianFB-Bold CalifornianFB-Italic CalifornianFB-Reg Centaur CenturyGothic CenturyGothic-Bold CenturyGothic-BoldItalic CenturyGothic-Italic Chiller-Regular ColonnaMT ComicSansMS ComicSansMS-Bold CooperBlack CourierNewPS-BoldItalicMT CourierNewPS-BoldMT CourierNewPS-ItalicMT CourierNewPSMT EstrangeloEdessa EXTRAAPLNew-Regular EXTRAOIANew-Regular FootlightMTLight FranklinGothic-Medium FranklinGothic-MediumItalic FreestyleScript-Regular Garamond Garamond-Bold Garamond-Italic Gautami Georgia Georgia-Bold Georgia-BoldItalic Georgia-Italic HarlowSolid Harrington HighTowerText-Italic HighTowerText-Reg Impact InformalRoman-Regular Jokerman-Regular JuiceITC-Regular Kartika KristenITC-Regular KunstlerScript Latha LatinWide LucidaATTMSpecial LucidaBright LucidaBright-Demi LucidaBright-DemiItalic LucidaBright-Italic LucidaCalligraphy-Italic LucidaConsole LucidaFax LucidaFax-Demi LucidaFax-DemiItalic LucidaFax-Italic LucidaforAttachmate LucidaHandwriting-Italic LucidaSans LucidaSans-Demi LucidaSans-DemiItalic LucidaSans-Italic LucidaSansUnicode Magneto-Bold Mangal-Regular MaturaMTScriptCapitals MicrosoftSansSerif Mistral Modern-Regular Monospace821BT-Roman MonotypeCorsiva MSOutlook MSReferenceSansSerif MSReferenceSpecialty MVBoli NiagaraEngraved-Reg NiagaraSolid-Reg OldEnglishTextMT Onyx PalatinoLinotype-Bold PalatinoLinotype-BoldItalic PalatinoLinotype-Italic PalatinoLinotype-Roman Parchment-Regular Playbill PoorRichard-Regular Raavi Ravie ShowcardGothic-Reg Shruti SnapITC-Regular Stencil Sylfaen SymbolMT Tahoma Tahoma-Bold TempusSansITC TimesNewRomanPS-BoldItalicMT TimesNewRomanPS-BoldMT TimesNewRomanPS-ItalicMT TimesNewRomanPSMT Trebuchet-BoldItalic TrebuchetMS TrebuchetMS-Bold TrebuchetMS-Italic Tunga-Regular Verdana Verdana-Bold Verdana-BoldItalic Verdana-Italic VinerHandITC Vivaldii VladimirScript Vrinda Webdings Wingdings2 Wingdings3 Wingdings-Regular ZWAdobeF ] NeverEmbed [ true ] AntiAliasColorImages false CropColorImages true ColorImageMinResolution 300 ColorImageMinResolutionPolicy OK DownsampleColorImages true ColorImageDownsampleType Bicubic ColorImageResolution 300 ColorImageDepth -1 ColorImageMinDownsampleDepth 1 ColorImageDownsampleThreshold 150000 EncodeColorImages false ColorImageFilter DCTEncode AutoFilterColorImages true ColorImageAutoFilterStrategy JPEG ColorACSImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt ColorImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000ColorACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000ColorImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasGrayImages false CropGrayImages true GrayImageMinResolution 300 GrayImageMinResolutionPolicy OK DownsampleGrayImages true GrayImageDownsampleType Bicubic GrayImageResolution 300 GrayImageDepth -1 GrayImageMinDownsampleDepth 2 GrayImageDownsampleThreshold 150000 EncodeGrayImages false GrayImageFilter DCTEncode AutoFilterGrayImages true GrayImageAutoFilterStrategy JPEG GrayACSImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt GrayImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000GrayACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000GrayImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasMonoImages false CropMonoImages true MonoImageMinResolution 1200 MonoImageMinResolutionPolicy OK DownsampleMonoImages true MonoImageDownsampleType Bicubic MonoImageResolution 1200 MonoImageDepth -1 MonoImageDownsampleThreshold 150000 EncodeMonoImages false MonoImageFilter CCITTFaxEncode MonoImageDict ltlt K -1 gtgt AllowPSXObjects false CheckCompliance [ None ] PDFX1aCheck false PDFX3Check false PDFXCompliantPDFOnly false PDFXNoTrimBoxError true PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile (None) PDFXOutputConditionIdentifier () PDFXOutputCondition () PDFXRegistryName () PDFXTrapped False Description ltlt CHS ltFEFF4f7f75288fd94e9b8bbe5b9a521b5efa7684002000410064006f006200650020005000440046002065876863900275284e8e9ad88d2891cf76845370524d53705237300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200035002e003000204ee553ca66f49ad87248672c676562535f00521b5efa768400200050004400460020658768633002gt CHT ltFEFF4f7f752890194e9b8a2d7f6e5efa7acb7684002000410064006f006200650020005000440046002065874ef69069752865bc9ad854c18cea76845370524d5370523786557406300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200035002e003000204ee553ca66f49ad87248672c4f86958b555f5df25efa7acb76840020005000440046002065874ef63002gt DAN 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 DEU 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 ESP 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 FRA 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 ITA ltFEFF005500740069006c0069007a007a006100720065002000710075006500730074006500200069006d0070006f007300740061007a0069006f006e00690020007000650072002000630072006500610072006500200064006f00630075006d0065006e00740069002000410064006f00620065002000500044004600200070006900f900200061006400610074007400690020006100200075006e00610020007000720065007300740061006d0070006100200064006900200061006c007400610020007100750061006c0069007400e0002e0020004900200064006f00630075006d0065006e007400690020005000440046002000630072006500610074006900200070006f00730073006f006e006f0020006500730073006500720065002000610070006500720074006900200063006f006e0020004100630072006f00620061007400200065002000410064006f00620065002000520065006100640065007200200035002e003000200065002000760065007200730069006f006e006900200073007500630063006500730073006900760065002egt JPN ltFEFF9ad854c18cea306a30d730ea30d730ec30b951fa529b7528002000410064006f0062006500200050004400460020658766f8306e4f5c6210306b4f7f75283057307e305930023053306e8a2d5b9a30674f5c62103055308c305f0020005000440046002030d530a130a430eb306f3001004100630072006f0062006100740020304a30883073002000410064006f00620065002000520065006100640065007200200035002e003000204ee5964d3067958b304f30533068304c3067304d307e305930023053306e8a2d5b9a306b306f30d530a930f330c8306e57cb30818fbc307f304c5fc59808306730593002gt KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020ace0d488c9c80020c2dcd5d80020c778c1c4c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200035002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor prepress-afdrukken van hoge kwaliteit De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 50 en hoger) NOR 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 PTB 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 SVE 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 ENU (Use these settings to create Adobe PDF documents best suited for high-quality prepress printing Created PDF documents can be opened with Acrobat and Adobe Reader 50 and later) gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false ConvertColors ConvertToCMYK DestinationProfileName () DestinationProfileSelector DocumentCMYK Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles false MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector DocumentCMYK PreserveEditing true UntaggedCMYKHandling LeaveUntagged UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ]gtgt setdistillerparamsltlt HWResolution [2400 2400] PageSize [612000 792000]gtgt setpagedevice

          1. To
          2. Date
          3. Re
          4. From
          5. AT THE REQUEST OF
          6. Sender
          7. Address
          8. Telephone
          9. Brief description of professional services materials or equipment provided or to be provided
          10. 1
          11. 2
          12. 3
          13. reg no
          14. deposit $
          15. expiration date
          16. claims up to $
          17. Reset

I certify that I know or have satisfactory evidence that___________________ is the person who appeared before me and said person acknowledged that [heshe] signed this instrument on oath stated that [heshe] was authorized to execute this instrument and acknowledged it as the attorney of___________________ to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument

CCBA Nuts amp Bolts on Construction Law - 19 of 49

F625-054-000 construction lien notice 11-05 IMPORTANT INFORMATION ON PAGE 2

NOTICE TO OWNER IMPORTANT READ BOTH SIDES OF THIS NOTICE CAREFULLY

PROTECT YOURSELF FROM PAYING TWICE

To

Date

Re

From (Description of property street address or general location)

AT THE REQUEST OF Name of person ordering their professional services materials or equipment

THIS IS NOT A LIEN This notice is sent to you to tell you who is providing professional services materials or equipment for the improvement of your property and to advise you of the rights of these persons and your responsibilities Also take notice that laborers on your project may claim a lien without sending you a notice

OWNEROCCUPIER OF EXISTING RESIDENTIAL PROPERTY Under Washington law those who furnish labor professional services materials or equipment for the repair remodel or alteration of you owner-occupied principal residence and who are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien The law limits the amount that a lien claimant can claim against your property Claims may only be made against that portion of the contract price you have not yet paid to your prime contractor as of the time this notice was given to you or three days after this notice was mailed to you Review page 2 of this notice for more information and ways to avoid lien claims

COMMERCIAL ANDOR NEW RESIDENTIAL PROPERTY We have or will be providing professional services materials or equipment for the improvement of your commercial or new residential project In the event you or your contractor fail to pay us we may file a lien against your property A lien may be claimed for all professional services materials or equipment furnished after a date that is sixty days before this notice was given to you or mailed to you unless the improvement to you property is the construction of a new single-family residence then ten days before this notice was given to you or mailed to you

Sender

Address

Telephone

Brief description of professional services materials or equipment provided or to be provided

CCBA Nuts amp Bolts on Construction Law - 20 of 49

F625-054-000 construction lien notice page 2 11-05

Important Information for your Protection

This notice is sent to inform you that we have or will provide professional services materials or equipment for the repair remodel or alteration of you property We expect to be paid by the person who ordered our services but if we are not paid we have the right to enforce our claim by filing a construction lien against your property

LEARN more about the lien laws and the meaning of this notice by

discussing them with our contractor suppliers Department of Labor and Industries the firm sending you this notice your lender or your attorney

COMMON METHODS TO AVOID CONSTRUCTION LIENS

There are several methods available to protect your property from construction liens The following are two of the more commonly used methods

DUAL PAYCHECKS (Joint Checks) When paying your

contractor for services or materials you may make checks payable jointly to the contractor and the firms furnishing you this notice

LIEN RELEASES You may require your contractor to provide

lien releases signed by all the suppliers and subcontractors from whom you have received this notice If they cannot obtain lien releases because you have not paid them you may use the dual payee check method to protect yourself

You should take appropriate steps to protect your property from

liens

Your prime contractor and your construction lender are required by law to give you written information about lien claims If you have not received it ask them for it

CCBA Nuts amp Bolts on Construction Law - 21 of 49

F625-030-000 model disclosure statement notice to customer 09-2007

Department of Labor and Industries Construction Compliance

MODEL DISCLOSURE STATEMENTNOTICE TO CUSTOMER

This contractor is registered with the state of Washington registration no____________________ and has posted with the state a bond or deposit of ______________________ for the purpose of satisfying claims against the contractor for breach of contract including negligent or improper work in the conduct of the contractorrsquos business The expiration date of this contractorrsquos registration is ______________________

THIS BOND OR DEPOSIT MIGHT NOT BE SUFFICIENT TO COVER A CLAIM THAT MIGHT ARISE FROM THE WORK DONE UNDER YOUR CONTRACT This bond or deposit is not for your exclusive use because it covers all work performed by this contractor The bond or deposit is intended to pay valid claims up to ___________________________ that you and other customers suppliers subcontractors or taxing authorities may have FOR GREATER PROTECTION YOU MAY WITHHOLD A PERCENTAGE OF YOUR CONTRACT You may withhold a contractually defined percentage of your construction contract as retainage for a stated period of time to provide protection to you and help insure that your project will be completed as required by your contract

YOUR PROPERTY MAY BE LIENED If a supplier of materials used in your construction project or an employee or subcontractor of your contractor or subcontractors is not paid your property may be liened to force payment and you could pay twice for the same work FOR ADDITIONAL PROTECTION YOU MAY REQUEST THE CONTRACTOR TO PROVIDE YOU WITH ORIGINAL ldquoLIEN RELEASErdquo DOCUMENTS FROM EACH SUPPLIER OR SUBCONTRACTOR AT YOUR PROJECT The contractor is required to provide you with further information about lien release document if you request it General information is also available from the state Department of Labor and Industries I have received a copy of this disclosure statement Dated this _______ day of _______________ of the year __________

_____________________________________________________ Signature of Customer The contractor must retain a signed copy of the disclosure statement in his or her files for a minimum of three years and produce a signed or electronic signature copy of the disclosure statement to the department upon request

CCBA Nuts amp Bolts on Construction Law - 22 of 49

Facts About Construction LiensWhat you should know about contractsIf your contractor fails to pay subcontractors suppliers or laborers or neglects to make other legally required payments those who are owed money can look to your property for payment even if you have paid your contractor in full This is true if you have hired a contractor to build a new home or are buying a newly built home

It is also true when you remodel or improve your property although the amount of your liability may be limited to the amount you owe the prime contractor at the time a lien is filed

Under Washington laws those who work on your property or provide materials and are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien

People who supply materials or labor ordered by your contractor are permitted by law to file a lien only if they do so within 90 days of cessation of performance or delivery of materials The time frame is spelled out in RCW 6004091

If you enter into a contract to buy a newly built home you may not receive a notice of a lien based on a claim by a contractor or material handler Be aware that a lien may be claimed even though you have not received a notice

Before making final payment on the project request a completed lien release form from each contractor and material supplier A sample of this release of lien form is available from the Department of Labor amp Industries Contractor Registration Section

You have final responsibility for seeing that all bills are paid even if you have paid your contractor in full

If you receive a notice to enforce a lien take the notice seriously Let your contractor know you have received the notice Find out what arrangements are being made to pay the sender of the notice

When in doubt or if you need more details consult your attorney When and how to pay your contractor is a decision that requires serious consideration

Reminder Washington laws require contractors to give you a disclosure statement if your contract exceeds $1000 [RCW 1827114(A) or (B)]

CCBA Nuts amp Bolts on Construction Law - 23 of 49

PUBLICATION F625-017-000 [01-2008]

Other formats for persons with disabilities are available on request Call 1-800-647-0982 TDD users call 360-902-5797 LampI is an equal opportunity employer

For more information

How to protect your investment

If you are dealing with a lending institution ask your loan officer what precautions the lending institution takes to verify that subcontractors and material suppliers are being paid when mortgage money is paid to your contractor

Request lender supervision when dealing with a lending institution that provides interim or construction financing

Ask the prime contractor to disclose all potential lien claimants as a condition of payment A lien claimant must mail (by certified or registered mail or by personal service) a copy of the claim of lien to the owner within 14 days of the time the lien is recorded [RCW 6004091(2)] While an action is ongoing an owner may withhold from this prime contractor the amount of money for which a claim is recorded by a subcontractor supplier or laborer [RCW 6004151]

It is recommended that your check be made payable jointly naming the contractor and the subcontractor or supplier as payees

Upon payment and acceptance of the amount due the owner has the right to an executed release of all lien rights by lien claimants [RCW 6004071]

Consider using an escrow agent to protect your interests Find out whether your escrow agent will protect you against liens when disbursing payments If you are interested in this alternative consult your attorney

Request that your contractor post a performance bond in the amount of the project cost That will give you recourse in the event the contractor fails to complete the building agreement

8 On the Web Find more information about hiring a contractor at

wwwLniwagovTradesLicensingContractorsHireCon

Contractor Registration Hotline1-800-647-0982

You may also call your local LampI office See listings under ldquoWashington State ofrdquo in the government section or the white pages of the telephone book

Please note This notice was prepared by the Department of Labor amp Industries Specialty Compliance Services Division for reproduction by lending institutions and contractors for distribution to their clients It explains the basics of the construction lien law to help you protect yourself This information is not a reflection upon the abilities or credit of your contractor

CCBA Nuts amp Bolts on Construction Law - 24 of 49

NOTICE OF CLAIM AGAINST

BOND AND RETAINED PERCENTAGE

RCW 3908030 RCW 6028010

VIA CERTIFIED MAIL ndash RETURN RECEIPT REQUESTED

TO [Public Owner] [Public Ownerrsquos Address]

Project [Project Name amp Address] NOTICE IS HEREBY GIVEN that the undersigned [Claimant] [Claimantrsquos Address] has a claim in the amount of ----- and 00100 Dollars ($XX) (not including attorneysrsquo fees or costs) together with interest at twelve percent (12) against [Public Owner] (ldquoOwnerrdquo) pursuant to RCW 6028 and the payment bond taken from [Prime Contractor] (ldquoContractorrdquo) [Prime Contractorrsquos Address] as principal and [Surety Company] (ldquoSuretyrdquo) [Suretyrsquos Address] as surety Bond No ________ pursuant to RCW 3908 for [describe services material supplies labor furnished] provided on the Project This Notice of Claim Against Bond and Retained Percentage supersedes and replaces previous Notices DATED This ___day of _________ 201_ [Claimant] By ______________________________________ Its ______________________________________ [Claimantrsquos Address]

_________________________________________

[Contractors Registration No if applicable]

(Copies furnished to General Contractor and General Contractorrsquos Bonding Company)

CCBA Nuts amp Bolts on Construction Law - 25 of 49

PRECLAIM NOTICE TO CONTRACTOR BY SUBCONTRACTORS MATERIALMEN OR SUPPLIERS FOR

CLAIM AGAINST BOND AND RETAINED PERCENTAGE

VIA CERTIFIED OR REGISTERED MAIL- RETURN RECEIPT REQUESTED

TO [Name of General Contractor] [Address]

YOU ARE HEREBY NOTIFIED that the undersigned ____________at the request of_________________ commenced to deliver or furnish materials supplies andor equipment for the use in the construction alteration andor repair of that certain project known as____________________ [project name] which is located at ____________________________ [address or description] If the undersigned is not paid for these materials supplies andor equipment it will file a claim against you and your bond andor retainage pursuant to RCW 3908 andor 6028 et seq for payment of any sum that is due and owing to the undersigned

DATED This __ day of _____________ 201_

[Name of Claimant]

By ____________________________________

Its ____________________________________

Address ______________________________

__________________________________________

__________________________________________

[Contractors Registration No if applicable]

(Mail via certified mail return receipt requested or hand deliver and obtain receipt)

CCBA Nuts amp Bolts on Construction Law - 26 of 49

Washington Liens amp Bonds ndash Pertinent Statutes

RCW 1827040 Bond or other security required mdash Actions against mdash Suspension of registration upon impairment (1) Each applicant shall file with the department a surety bond issued by a surety insurer who meets the requirements of chapter 4828 RCW in the sum of twelve thousand dollars if the applicant is a general contractor and six thousand dollars if the applicant is a specialty contractor If no valid bond is already on file with the department at the time the application is filed a bond must accompany the registration application The bond shall have the state of Washington named as obligee with good and sufficient surety in a form to be approved by the department The bond shall be continuous and may be canceled by the surety upon the surety giving written notice to the director A cancellation or revocation of the bond or withdrawal of the surety from the bond automatically suspends the registration issued to the contractor until a new bond or reinstatement notice has been filed and approved as provided in this section The bond shall be conditioned that the applicant will pay all persons performing labor including employee benefits for the contractor will pay all taxes and contributions due to the state of Washington and will pay all persons furnishing material or renting or supplying equipment to the contractor and will pay all amounts that may be adjudged against the contractor by reason of breach of contract including improper work in the conduct of the contracting business A change in the name of a business or a change in the type of business entity shall not impair a bond for the purposes of this section so long as one of the original applicants for such bond maintains partial ownership in the business covered by the bond (2) At the time of initial registration or renewal the contractor shall provide a bond or other security deposit as required by this chapter and comply with all of the other provisions of this chapter before the department shall issue or renew the contractors certificate of registration Any contractor registered as of July 1 2001 who maintains that registration in accordance with this chapter is in compliance with this chapter until the next renewal of the contractors certificate of registration (3) Any person firm or corporation having a claim against the contractor for any of the items referred to in this section may bring suit against the contractor and the bond or deposit in the superior court of the county in which the work was done or of any county in which jurisdiction of the contractor may be had The surety issuing the bond shall be named as a party to any suit upon the bond Action upon the bond or deposit brought by a residential homeowner for breach of contract by a party to the construction contract shall be commenced by filing the summons and complaint with the clerk of the appropriate superior court within two years from the date the claimed contract work was substantially completed or abandoned whichever occurred first Action upon the bond or deposit brought by any other authorized party shall be commenced by filing the summons and complaint with the clerk of the appropriate superior court within one year from the date the claimed labor was performed and benefits accrued taxes and contributions owing the state of Washington became due materials and equipment were furnished or the claimed contract work was substantially completed or abandoned whichever occurred first Service of process in an action filed under this chapter against the contractor and the contractors bond or the deposit shall be exclusively by service upon the department Three

CCBA Nuts amp Bolts on Construction Law - 27 of 49

copies of the summons and complaint and a fee adopted by rule of not less than fifty dollars to cover the costs shall be served by registered or certified mail or other delivery service requiring notice of receipt upon the department at the time suit is started and the department shall maintain a record available for public inspection of all suits so commenced Service is not complete until the department receives the fee and three copies of the summons and complaint The service shall constitute service and confer personal jurisdiction on the contractor and the surety for suit on claimants claim against the contractor and the bond or deposit and the department shall transmit the summons and complaint or a copy thereof to the contractor at the address listed in the contractors application and to the surety within two days after it shall have been received (4) The surety upon the bond shall not be liable in an aggregate amount in excess of the amount named in the bond nor for any monetary penalty assessed pursuant to this chapter for an infraction The liability of the surety shall not cumulate where the bond has been renewed continued reinstated reissued or otherwise extended The surety upon the bond may upon notice to the department and the parties tender to the clerk of the court having jurisdiction of the action an amount equal to the claims thereunder or the amount of the bond less the amount of judgments if any previously satisfied therefrom and to the extent of such tender the surety upon the bond shall be exonerated but if the actions commenced and pending and provided to the department as required in subsection (3) of this section at any one time exceed the amount of the bond then unimpaired claims shall be satisfied from the bond in the following order (a) Employee labor and claims of laborers including employee benefits (b) Claims for breach of contract by a party to the construction contract (c) Registered or licensed subcontractors material and equipment (d) Taxes and contributions due the state of Washington (e) Any court costs interest and attorneys fees plaintiff may be entitled to recover The surety is not liable for any amount in excess of the penal limit of its bond A payment made by the surety in good faith exonerates the bond to the extent of any payment made by the surety (5) The total amount paid from a bond or deposit required of a general contractor by this section to claimants other than residential homeowners must not exceed one-half of the bond amount The total amount paid from a bond or deposit required of a specialty contractor by this section to claimants other than residential homeowners must not exceed one-half of the bond amount or four thousand dollars whichever is greater (6) The prevailing party in an action filed under this section against the contractor and contractors bond or deposit for breach of contract by a party to the construction contract involving a residential homeowner is entitled to costs interest and reasonable attorneys fees The surety upon the bond or deposit is not liable in an aggregate amount in excess of the amount

CCBA Nuts amp Bolts on Construction Law - 28 of 49

named in the bond or deposit nor for any monetary penalty assessed pursuant to this chapter for an infraction (7) If a final judgment impairs the liability of the surety upon the bond or deposit so furnished that there is not in effect a bond or deposit in the full amount prescribed in this section the registration of the contractor is automatically suspended until the bond or deposit liability in the required amount unimpaired by unsatisfied judgment claims is furnished (8) In lieu of the surety bond required by this section the contractor may file with the department an assigned savings account upon forms provided by the department (9) Any person having filed and served a summons and complaint as required by this section having an unsatisfied final judgment against the registrant for any items referred to in this section may execute upon the security held by the department by serving a certified copy of the unsatisfied final judgment by registered or certified mail upon the department within one year of the date of entry of such judgment Upon the receipt of service of such certified copy the department shall pay or order paid from the deposit through the registry of the superior court which rendered judgment towards the amount of the unsatisfied judgment The priority of payment by the department shall be the order of receipt by the department but the department shall have no liability for payment in excess of the amount of the deposit (10) Within ten days after resolution of the case a certified copy of the final judgment and order or any settlement documents where a case is not disposed of by a court trial a certified copy of the dispositive settlement documents must be provided to the department by the prevailing party Failure to provide a copy of the final judgment and order or the dispositive settlement documents to the department within ten days of entry of such an order constitutes a violation of this chapter and a penalty adopted by rule of not less than two hundred fifty dollars may be assessed against the prevailing party (11) The director may require an applicant applying to renew or reinstate a registration or applying for a new registration to file a bond of up to three times the normally required amount if the director determines that an applicant or a previous registration of a corporate officer owner or partner of a current applicant has had in the past five years a total of three final judgments in actions under this chapter involving a residential single-family dwelling on two or more different structures (12) The director may adopt rules necessary for the proper administration of the security RCW 1827114 Disclosure statement required mdash Prerequisite to lien claim

(1) Any contractor agreeing to perform any contracting project (a) For the repair alteration or construction of four or fewer residential units or accessory structures on such residential property when the bid or contract price totals one thousand dollars or more or (b) for the repair alteration or construction of a commercial building when the bid or contract price totals one thousand dollars or more but less than sixty thousand dollars must provide the customer with

CCBA Nuts amp Bolts on Construction Law - 29 of 49

the following disclosure statement in substantially the following form using lower case and upper case twelve-point and bold type where appropriate prior to starting work on the project NOTICE TO CUSTOMER This contractor is registered with the state of Washington registration no and has posted with the state a bond or deposit of for the purpose of satisfying claims against the contractor for breach of contract including negligent or improper work in the conduct of the contractors business The expiration date of this contractors registration is THIS BOND OR DEPOSIT MIGHT NOT BE SUFFICIENT TO COVER A CLAIM THAT MIGHT ARISE FROM THE WORK DONE UNDER YOUR CONTRACT This bond or deposit is not for your exclusive use because it covers all work performed by this contractor The bond or deposit is intended to pay valid claims up to that you and other customers suppliers subcontractors or taxing authorities may have FOR GREATER PROTECTION YOU MAY WITHHOLD A PERCENTAGE OF YOUR CONTRACT You may withhold a contractually defined percentage of your construction contract as retainage for a stated period of time to provide protection to you and help insure that your project will be completed as required by your contract YOUR PROPERTY MAY BE LIENED If a supplier of materials used in your construction project or an employee or subcontractor of your contractor or subcontractors is not paid your property may be liened to force payment and you could pay twice for the same work FOR ADDITIONAL PROTECTION YOU MAY REQUEST THE CONTRACTOR TO PROVIDE YOU WITH ORIGINAL LIEN RELEASE DOCUMENTS FROM EACH SUPPLIER OR SUBCONTRACTOR ON YOUR PROJECT The contractor is required to provide you with further information about lien release documents if you request it General information is also available from the state Department of Labor and Industries I have received a copy of this disclosure statement

CCBA Nuts amp Bolts on Construction Law - 30 of 49

(Signature of customer) (2) The contractor must retain a signed copy of the disclosure statement in his or her files for a minimum of three years and produce a signed or electronic signature copy of the disclosure statement to the department upon request (3) A contractor subject to this section shall notify any consumer to whom notice is required under subsection (1) of this section if the contractors registration has expired or is revoked or suspended by the department prior to completion or other termination of the contract with the consumer (4) No contractor subject to this section may bring or maintain any lien claim under chapter 6004 RCW based on any contract to which this section applies without alleging and proving that the contractor has provided the customer with a copy of the disclosure statement as required in subsection (1) of this section (5) This section does not apply to contracts authorized under chapter 3904 RCW or to contractors contracting with other contractors (6) Failure to comply with this section shall constitute an infraction under the provisions of this chapter (7) The department shall produce model disclosure statements and public service announcements detailing the information needed to assist contractors and contractors customers to comply under this section As necessary the department shall periodically update these education materials RCW 3908010 Bond required mdash Conditions mdash Retention of contract amount in lieu of bond (1)(a) Whenever any board council commission trustees or body acting for the state or any county or municipality or any public body must contract with any person or corporation to do any work for the state county or municipality or other public body city town or district such board council commission trustees or body must require the person or persons with whom such contract is made to make execute and deliver to such board council commission trustees or body a good and sufficient bond with a surety company as surety conditioned that such person or persons must (i) Faithfully perform all the provisions of such contract (ii) Pay all laborers mechanics and subcontractors and material suppliers and all persons who supply such person or persons or subcontractors with provisions and supplies for the carrying on of such work and

CCBA Nuts amp Bolts on Construction Law - 31 of 49

(iii) Pay the taxes increases and penalties incurred on the project under Titles 50 51 and 82 RCW on (A) Projects referred to in RCW 6028011(1)(b) andor (B) projects for which the bond is conditioned on the payment of such taxes increases and penalties (b) The bond in cases of cities and towns must be filed with the clerk or comptroller thereof and any person or persons performing such services or furnishing material to any subcontractor has the same right under the provisions of such bond as if such work services or material was furnished to the original contractor (2) The provisions of RCW 3908010 through 3908030 do not apply to any money loaned or advanced to any such contractor subcontractor or other person in the performance of any such work (3) On contracts of thirty-five thousand dollars or less at the option of the contractor the respective public entity may in lieu of the bond retain fifty percent of the contract amount for a period of thirty days after date of final acceptance or until receipt of all necessary releases from the department of revenue the employment security department and the department of labor and industries and settlement of any liens filed under chapter 6028 RCW whichever is later (4) For contracts of one hundred thousand dollars or less the public entity may accept a full payment and performance bond from an individual surety or sureties (5) The surety must agree to be bound by the laws of the state of Washington and subjected to the jurisdiction of the state of Washington RCW 6004011 Definitions

Unless the context requires otherwise the definitions in this section apply throughout this chapter (1) Construction agent means any registered or licensed contractor registered or licensed subcontractor architect engineer or other person having charge of any improvement to real property who shall be deemed the agent of the owner for the limited purpose of establishing the lien created by this chapter (2) Contract price means the amount agreed upon by the contracting parties or if no amount is agreed upon then the customary and reasonable charge therefor (3) Draws means periodic disbursements of interim or construction financing by a lender (4) Furnishing labor professional services materials or equipment means the performance of any labor or professional services the contribution owed to any employee benefit plan on account of any labor the provision of any supplies or materials and the renting leasing or

CCBA Nuts amp Bolts on Construction Law - 32 of 49

otherwise supplying of equipment for the improvement of real property (5) Improvement means (a) Constructing altering repairing remodeling demolishing clearing grading or filling in of to or upon any real property or street or road in front of or adjoining the same (b) planting of trees vines shrubs plants hedges or lawns or providing other landscaping materials on any real property and (c) providing professional services upon real property or in preparation for or in conjunction with the intended activities in (a) or (b) of this subsection (6) Interim or construction financing means that portion of money secured by a mortgage deed of trust or other encumbrance to finance improvement of or to real property but does not include (a) Funds to acquire real property (b) Funds to pay interest insurance premiums lease deposits taxes assessments or prior encumbrances (c) Funds to pay loan commitment title legal closing recording or appraisal fees (d) Funds to pay other customary fees which pursuant to agreement with the owner or borrower are to be paid by the lender from time to time (e) Funds to acquire personal property for which the potential lien claimant may not claim a lien pursuant to this chapter (7) Labor means exertion of the powers of body or mind performed at the site for compensation Labor includes amounts due and owed to any employee benefit plan on account of such labor performed (8) Mortgagee means a person who has a valid mortgage of record or deed of trust of record securing a loan (9) Owner-occupied means a single-family residence occupied by the owner as his or her principal residence (10) Payment bond means a surety bond issued by a surety licensed to issue surety bonds in the state of Washington that confers upon potential claimants the rights of third party beneficiaries (11) Potential lien claimant means any person or entity entitled to assert lien rights under this chapter who has otherwise complied with the provisions of this chapter and is registered or licensed if required to be licensed or registered by the provisions of the laws of the state of Washington (12) Prime contractor includes all contractors general contractors and specialty

CCBA Nuts amp Bolts on Construction Law - 33 of 49

contractors as defined by chapter 1827 or 1928 RCW or who are otherwise required to be registered or licensed by law who contract directly with a property owner or their common law agent to assume primary responsibility for the creation of an improvement to real property and includes property owners or their common law agents who are contractors general contractors or specialty contractors as defined in chapter 1827 or 1928 RCW or who are otherwise required to be registered or licensed by law who offer to sell their property without occupying or using the structures projects developments or improvements for more than one year (13) Professional services means surveying establishing or marking the boundaries of preparing maps plans or specifications for or inspecting testing or otherwise performing any other architectural or engineering services for the improvement of real property (14) Real property lender means a bank savings bank savings and loan association credit union mortgage company or other corporation association partnership trust or individual that makes loans secured by real property located in the state of Washington (15) Site means the real property which is or is to be improved (16) Subcontractor means a general contractor or specialty contractor as defined by chapter 1827 or 1928 RCW or who is otherwise required to be registered or licensed by law who contracts for the improvement of real property with someone other than the owner of the property or their common law agent

6004021 Lien authorized

Except as provided in RCW 6004031 any person furnishing labor professional services materials or equipment for the improvement of real property shall have a lien upon the improvement for the contract price of labor professional services materials or equipment furnished at the instance of the owner or the agent or construction agent of the owner

6004031 Notices mdash Exceptions

(1) Except as otherwise provided in this section every person furnishing professional services materials or equipment for the improvement of real property shall give the owner or reputed owner notice in writing of the right to claim a lien If the prime contractor is in compliance with the requirements of RCW 1927095 6004230 and 6004261 this notice shall also be given to the prime contractor as described in this subsection unless the potential lien claimant has contracted directly with the prime contractor The notice may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after the date which is sixty days before (a) Mailing the notice by certified or registered mail to the owner or reputed owner or

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(b) Delivering or serving the notice personally upon the owner or reputed owner and obtaining evidence of delivery in the form of a receipt or other acknowledgment signed by the owner or reputed owner or an affidavit of service In the case of new construction of a single-family residence the notice of a right to claim a lien may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after a date which is ten days before the notice is given as described in this subsection (2) Notices of a right to claim a lien shall not be required of (a) Persons who contract directly with the owner or the owners common law agent (b) Laborers whose claim of lien is based solely on performing labor or (c) Subcontractors who contract for the improvement of real property directly with the prime contractor except as provided in subsection (3)(b) of this section (3) Persons who furnish professional services materials or equipment in connection with the repair alteration or remodel of an existing owner-occupied single-family residence or appurtenant garage (a) Who contract directly with the owner-occupier or their common law agent shall not be required to send a written notice of the right to claim a lien and shall have a lien for the full amount due under their contract as provided in RCW 6004021 or (b) Who do not contract directly with the owner-occupier or their common law agent shall give notice of the right to claim a lien to the owner-occupier Liens of persons furnishing professional services materials or equipment who do not contract directly with the owner-occupier or their common law agent may only be satisfied from amounts not yet paid to the prime contractor by the owner at the time the notice described in this section is received regardless of whether amounts not yet paid to the prime contractor are due For the purposes of this subsection received means actual receipt of notice by personal service or registered or certified mail or three days after mailing by registered or certified mail excluding Saturdays Sundays or legal holidays (4) The notice of right to claim a lien described in subsection (1) of this section shall include but not be limited to the following information and shall substantially be in the following form using lower-case and upper-case ten-point type where appropriate

CCBA Nuts amp Bolts on Construction Law - 35 of 49

NOTICE TO OWNER

IMPORTANT READ BOTH SIDES OF THIS NOTICE CAREFULLY

PROTECT YOURSELF FROM PAYING TWICE

To Date

Re (description of property Street address or general location) From AT THE REQUEST OF (Name of person ordering the professional services materials or equipment) THIS IS NOT A LIEN This notice is sent to you to tell you who is providing professional services materials or equipment for the improvement of your property and to advise you of the rights of these persons and your responsibilities Also take note that laborers on your project may claim a lien without sending you a notice

OWNEROCCUPIER OF EXISTING

RESIDENTIAL PROPERTY

Under Washington law those who furnish labor professional services materials or equipment for the repair remodel or alteration of your owner-occupied principal residence and who are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien The law limits the amount that a lien claimant can claim against your property Claims may only be made against that portion of the contract price you have not yet paid to your prime contractor as of the time this notice was given to you or three days after this notice was mailed to you Review the back of this notice for more information and ways to avoid lien claims

COMMERCIAL ANDOR NEW

RESIDENTIAL PROPERTY

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We have or will be providing professional services materials or equipment for the improvement of your commercial or new residential project In the event you or your contractor fail to pay us we may file a lien against your property A lien may be claimed for all professional services materials or equipment furnished after a date that is sixty days before this notice was given to you or mailed to you unless the improvement to your property is the construction of a new single-family residence then ten days before this notice was given to you or mailed to you Sender Address Telephone Brief description of professional services materials or equipment provided or to be provided

IMPORTANT INFORMATION

ON REVERSE SIDE

IMPORTANT INFORMATION

FOR YOUR PROTECTION This notice is sent to inform you that we have or will provide professional services materials or equipment for the improvement of your property We expect to be paid by the person who ordered our services but if we are not paid we have the right to enforce our claim by filing a construction lien against your property LEARN more about the lien laws and the meaning of this notice by discussing them with your contractor suppliers Department of Labor and Industries the firm sending you this notice your lender or your attorney

COMMON METHODS TO AVOID CONSTRUCTION LIENS There are several methods available to protect your property from construction liens The following are two of the more commonly used methods

DUAL PAYCHECKS (Joint Checks) When paying your contractor for services or materials you may make checks payable jointly to the contractor and the firms furnishing you this notice

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LIEN RELEASES You may require your contractor to provide lien releases signed by all the suppliers and subcontractors from whom you have received this notice If they cannot obtain lien releases because you have not paid them you may use the dual payee check method to protect yourself

YOU SHOULD TAKE APPROPRIATE STEPS TO PROTECT YOUR PROPERTY FROM LIENS YOUR PRIME CONTRACTOR AND YOUR CONSTRUCTION LENDER ARE REQUIRED BY LAW TO GIVE YOU WRITTEN INFORMATION ABOUT LIEN CLAIMS IF YOU HAVE NOT RECEIVED IT ASK THEM FOR IT

(5) Every potential lien claimant providing professional services where no improvement as defined in RCW 6004011(5) (a) or (b) has been commenced and the professional services provided are not visible from an inspection of the real property may record in the real property records of the county where the property is located a notice which shall contain the professional service providers name address telephone number legal description of the property the owner or reputed owners name and the general nature of the professional services provided If such notice is not recorded the lien claimed shall be subordinate to the interest of any subsequent mortgagee and invalid as to the interest of any subsequent purchaser if the mortgagee or purchaser acts in good faith and for a valuable consideration acquires an interest in the property prior to the commencement of an improvement as defined in RCW 6004011(5) (a) or (b) without notice of the professional services being provided The notice described in this subsection shall be substantially in the following form

NOTICE OF FURNISHING

PROFESSIONAL SERVICES That on the (day) day of (month and year) (name of provider) began providing professional services upon or for the improvement of real property legally described as follows

[Legal Description is mandatory]

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The general nature of the professional services provided is The owner or reputed owner of the real property is

(Signature)

(Name of Claimant)

(Street Address)

(City State Zip Code)

(Phone Number)

(6) A lien authorized by this chapter shall not be enforced unless the lien claimant has complied with the applicable provisions of this section

6004041 Contractor registration

A contractor or subcontractor required to be registered under chapter 1827 RCW or licensed under chapter 1928 RCW or otherwise required to be registered or licensed by law shall be deemed the construction agent of the owner for the purposes of establishing the lien created by this chapter only if so registered or licensed Persons dealing with contractors or subcontractors may rely for the purposes of this section upon a certificate of registration issued pursuant to chapter 1827 RCW or license issued pursuant to chapter 1928 RCW or other certificate or license issued pursuant to law covering the period when the labor professional services material or equipment shall be furnished and the lien rights shall not be lost by suspension or revocation of registration or license without their knowledge No lien rights described in this

CCBA Nuts amp Bolts on Construction Law - 39 of 49

chapter shall be lost or denied by virtue of the absence suspension or revocation of such registration or license with respect to any contractor or subcontractor not in immediate contractual privity with the lien claimant

6004081 Frivolous claim mdash Procedure

(1) Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who believes the claim of lien to be frivolous and made without reasonable cause or clearly excessive may apply by motion to the superior court for the county where the property or some part thereof is located for an order directing the lien claimant to appear before the court at a time no earlier than six nor later than fifteen days following the date of service of the application and order on the lien claimant and show cause if any he or she has why the relief requested should not be granted The motion shall state the grounds upon which relief is asked and shall be supported by the affidavit of the applicant or his or her attorney setting forth a concise statement of the facts upon which the motion is based (2) The order shall clearly state that if the lien claimant fails to appear at the time and place noted the lien shall be released with prejudice and that the lien claimant shall be ordered to pay the costs requested by the applicant including reasonable attorneys fees (3) If no action to foreclose the lien claim has been filed the clerk of the court shall assign a cause number to the application and obtain from the applicant a filing fee pursuant to RCW 3618016 If an action has been filed to foreclose the lien claim the application shall be made a part of that action (4) If following a hearing on the matter the court determines that the lien is frivolous and made without reasonable cause or clearly excessive the court shall issue an order releasing the lien if frivolous and made without reasonable cause or reducing the lien if clearly excessive and awarding costs and reasonable attorneys fees to the applicant to be paid by the lien claimant If the court determines that the lien is not frivolous and was made with reasonable cause and is not clearly excessive the court shall issue an order so stating and awarding costs and reasonable attorneys fees to the lien claimant to be paid by the applicant (5) Proceedings under this section shall not affect other rights and remedies available to the parties under this chapter or otherwise

6004091 Recording mdash Time mdash Contents of lien

Every person claiming a lien under RCW 6004021 shall file for recording in the county where the subject property is located a notice of claim of lien not later than ninety days after the person

CCBA Nuts amp Bolts on Construction Law - 40 of 49

has ceased to furnish labor professional services materials or equipment or the last date on which employee benefit contributions were due The notice of claim of lien (1) Shall state in substance and effect (a) The name phone number and address of the claimant (b) The first and last date on which the labor professional services materials or equipment was furnished or employee benefit contributions were due (c) The name of the person indebted to the claimant (d) The street address legal description or other description reasonably calculated to identify for a person familiar with the area the location of the real property to be charged with the lien (e) The name of the owner or reputed owner of the property if known and if not known that fact shall be stated and (f) The principal amount for which the lien is claimed (2) Shall be signed by the claimant or some person authorized to act on his or her behalf who shall affirmatively state they have read the notice of claim of lien and believe the notice of claim of lien to be true and correct under penalty of perjury and shall be acknowledged pursuant to chapter 6408 RCW If the lien has been assigned the name of the assignee shall be stated Where an action to foreclose the lien has been commenced such notice of claim of lien may be amended as pleadings may be by order of the court insofar as the interests of third parties are not adversely affected by such amendment A claim of lien substantially in the following form shall be sufficient

CLAIM OF LIEN

claimant vs name of person indebted to claimant

Notice is hereby given that the person named below claims a lien pursuant to chapter 6404 RCW In support of this lien the following information is submitted

1 NAME OF LIEN CLAIMANT

TELEPHONE NUMBER

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ADDRESS

2 DATE ON WHICH THE CLAIMANT BEGAN TO PERFORM LABOR PROVIDE PROFESSIONAL SERVICES SUPPLY MATERIAL OR EQUIPMENT OR THE DATE ON WHICH EMPLOYEE BENEFIT CONTRIBUTIONS BECAME DUE

3 NAME OF PERSON INDEBTED TO THE CLAIMANT

4 DESCRIPTION OF THE PROPERTY AGAINST WHICH A LIEN IS CLAIMED (Street address legal description or other information that will reasonably describe the property)

5 NAME OF THE OWNER OR REPUTED OWNER (If not known state unknown)

6 THE LAST DATE ON WHICH LABOR WAS PERFORMED PROFESSIONAL SERVICES WERE FURNISHED CONTRIBUTIONS TO AN EMPLOYEE BENEFIT PLAN WERE DUE OR MATERIAL OR EQUIPMENT WAS FURNISHED

7 PRINCIPAL AMOUNT FOR WHICH THE LIEN IS CLAIMED IS

8 IF THE CLAIMANT IS THE ASSIGNEE OF THIS CLAIM SO STATE HERE

Claimant

(Phone number address city

CCBA Nuts amp Bolts on Construction Law - 42 of 49

and

state of claimant)

STATE OF WASHINGTON COUNTY OF ss being sworn says I am the claimant (or attorney of the claimant or administrator representative or agent of the trustees of an employee benefit plan) above named I have read or heard the foregoing claim read and know the contents thereof and believe the same to be true and correct and that the claim of lien is not frivolous and is made with reasonable cause and is not clearly excessive under penalty of perjury Subscribed and sworn to before me this day of The period provided for recording the claim of lien is a period of limitation and no action to foreclose a lien shall be maintained unless the claim of lien is filed for recording within the ninety-day period stated The lien claimant shall give a copy of the claim of lien to the owner or reputed owner by mailing it by certified or registered mail or by personal service within fourteen days of the time the claim of lien is filed for recording Failure to do so results in a forfeiture of any right the claimant may have to attorneys fees and costs against the owner under RCW 6004181

6004161 Bond in lieu of claim

Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who disputes the correctness or validity of the claim of lien may record either before or after the commencement of an action to enforce the lien in the office of the county recorder or auditor in the county where the claim of lien was recorded a bond issued by a surety company authorized to issue surety bonds in the state The surety shall be listed in the latest federal department of the treasury list of surety companies acceptable on federal bonds published in the Federal Register as authorized to issue bonds on United States government projects with an underwriting limitation including applicable reinsurance equal to or greater than the amount of the bond to be recorded The bond shall contain a description of the claim of lien and real property involved and be in an amount equal to the greater of five thousand dollars or two times the amount of the lien claimed if it is ten thousand dollars or less and in an amount equal to or greater than one and one-half times the amount of the lien if it is in

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excess of ten thousand dollars If the claim of lien affects more than one parcel of real property and is segregated to each parcel the bond may be segregated the same as in the claim of lien A separate bond shall be required for each claim of lien made by separate claimants However a single bond may be used to guarantee payment of amounts claimed by more than one claim of lien by a single claimant so long as the amount of the bond meets the requirements of this section as applied to the aggregate sum of all claims by such claimant The condition of the bond shall be to guarantee payment of any judgment upon the lien in favor of the lien claimant entered in any action to recover the amount claimed in a claim of lien or on the claim asserted in the claim of lien The effect of recording a bond shall be to release the real property described in the notice of claim of lien from the lien and any action brought to recover the amount claimed Unless otherwise prohibited by law if no action is commenced to recover on a lien within the time specified in RCW 6004141 the surety shall be discharged from liability under the bond If an action is timely commenced then on payment of any judgment entered in the action or on payment of the full amount of the bond to the holder of the judgment whichever is less the surety shall be discharged from liability under the bond Nothing in this section shall in any way prohibit or limit the use of other methods devised by the affected parties to secure the obligation underlying a claim of lien and to obtain a release of real property from a claim of lien

6004181 Rank of lien mdash Application of proceeds mdash Attorneys fees

(1) In every case in which different construction liens are claimed against the same property the court shall declare the rank of such lien or class of liens which liens shall be in the following order (a) Liens for the performance of labor (b) Liens for contributions owed to employee benefit plans (c) Liens for furnishing material supplies or equipment (d) Liens for subcontractors including but not limited to their labor and materials and (e) Liens for prime contractors or for professional services (2) The proceeds of the sale of property must be applied to each lien or class of liens in order of its rank and in an action brought to foreclose a lien pro rata among each claimant in each separate priority class A personal judgment may be rendered against any party personally liable for any debt for which the lien is claimed If the lien is established the judgment shall provide

CCBA Nuts amp Bolts on Construction Law - 44 of 49

for the enforcement thereof upon the property liable as in the case of foreclosure of judgment liens The amount realized by such enforcement of the lien shall be credited upon the proper personal judgment The deficiency if any remaining unsatisfied shall stand as a personal judgment and may be collected by execution against any party liable therefor (3) The court may allow the prevailing party in the action whether plaintiff or defendant as part of the costs of the action the moneys paid for recording the claim of lien costs of title report bond costs and attorneys fees and necessary expenses incurred by the attorney in the superior court court of appeals supreme court or arbitration as the court or arbitrator deems reasonable Such costs shall have the priority of the class of lien to which they are related as established by subsection (1) of this section (4) Real property against which a lien under this chapter is enforced may be ordered sold by the court and the proceeds deposited into the registry of the clerk of the court pending further determination respecting distribution of the proceeds of the sale

6004900 Liberal construction mdash 1991 c 281

RCW 1927095 6004230 and 6004011 through 6004226 and 6004261 are to be liberally construed to provide security for all parties intended to be protected by their provisions

RCW 6028011

Retained percentage mdash Public transportation projects mdash Labor and material lien created mdash Bond in lieu of retained funds mdash Termination before completion mdash Chapter deemed exclusive mdash Release of ferry contract payments mdash Projects of farmers home administration mdash General contractorconstruction manager procedure mdash Definitions

(1)(a) Except as provided in (b) of this subsection public improvement contracts must provide and public bodies must reserve a contract retainage not to exceed five percent of the moneys earned by the contractor as a trust fund for the protection and payment of (i) The claims of any person arising under the contract and (ii) the state with respect to taxes increases and penalties imposed pursuant to Titles 50 51 and 82 RCW which may be due from such contractor (b) Public improvement contracts funded in whole or in part by federal transportation funds must rely upon the contract bond as referred to in chapter 3908 RCW for the protection and payment of (i) The claims of any person or persons arising under the contract to the extent such claims are provided for in RCW 3908010 and (ii) the state with respect to taxes increases and penalties incurred on the public improvement project under Titles 50 51 and 82 RCW which may be due The contract bond must remain in full force and effect until at a minimum all claims filed in compliance with chapter 3908 RCW are resolved

CCBA Nuts amp Bolts on Construction Law - 45 of 49

(2) Every person performing labor or furnishing supplies toward the completion of a public improvement contract has a lien upon moneys reserved by a public body under the provisions of a public improvement contract However the notice of the lien of the claimant must be given within forty-five days of completion of the contract work and in the manner provided in RCW 3908030 (3) The contractor at any time may request the contract retainage be reduced to one hundred percent of the value of the work remaining on the project (a) After completion of all contract work other than landscaping the contractor may request that the public body release and pay in full the amounts retained during the performance of the contract and sixty days thereafter the public body must release and pay in full the amounts retained (other than continuing retention of five percent of the moneys earned for landscaping) subject to the provisions of chapters 3912 and 6028 RCW (b) Sixty days after completion of all contract work the public body must release and pay in full the amounts retained during the performance of the contract subject to the provisions of chapters 3912 and 6028 RCW (4) The moneys reserved by a public body under the provisions of a public improvement contract at the option of the contractor must be (a) Retained in a fund by the public body (b) Deposited by the public body in an interest bearing account in a bank mutual savings bank or savings and loan association Interest on moneys reserved by a public body under the provision of a public improvement contract must be paid to the contractor (c) Placed in escrow with a bank or trust company by the public body When the moneys reserved are placed in escrow the public body must issue a check representing the sum of the moneys reserved payable to the bank or trust company and the contractor jointly This check must be converted into bonds and securities chosen by the contractor and approved by the public body and the bonds and securities must be held in escrow Interest on the bonds and securities must be paid to the contractor as the interest accrues (5) The contractor or subcontractor may withhold payment of not more than five percent from the moneys earned by any subcontractor or sub-subcontractor or supplier contracted with by the contractor to provide labor materials or equipment to the public project Whenever the contractor or subcontractor reserves funds earned by a subcontractor or sub-subcontractor or

CCBA Nuts amp Bolts on Construction Law - 46 of 49

supplier the contractor or subcontractor must pay interest to the subcontractor or sub-subcontractor or supplier at a rate equal to that received by the contractor or subcontractor from reserved funds (6) A contractor may submit a bond for all or any portion of the contract retainage in a form acceptable to the public body and from a bonding company meeting standards established by the public body The public body must accept a bond meeting these requirements unless the public body can demonstrate good cause for refusing to accept it This bond and any proceeds therefrom are subject to all claims and liens and in the same manner and priority as set forth for retained percentages in this chapter The public body must release the bonded portion of the retained funds to the contractor within thirty days of accepting the bond from the contractor Whenever a public body accepts a bond in lieu of retained funds from a contractor the contractor must accept like bonds from any subcontractors or suppliers from which the contractor has retained funds The contractor must then release the funds retained from the subcontractor or supplier to the subcontractor or supplier within thirty days of accepting the bond from the subcontractor or supplier (7) If the public body administering a contract after a substantial portion of the work has been completed finds that an unreasonable delay will occur in the completion of the remaining portion of the contract for any reason not the result of a breach thereof it may if the contractor agrees delete from the contract the remaining work and accept as final the improvement at the stage of completion then attained and make payment in proportion to the amount of the work accomplished and in this case any amounts retained and accumulated under this section must be held for a period of sixty days following the completion In the event that the work is terminated before final completion as provided in this section the public body may thereafter enter into a new contract with the same contractor to perform the remaining work or improvement for an amount equal to or less than the cost of the remaining work as was provided for in the original contract without advertisement or bid The provisions of this chapter are exclusive and supersede all provisions and regulations in conflict herewith (8) Whenever the department of transportation has contracted for the construction of two or more ferry vessels sixty days after completion of all contract work on each ferry vessel the department must release and pay in full the amounts retained in connection with the construction of the vessel subject to the provisions of RCW 6028021 and chapter 3912 RCW However the department of transportation may at its discretion condition the release of funds retained in connection with the completed ferry upon the contractor delivering a good and sufficient bond with two or more sureties or with a surety company in the amount of the retained funds to be released to the contractor conditioned that no taxes may be certified or claims filed for work on the ferry after a period of sixty days following completion of the ferry and if taxes are certified or claims filed recovery may be had on the bond by the department of revenue the employment

CCBA Nuts amp Bolts on Construction Law - 47 of 49

security department the department of labor and industries and the material suppliers and laborers filing claims (9) Except as provided in subsection (1) of this section reservation by a public body for any purpose from the moneys earned by a contractor by fulfilling its responsibilities under public improvement contracts is prohibited (10) Contracts on projects funded in whole or in part by farmers home administration and subject to farmers home administration regulations are not subject to subsections (1) through (9) of this section (11) This subsection applies only to a public body that has contracted for the construction of a facility using the general contractorconstruction manager procedure as defined under RCW 3910210 If the work performed by a subcontractor on the project has been completed within the first half of the time provided in the general contractorconstruction manager contract for completing the work the public body may accept the completion of the subcontract The public body must give public notice of this acceptance After a forty-five day period for giving notice of liens and compliance with the retainage release procedures in RCW 6028021 the public body may release that portion of the retained funds associated with the subcontract Claims against the retained funds after the forty-five day period are not valid (12) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise (a) Contract retainage means an amount reserved by a public body from the moneys earned by a person under a public improvement contract (b) Person means a person or persons mechanic subcontractor or materialperson who performs labor or provides materials for a public improvement contract and any other person who supplies the person with provisions or supplies for the carrying on of a public improvement contract (c) Public body means the state or a county city town district board or other public body (d) Public improvement contract means a contract for public improvements or work other than for professional services or a work order as defined in RCW 3910210

CCBA Nuts amp Bolts on Construction Law - 48 of 49

RCW 6432070 Liens or encumbrances mdash Enforcement mdash Satisfaction

(1) Subsequent to recording the declaration as provided in this chapter and while the property remains subject to this chapter no lien shall thereafter arise or be effective against the property During such period liens or encumbrances shall arise or be created only against each apartment and the percentage of undivided interest in the common areas and facilities and appurtenant to such apartment in the same manner and under the same conditions in every respect as liens or encumbrances may arise or be created upon or against any other separate parcel of real property subject to individual ownership PROVIDED That no labor performed or materials furnished with the consent of or at the request of the owner of any apartment or such owners agent contractor or subcontractor shall be the basis for the filing of a lien against any other apartment or any other property of any other apartment owner not expressly consenting to or requesting the same except that such express consent shall be deemed to be given by any apartment owner in the case of emergency repairs Labor performed or materials furnished for the common areas and facilities if authorized by the association of apartment owners the manager or board of directors shall be deemed to be performed or furnished with the express consent of each apartment owner and shall be the basis for the filing of a lien against each of the apartments and shall be subject to the provisions of subsection (2) of this section (2) In the event a lien against two or more apartments becomes effective the apartment owners of the separate apartments may remove their apartment and the percentage of undivided interest in the common areas and facilities appurtenant to such apartment from the lien by payment of the fractional or proportional amounts attributable to each of the apartments affected Such individual payments shall be computed by reference to the percentages appearing on the declaration Subsequent to any such payment discharge or satisfaction the apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto shall thereafter be free and clear of the liens so paid satisfied or discharged Such partial payment satisfaction or discharge shall not prevent the lienor from proceeding to enforce his or her rights against any apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto not so paid satisfied or discharged

CCBA Nuts amp Bolts on Construction Law - 49 of 49

  • Cover Sheet
  • 20141110 - Washington Lien and Bond CLE
  • LampI Lien Summary
  • Claim of Lien
  • Form Notice to Owner
  • Model Disclosure Statement (Notice to Customer)
  • LampI Facts about Construction Liens
    • What you should know about contracts
    • How to protect your investment
    • For more information
      • Notice of Claim Against Bond and Retained Percentage
      • Preclaim Notice Bond amp Retained Percentage
      • Statute Handout
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geoptimaliseerd voor prepress-afdrukken van hoge kwaliteit De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 50 en hoger) NOR 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 PTB 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 SVE 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(Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false ConvertColors ConvertToCMYK DestinationProfileName () DestinationProfileSelector DocumentCMYK Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles false MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector DocumentCMYK PreserveEditing true UntaggedCMYKHandling LeaveUntagged UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ]gtgt setdistillerparamsltlt HWResolution [2400 2400] PageSize [612000 792000]gtgt setpagedevice

          1. To
          2. Date
          3. Re
          4. From
          5. AT THE REQUEST OF
          6. Sender
          7. Address
          8. Telephone
          9. Brief description of professional services materials or equipment provided or to be provided
          10. 1
          11. 2
          12. 3
          13. reg no
          14. deposit $
          15. expiration date
          16. claims up to $
          17. Reset

F625-054-000 construction lien notice 11-05 IMPORTANT INFORMATION ON PAGE 2

NOTICE TO OWNER IMPORTANT READ BOTH SIDES OF THIS NOTICE CAREFULLY

PROTECT YOURSELF FROM PAYING TWICE

To

Date

Re

From (Description of property street address or general location)

AT THE REQUEST OF Name of person ordering their professional services materials or equipment

THIS IS NOT A LIEN This notice is sent to you to tell you who is providing professional services materials or equipment for the improvement of your property and to advise you of the rights of these persons and your responsibilities Also take notice that laborers on your project may claim a lien without sending you a notice

OWNEROCCUPIER OF EXISTING RESIDENTIAL PROPERTY Under Washington law those who furnish labor professional services materials or equipment for the repair remodel or alteration of you owner-occupied principal residence and who are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien The law limits the amount that a lien claimant can claim against your property Claims may only be made against that portion of the contract price you have not yet paid to your prime contractor as of the time this notice was given to you or three days after this notice was mailed to you Review page 2 of this notice for more information and ways to avoid lien claims

COMMERCIAL ANDOR NEW RESIDENTIAL PROPERTY We have or will be providing professional services materials or equipment for the improvement of your commercial or new residential project In the event you or your contractor fail to pay us we may file a lien against your property A lien may be claimed for all professional services materials or equipment furnished after a date that is sixty days before this notice was given to you or mailed to you unless the improvement to you property is the construction of a new single-family residence then ten days before this notice was given to you or mailed to you

Sender

Address

Telephone

Brief description of professional services materials or equipment provided or to be provided

CCBA Nuts amp Bolts on Construction Law - 20 of 49

F625-054-000 construction lien notice page 2 11-05

Important Information for your Protection

This notice is sent to inform you that we have or will provide professional services materials or equipment for the repair remodel or alteration of you property We expect to be paid by the person who ordered our services but if we are not paid we have the right to enforce our claim by filing a construction lien against your property

LEARN more about the lien laws and the meaning of this notice by

discussing them with our contractor suppliers Department of Labor and Industries the firm sending you this notice your lender or your attorney

COMMON METHODS TO AVOID CONSTRUCTION LIENS

There are several methods available to protect your property from construction liens The following are two of the more commonly used methods

DUAL PAYCHECKS (Joint Checks) When paying your

contractor for services or materials you may make checks payable jointly to the contractor and the firms furnishing you this notice

LIEN RELEASES You may require your contractor to provide

lien releases signed by all the suppliers and subcontractors from whom you have received this notice If they cannot obtain lien releases because you have not paid them you may use the dual payee check method to protect yourself

You should take appropriate steps to protect your property from

liens

Your prime contractor and your construction lender are required by law to give you written information about lien claims If you have not received it ask them for it

CCBA Nuts amp Bolts on Construction Law - 21 of 49

F625-030-000 model disclosure statement notice to customer 09-2007

Department of Labor and Industries Construction Compliance

MODEL DISCLOSURE STATEMENTNOTICE TO CUSTOMER

This contractor is registered with the state of Washington registration no____________________ and has posted with the state a bond or deposit of ______________________ for the purpose of satisfying claims against the contractor for breach of contract including negligent or improper work in the conduct of the contractorrsquos business The expiration date of this contractorrsquos registration is ______________________

THIS BOND OR DEPOSIT MIGHT NOT BE SUFFICIENT TO COVER A CLAIM THAT MIGHT ARISE FROM THE WORK DONE UNDER YOUR CONTRACT This bond or deposit is not for your exclusive use because it covers all work performed by this contractor The bond or deposit is intended to pay valid claims up to ___________________________ that you and other customers suppliers subcontractors or taxing authorities may have FOR GREATER PROTECTION YOU MAY WITHHOLD A PERCENTAGE OF YOUR CONTRACT You may withhold a contractually defined percentage of your construction contract as retainage for a stated period of time to provide protection to you and help insure that your project will be completed as required by your contract

YOUR PROPERTY MAY BE LIENED If a supplier of materials used in your construction project or an employee or subcontractor of your contractor or subcontractors is not paid your property may be liened to force payment and you could pay twice for the same work FOR ADDITIONAL PROTECTION YOU MAY REQUEST THE CONTRACTOR TO PROVIDE YOU WITH ORIGINAL ldquoLIEN RELEASErdquo DOCUMENTS FROM EACH SUPPLIER OR SUBCONTRACTOR AT YOUR PROJECT The contractor is required to provide you with further information about lien release document if you request it General information is also available from the state Department of Labor and Industries I have received a copy of this disclosure statement Dated this _______ day of _______________ of the year __________

_____________________________________________________ Signature of Customer The contractor must retain a signed copy of the disclosure statement in his or her files for a minimum of three years and produce a signed or electronic signature copy of the disclosure statement to the department upon request

CCBA Nuts amp Bolts on Construction Law - 22 of 49

Facts About Construction LiensWhat you should know about contractsIf your contractor fails to pay subcontractors suppliers or laborers or neglects to make other legally required payments those who are owed money can look to your property for payment even if you have paid your contractor in full This is true if you have hired a contractor to build a new home or are buying a newly built home

It is also true when you remodel or improve your property although the amount of your liability may be limited to the amount you owe the prime contractor at the time a lien is filed

Under Washington laws those who work on your property or provide materials and are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien

People who supply materials or labor ordered by your contractor are permitted by law to file a lien only if they do so within 90 days of cessation of performance or delivery of materials The time frame is spelled out in RCW 6004091

If you enter into a contract to buy a newly built home you may not receive a notice of a lien based on a claim by a contractor or material handler Be aware that a lien may be claimed even though you have not received a notice

Before making final payment on the project request a completed lien release form from each contractor and material supplier A sample of this release of lien form is available from the Department of Labor amp Industries Contractor Registration Section

You have final responsibility for seeing that all bills are paid even if you have paid your contractor in full

If you receive a notice to enforce a lien take the notice seriously Let your contractor know you have received the notice Find out what arrangements are being made to pay the sender of the notice

When in doubt or if you need more details consult your attorney When and how to pay your contractor is a decision that requires serious consideration

Reminder Washington laws require contractors to give you a disclosure statement if your contract exceeds $1000 [RCW 1827114(A) or (B)]

CCBA Nuts amp Bolts on Construction Law - 23 of 49

PUBLICATION F625-017-000 [01-2008]

Other formats for persons with disabilities are available on request Call 1-800-647-0982 TDD users call 360-902-5797 LampI is an equal opportunity employer

For more information

How to protect your investment

If you are dealing with a lending institution ask your loan officer what precautions the lending institution takes to verify that subcontractors and material suppliers are being paid when mortgage money is paid to your contractor

Request lender supervision when dealing with a lending institution that provides interim or construction financing

Ask the prime contractor to disclose all potential lien claimants as a condition of payment A lien claimant must mail (by certified or registered mail or by personal service) a copy of the claim of lien to the owner within 14 days of the time the lien is recorded [RCW 6004091(2)] While an action is ongoing an owner may withhold from this prime contractor the amount of money for which a claim is recorded by a subcontractor supplier or laborer [RCW 6004151]

It is recommended that your check be made payable jointly naming the contractor and the subcontractor or supplier as payees

Upon payment and acceptance of the amount due the owner has the right to an executed release of all lien rights by lien claimants [RCW 6004071]

Consider using an escrow agent to protect your interests Find out whether your escrow agent will protect you against liens when disbursing payments If you are interested in this alternative consult your attorney

Request that your contractor post a performance bond in the amount of the project cost That will give you recourse in the event the contractor fails to complete the building agreement

8 On the Web Find more information about hiring a contractor at

wwwLniwagovTradesLicensingContractorsHireCon

Contractor Registration Hotline1-800-647-0982

You may also call your local LampI office See listings under ldquoWashington State ofrdquo in the government section or the white pages of the telephone book

Please note This notice was prepared by the Department of Labor amp Industries Specialty Compliance Services Division for reproduction by lending institutions and contractors for distribution to their clients It explains the basics of the construction lien law to help you protect yourself This information is not a reflection upon the abilities or credit of your contractor

CCBA Nuts amp Bolts on Construction Law - 24 of 49

NOTICE OF CLAIM AGAINST

BOND AND RETAINED PERCENTAGE

RCW 3908030 RCW 6028010

VIA CERTIFIED MAIL ndash RETURN RECEIPT REQUESTED

TO [Public Owner] [Public Ownerrsquos Address]

Project [Project Name amp Address] NOTICE IS HEREBY GIVEN that the undersigned [Claimant] [Claimantrsquos Address] has a claim in the amount of ----- and 00100 Dollars ($XX) (not including attorneysrsquo fees or costs) together with interest at twelve percent (12) against [Public Owner] (ldquoOwnerrdquo) pursuant to RCW 6028 and the payment bond taken from [Prime Contractor] (ldquoContractorrdquo) [Prime Contractorrsquos Address] as principal and [Surety Company] (ldquoSuretyrdquo) [Suretyrsquos Address] as surety Bond No ________ pursuant to RCW 3908 for [describe services material supplies labor furnished] provided on the Project This Notice of Claim Against Bond and Retained Percentage supersedes and replaces previous Notices DATED This ___day of _________ 201_ [Claimant] By ______________________________________ Its ______________________________________ [Claimantrsquos Address]

_________________________________________

[Contractors Registration No if applicable]

(Copies furnished to General Contractor and General Contractorrsquos Bonding Company)

CCBA Nuts amp Bolts on Construction Law - 25 of 49

PRECLAIM NOTICE TO CONTRACTOR BY SUBCONTRACTORS MATERIALMEN OR SUPPLIERS FOR

CLAIM AGAINST BOND AND RETAINED PERCENTAGE

VIA CERTIFIED OR REGISTERED MAIL- RETURN RECEIPT REQUESTED

TO [Name of General Contractor] [Address]

YOU ARE HEREBY NOTIFIED that the undersigned ____________at the request of_________________ commenced to deliver or furnish materials supplies andor equipment for the use in the construction alteration andor repair of that certain project known as____________________ [project name] which is located at ____________________________ [address or description] If the undersigned is not paid for these materials supplies andor equipment it will file a claim against you and your bond andor retainage pursuant to RCW 3908 andor 6028 et seq for payment of any sum that is due and owing to the undersigned

DATED This __ day of _____________ 201_

[Name of Claimant]

By ____________________________________

Its ____________________________________

Address ______________________________

__________________________________________

__________________________________________

[Contractors Registration No if applicable]

(Mail via certified mail return receipt requested or hand deliver and obtain receipt)

CCBA Nuts amp Bolts on Construction Law - 26 of 49

Washington Liens amp Bonds ndash Pertinent Statutes

RCW 1827040 Bond or other security required mdash Actions against mdash Suspension of registration upon impairment (1) Each applicant shall file with the department a surety bond issued by a surety insurer who meets the requirements of chapter 4828 RCW in the sum of twelve thousand dollars if the applicant is a general contractor and six thousand dollars if the applicant is a specialty contractor If no valid bond is already on file with the department at the time the application is filed a bond must accompany the registration application The bond shall have the state of Washington named as obligee with good and sufficient surety in a form to be approved by the department The bond shall be continuous and may be canceled by the surety upon the surety giving written notice to the director A cancellation or revocation of the bond or withdrawal of the surety from the bond automatically suspends the registration issued to the contractor until a new bond or reinstatement notice has been filed and approved as provided in this section The bond shall be conditioned that the applicant will pay all persons performing labor including employee benefits for the contractor will pay all taxes and contributions due to the state of Washington and will pay all persons furnishing material or renting or supplying equipment to the contractor and will pay all amounts that may be adjudged against the contractor by reason of breach of contract including improper work in the conduct of the contracting business A change in the name of a business or a change in the type of business entity shall not impair a bond for the purposes of this section so long as one of the original applicants for such bond maintains partial ownership in the business covered by the bond (2) At the time of initial registration or renewal the contractor shall provide a bond or other security deposit as required by this chapter and comply with all of the other provisions of this chapter before the department shall issue or renew the contractors certificate of registration Any contractor registered as of July 1 2001 who maintains that registration in accordance with this chapter is in compliance with this chapter until the next renewal of the contractors certificate of registration (3) Any person firm or corporation having a claim against the contractor for any of the items referred to in this section may bring suit against the contractor and the bond or deposit in the superior court of the county in which the work was done or of any county in which jurisdiction of the contractor may be had The surety issuing the bond shall be named as a party to any suit upon the bond Action upon the bond or deposit brought by a residential homeowner for breach of contract by a party to the construction contract shall be commenced by filing the summons and complaint with the clerk of the appropriate superior court within two years from the date the claimed contract work was substantially completed or abandoned whichever occurred first Action upon the bond or deposit brought by any other authorized party shall be commenced by filing the summons and complaint with the clerk of the appropriate superior court within one year from the date the claimed labor was performed and benefits accrued taxes and contributions owing the state of Washington became due materials and equipment were furnished or the claimed contract work was substantially completed or abandoned whichever occurred first Service of process in an action filed under this chapter against the contractor and the contractors bond or the deposit shall be exclusively by service upon the department Three

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copies of the summons and complaint and a fee adopted by rule of not less than fifty dollars to cover the costs shall be served by registered or certified mail or other delivery service requiring notice of receipt upon the department at the time suit is started and the department shall maintain a record available for public inspection of all suits so commenced Service is not complete until the department receives the fee and three copies of the summons and complaint The service shall constitute service and confer personal jurisdiction on the contractor and the surety for suit on claimants claim against the contractor and the bond or deposit and the department shall transmit the summons and complaint or a copy thereof to the contractor at the address listed in the contractors application and to the surety within two days after it shall have been received (4) The surety upon the bond shall not be liable in an aggregate amount in excess of the amount named in the bond nor for any monetary penalty assessed pursuant to this chapter for an infraction The liability of the surety shall not cumulate where the bond has been renewed continued reinstated reissued or otherwise extended The surety upon the bond may upon notice to the department and the parties tender to the clerk of the court having jurisdiction of the action an amount equal to the claims thereunder or the amount of the bond less the amount of judgments if any previously satisfied therefrom and to the extent of such tender the surety upon the bond shall be exonerated but if the actions commenced and pending and provided to the department as required in subsection (3) of this section at any one time exceed the amount of the bond then unimpaired claims shall be satisfied from the bond in the following order (a) Employee labor and claims of laborers including employee benefits (b) Claims for breach of contract by a party to the construction contract (c) Registered or licensed subcontractors material and equipment (d) Taxes and contributions due the state of Washington (e) Any court costs interest and attorneys fees plaintiff may be entitled to recover The surety is not liable for any amount in excess of the penal limit of its bond A payment made by the surety in good faith exonerates the bond to the extent of any payment made by the surety (5) The total amount paid from a bond or deposit required of a general contractor by this section to claimants other than residential homeowners must not exceed one-half of the bond amount The total amount paid from a bond or deposit required of a specialty contractor by this section to claimants other than residential homeowners must not exceed one-half of the bond amount or four thousand dollars whichever is greater (6) The prevailing party in an action filed under this section against the contractor and contractors bond or deposit for breach of contract by a party to the construction contract involving a residential homeowner is entitled to costs interest and reasonable attorneys fees The surety upon the bond or deposit is not liable in an aggregate amount in excess of the amount

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named in the bond or deposit nor for any monetary penalty assessed pursuant to this chapter for an infraction (7) If a final judgment impairs the liability of the surety upon the bond or deposit so furnished that there is not in effect a bond or deposit in the full amount prescribed in this section the registration of the contractor is automatically suspended until the bond or deposit liability in the required amount unimpaired by unsatisfied judgment claims is furnished (8) In lieu of the surety bond required by this section the contractor may file with the department an assigned savings account upon forms provided by the department (9) Any person having filed and served a summons and complaint as required by this section having an unsatisfied final judgment against the registrant for any items referred to in this section may execute upon the security held by the department by serving a certified copy of the unsatisfied final judgment by registered or certified mail upon the department within one year of the date of entry of such judgment Upon the receipt of service of such certified copy the department shall pay or order paid from the deposit through the registry of the superior court which rendered judgment towards the amount of the unsatisfied judgment The priority of payment by the department shall be the order of receipt by the department but the department shall have no liability for payment in excess of the amount of the deposit (10) Within ten days after resolution of the case a certified copy of the final judgment and order or any settlement documents where a case is not disposed of by a court trial a certified copy of the dispositive settlement documents must be provided to the department by the prevailing party Failure to provide a copy of the final judgment and order or the dispositive settlement documents to the department within ten days of entry of such an order constitutes a violation of this chapter and a penalty adopted by rule of not less than two hundred fifty dollars may be assessed against the prevailing party (11) The director may require an applicant applying to renew or reinstate a registration or applying for a new registration to file a bond of up to three times the normally required amount if the director determines that an applicant or a previous registration of a corporate officer owner or partner of a current applicant has had in the past five years a total of three final judgments in actions under this chapter involving a residential single-family dwelling on two or more different structures (12) The director may adopt rules necessary for the proper administration of the security RCW 1827114 Disclosure statement required mdash Prerequisite to lien claim

(1) Any contractor agreeing to perform any contracting project (a) For the repair alteration or construction of four or fewer residential units or accessory structures on such residential property when the bid or contract price totals one thousand dollars or more or (b) for the repair alteration or construction of a commercial building when the bid or contract price totals one thousand dollars or more but less than sixty thousand dollars must provide the customer with

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the following disclosure statement in substantially the following form using lower case and upper case twelve-point and bold type where appropriate prior to starting work on the project NOTICE TO CUSTOMER This contractor is registered with the state of Washington registration no and has posted with the state a bond or deposit of for the purpose of satisfying claims against the contractor for breach of contract including negligent or improper work in the conduct of the contractors business The expiration date of this contractors registration is THIS BOND OR DEPOSIT MIGHT NOT BE SUFFICIENT TO COVER A CLAIM THAT MIGHT ARISE FROM THE WORK DONE UNDER YOUR CONTRACT This bond or deposit is not for your exclusive use because it covers all work performed by this contractor The bond or deposit is intended to pay valid claims up to that you and other customers suppliers subcontractors or taxing authorities may have FOR GREATER PROTECTION YOU MAY WITHHOLD A PERCENTAGE OF YOUR CONTRACT You may withhold a contractually defined percentage of your construction contract as retainage for a stated period of time to provide protection to you and help insure that your project will be completed as required by your contract YOUR PROPERTY MAY BE LIENED If a supplier of materials used in your construction project or an employee or subcontractor of your contractor or subcontractors is not paid your property may be liened to force payment and you could pay twice for the same work FOR ADDITIONAL PROTECTION YOU MAY REQUEST THE CONTRACTOR TO PROVIDE YOU WITH ORIGINAL LIEN RELEASE DOCUMENTS FROM EACH SUPPLIER OR SUBCONTRACTOR ON YOUR PROJECT The contractor is required to provide you with further information about lien release documents if you request it General information is also available from the state Department of Labor and Industries I have received a copy of this disclosure statement

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(Signature of customer) (2) The contractor must retain a signed copy of the disclosure statement in his or her files for a minimum of three years and produce a signed or electronic signature copy of the disclosure statement to the department upon request (3) A contractor subject to this section shall notify any consumer to whom notice is required under subsection (1) of this section if the contractors registration has expired or is revoked or suspended by the department prior to completion or other termination of the contract with the consumer (4) No contractor subject to this section may bring or maintain any lien claim under chapter 6004 RCW based on any contract to which this section applies without alleging and proving that the contractor has provided the customer with a copy of the disclosure statement as required in subsection (1) of this section (5) This section does not apply to contracts authorized under chapter 3904 RCW or to contractors contracting with other contractors (6) Failure to comply with this section shall constitute an infraction under the provisions of this chapter (7) The department shall produce model disclosure statements and public service announcements detailing the information needed to assist contractors and contractors customers to comply under this section As necessary the department shall periodically update these education materials RCW 3908010 Bond required mdash Conditions mdash Retention of contract amount in lieu of bond (1)(a) Whenever any board council commission trustees or body acting for the state or any county or municipality or any public body must contract with any person or corporation to do any work for the state county or municipality or other public body city town or district such board council commission trustees or body must require the person or persons with whom such contract is made to make execute and deliver to such board council commission trustees or body a good and sufficient bond with a surety company as surety conditioned that such person or persons must (i) Faithfully perform all the provisions of such contract (ii) Pay all laborers mechanics and subcontractors and material suppliers and all persons who supply such person or persons or subcontractors with provisions and supplies for the carrying on of such work and

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(iii) Pay the taxes increases and penalties incurred on the project under Titles 50 51 and 82 RCW on (A) Projects referred to in RCW 6028011(1)(b) andor (B) projects for which the bond is conditioned on the payment of such taxes increases and penalties (b) The bond in cases of cities and towns must be filed with the clerk or comptroller thereof and any person or persons performing such services or furnishing material to any subcontractor has the same right under the provisions of such bond as if such work services or material was furnished to the original contractor (2) The provisions of RCW 3908010 through 3908030 do not apply to any money loaned or advanced to any such contractor subcontractor or other person in the performance of any such work (3) On contracts of thirty-five thousand dollars or less at the option of the contractor the respective public entity may in lieu of the bond retain fifty percent of the contract amount for a period of thirty days after date of final acceptance or until receipt of all necessary releases from the department of revenue the employment security department and the department of labor and industries and settlement of any liens filed under chapter 6028 RCW whichever is later (4) For contracts of one hundred thousand dollars or less the public entity may accept a full payment and performance bond from an individual surety or sureties (5) The surety must agree to be bound by the laws of the state of Washington and subjected to the jurisdiction of the state of Washington RCW 6004011 Definitions

Unless the context requires otherwise the definitions in this section apply throughout this chapter (1) Construction agent means any registered or licensed contractor registered or licensed subcontractor architect engineer or other person having charge of any improvement to real property who shall be deemed the agent of the owner for the limited purpose of establishing the lien created by this chapter (2) Contract price means the amount agreed upon by the contracting parties or if no amount is agreed upon then the customary and reasonable charge therefor (3) Draws means periodic disbursements of interim or construction financing by a lender (4) Furnishing labor professional services materials or equipment means the performance of any labor or professional services the contribution owed to any employee benefit plan on account of any labor the provision of any supplies or materials and the renting leasing or

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otherwise supplying of equipment for the improvement of real property (5) Improvement means (a) Constructing altering repairing remodeling demolishing clearing grading or filling in of to or upon any real property or street or road in front of or adjoining the same (b) planting of trees vines shrubs plants hedges or lawns or providing other landscaping materials on any real property and (c) providing professional services upon real property or in preparation for or in conjunction with the intended activities in (a) or (b) of this subsection (6) Interim or construction financing means that portion of money secured by a mortgage deed of trust or other encumbrance to finance improvement of or to real property but does not include (a) Funds to acquire real property (b) Funds to pay interest insurance premiums lease deposits taxes assessments or prior encumbrances (c) Funds to pay loan commitment title legal closing recording or appraisal fees (d) Funds to pay other customary fees which pursuant to agreement with the owner or borrower are to be paid by the lender from time to time (e) Funds to acquire personal property for which the potential lien claimant may not claim a lien pursuant to this chapter (7) Labor means exertion of the powers of body or mind performed at the site for compensation Labor includes amounts due and owed to any employee benefit plan on account of such labor performed (8) Mortgagee means a person who has a valid mortgage of record or deed of trust of record securing a loan (9) Owner-occupied means a single-family residence occupied by the owner as his or her principal residence (10) Payment bond means a surety bond issued by a surety licensed to issue surety bonds in the state of Washington that confers upon potential claimants the rights of third party beneficiaries (11) Potential lien claimant means any person or entity entitled to assert lien rights under this chapter who has otherwise complied with the provisions of this chapter and is registered or licensed if required to be licensed or registered by the provisions of the laws of the state of Washington (12) Prime contractor includes all contractors general contractors and specialty

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contractors as defined by chapter 1827 or 1928 RCW or who are otherwise required to be registered or licensed by law who contract directly with a property owner or their common law agent to assume primary responsibility for the creation of an improvement to real property and includes property owners or their common law agents who are contractors general contractors or specialty contractors as defined in chapter 1827 or 1928 RCW or who are otherwise required to be registered or licensed by law who offer to sell their property without occupying or using the structures projects developments or improvements for more than one year (13) Professional services means surveying establishing or marking the boundaries of preparing maps plans or specifications for or inspecting testing or otherwise performing any other architectural or engineering services for the improvement of real property (14) Real property lender means a bank savings bank savings and loan association credit union mortgage company or other corporation association partnership trust or individual that makes loans secured by real property located in the state of Washington (15) Site means the real property which is or is to be improved (16) Subcontractor means a general contractor or specialty contractor as defined by chapter 1827 or 1928 RCW or who is otherwise required to be registered or licensed by law who contracts for the improvement of real property with someone other than the owner of the property or their common law agent

6004021 Lien authorized

Except as provided in RCW 6004031 any person furnishing labor professional services materials or equipment for the improvement of real property shall have a lien upon the improvement for the contract price of labor professional services materials or equipment furnished at the instance of the owner or the agent or construction agent of the owner

6004031 Notices mdash Exceptions

(1) Except as otherwise provided in this section every person furnishing professional services materials or equipment for the improvement of real property shall give the owner or reputed owner notice in writing of the right to claim a lien If the prime contractor is in compliance with the requirements of RCW 1927095 6004230 and 6004261 this notice shall also be given to the prime contractor as described in this subsection unless the potential lien claimant has contracted directly with the prime contractor The notice may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after the date which is sixty days before (a) Mailing the notice by certified or registered mail to the owner or reputed owner or

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(b) Delivering or serving the notice personally upon the owner or reputed owner and obtaining evidence of delivery in the form of a receipt or other acknowledgment signed by the owner or reputed owner or an affidavit of service In the case of new construction of a single-family residence the notice of a right to claim a lien may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after a date which is ten days before the notice is given as described in this subsection (2) Notices of a right to claim a lien shall not be required of (a) Persons who contract directly with the owner or the owners common law agent (b) Laborers whose claim of lien is based solely on performing labor or (c) Subcontractors who contract for the improvement of real property directly with the prime contractor except as provided in subsection (3)(b) of this section (3) Persons who furnish professional services materials or equipment in connection with the repair alteration or remodel of an existing owner-occupied single-family residence or appurtenant garage (a) Who contract directly with the owner-occupier or their common law agent shall not be required to send a written notice of the right to claim a lien and shall have a lien for the full amount due under their contract as provided in RCW 6004021 or (b) Who do not contract directly with the owner-occupier or their common law agent shall give notice of the right to claim a lien to the owner-occupier Liens of persons furnishing professional services materials or equipment who do not contract directly with the owner-occupier or their common law agent may only be satisfied from amounts not yet paid to the prime contractor by the owner at the time the notice described in this section is received regardless of whether amounts not yet paid to the prime contractor are due For the purposes of this subsection received means actual receipt of notice by personal service or registered or certified mail or three days after mailing by registered or certified mail excluding Saturdays Sundays or legal holidays (4) The notice of right to claim a lien described in subsection (1) of this section shall include but not be limited to the following information and shall substantially be in the following form using lower-case and upper-case ten-point type where appropriate

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NOTICE TO OWNER

IMPORTANT READ BOTH SIDES OF THIS NOTICE CAREFULLY

PROTECT YOURSELF FROM PAYING TWICE

To Date

Re (description of property Street address or general location) From AT THE REQUEST OF (Name of person ordering the professional services materials or equipment) THIS IS NOT A LIEN This notice is sent to you to tell you who is providing professional services materials or equipment for the improvement of your property and to advise you of the rights of these persons and your responsibilities Also take note that laborers on your project may claim a lien without sending you a notice

OWNEROCCUPIER OF EXISTING

RESIDENTIAL PROPERTY

Under Washington law those who furnish labor professional services materials or equipment for the repair remodel or alteration of your owner-occupied principal residence and who are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien The law limits the amount that a lien claimant can claim against your property Claims may only be made against that portion of the contract price you have not yet paid to your prime contractor as of the time this notice was given to you or three days after this notice was mailed to you Review the back of this notice for more information and ways to avoid lien claims

COMMERCIAL ANDOR NEW

RESIDENTIAL PROPERTY

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We have or will be providing professional services materials or equipment for the improvement of your commercial or new residential project In the event you or your contractor fail to pay us we may file a lien against your property A lien may be claimed for all professional services materials or equipment furnished after a date that is sixty days before this notice was given to you or mailed to you unless the improvement to your property is the construction of a new single-family residence then ten days before this notice was given to you or mailed to you Sender Address Telephone Brief description of professional services materials or equipment provided or to be provided

IMPORTANT INFORMATION

ON REVERSE SIDE

IMPORTANT INFORMATION

FOR YOUR PROTECTION This notice is sent to inform you that we have or will provide professional services materials or equipment for the improvement of your property We expect to be paid by the person who ordered our services but if we are not paid we have the right to enforce our claim by filing a construction lien against your property LEARN more about the lien laws and the meaning of this notice by discussing them with your contractor suppliers Department of Labor and Industries the firm sending you this notice your lender or your attorney

COMMON METHODS TO AVOID CONSTRUCTION LIENS There are several methods available to protect your property from construction liens The following are two of the more commonly used methods

DUAL PAYCHECKS (Joint Checks) When paying your contractor for services or materials you may make checks payable jointly to the contractor and the firms furnishing you this notice

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LIEN RELEASES You may require your contractor to provide lien releases signed by all the suppliers and subcontractors from whom you have received this notice If they cannot obtain lien releases because you have not paid them you may use the dual payee check method to protect yourself

YOU SHOULD TAKE APPROPRIATE STEPS TO PROTECT YOUR PROPERTY FROM LIENS YOUR PRIME CONTRACTOR AND YOUR CONSTRUCTION LENDER ARE REQUIRED BY LAW TO GIVE YOU WRITTEN INFORMATION ABOUT LIEN CLAIMS IF YOU HAVE NOT RECEIVED IT ASK THEM FOR IT

(5) Every potential lien claimant providing professional services where no improvement as defined in RCW 6004011(5) (a) or (b) has been commenced and the professional services provided are not visible from an inspection of the real property may record in the real property records of the county where the property is located a notice which shall contain the professional service providers name address telephone number legal description of the property the owner or reputed owners name and the general nature of the professional services provided If such notice is not recorded the lien claimed shall be subordinate to the interest of any subsequent mortgagee and invalid as to the interest of any subsequent purchaser if the mortgagee or purchaser acts in good faith and for a valuable consideration acquires an interest in the property prior to the commencement of an improvement as defined in RCW 6004011(5) (a) or (b) without notice of the professional services being provided The notice described in this subsection shall be substantially in the following form

NOTICE OF FURNISHING

PROFESSIONAL SERVICES That on the (day) day of (month and year) (name of provider) began providing professional services upon or for the improvement of real property legally described as follows

[Legal Description is mandatory]

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The general nature of the professional services provided is The owner or reputed owner of the real property is

(Signature)

(Name of Claimant)

(Street Address)

(City State Zip Code)

(Phone Number)

(6) A lien authorized by this chapter shall not be enforced unless the lien claimant has complied with the applicable provisions of this section

6004041 Contractor registration

A contractor or subcontractor required to be registered under chapter 1827 RCW or licensed under chapter 1928 RCW or otherwise required to be registered or licensed by law shall be deemed the construction agent of the owner for the purposes of establishing the lien created by this chapter only if so registered or licensed Persons dealing with contractors or subcontractors may rely for the purposes of this section upon a certificate of registration issued pursuant to chapter 1827 RCW or license issued pursuant to chapter 1928 RCW or other certificate or license issued pursuant to law covering the period when the labor professional services material or equipment shall be furnished and the lien rights shall not be lost by suspension or revocation of registration or license without their knowledge No lien rights described in this

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chapter shall be lost or denied by virtue of the absence suspension or revocation of such registration or license with respect to any contractor or subcontractor not in immediate contractual privity with the lien claimant

6004081 Frivolous claim mdash Procedure

(1) Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who believes the claim of lien to be frivolous and made without reasonable cause or clearly excessive may apply by motion to the superior court for the county where the property or some part thereof is located for an order directing the lien claimant to appear before the court at a time no earlier than six nor later than fifteen days following the date of service of the application and order on the lien claimant and show cause if any he or she has why the relief requested should not be granted The motion shall state the grounds upon which relief is asked and shall be supported by the affidavit of the applicant or his or her attorney setting forth a concise statement of the facts upon which the motion is based (2) The order shall clearly state that if the lien claimant fails to appear at the time and place noted the lien shall be released with prejudice and that the lien claimant shall be ordered to pay the costs requested by the applicant including reasonable attorneys fees (3) If no action to foreclose the lien claim has been filed the clerk of the court shall assign a cause number to the application and obtain from the applicant a filing fee pursuant to RCW 3618016 If an action has been filed to foreclose the lien claim the application shall be made a part of that action (4) If following a hearing on the matter the court determines that the lien is frivolous and made without reasonable cause or clearly excessive the court shall issue an order releasing the lien if frivolous and made without reasonable cause or reducing the lien if clearly excessive and awarding costs and reasonable attorneys fees to the applicant to be paid by the lien claimant If the court determines that the lien is not frivolous and was made with reasonable cause and is not clearly excessive the court shall issue an order so stating and awarding costs and reasonable attorneys fees to the lien claimant to be paid by the applicant (5) Proceedings under this section shall not affect other rights and remedies available to the parties under this chapter or otherwise

6004091 Recording mdash Time mdash Contents of lien

Every person claiming a lien under RCW 6004021 shall file for recording in the county where the subject property is located a notice of claim of lien not later than ninety days after the person

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has ceased to furnish labor professional services materials or equipment or the last date on which employee benefit contributions were due The notice of claim of lien (1) Shall state in substance and effect (a) The name phone number and address of the claimant (b) The first and last date on which the labor professional services materials or equipment was furnished or employee benefit contributions were due (c) The name of the person indebted to the claimant (d) The street address legal description or other description reasonably calculated to identify for a person familiar with the area the location of the real property to be charged with the lien (e) The name of the owner or reputed owner of the property if known and if not known that fact shall be stated and (f) The principal amount for which the lien is claimed (2) Shall be signed by the claimant or some person authorized to act on his or her behalf who shall affirmatively state they have read the notice of claim of lien and believe the notice of claim of lien to be true and correct under penalty of perjury and shall be acknowledged pursuant to chapter 6408 RCW If the lien has been assigned the name of the assignee shall be stated Where an action to foreclose the lien has been commenced such notice of claim of lien may be amended as pleadings may be by order of the court insofar as the interests of third parties are not adversely affected by such amendment A claim of lien substantially in the following form shall be sufficient

CLAIM OF LIEN

claimant vs name of person indebted to claimant

Notice is hereby given that the person named below claims a lien pursuant to chapter 6404 RCW In support of this lien the following information is submitted

1 NAME OF LIEN CLAIMANT

TELEPHONE NUMBER

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ADDRESS

2 DATE ON WHICH THE CLAIMANT BEGAN TO PERFORM LABOR PROVIDE PROFESSIONAL SERVICES SUPPLY MATERIAL OR EQUIPMENT OR THE DATE ON WHICH EMPLOYEE BENEFIT CONTRIBUTIONS BECAME DUE

3 NAME OF PERSON INDEBTED TO THE CLAIMANT

4 DESCRIPTION OF THE PROPERTY AGAINST WHICH A LIEN IS CLAIMED (Street address legal description or other information that will reasonably describe the property)

5 NAME OF THE OWNER OR REPUTED OWNER (If not known state unknown)

6 THE LAST DATE ON WHICH LABOR WAS PERFORMED PROFESSIONAL SERVICES WERE FURNISHED CONTRIBUTIONS TO AN EMPLOYEE BENEFIT PLAN WERE DUE OR MATERIAL OR EQUIPMENT WAS FURNISHED

7 PRINCIPAL AMOUNT FOR WHICH THE LIEN IS CLAIMED IS

8 IF THE CLAIMANT IS THE ASSIGNEE OF THIS CLAIM SO STATE HERE

Claimant

(Phone number address city

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and

state of claimant)

STATE OF WASHINGTON COUNTY OF ss being sworn says I am the claimant (or attorney of the claimant or administrator representative or agent of the trustees of an employee benefit plan) above named I have read or heard the foregoing claim read and know the contents thereof and believe the same to be true and correct and that the claim of lien is not frivolous and is made with reasonable cause and is not clearly excessive under penalty of perjury Subscribed and sworn to before me this day of The period provided for recording the claim of lien is a period of limitation and no action to foreclose a lien shall be maintained unless the claim of lien is filed for recording within the ninety-day period stated The lien claimant shall give a copy of the claim of lien to the owner or reputed owner by mailing it by certified or registered mail or by personal service within fourteen days of the time the claim of lien is filed for recording Failure to do so results in a forfeiture of any right the claimant may have to attorneys fees and costs against the owner under RCW 6004181

6004161 Bond in lieu of claim

Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who disputes the correctness or validity of the claim of lien may record either before or after the commencement of an action to enforce the lien in the office of the county recorder or auditor in the county where the claim of lien was recorded a bond issued by a surety company authorized to issue surety bonds in the state The surety shall be listed in the latest federal department of the treasury list of surety companies acceptable on federal bonds published in the Federal Register as authorized to issue bonds on United States government projects with an underwriting limitation including applicable reinsurance equal to or greater than the amount of the bond to be recorded The bond shall contain a description of the claim of lien and real property involved and be in an amount equal to the greater of five thousand dollars or two times the amount of the lien claimed if it is ten thousand dollars or less and in an amount equal to or greater than one and one-half times the amount of the lien if it is in

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excess of ten thousand dollars If the claim of lien affects more than one parcel of real property and is segregated to each parcel the bond may be segregated the same as in the claim of lien A separate bond shall be required for each claim of lien made by separate claimants However a single bond may be used to guarantee payment of amounts claimed by more than one claim of lien by a single claimant so long as the amount of the bond meets the requirements of this section as applied to the aggregate sum of all claims by such claimant The condition of the bond shall be to guarantee payment of any judgment upon the lien in favor of the lien claimant entered in any action to recover the amount claimed in a claim of lien or on the claim asserted in the claim of lien The effect of recording a bond shall be to release the real property described in the notice of claim of lien from the lien and any action brought to recover the amount claimed Unless otherwise prohibited by law if no action is commenced to recover on a lien within the time specified in RCW 6004141 the surety shall be discharged from liability under the bond If an action is timely commenced then on payment of any judgment entered in the action or on payment of the full amount of the bond to the holder of the judgment whichever is less the surety shall be discharged from liability under the bond Nothing in this section shall in any way prohibit or limit the use of other methods devised by the affected parties to secure the obligation underlying a claim of lien and to obtain a release of real property from a claim of lien

6004181 Rank of lien mdash Application of proceeds mdash Attorneys fees

(1) In every case in which different construction liens are claimed against the same property the court shall declare the rank of such lien or class of liens which liens shall be in the following order (a) Liens for the performance of labor (b) Liens for contributions owed to employee benefit plans (c) Liens for furnishing material supplies or equipment (d) Liens for subcontractors including but not limited to their labor and materials and (e) Liens for prime contractors or for professional services (2) The proceeds of the sale of property must be applied to each lien or class of liens in order of its rank and in an action brought to foreclose a lien pro rata among each claimant in each separate priority class A personal judgment may be rendered against any party personally liable for any debt for which the lien is claimed If the lien is established the judgment shall provide

CCBA Nuts amp Bolts on Construction Law - 44 of 49

for the enforcement thereof upon the property liable as in the case of foreclosure of judgment liens The amount realized by such enforcement of the lien shall be credited upon the proper personal judgment The deficiency if any remaining unsatisfied shall stand as a personal judgment and may be collected by execution against any party liable therefor (3) The court may allow the prevailing party in the action whether plaintiff or defendant as part of the costs of the action the moneys paid for recording the claim of lien costs of title report bond costs and attorneys fees and necessary expenses incurred by the attorney in the superior court court of appeals supreme court or arbitration as the court or arbitrator deems reasonable Such costs shall have the priority of the class of lien to which they are related as established by subsection (1) of this section (4) Real property against which a lien under this chapter is enforced may be ordered sold by the court and the proceeds deposited into the registry of the clerk of the court pending further determination respecting distribution of the proceeds of the sale

6004900 Liberal construction mdash 1991 c 281

RCW 1927095 6004230 and 6004011 through 6004226 and 6004261 are to be liberally construed to provide security for all parties intended to be protected by their provisions

RCW 6028011

Retained percentage mdash Public transportation projects mdash Labor and material lien created mdash Bond in lieu of retained funds mdash Termination before completion mdash Chapter deemed exclusive mdash Release of ferry contract payments mdash Projects of farmers home administration mdash General contractorconstruction manager procedure mdash Definitions

(1)(a) Except as provided in (b) of this subsection public improvement contracts must provide and public bodies must reserve a contract retainage not to exceed five percent of the moneys earned by the contractor as a trust fund for the protection and payment of (i) The claims of any person arising under the contract and (ii) the state with respect to taxes increases and penalties imposed pursuant to Titles 50 51 and 82 RCW which may be due from such contractor (b) Public improvement contracts funded in whole or in part by federal transportation funds must rely upon the contract bond as referred to in chapter 3908 RCW for the protection and payment of (i) The claims of any person or persons arising under the contract to the extent such claims are provided for in RCW 3908010 and (ii) the state with respect to taxes increases and penalties incurred on the public improvement project under Titles 50 51 and 82 RCW which may be due The contract bond must remain in full force and effect until at a minimum all claims filed in compliance with chapter 3908 RCW are resolved

CCBA Nuts amp Bolts on Construction Law - 45 of 49

(2) Every person performing labor or furnishing supplies toward the completion of a public improvement contract has a lien upon moneys reserved by a public body under the provisions of a public improvement contract However the notice of the lien of the claimant must be given within forty-five days of completion of the contract work and in the manner provided in RCW 3908030 (3) The contractor at any time may request the contract retainage be reduced to one hundred percent of the value of the work remaining on the project (a) After completion of all contract work other than landscaping the contractor may request that the public body release and pay in full the amounts retained during the performance of the contract and sixty days thereafter the public body must release and pay in full the amounts retained (other than continuing retention of five percent of the moneys earned for landscaping) subject to the provisions of chapters 3912 and 6028 RCW (b) Sixty days after completion of all contract work the public body must release and pay in full the amounts retained during the performance of the contract subject to the provisions of chapters 3912 and 6028 RCW (4) The moneys reserved by a public body under the provisions of a public improvement contract at the option of the contractor must be (a) Retained in a fund by the public body (b) Deposited by the public body in an interest bearing account in a bank mutual savings bank or savings and loan association Interest on moneys reserved by a public body under the provision of a public improvement contract must be paid to the contractor (c) Placed in escrow with a bank or trust company by the public body When the moneys reserved are placed in escrow the public body must issue a check representing the sum of the moneys reserved payable to the bank or trust company and the contractor jointly This check must be converted into bonds and securities chosen by the contractor and approved by the public body and the bonds and securities must be held in escrow Interest on the bonds and securities must be paid to the contractor as the interest accrues (5) The contractor or subcontractor may withhold payment of not more than five percent from the moneys earned by any subcontractor or sub-subcontractor or supplier contracted with by the contractor to provide labor materials or equipment to the public project Whenever the contractor or subcontractor reserves funds earned by a subcontractor or sub-subcontractor or

CCBA Nuts amp Bolts on Construction Law - 46 of 49

supplier the contractor or subcontractor must pay interest to the subcontractor or sub-subcontractor or supplier at a rate equal to that received by the contractor or subcontractor from reserved funds (6) A contractor may submit a bond for all or any portion of the contract retainage in a form acceptable to the public body and from a bonding company meeting standards established by the public body The public body must accept a bond meeting these requirements unless the public body can demonstrate good cause for refusing to accept it This bond and any proceeds therefrom are subject to all claims and liens and in the same manner and priority as set forth for retained percentages in this chapter The public body must release the bonded portion of the retained funds to the contractor within thirty days of accepting the bond from the contractor Whenever a public body accepts a bond in lieu of retained funds from a contractor the contractor must accept like bonds from any subcontractors or suppliers from which the contractor has retained funds The contractor must then release the funds retained from the subcontractor or supplier to the subcontractor or supplier within thirty days of accepting the bond from the subcontractor or supplier (7) If the public body administering a contract after a substantial portion of the work has been completed finds that an unreasonable delay will occur in the completion of the remaining portion of the contract for any reason not the result of a breach thereof it may if the contractor agrees delete from the contract the remaining work and accept as final the improvement at the stage of completion then attained and make payment in proportion to the amount of the work accomplished and in this case any amounts retained and accumulated under this section must be held for a period of sixty days following the completion In the event that the work is terminated before final completion as provided in this section the public body may thereafter enter into a new contract with the same contractor to perform the remaining work or improvement for an amount equal to or less than the cost of the remaining work as was provided for in the original contract without advertisement or bid The provisions of this chapter are exclusive and supersede all provisions and regulations in conflict herewith (8) Whenever the department of transportation has contracted for the construction of two or more ferry vessels sixty days after completion of all contract work on each ferry vessel the department must release and pay in full the amounts retained in connection with the construction of the vessel subject to the provisions of RCW 6028021 and chapter 3912 RCW However the department of transportation may at its discretion condition the release of funds retained in connection with the completed ferry upon the contractor delivering a good and sufficient bond with two or more sureties or with a surety company in the amount of the retained funds to be released to the contractor conditioned that no taxes may be certified or claims filed for work on the ferry after a period of sixty days following completion of the ferry and if taxes are certified or claims filed recovery may be had on the bond by the department of revenue the employment

CCBA Nuts amp Bolts on Construction Law - 47 of 49

security department the department of labor and industries and the material suppliers and laborers filing claims (9) Except as provided in subsection (1) of this section reservation by a public body for any purpose from the moneys earned by a contractor by fulfilling its responsibilities under public improvement contracts is prohibited (10) Contracts on projects funded in whole or in part by farmers home administration and subject to farmers home administration regulations are not subject to subsections (1) through (9) of this section (11) This subsection applies only to a public body that has contracted for the construction of a facility using the general contractorconstruction manager procedure as defined under RCW 3910210 If the work performed by a subcontractor on the project has been completed within the first half of the time provided in the general contractorconstruction manager contract for completing the work the public body may accept the completion of the subcontract The public body must give public notice of this acceptance After a forty-five day period for giving notice of liens and compliance with the retainage release procedures in RCW 6028021 the public body may release that portion of the retained funds associated with the subcontract Claims against the retained funds after the forty-five day period are not valid (12) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise (a) Contract retainage means an amount reserved by a public body from the moneys earned by a person under a public improvement contract (b) Person means a person or persons mechanic subcontractor or materialperson who performs labor or provides materials for a public improvement contract and any other person who supplies the person with provisions or supplies for the carrying on of a public improvement contract (c) Public body means the state or a county city town district board or other public body (d) Public improvement contract means a contract for public improvements or work other than for professional services or a work order as defined in RCW 3910210

CCBA Nuts amp Bolts on Construction Law - 48 of 49

RCW 6432070 Liens or encumbrances mdash Enforcement mdash Satisfaction

(1) Subsequent to recording the declaration as provided in this chapter and while the property remains subject to this chapter no lien shall thereafter arise or be effective against the property During such period liens or encumbrances shall arise or be created only against each apartment and the percentage of undivided interest in the common areas and facilities and appurtenant to such apartment in the same manner and under the same conditions in every respect as liens or encumbrances may arise or be created upon or against any other separate parcel of real property subject to individual ownership PROVIDED That no labor performed or materials furnished with the consent of or at the request of the owner of any apartment or such owners agent contractor or subcontractor shall be the basis for the filing of a lien against any other apartment or any other property of any other apartment owner not expressly consenting to or requesting the same except that such express consent shall be deemed to be given by any apartment owner in the case of emergency repairs Labor performed or materials furnished for the common areas and facilities if authorized by the association of apartment owners the manager or board of directors shall be deemed to be performed or furnished with the express consent of each apartment owner and shall be the basis for the filing of a lien against each of the apartments and shall be subject to the provisions of subsection (2) of this section (2) In the event a lien against two or more apartments becomes effective the apartment owners of the separate apartments may remove their apartment and the percentage of undivided interest in the common areas and facilities appurtenant to such apartment from the lien by payment of the fractional or proportional amounts attributable to each of the apartments affected Such individual payments shall be computed by reference to the percentages appearing on the declaration Subsequent to any such payment discharge or satisfaction the apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto shall thereafter be free and clear of the liens so paid satisfied or discharged Such partial payment satisfaction or discharge shall not prevent the lienor from proceeding to enforce his or her rights against any apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto not so paid satisfied or discharged

CCBA Nuts amp Bolts on Construction Law - 49 of 49

  • Cover Sheet
  • 20141110 - Washington Lien and Bond CLE
  • LampI Lien Summary
  • Claim of Lien
  • Form Notice to Owner
  • Model Disclosure Statement (Notice to Customer)
  • LampI Facts about Construction Liens
    • What you should know about contracts
    • How to protect your investment
    • For more information
      • Notice of Claim Against Bond and Retained Percentage
      • Preclaim Notice Bond amp Retained Percentage
      • Statute Handout
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 ESP 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ltFEFF9ad854c18cea306a30d730ea30d730ec30b951fa529b7528002000410064006f0062006500200050004400460020658766f8306e4f5c6210306b4f7f75283057307e305930023053306e8a2d5b9a30674f5c62103055308c305f0020005000440046002030d530a130a430eb306f3001004100630072006f0062006100740020304a30883073002000410064006f00620065002000520065006100640065007200200035002e003000204ee5964d3067958b304f30533068304c3067304d307e305930023053306e8a2d5b9a306b306f30d530a930f330c8306e57cb30818fbc307f304c5fc59808306730593002gt KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020ace0d488c9c80020c2dcd5d80020c778c1c4c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200035002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor prepress-afdrukken van hoge kwaliteit De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 50 en hoger) NOR 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 PTB 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 SVE 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(Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false ConvertColors ConvertToCMYK DestinationProfileName () DestinationProfileSelector DocumentCMYK Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles false MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector DocumentCMYK PreserveEditing true UntaggedCMYKHandling LeaveUntagged UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ]gtgt setdistillerparamsltlt HWResolution [2400 2400] PageSize [612000 792000]gtgt setpagedevice

          1. To
          2. Date
          3. Re
          4. From
          5. AT THE REQUEST OF
          6. Sender
          7. Address
          8. Telephone
          9. Brief description of professional services materials or equipment provided or to be provided
          10. 1
          11. 2
          12. 3
          13. reg no
          14. deposit $
          15. expiration date
          16. claims up to $
          17. Reset

F625-054-000 construction lien notice page 2 11-05

Important Information for your Protection

This notice is sent to inform you that we have or will provide professional services materials or equipment for the repair remodel or alteration of you property We expect to be paid by the person who ordered our services but if we are not paid we have the right to enforce our claim by filing a construction lien against your property

LEARN more about the lien laws and the meaning of this notice by

discussing them with our contractor suppliers Department of Labor and Industries the firm sending you this notice your lender or your attorney

COMMON METHODS TO AVOID CONSTRUCTION LIENS

There are several methods available to protect your property from construction liens The following are two of the more commonly used methods

DUAL PAYCHECKS (Joint Checks) When paying your

contractor for services or materials you may make checks payable jointly to the contractor and the firms furnishing you this notice

LIEN RELEASES You may require your contractor to provide

lien releases signed by all the suppliers and subcontractors from whom you have received this notice If they cannot obtain lien releases because you have not paid them you may use the dual payee check method to protect yourself

You should take appropriate steps to protect your property from

liens

Your prime contractor and your construction lender are required by law to give you written information about lien claims If you have not received it ask them for it

CCBA Nuts amp Bolts on Construction Law - 21 of 49

F625-030-000 model disclosure statement notice to customer 09-2007

Department of Labor and Industries Construction Compliance

MODEL DISCLOSURE STATEMENTNOTICE TO CUSTOMER

This contractor is registered with the state of Washington registration no____________________ and has posted with the state a bond or deposit of ______________________ for the purpose of satisfying claims against the contractor for breach of contract including negligent or improper work in the conduct of the contractorrsquos business The expiration date of this contractorrsquos registration is ______________________

THIS BOND OR DEPOSIT MIGHT NOT BE SUFFICIENT TO COVER A CLAIM THAT MIGHT ARISE FROM THE WORK DONE UNDER YOUR CONTRACT This bond or deposit is not for your exclusive use because it covers all work performed by this contractor The bond or deposit is intended to pay valid claims up to ___________________________ that you and other customers suppliers subcontractors or taxing authorities may have FOR GREATER PROTECTION YOU MAY WITHHOLD A PERCENTAGE OF YOUR CONTRACT You may withhold a contractually defined percentage of your construction contract as retainage for a stated period of time to provide protection to you and help insure that your project will be completed as required by your contract

YOUR PROPERTY MAY BE LIENED If a supplier of materials used in your construction project or an employee or subcontractor of your contractor or subcontractors is not paid your property may be liened to force payment and you could pay twice for the same work FOR ADDITIONAL PROTECTION YOU MAY REQUEST THE CONTRACTOR TO PROVIDE YOU WITH ORIGINAL ldquoLIEN RELEASErdquo DOCUMENTS FROM EACH SUPPLIER OR SUBCONTRACTOR AT YOUR PROJECT The contractor is required to provide you with further information about lien release document if you request it General information is also available from the state Department of Labor and Industries I have received a copy of this disclosure statement Dated this _______ day of _______________ of the year __________

_____________________________________________________ Signature of Customer The contractor must retain a signed copy of the disclosure statement in his or her files for a minimum of three years and produce a signed or electronic signature copy of the disclosure statement to the department upon request

CCBA Nuts amp Bolts on Construction Law - 22 of 49

Facts About Construction LiensWhat you should know about contractsIf your contractor fails to pay subcontractors suppliers or laborers or neglects to make other legally required payments those who are owed money can look to your property for payment even if you have paid your contractor in full This is true if you have hired a contractor to build a new home or are buying a newly built home

It is also true when you remodel or improve your property although the amount of your liability may be limited to the amount you owe the prime contractor at the time a lien is filed

Under Washington laws those who work on your property or provide materials and are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien

People who supply materials or labor ordered by your contractor are permitted by law to file a lien only if they do so within 90 days of cessation of performance or delivery of materials The time frame is spelled out in RCW 6004091

If you enter into a contract to buy a newly built home you may not receive a notice of a lien based on a claim by a contractor or material handler Be aware that a lien may be claimed even though you have not received a notice

Before making final payment on the project request a completed lien release form from each contractor and material supplier A sample of this release of lien form is available from the Department of Labor amp Industries Contractor Registration Section

You have final responsibility for seeing that all bills are paid even if you have paid your contractor in full

If you receive a notice to enforce a lien take the notice seriously Let your contractor know you have received the notice Find out what arrangements are being made to pay the sender of the notice

When in doubt or if you need more details consult your attorney When and how to pay your contractor is a decision that requires serious consideration

Reminder Washington laws require contractors to give you a disclosure statement if your contract exceeds $1000 [RCW 1827114(A) or (B)]

CCBA Nuts amp Bolts on Construction Law - 23 of 49

PUBLICATION F625-017-000 [01-2008]

Other formats for persons with disabilities are available on request Call 1-800-647-0982 TDD users call 360-902-5797 LampI is an equal opportunity employer

For more information

How to protect your investment

If you are dealing with a lending institution ask your loan officer what precautions the lending institution takes to verify that subcontractors and material suppliers are being paid when mortgage money is paid to your contractor

Request lender supervision when dealing with a lending institution that provides interim or construction financing

Ask the prime contractor to disclose all potential lien claimants as a condition of payment A lien claimant must mail (by certified or registered mail or by personal service) a copy of the claim of lien to the owner within 14 days of the time the lien is recorded [RCW 6004091(2)] While an action is ongoing an owner may withhold from this prime contractor the amount of money for which a claim is recorded by a subcontractor supplier or laborer [RCW 6004151]

It is recommended that your check be made payable jointly naming the contractor and the subcontractor or supplier as payees

Upon payment and acceptance of the amount due the owner has the right to an executed release of all lien rights by lien claimants [RCW 6004071]

Consider using an escrow agent to protect your interests Find out whether your escrow agent will protect you against liens when disbursing payments If you are interested in this alternative consult your attorney

Request that your contractor post a performance bond in the amount of the project cost That will give you recourse in the event the contractor fails to complete the building agreement

8 On the Web Find more information about hiring a contractor at

wwwLniwagovTradesLicensingContractorsHireCon

Contractor Registration Hotline1-800-647-0982

You may also call your local LampI office See listings under ldquoWashington State ofrdquo in the government section or the white pages of the telephone book

Please note This notice was prepared by the Department of Labor amp Industries Specialty Compliance Services Division for reproduction by lending institutions and contractors for distribution to their clients It explains the basics of the construction lien law to help you protect yourself This information is not a reflection upon the abilities or credit of your contractor

CCBA Nuts amp Bolts on Construction Law - 24 of 49

NOTICE OF CLAIM AGAINST

BOND AND RETAINED PERCENTAGE

RCW 3908030 RCW 6028010

VIA CERTIFIED MAIL ndash RETURN RECEIPT REQUESTED

TO [Public Owner] [Public Ownerrsquos Address]

Project [Project Name amp Address] NOTICE IS HEREBY GIVEN that the undersigned [Claimant] [Claimantrsquos Address] has a claim in the amount of ----- and 00100 Dollars ($XX) (not including attorneysrsquo fees or costs) together with interest at twelve percent (12) against [Public Owner] (ldquoOwnerrdquo) pursuant to RCW 6028 and the payment bond taken from [Prime Contractor] (ldquoContractorrdquo) [Prime Contractorrsquos Address] as principal and [Surety Company] (ldquoSuretyrdquo) [Suretyrsquos Address] as surety Bond No ________ pursuant to RCW 3908 for [describe services material supplies labor furnished] provided on the Project This Notice of Claim Against Bond and Retained Percentage supersedes and replaces previous Notices DATED This ___day of _________ 201_ [Claimant] By ______________________________________ Its ______________________________________ [Claimantrsquos Address]

_________________________________________

[Contractors Registration No if applicable]

(Copies furnished to General Contractor and General Contractorrsquos Bonding Company)

CCBA Nuts amp Bolts on Construction Law - 25 of 49

PRECLAIM NOTICE TO CONTRACTOR BY SUBCONTRACTORS MATERIALMEN OR SUPPLIERS FOR

CLAIM AGAINST BOND AND RETAINED PERCENTAGE

VIA CERTIFIED OR REGISTERED MAIL- RETURN RECEIPT REQUESTED

TO [Name of General Contractor] [Address]

YOU ARE HEREBY NOTIFIED that the undersigned ____________at the request of_________________ commenced to deliver or furnish materials supplies andor equipment for the use in the construction alteration andor repair of that certain project known as____________________ [project name] which is located at ____________________________ [address or description] If the undersigned is not paid for these materials supplies andor equipment it will file a claim against you and your bond andor retainage pursuant to RCW 3908 andor 6028 et seq for payment of any sum that is due and owing to the undersigned

DATED This __ day of _____________ 201_

[Name of Claimant]

By ____________________________________

Its ____________________________________

Address ______________________________

__________________________________________

__________________________________________

[Contractors Registration No if applicable]

(Mail via certified mail return receipt requested or hand deliver and obtain receipt)

CCBA Nuts amp Bolts on Construction Law - 26 of 49

Washington Liens amp Bonds ndash Pertinent Statutes

RCW 1827040 Bond or other security required mdash Actions against mdash Suspension of registration upon impairment (1) Each applicant shall file with the department a surety bond issued by a surety insurer who meets the requirements of chapter 4828 RCW in the sum of twelve thousand dollars if the applicant is a general contractor and six thousand dollars if the applicant is a specialty contractor If no valid bond is already on file with the department at the time the application is filed a bond must accompany the registration application The bond shall have the state of Washington named as obligee with good and sufficient surety in a form to be approved by the department The bond shall be continuous and may be canceled by the surety upon the surety giving written notice to the director A cancellation or revocation of the bond or withdrawal of the surety from the bond automatically suspends the registration issued to the contractor until a new bond or reinstatement notice has been filed and approved as provided in this section The bond shall be conditioned that the applicant will pay all persons performing labor including employee benefits for the contractor will pay all taxes and contributions due to the state of Washington and will pay all persons furnishing material or renting or supplying equipment to the contractor and will pay all amounts that may be adjudged against the contractor by reason of breach of contract including improper work in the conduct of the contracting business A change in the name of a business or a change in the type of business entity shall not impair a bond for the purposes of this section so long as one of the original applicants for such bond maintains partial ownership in the business covered by the bond (2) At the time of initial registration or renewal the contractor shall provide a bond or other security deposit as required by this chapter and comply with all of the other provisions of this chapter before the department shall issue or renew the contractors certificate of registration Any contractor registered as of July 1 2001 who maintains that registration in accordance with this chapter is in compliance with this chapter until the next renewal of the contractors certificate of registration (3) Any person firm or corporation having a claim against the contractor for any of the items referred to in this section may bring suit against the contractor and the bond or deposit in the superior court of the county in which the work was done or of any county in which jurisdiction of the contractor may be had The surety issuing the bond shall be named as a party to any suit upon the bond Action upon the bond or deposit brought by a residential homeowner for breach of contract by a party to the construction contract shall be commenced by filing the summons and complaint with the clerk of the appropriate superior court within two years from the date the claimed contract work was substantially completed or abandoned whichever occurred first Action upon the bond or deposit brought by any other authorized party shall be commenced by filing the summons and complaint with the clerk of the appropriate superior court within one year from the date the claimed labor was performed and benefits accrued taxes and contributions owing the state of Washington became due materials and equipment were furnished or the claimed contract work was substantially completed or abandoned whichever occurred first Service of process in an action filed under this chapter against the contractor and the contractors bond or the deposit shall be exclusively by service upon the department Three

CCBA Nuts amp Bolts on Construction Law - 27 of 49

copies of the summons and complaint and a fee adopted by rule of not less than fifty dollars to cover the costs shall be served by registered or certified mail or other delivery service requiring notice of receipt upon the department at the time suit is started and the department shall maintain a record available for public inspection of all suits so commenced Service is not complete until the department receives the fee and three copies of the summons and complaint The service shall constitute service and confer personal jurisdiction on the contractor and the surety for suit on claimants claim against the contractor and the bond or deposit and the department shall transmit the summons and complaint or a copy thereof to the contractor at the address listed in the contractors application and to the surety within two days after it shall have been received (4) The surety upon the bond shall not be liable in an aggregate amount in excess of the amount named in the bond nor for any monetary penalty assessed pursuant to this chapter for an infraction The liability of the surety shall not cumulate where the bond has been renewed continued reinstated reissued or otherwise extended The surety upon the bond may upon notice to the department and the parties tender to the clerk of the court having jurisdiction of the action an amount equal to the claims thereunder or the amount of the bond less the amount of judgments if any previously satisfied therefrom and to the extent of such tender the surety upon the bond shall be exonerated but if the actions commenced and pending and provided to the department as required in subsection (3) of this section at any one time exceed the amount of the bond then unimpaired claims shall be satisfied from the bond in the following order (a) Employee labor and claims of laborers including employee benefits (b) Claims for breach of contract by a party to the construction contract (c) Registered or licensed subcontractors material and equipment (d) Taxes and contributions due the state of Washington (e) Any court costs interest and attorneys fees plaintiff may be entitled to recover The surety is not liable for any amount in excess of the penal limit of its bond A payment made by the surety in good faith exonerates the bond to the extent of any payment made by the surety (5) The total amount paid from a bond or deposit required of a general contractor by this section to claimants other than residential homeowners must not exceed one-half of the bond amount The total amount paid from a bond or deposit required of a specialty contractor by this section to claimants other than residential homeowners must not exceed one-half of the bond amount or four thousand dollars whichever is greater (6) The prevailing party in an action filed under this section against the contractor and contractors bond or deposit for breach of contract by a party to the construction contract involving a residential homeowner is entitled to costs interest and reasonable attorneys fees The surety upon the bond or deposit is not liable in an aggregate amount in excess of the amount

CCBA Nuts amp Bolts on Construction Law - 28 of 49

named in the bond or deposit nor for any monetary penalty assessed pursuant to this chapter for an infraction (7) If a final judgment impairs the liability of the surety upon the bond or deposit so furnished that there is not in effect a bond or deposit in the full amount prescribed in this section the registration of the contractor is automatically suspended until the bond or deposit liability in the required amount unimpaired by unsatisfied judgment claims is furnished (8) In lieu of the surety bond required by this section the contractor may file with the department an assigned savings account upon forms provided by the department (9) Any person having filed and served a summons and complaint as required by this section having an unsatisfied final judgment against the registrant for any items referred to in this section may execute upon the security held by the department by serving a certified copy of the unsatisfied final judgment by registered or certified mail upon the department within one year of the date of entry of such judgment Upon the receipt of service of such certified copy the department shall pay or order paid from the deposit through the registry of the superior court which rendered judgment towards the amount of the unsatisfied judgment The priority of payment by the department shall be the order of receipt by the department but the department shall have no liability for payment in excess of the amount of the deposit (10) Within ten days after resolution of the case a certified copy of the final judgment and order or any settlement documents where a case is not disposed of by a court trial a certified copy of the dispositive settlement documents must be provided to the department by the prevailing party Failure to provide a copy of the final judgment and order or the dispositive settlement documents to the department within ten days of entry of such an order constitutes a violation of this chapter and a penalty adopted by rule of not less than two hundred fifty dollars may be assessed against the prevailing party (11) The director may require an applicant applying to renew or reinstate a registration or applying for a new registration to file a bond of up to three times the normally required amount if the director determines that an applicant or a previous registration of a corporate officer owner or partner of a current applicant has had in the past five years a total of three final judgments in actions under this chapter involving a residential single-family dwelling on two or more different structures (12) The director may adopt rules necessary for the proper administration of the security RCW 1827114 Disclosure statement required mdash Prerequisite to lien claim

(1) Any contractor agreeing to perform any contracting project (a) For the repair alteration or construction of four or fewer residential units or accessory structures on such residential property when the bid or contract price totals one thousand dollars or more or (b) for the repair alteration or construction of a commercial building when the bid or contract price totals one thousand dollars or more but less than sixty thousand dollars must provide the customer with

CCBA Nuts amp Bolts on Construction Law - 29 of 49

the following disclosure statement in substantially the following form using lower case and upper case twelve-point and bold type where appropriate prior to starting work on the project NOTICE TO CUSTOMER This contractor is registered with the state of Washington registration no and has posted with the state a bond or deposit of for the purpose of satisfying claims against the contractor for breach of contract including negligent or improper work in the conduct of the contractors business The expiration date of this contractors registration is THIS BOND OR DEPOSIT MIGHT NOT BE SUFFICIENT TO COVER A CLAIM THAT MIGHT ARISE FROM THE WORK DONE UNDER YOUR CONTRACT This bond or deposit is not for your exclusive use because it covers all work performed by this contractor The bond or deposit is intended to pay valid claims up to that you and other customers suppliers subcontractors or taxing authorities may have FOR GREATER PROTECTION YOU MAY WITHHOLD A PERCENTAGE OF YOUR CONTRACT You may withhold a contractually defined percentage of your construction contract as retainage for a stated period of time to provide protection to you and help insure that your project will be completed as required by your contract YOUR PROPERTY MAY BE LIENED If a supplier of materials used in your construction project or an employee or subcontractor of your contractor or subcontractors is not paid your property may be liened to force payment and you could pay twice for the same work FOR ADDITIONAL PROTECTION YOU MAY REQUEST THE CONTRACTOR TO PROVIDE YOU WITH ORIGINAL LIEN RELEASE DOCUMENTS FROM EACH SUPPLIER OR SUBCONTRACTOR ON YOUR PROJECT The contractor is required to provide you with further information about lien release documents if you request it General information is also available from the state Department of Labor and Industries I have received a copy of this disclosure statement

CCBA Nuts amp Bolts on Construction Law - 30 of 49

(Signature of customer) (2) The contractor must retain a signed copy of the disclosure statement in his or her files for a minimum of three years and produce a signed or electronic signature copy of the disclosure statement to the department upon request (3) A contractor subject to this section shall notify any consumer to whom notice is required under subsection (1) of this section if the contractors registration has expired or is revoked or suspended by the department prior to completion or other termination of the contract with the consumer (4) No contractor subject to this section may bring or maintain any lien claim under chapter 6004 RCW based on any contract to which this section applies without alleging and proving that the contractor has provided the customer with a copy of the disclosure statement as required in subsection (1) of this section (5) This section does not apply to contracts authorized under chapter 3904 RCW or to contractors contracting with other contractors (6) Failure to comply with this section shall constitute an infraction under the provisions of this chapter (7) The department shall produce model disclosure statements and public service announcements detailing the information needed to assist contractors and contractors customers to comply under this section As necessary the department shall periodically update these education materials RCW 3908010 Bond required mdash Conditions mdash Retention of contract amount in lieu of bond (1)(a) Whenever any board council commission trustees or body acting for the state or any county or municipality or any public body must contract with any person or corporation to do any work for the state county or municipality or other public body city town or district such board council commission trustees or body must require the person or persons with whom such contract is made to make execute and deliver to such board council commission trustees or body a good and sufficient bond with a surety company as surety conditioned that such person or persons must (i) Faithfully perform all the provisions of such contract (ii) Pay all laborers mechanics and subcontractors and material suppliers and all persons who supply such person or persons or subcontractors with provisions and supplies for the carrying on of such work and

CCBA Nuts amp Bolts on Construction Law - 31 of 49

(iii) Pay the taxes increases and penalties incurred on the project under Titles 50 51 and 82 RCW on (A) Projects referred to in RCW 6028011(1)(b) andor (B) projects for which the bond is conditioned on the payment of such taxes increases and penalties (b) The bond in cases of cities and towns must be filed with the clerk or comptroller thereof and any person or persons performing such services or furnishing material to any subcontractor has the same right under the provisions of such bond as if such work services or material was furnished to the original contractor (2) The provisions of RCW 3908010 through 3908030 do not apply to any money loaned or advanced to any such contractor subcontractor or other person in the performance of any such work (3) On contracts of thirty-five thousand dollars or less at the option of the contractor the respective public entity may in lieu of the bond retain fifty percent of the contract amount for a period of thirty days after date of final acceptance or until receipt of all necessary releases from the department of revenue the employment security department and the department of labor and industries and settlement of any liens filed under chapter 6028 RCW whichever is later (4) For contracts of one hundred thousand dollars or less the public entity may accept a full payment and performance bond from an individual surety or sureties (5) The surety must agree to be bound by the laws of the state of Washington and subjected to the jurisdiction of the state of Washington RCW 6004011 Definitions

Unless the context requires otherwise the definitions in this section apply throughout this chapter (1) Construction agent means any registered or licensed contractor registered or licensed subcontractor architect engineer or other person having charge of any improvement to real property who shall be deemed the agent of the owner for the limited purpose of establishing the lien created by this chapter (2) Contract price means the amount agreed upon by the contracting parties or if no amount is agreed upon then the customary and reasonable charge therefor (3) Draws means periodic disbursements of interim or construction financing by a lender (4) Furnishing labor professional services materials or equipment means the performance of any labor or professional services the contribution owed to any employee benefit plan on account of any labor the provision of any supplies or materials and the renting leasing or

CCBA Nuts amp Bolts on Construction Law - 32 of 49

otherwise supplying of equipment for the improvement of real property (5) Improvement means (a) Constructing altering repairing remodeling demolishing clearing grading or filling in of to or upon any real property or street or road in front of or adjoining the same (b) planting of trees vines shrubs plants hedges or lawns or providing other landscaping materials on any real property and (c) providing professional services upon real property or in preparation for or in conjunction with the intended activities in (a) or (b) of this subsection (6) Interim or construction financing means that portion of money secured by a mortgage deed of trust or other encumbrance to finance improvement of or to real property but does not include (a) Funds to acquire real property (b) Funds to pay interest insurance premiums lease deposits taxes assessments or prior encumbrances (c) Funds to pay loan commitment title legal closing recording or appraisal fees (d) Funds to pay other customary fees which pursuant to agreement with the owner or borrower are to be paid by the lender from time to time (e) Funds to acquire personal property for which the potential lien claimant may not claim a lien pursuant to this chapter (7) Labor means exertion of the powers of body or mind performed at the site for compensation Labor includes amounts due and owed to any employee benefit plan on account of such labor performed (8) Mortgagee means a person who has a valid mortgage of record or deed of trust of record securing a loan (9) Owner-occupied means a single-family residence occupied by the owner as his or her principal residence (10) Payment bond means a surety bond issued by a surety licensed to issue surety bonds in the state of Washington that confers upon potential claimants the rights of third party beneficiaries (11) Potential lien claimant means any person or entity entitled to assert lien rights under this chapter who has otherwise complied with the provisions of this chapter and is registered or licensed if required to be licensed or registered by the provisions of the laws of the state of Washington (12) Prime contractor includes all contractors general contractors and specialty

CCBA Nuts amp Bolts on Construction Law - 33 of 49

contractors as defined by chapter 1827 or 1928 RCW or who are otherwise required to be registered or licensed by law who contract directly with a property owner or their common law agent to assume primary responsibility for the creation of an improvement to real property and includes property owners or their common law agents who are contractors general contractors or specialty contractors as defined in chapter 1827 or 1928 RCW or who are otherwise required to be registered or licensed by law who offer to sell their property without occupying or using the structures projects developments or improvements for more than one year (13) Professional services means surveying establishing or marking the boundaries of preparing maps plans or specifications for or inspecting testing or otherwise performing any other architectural or engineering services for the improvement of real property (14) Real property lender means a bank savings bank savings and loan association credit union mortgage company or other corporation association partnership trust or individual that makes loans secured by real property located in the state of Washington (15) Site means the real property which is or is to be improved (16) Subcontractor means a general contractor or specialty contractor as defined by chapter 1827 or 1928 RCW or who is otherwise required to be registered or licensed by law who contracts for the improvement of real property with someone other than the owner of the property or their common law agent

6004021 Lien authorized

Except as provided in RCW 6004031 any person furnishing labor professional services materials or equipment for the improvement of real property shall have a lien upon the improvement for the contract price of labor professional services materials or equipment furnished at the instance of the owner or the agent or construction agent of the owner

6004031 Notices mdash Exceptions

(1) Except as otherwise provided in this section every person furnishing professional services materials or equipment for the improvement of real property shall give the owner or reputed owner notice in writing of the right to claim a lien If the prime contractor is in compliance with the requirements of RCW 1927095 6004230 and 6004261 this notice shall also be given to the prime contractor as described in this subsection unless the potential lien claimant has contracted directly with the prime contractor The notice may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after the date which is sixty days before (a) Mailing the notice by certified or registered mail to the owner or reputed owner or

CCBA Nuts amp Bolts on Construction Law - 34 of 49

(b) Delivering or serving the notice personally upon the owner or reputed owner and obtaining evidence of delivery in the form of a receipt or other acknowledgment signed by the owner or reputed owner or an affidavit of service In the case of new construction of a single-family residence the notice of a right to claim a lien may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after a date which is ten days before the notice is given as described in this subsection (2) Notices of a right to claim a lien shall not be required of (a) Persons who contract directly with the owner or the owners common law agent (b) Laborers whose claim of lien is based solely on performing labor or (c) Subcontractors who contract for the improvement of real property directly with the prime contractor except as provided in subsection (3)(b) of this section (3) Persons who furnish professional services materials or equipment in connection with the repair alteration or remodel of an existing owner-occupied single-family residence or appurtenant garage (a) Who contract directly with the owner-occupier or their common law agent shall not be required to send a written notice of the right to claim a lien and shall have a lien for the full amount due under their contract as provided in RCW 6004021 or (b) Who do not contract directly with the owner-occupier or their common law agent shall give notice of the right to claim a lien to the owner-occupier Liens of persons furnishing professional services materials or equipment who do not contract directly with the owner-occupier or their common law agent may only be satisfied from amounts not yet paid to the prime contractor by the owner at the time the notice described in this section is received regardless of whether amounts not yet paid to the prime contractor are due For the purposes of this subsection received means actual receipt of notice by personal service or registered or certified mail or three days after mailing by registered or certified mail excluding Saturdays Sundays or legal holidays (4) The notice of right to claim a lien described in subsection (1) of this section shall include but not be limited to the following information and shall substantially be in the following form using lower-case and upper-case ten-point type where appropriate

CCBA Nuts amp Bolts on Construction Law - 35 of 49

NOTICE TO OWNER

IMPORTANT READ BOTH SIDES OF THIS NOTICE CAREFULLY

PROTECT YOURSELF FROM PAYING TWICE

To Date

Re (description of property Street address or general location) From AT THE REQUEST OF (Name of person ordering the professional services materials or equipment) THIS IS NOT A LIEN This notice is sent to you to tell you who is providing professional services materials or equipment for the improvement of your property and to advise you of the rights of these persons and your responsibilities Also take note that laborers on your project may claim a lien without sending you a notice

OWNEROCCUPIER OF EXISTING

RESIDENTIAL PROPERTY

Under Washington law those who furnish labor professional services materials or equipment for the repair remodel or alteration of your owner-occupied principal residence and who are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien The law limits the amount that a lien claimant can claim against your property Claims may only be made against that portion of the contract price you have not yet paid to your prime contractor as of the time this notice was given to you or three days after this notice was mailed to you Review the back of this notice for more information and ways to avoid lien claims

COMMERCIAL ANDOR NEW

RESIDENTIAL PROPERTY

CCBA Nuts amp Bolts on Construction Law - 36 of 49

We have or will be providing professional services materials or equipment for the improvement of your commercial or new residential project In the event you or your contractor fail to pay us we may file a lien against your property A lien may be claimed for all professional services materials or equipment furnished after a date that is sixty days before this notice was given to you or mailed to you unless the improvement to your property is the construction of a new single-family residence then ten days before this notice was given to you or mailed to you Sender Address Telephone Brief description of professional services materials or equipment provided or to be provided

IMPORTANT INFORMATION

ON REVERSE SIDE

IMPORTANT INFORMATION

FOR YOUR PROTECTION This notice is sent to inform you that we have or will provide professional services materials or equipment for the improvement of your property We expect to be paid by the person who ordered our services but if we are not paid we have the right to enforce our claim by filing a construction lien against your property LEARN more about the lien laws and the meaning of this notice by discussing them with your contractor suppliers Department of Labor and Industries the firm sending you this notice your lender or your attorney

COMMON METHODS TO AVOID CONSTRUCTION LIENS There are several methods available to protect your property from construction liens The following are two of the more commonly used methods

DUAL PAYCHECKS (Joint Checks) When paying your contractor for services or materials you may make checks payable jointly to the contractor and the firms furnishing you this notice

CCBA Nuts amp Bolts on Construction Law - 37 of 49

LIEN RELEASES You may require your contractor to provide lien releases signed by all the suppliers and subcontractors from whom you have received this notice If they cannot obtain lien releases because you have not paid them you may use the dual payee check method to protect yourself

YOU SHOULD TAKE APPROPRIATE STEPS TO PROTECT YOUR PROPERTY FROM LIENS YOUR PRIME CONTRACTOR AND YOUR CONSTRUCTION LENDER ARE REQUIRED BY LAW TO GIVE YOU WRITTEN INFORMATION ABOUT LIEN CLAIMS IF YOU HAVE NOT RECEIVED IT ASK THEM FOR IT

(5) Every potential lien claimant providing professional services where no improvement as defined in RCW 6004011(5) (a) or (b) has been commenced and the professional services provided are not visible from an inspection of the real property may record in the real property records of the county where the property is located a notice which shall contain the professional service providers name address telephone number legal description of the property the owner or reputed owners name and the general nature of the professional services provided If such notice is not recorded the lien claimed shall be subordinate to the interest of any subsequent mortgagee and invalid as to the interest of any subsequent purchaser if the mortgagee or purchaser acts in good faith and for a valuable consideration acquires an interest in the property prior to the commencement of an improvement as defined in RCW 6004011(5) (a) or (b) without notice of the professional services being provided The notice described in this subsection shall be substantially in the following form

NOTICE OF FURNISHING

PROFESSIONAL SERVICES That on the (day) day of (month and year) (name of provider) began providing professional services upon or for the improvement of real property legally described as follows

[Legal Description is mandatory]

CCBA Nuts amp Bolts on Construction Law - 38 of 49

The general nature of the professional services provided is The owner or reputed owner of the real property is

(Signature)

(Name of Claimant)

(Street Address)

(City State Zip Code)

(Phone Number)

(6) A lien authorized by this chapter shall not be enforced unless the lien claimant has complied with the applicable provisions of this section

6004041 Contractor registration

A contractor or subcontractor required to be registered under chapter 1827 RCW or licensed under chapter 1928 RCW or otherwise required to be registered or licensed by law shall be deemed the construction agent of the owner for the purposes of establishing the lien created by this chapter only if so registered or licensed Persons dealing with contractors or subcontractors may rely for the purposes of this section upon a certificate of registration issued pursuant to chapter 1827 RCW or license issued pursuant to chapter 1928 RCW or other certificate or license issued pursuant to law covering the period when the labor professional services material or equipment shall be furnished and the lien rights shall not be lost by suspension or revocation of registration or license without their knowledge No lien rights described in this

CCBA Nuts amp Bolts on Construction Law - 39 of 49

chapter shall be lost or denied by virtue of the absence suspension or revocation of such registration or license with respect to any contractor or subcontractor not in immediate contractual privity with the lien claimant

6004081 Frivolous claim mdash Procedure

(1) Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who believes the claim of lien to be frivolous and made without reasonable cause or clearly excessive may apply by motion to the superior court for the county where the property or some part thereof is located for an order directing the lien claimant to appear before the court at a time no earlier than six nor later than fifteen days following the date of service of the application and order on the lien claimant and show cause if any he or she has why the relief requested should not be granted The motion shall state the grounds upon which relief is asked and shall be supported by the affidavit of the applicant or his or her attorney setting forth a concise statement of the facts upon which the motion is based (2) The order shall clearly state that if the lien claimant fails to appear at the time and place noted the lien shall be released with prejudice and that the lien claimant shall be ordered to pay the costs requested by the applicant including reasonable attorneys fees (3) If no action to foreclose the lien claim has been filed the clerk of the court shall assign a cause number to the application and obtain from the applicant a filing fee pursuant to RCW 3618016 If an action has been filed to foreclose the lien claim the application shall be made a part of that action (4) If following a hearing on the matter the court determines that the lien is frivolous and made without reasonable cause or clearly excessive the court shall issue an order releasing the lien if frivolous and made without reasonable cause or reducing the lien if clearly excessive and awarding costs and reasonable attorneys fees to the applicant to be paid by the lien claimant If the court determines that the lien is not frivolous and was made with reasonable cause and is not clearly excessive the court shall issue an order so stating and awarding costs and reasonable attorneys fees to the lien claimant to be paid by the applicant (5) Proceedings under this section shall not affect other rights and remedies available to the parties under this chapter or otherwise

6004091 Recording mdash Time mdash Contents of lien

Every person claiming a lien under RCW 6004021 shall file for recording in the county where the subject property is located a notice of claim of lien not later than ninety days after the person

CCBA Nuts amp Bolts on Construction Law - 40 of 49

has ceased to furnish labor professional services materials or equipment or the last date on which employee benefit contributions were due The notice of claim of lien (1) Shall state in substance and effect (a) The name phone number and address of the claimant (b) The first and last date on which the labor professional services materials or equipment was furnished or employee benefit contributions were due (c) The name of the person indebted to the claimant (d) The street address legal description or other description reasonably calculated to identify for a person familiar with the area the location of the real property to be charged with the lien (e) The name of the owner or reputed owner of the property if known and if not known that fact shall be stated and (f) The principal amount for which the lien is claimed (2) Shall be signed by the claimant or some person authorized to act on his or her behalf who shall affirmatively state they have read the notice of claim of lien and believe the notice of claim of lien to be true and correct under penalty of perjury and shall be acknowledged pursuant to chapter 6408 RCW If the lien has been assigned the name of the assignee shall be stated Where an action to foreclose the lien has been commenced such notice of claim of lien may be amended as pleadings may be by order of the court insofar as the interests of third parties are not adversely affected by such amendment A claim of lien substantially in the following form shall be sufficient

CLAIM OF LIEN

claimant vs name of person indebted to claimant

Notice is hereby given that the person named below claims a lien pursuant to chapter 6404 RCW In support of this lien the following information is submitted

1 NAME OF LIEN CLAIMANT

TELEPHONE NUMBER

CCBA Nuts amp Bolts on Construction Law - 41 of 49

ADDRESS

2 DATE ON WHICH THE CLAIMANT BEGAN TO PERFORM LABOR PROVIDE PROFESSIONAL SERVICES SUPPLY MATERIAL OR EQUIPMENT OR THE DATE ON WHICH EMPLOYEE BENEFIT CONTRIBUTIONS BECAME DUE

3 NAME OF PERSON INDEBTED TO THE CLAIMANT

4 DESCRIPTION OF THE PROPERTY AGAINST WHICH A LIEN IS CLAIMED (Street address legal description or other information that will reasonably describe the property)

5 NAME OF THE OWNER OR REPUTED OWNER (If not known state unknown)

6 THE LAST DATE ON WHICH LABOR WAS PERFORMED PROFESSIONAL SERVICES WERE FURNISHED CONTRIBUTIONS TO AN EMPLOYEE BENEFIT PLAN WERE DUE OR MATERIAL OR EQUIPMENT WAS FURNISHED

7 PRINCIPAL AMOUNT FOR WHICH THE LIEN IS CLAIMED IS

8 IF THE CLAIMANT IS THE ASSIGNEE OF THIS CLAIM SO STATE HERE

Claimant

(Phone number address city

CCBA Nuts amp Bolts on Construction Law - 42 of 49

and

state of claimant)

STATE OF WASHINGTON COUNTY OF ss being sworn says I am the claimant (or attorney of the claimant or administrator representative or agent of the trustees of an employee benefit plan) above named I have read or heard the foregoing claim read and know the contents thereof and believe the same to be true and correct and that the claim of lien is not frivolous and is made with reasonable cause and is not clearly excessive under penalty of perjury Subscribed and sworn to before me this day of The period provided for recording the claim of lien is a period of limitation and no action to foreclose a lien shall be maintained unless the claim of lien is filed for recording within the ninety-day period stated The lien claimant shall give a copy of the claim of lien to the owner or reputed owner by mailing it by certified or registered mail or by personal service within fourteen days of the time the claim of lien is filed for recording Failure to do so results in a forfeiture of any right the claimant may have to attorneys fees and costs against the owner under RCW 6004181

6004161 Bond in lieu of claim

Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who disputes the correctness or validity of the claim of lien may record either before or after the commencement of an action to enforce the lien in the office of the county recorder or auditor in the county where the claim of lien was recorded a bond issued by a surety company authorized to issue surety bonds in the state The surety shall be listed in the latest federal department of the treasury list of surety companies acceptable on federal bonds published in the Federal Register as authorized to issue bonds on United States government projects with an underwriting limitation including applicable reinsurance equal to or greater than the amount of the bond to be recorded The bond shall contain a description of the claim of lien and real property involved and be in an amount equal to the greater of five thousand dollars or two times the amount of the lien claimed if it is ten thousand dollars or less and in an amount equal to or greater than one and one-half times the amount of the lien if it is in

CCBA Nuts amp Bolts on Construction Law - 43 of 49

excess of ten thousand dollars If the claim of lien affects more than one parcel of real property and is segregated to each parcel the bond may be segregated the same as in the claim of lien A separate bond shall be required for each claim of lien made by separate claimants However a single bond may be used to guarantee payment of amounts claimed by more than one claim of lien by a single claimant so long as the amount of the bond meets the requirements of this section as applied to the aggregate sum of all claims by such claimant The condition of the bond shall be to guarantee payment of any judgment upon the lien in favor of the lien claimant entered in any action to recover the amount claimed in a claim of lien or on the claim asserted in the claim of lien The effect of recording a bond shall be to release the real property described in the notice of claim of lien from the lien and any action brought to recover the amount claimed Unless otherwise prohibited by law if no action is commenced to recover on a lien within the time specified in RCW 6004141 the surety shall be discharged from liability under the bond If an action is timely commenced then on payment of any judgment entered in the action or on payment of the full amount of the bond to the holder of the judgment whichever is less the surety shall be discharged from liability under the bond Nothing in this section shall in any way prohibit or limit the use of other methods devised by the affected parties to secure the obligation underlying a claim of lien and to obtain a release of real property from a claim of lien

6004181 Rank of lien mdash Application of proceeds mdash Attorneys fees

(1) In every case in which different construction liens are claimed against the same property the court shall declare the rank of such lien or class of liens which liens shall be in the following order (a) Liens for the performance of labor (b) Liens for contributions owed to employee benefit plans (c) Liens for furnishing material supplies or equipment (d) Liens for subcontractors including but not limited to their labor and materials and (e) Liens for prime contractors or for professional services (2) The proceeds of the sale of property must be applied to each lien or class of liens in order of its rank and in an action brought to foreclose a lien pro rata among each claimant in each separate priority class A personal judgment may be rendered against any party personally liable for any debt for which the lien is claimed If the lien is established the judgment shall provide

CCBA Nuts amp Bolts on Construction Law - 44 of 49

for the enforcement thereof upon the property liable as in the case of foreclosure of judgment liens The amount realized by such enforcement of the lien shall be credited upon the proper personal judgment The deficiency if any remaining unsatisfied shall stand as a personal judgment and may be collected by execution against any party liable therefor (3) The court may allow the prevailing party in the action whether plaintiff or defendant as part of the costs of the action the moneys paid for recording the claim of lien costs of title report bond costs and attorneys fees and necessary expenses incurred by the attorney in the superior court court of appeals supreme court or arbitration as the court or arbitrator deems reasonable Such costs shall have the priority of the class of lien to which they are related as established by subsection (1) of this section (4) Real property against which a lien under this chapter is enforced may be ordered sold by the court and the proceeds deposited into the registry of the clerk of the court pending further determination respecting distribution of the proceeds of the sale

6004900 Liberal construction mdash 1991 c 281

RCW 1927095 6004230 and 6004011 through 6004226 and 6004261 are to be liberally construed to provide security for all parties intended to be protected by their provisions

RCW 6028011

Retained percentage mdash Public transportation projects mdash Labor and material lien created mdash Bond in lieu of retained funds mdash Termination before completion mdash Chapter deemed exclusive mdash Release of ferry contract payments mdash Projects of farmers home administration mdash General contractorconstruction manager procedure mdash Definitions

(1)(a) Except as provided in (b) of this subsection public improvement contracts must provide and public bodies must reserve a contract retainage not to exceed five percent of the moneys earned by the contractor as a trust fund for the protection and payment of (i) The claims of any person arising under the contract and (ii) the state with respect to taxes increases and penalties imposed pursuant to Titles 50 51 and 82 RCW which may be due from such contractor (b) Public improvement contracts funded in whole or in part by federal transportation funds must rely upon the contract bond as referred to in chapter 3908 RCW for the protection and payment of (i) The claims of any person or persons arising under the contract to the extent such claims are provided for in RCW 3908010 and (ii) the state with respect to taxes increases and penalties incurred on the public improvement project under Titles 50 51 and 82 RCW which may be due The contract bond must remain in full force and effect until at a minimum all claims filed in compliance with chapter 3908 RCW are resolved

CCBA Nuts amp Bolts on Construction Law - 45 of 49

(2) Every person performing labor or furnishing supplies toward the completion of a public improvement contract has a lien upon moneys reserved by a public body under the provisions of a public improvement contract However the notice of the lien of the claimant must be given within forty-five days of completion of the contract work and in the manner provided in RCW 3908030 (3) The contractor at any time may request the contract retainage be reduced to one hundred percent of the value of the work remaining on the project (a) After completion of all contract work other than landscaping the contractor may request that the public body release and pay in full the amounts retained during the performance of the contract and sixty days thereafter the public body must release and pay in full the amounts retained (other than continuing retention of five percent of the moneys earned for landscaping) subject to the provisions of chapters 3912 and 6028 RCW (b) Sixty days after completion of all contract work the public body must release and pay in full the amounts retained during the performance of the contract subject to the provisions of chapters 3912 and 6028 RCW (4) The moneys reserved by a public body under the provisions of a public improvement contract at the option of the contractor must be (a) Retained in a fund by the public body (b) Deposited by the public body in an interest bearing account in a bank mutual savings bank or savings and loan association Interest on moneys reserved by a public body under the provision of a public improvement contract must be paid to the contractor (c) Placed in escrow with a bank or trust company by the public body When the moneys reserved are placed in escrow the public body must issue a check representing the sum of the moneys reserved payable to the bank or trust company and the contractor jointly This check must be converted into bonds and securities chosen by the contractor and approved by the public body and the bonds and securities must be held in escrow Interest on the bonds and securities must be paid to the contractor as the interest accrues (5) The contractor or subcontractor may withhold payment of not more than five percent from the moneys earned by any subcontractor or sub-subcontractor or supplier contracted with by the contractor to provide labor materials or equipment to the public project Whenever the contractor or subcontractor reserves funds earned by a subcontractor or sub-subcontractor or

CCBA Nuts amp Bolts on Construction Law - 46 of 49

supplier the contractor or subcontractor must pay interest to the subcontractor or sub-subcontractor or supplier at a rate equal to that received by the contractor or subcontractor from reserved funds (6) A contractor may submit a bond for all or any portion of the contract retainage in a form acceptable to the public body and from a bonding company meeting standards established by the public body The public body must accept a bond meeting these requirements unless the public body can demonstrate good cause for refusing to accept it This bond and any proceeds therefrom are subject to all claims and liens and in the same manner and priority as set forth for retained percentages in this chapter The public body must release the bonded portion of the retained funds to the contractor within thirty days of accepting the bond from the contractor Whenever a public body accepts a bond in lieu of retained funds from a contractor the contractor must accept like bonds from any subcontractors or suppliers from which the contractor has retained funds The contractor must then release the funds retained from the subcontractor or supplier to the subcontractor or supplier within thirty days of accepting the bond from the subcontractor or supplier (7) If the public body administering a contract after a substantial portion of the work has been completed finds that an unreasonable delay will occur in the completion of the remaining portion of the contract for any reason not the result of a breach thereof it may if the contractor agrees delete from the contract the remaining work and accept as final the improvement at the stage of completion then attained and make payment in proportion to the amount of the work accomplished and in this case any amounts retained and accumulated under this section must be held for a period of sixty days following the completion In the event that the work is terminated before final completion as provided in this section the public body may thereafter enter into a new contract with the same contractor to perform the remaining work or improvement for an amount equal to or less than the cost of the remaining work as was provided for in the original contract without advertisement or bid The provisions of this chapter are exclusive and supersede all provisions and regulations in conflict herewith (8) Whenever the department of transportation has contracted for the construction of two or more ferry vessels sixty days after completion of all contract work on each ferry vessel the department must release and pay in full the amounts retained in connection with the construction of the vessel subject to the provisions of RCW 6028021 and chapter 3912 RCW However the department of transportation may at its discretion condition the release of funds retained in connection with the completed ferry upon the contractor delivering a good and sufficient bond with two or more sureties or with a surety company in the amount of the retained funds to be released to the contractor conditioned that no taxes may be certified or claims filed for work on the ferry after a period of sixty days following completion of the ferry and if taxes are certified or claims filed recovery may be had on the bond by the department of revenue the employment

CCBA Nuts amp Bolts on Construction Law - 47 of 49

security department the department of labor and industries and the material suppliers and laborers filing claims (9) Except as provided in subsection (1) of this section reservation by a public body for any purpose from the moneys earned by a contractor by fulfilling its responsibilities under public improvement contracts is prohibited (10) Contracts on projects funded in whole or in part by farmers home administration and subject to farmers home administration regulations are not subject to subsections (1) through (9) of this section (11) This subsection applies only to a public body that has contracted for the construction of a facility using the general contractorconstruction manager procedure as defined under RCW 3910210 If the work performed by a subcontractor on the project has been completed within the first half of the time provided in the general contractorconstruction manager contract for completing the work the public body may accept the completion of the subcontract The public body must give public notice of this acceptance After a forty-five day period for giving notice of liens and compliance with the retainage release procedures in RCW 6028021 the public body may release that portion of the retained funds associated with the subcontract Claims against the retained funds after the forty-five day period are not valid (12) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise (a) Contract retainage means an amount reserved by a public body from the moneys earned by a person under a public improvement contract (b) Person means a person or persons mechanic subcontractor or materialperson who performs labor or provides materials for a public improvement contract and any other person who supplies the person with provisions or supplies for the carrying on of a public improvement contract (c) Public body means the state or a county city town district board or other public body (d) Public improvement contract means a contract for public improvements or work other than for professional services or a work order as defined in RCW 3910210

CCBA Nuts amp Bolts on Construction Law - 48 of 49

RCW 6432070 Liens or encumbrances mdash Enforcement mdash Satisfaction

(1) Subsequent to recording the declaration as provided in this chapter and while the property remains subject to this chapter no lien shall thereafter arise or be effective against the property During such period liens or encumbrances shall arise or be created only against each apartment and the percentage of undivided interest in the common areas and facilities and appurtenant to such apartment in the same manner and under the same conditions in every respect as liens or encumbrances may arise or be created upon or against any other separate parcel of real property subject to individual ownership PROVIDED That no labor performed or materials furnished with the consent of or at the request of the owner of any apartment or such owners agent contractor or subcontractor shall be the basis for the filing of a lien against any other apartment or any other property of any other apartment owner not expressly consenting to or requesting the same except that such express consent shall be deemed to be given by any apartment owner in the case of emergency repairs Labor performed or materials furnished for the common areas and facilities if authorized by the association of apartment owners the manager or board of directors shall be deemed to be performed or furnished with the express consent of each apartment owner and shall be the basis for the filing of a lien against each of the apartments and shall be subject to the provisions of subsection (2) of this section (2) In the event a lien against two or more apartments becomes effective the apartment owners of the separate apartments may remove their apartment and the percentage of undivided interest in the common areas and facilities appurtenant to such apartment from the lien by payment of the fractional or proportional amounts attributable to each of the apartments affected Such individual payments shall be computed by reference to the percentages appearing on the declaration Subsequent to any such payment discharge or satisfaction the apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto shall thereafter be free and clear of the liens so paid satisfied or discharged Such partial payment satisfaction or discharge shall not prevent the lienor from proceeding to enforce his or her rights against any apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto not so paid satisfied or discharged

CCBA Nuts amp Bolts on Construction Law - 49 of 49

  • Cover Sheet
  • 20141110 - Washington Lien and Bond CLE
  • LampI Lien Summary
  • Claim of Lien
  • Form Notice to Owner
  • Model Disclosure Statement (Notice to Customer)
  • LampI Facts about Construction Liens
    • What you should know about contracts
    • How to protect your investment
    • For more information
      • Notice of Claim Against Bond and Retained Percentage
      • Preclaim Notice Bond amp Retained Percentage
      • Statute Handout
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 ITA 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 JPN ltFEFF9ad854c18cea306a30d730ea30d730ec30b951fa529b7528002000410064006f0062006500200050004400460020658766f8306e4f5c6210306b4f7f75283057307e305930023053306e8a2d5b9a30674f5c62103055308c305f0020005000440046002030d530a130a430eb306f3001004100630072006f0062006100740020304a30883073002000410064006f00620065002000520065006100640065007200200035002e003000204ee5964d3067958b304f30533068304c3067304d307e305930023053306e8a2d5b9a306b306f30d530a930f330c8306e57cb30818fbc307f304c5fc59808306730593002gt KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020ace0d488c9c80020c2dcd5d80020c778c1c4c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200035002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor prepress-afdrukken van hoge kwaliteit De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 50 en hoger) NOR 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 PTB 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 SUO ltFEFF004b00e40079007400e40020006e00e40069007400e4002000610073006500740075006b007300690061002c0020006b0075006e0020006c0075006f00740020006c00e400680069006e006e00e4002000760061006100740069007600610061006e0020007000610069006e006100740075006b00730065006e002000760061006c006d0069007300740065006c00750074007900f6006800f6006e00200073006f00700069007600690061002000410064006f0062006500200050004400460020002d0064006f006b0075006d0065006e007400740065006a0061002e0020004c0075006f0064007500740020005000440046002d0064006f006b0075006d0065006e00740069007400200076006f0069006400610061006e0020006100760061007400610020004100630072006f0062006100740069006c006c00610020006a0061002000410064006f00620065002000520065006100640065007200200035002e0030003a006c006c00610020006a006100200075007500640065006d006d0069006c006c0061002egt SVE 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 ENU (Use these settings to create Adobe PDF documents best suited for high-quality prepress printing Created PDF documents can be opened with Acrobat and Adobe Reader 50 and later) gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false ConvertColors ConvertToCMYK DestinationProfileName () DestinationProfileSelector DocumentCMYK Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles false MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector DocumentCMYK PreserveEditing true UntaggedCMYKHandling LeaveUntagged UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ]gtgt setdistillerparamsltlt HWResolution [2400 2400] PageSize [612000 792000]gtgt setpagedevice

          ltlt ASCII85EncodePages false AllowTransparency false AutoPositionEPSFiles true AutoRotatePages None Binding Left CalGrayProfile (Dot Gain 20) CalRGBProfile (sRGB IEC61966-21) CalCMYKProfile (US Web Coated 050SWOP051 v2) sRGBProfile (sRGB IEC61966-21) CannotEmbedFontPolicy Warning CompatibilityLevel 14 CompressObjects Tags CompressPages true ConvertImagesToIndexed true PassThroughJPEGImages true CreateJDFFile false CreateJobTicket false DefaultRenderingIntent Default DetectBlends true DetectCurves 00000 ColorConversionStrategy LeaveColorUnchanged DoThumbnails false EmbedAllFonts true EmbedOpenType false ParseICCProfilesInComments true EmbedJobOptions true DSCReportingLevel 0 EmitDSCWarnings false EndPage -1 ImageMemory 1048576 LockDistillerParams true MaxSubsetPct 100 Optimize true OPM 1 ParseDSCComments true ParseDSCCommentsForDocInfo true PreserveCopyPage true PreserveDICMYKValues true PreserveEPSInfo true PreserveFlatness true PreserveHalftoneInfo false PreserveOPIComments true PreserveOverprintSettings true StartPage 1 SubsetFonts true TransferFunctionInfo Apply UCRandBGInfo Preserve UsePrologue false ColorSettingsFile () AlwaysEmbed [ true Algerian Arial-Black Arial-BoldItalicMT Arial-BoldMT Arial-ItalicMT ArialMT ArialNarrow ArialNarrow-Bold ArialNarrow-BoldItalic ArialNarrow-Italic BaskOldFace Bauhaus93 BellMT BellMTBold BellMTItalic BerlinSansFB-Bold BerlinSansFBDemi-Bold BerlinSansFB-Reg BernardMT-Condensed BodoniMTPosterCompressed BookAntiqua BookAntiqua-Bold BookAntiqua-BoldItalic BookAntiqua-Italic BookmanOldStyle BookmanOldStyle-Bold BookmanOldStyle-BoldItalic BookmanOldStyle-Italic BookshelfSymbolSeven BritannicBold Broadway BrushScriptMT CalifornianFB-Bold CalifornianFB-Italic CalifornianFB-Reg Centaur CenturyGothic CenturyGothic-Bold CenturyGothic-BoldItalic CenturyGothic-Italic Chiller-Regular ColonnaMT ComicSansMS ComicSansMS-Bold CooperBlack CourierNewPS-BoldItalicMT CourierNewPS-BoldMT CourierNewPS-ItalicMT CourierNewPSMT EstrangeloEdessa EXTRAAPLNew-Regular EXTRAOIANew-Regular FootlightMTLight FranklinGothic-Medium FranklinGothic-MediumItalic FreestyleScript-Regular Garamond Garamond-Bold Garamond-Italic Gautami Georgia Georgia-Bold Georgia-BoldItalic Georgia-Italic HarlowSolid Harrington HighTowerText-Italic HighTowerText-Reg Impact InformalRoman-Regular Jokerman-Regular JuiceITC-Regular Kartika KristenITC-Regular KunstlerScript Latha LatinWide LucidaATTMSpecial LucidaBright LucidaBright-Demi LucidaBright-DemiItalic LucidaBright-Italic LucidaCalligraphy-Italic LucidaConsole LucidaFax LucidaFax-Demi LucidaFax-DemiItalic LucidaFax-Italic LucidaforAttachmate LucidaHandwriting-Italic LucidaSans LucidaSans-Demi LucidaSans-DemiItalic LucidaSans-Italic LucidaSansUnicode Magneto-Bold Mangal-Regular MaturaMTScriptCapitals MicrosoftSansSerif Mistral Modern-Regular Monospace821BT-Roman MonotypeCorsiva MSOutlook MSReferenceSansSerif MSReferenceSpecialty MVBoli NiagaraEngraved-Reg NiagaraSolid-Reg OldEnglishTextMT Onyx PalatinoLinotype-Bold PalatinoLinotype-BoldItalic PalatinoLinotype-Italic PalatinoLinotype-Roman Parchment-Regular Playbill PoorRichard-Regular Raavi Ravie ShowcardGothic-Reg Shruti SnapITC-Regular Stencil Sylfaen SymbolMT Tahoma Tahoma-Bold TempusSansITC TimesNewRomanPS-BoldItalicMT TimesNewRomanPS-BoldMT TimesNewRomanPS-ItalicMT TimesNewRomanPSMT Trebuchet-BoldItalic TrebuchetMS TrebuchetMS-Bold TrebuchetMS-Italic Tunga-Regular Verdana Verdana-Bold Verdana-BoldItalic Verdana-Italic VinerHandITC Vivaldii VladimirScript Vrinda Webdings Wingdings2 Wingdings3 Wingdings-Regular ZWAdobeF ] NeverEmbed [ true ] AntiAliasColorImages false CropColorImages true ColorImageMinResolution 300 ColorImageMinResolutionPolicy OK DownsampleColorImages true ColorImageDownsampleType Bicubic ColorImageResolution 300 ColorImageDepth -1 ColorImageMinDownsampleDepth 1 ColorImageDownsampleThreshold 150000 EncodeColorImages false ColorImageFilter DCTEncode AutoFilterColorImages true ColorImageAutoFilterStrategy JPEG ColorACSImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt ColorImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000ColorACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000ColorImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasGrayImages false CropGrayImages true GrayImageMinResolution 300 GrayImageMinResolutionPolicy OK DownsampleGrayImages true GrayImageDownsampleType Bicubic GrayImageResolution 300 GrayImageDepth -1 GrayImageMinDownsampleDepth 2 GrayImageDownsampleThreshold 150000 EncodeGrayImages false GrayImageFilter DCTEncode AutoFilterGrayImages true GrayImageAutoFilterStrategy JPEG GrayACSImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt GrayImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000GrayACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000GrayImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasMonoImages false CropMonoImages true MonoImageMinResolution 1200 MonoImageMinResolutionPolicy OK DownsampleMonoImages true MonoImageDownsampleType Bicubic MonoImageResolution 1200 MonoImageDepth -1 MonoImageDownsampleThreshold 150000 EncodeMonoImages false MonoImageFilter CCITTFaxEncode MonoImageDict ltlt K -1 gtgt AllowPSXObjects false CheckCompliance [ None ] PDFX1aCheck false PDFX3Check false PDFXCompliantPDFOnly false PDFXNoTrimBoxError true PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile (None) PDFXOutputConditionIdentifier () PDFXOutputCondition () PDFXRegistryName () PDFXTrapped False Description ltlt CHS ltFEFF4f7f75288fd94e9b8bbe5b9a521b5efa7684002000410064006f006200650020005000440046002065876863900275284e8e9ad88d2891cf76845370524d53705237300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200035002e003000204ee553ca66f49ad87248672c676562535f00521b5efa768400200050004400460020658768633002gt CHT ltFEFF4f7f752890194e9b8a2d7f6e5efa7acb7684002000410064006f006200650020005000440046002065874ef69069752865bc9ad854c18cea76845370524d5370523786557406300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200035002e003000204ee553ca66f49ad87248672c4f86958b555f5df25efa7acb76840020005000440046002065874ef63002gt DAN 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 DEU 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 ESP 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 FRA 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 ITA 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 JPN ltFEFF9ad854c18cea306a30d730ea30d730ec30b951fa529b7528002000410064006f0062006500200050004400460020658766f8306e4f5c6210306b4f7f75283057307e305930023053306e8a2d5b9a30674f5c62103055308c305f0020005000440046002030d530a130a430eb306f3001004100630072006f0062006100740020304a30883073002000410064006f00620065002000520065006100640065007200200035002e003000204ee5964d3067958b304f30533068304c3067304d307e305930023053306e8a2d5b9a306b306f30d530a930f330c8306e57cb30818fbc307f304c5fc59808306730593002gt KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020ace0d488c9c80020c2dcd5d80020c778c1c4c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200035002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor prepress-afdrukken van hoge kwaliteit De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 50 en hoger) NOR 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 PTB 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 SUO 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 SVE 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 ENU (Use these settings to create Adobe PDF documents best suited for high-quality prepress printing Created PDF documents can be opened with Acrobat and Adobe Reader 50 and later) gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false ConvertColors ConvertToCMYK DestinationProfileName () DestinationProfileSelector DocumentCMYK Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles false MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector DocumentCMYK PreserveEditing true UntaggedCMYKHandling LeaveUntagged UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ]gtgt setdistillerparamsltlt HWResolution [2400 2400] PageSize [612000 792000]gtgt setpagedevice

          1. To
          2. Date
          3. Re
          4. From
          5. AT THE REQUEST OF
          6. Sender
          7. Address
          8. Telephone
          9. Brief description of professional services materials or equipment provided or to be provided
          10. 1
          11. 2
          12. 3
          13. reg no
          14. deposit $
          15. expiration date
          16. claims up to $
          17. Reset

F625-030-000 model disclosure statement notice to customer 09-2007

Department of Labor and Industries Construction Compliance

MODEL DISCLOSURE STATEMENTNOTICE TO CUSTOMER

This contractor is registered with the state of Washington registration no____________________ and has posted with the state a bond or deposit of ______________________ for the purpose of satisfying claims against the contractor for breach of contract including negligent or improper work in the conduct of the contractorrsquos business The expiration date of this contractorrsquos registration is ______________________

THIS BOND OR DEPOSIT MIGHT NOT BE SUFFICIENT TO COVER A CLAIM THAT MIGHT ARISE FROM THE WORK DONE UNDER YOUR CONTRACT This bond or deposit is not for your exclusive use because it covers all work performed by this contractor The bond or deposit is intended to pay valid claims up to ___________________________ that you and other customers suppliers subcontractors or taxing authorities may have FOR GREATER PROTECTION YOU MAY WITHHOLD A PERCENTAGE OF YOUR CONTRACT You may withhold a contractually defined percentage of your construction contract as retainage for a stated period of time to provide protection to you and help insure that your project will be completed as required by your contract

YOUR PROPERTY MAY BE LIENED If a supplier of materials used in your construction project or an employee or subcontractor of your contractor or subcontractors is not paid your property may be liened to force payment and you could pay twice for the same work FOR ADDITIONAL PROTECTION YOU MAY REQUEST THE CONTRACTOR TO PROVIDE YOU WITH ORIGINAL ldquoLIEN RELEASErdquo DOCUMENTS FROM EACH SUPPLIER OR SUBCONTRACTOR AT YOUR PROJECT The contractor is required to provide you with further information about lien release document if you request it General information is also available from the state Department of Labor and Industries I have received a copy of this disclosure statement Dated this _______ day of _______________ of the year __________

_____________________________________________________ Signature of Customer The contractor must retain a signed copy of the disclosure statement in his or her files for a minimum of three years and produce a signed or electronic signature copy of the disclosure statement to the department upon request

CCBA Nuts amp Bolts on Construction Law - 22 of 49

Facts About Construction LiensWhat you should know about contractsIf your contractor fails to pay subcontractors suppliers or laborers or neglects to make other legally required payments those who are owed money can look to your property for payment even if you have paid your contractor in full This is true if you have hired a contractor to build a new home or are buying a newly built home

It is also true when you remodel or improve your property although the amount of your liability may be limited to the amount you owe the prime contractor at the time a lien is filed

Under Washington laws those who work on your property or provide materials and are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien

People who supply materials or labor ordered by your contractor are permitted by law to file a lien only if they do so within 90 days of cessation of performance or delivery of materials The time frame is spelled out in RCW 6004091

If you enter into a contract to buy a newly built home you may not receive a notice of a lien based on a claim by a contractor or material handler Be aware that a lien may be claimed even though you have not received a notice

Before making final payment on the project request a completed lien release form from each contractor and material supplier A sample of this release of lien form is available from the Department of Labor amp Industries Contractor Registration Section

You have final responsibility for seeing that all bills are paid even if you have paid your contractor in full

If you receive a notice to enforce a lien take the notice seriously Let your contractor know you have received the notice Find out what arrangements are being made to pay the sender of the notice

When in doubt or if you need more details consult your attorney When and how to pay your contractor is a decision that requires serious consideration

Reminder Washington laws require contractors to give you a disclosure statement if your contract exceeds $1000 [RCW 1827114(A) or (B)]

CCBA Nuts amp Bolts on Construction Law - 23 of 49

PUBLICATION F625-017-000 [01-2008]

Other formats for persons with disabilities are available on request Call 1-800-647-0982 TDD users call 360-902-5797 LampI is an equal opportunity employer

For more information

How to protect your investment

If you are dealing with a lending institution ask your loan officer what precautions the lending institution takes to verify that subcontractors and material suppliers are being paid when mortgage money is paid to your contractor

Request lender supervision when dealing with a lending institution that provides interim or construction financing

Ask the prime contractor to disclose all potential lien claimants as a condition of payment A lien claimant must mail (by certified or registered mail or by personal service) a copy of the claim of lien to the owner within 14 days of the time the lien is recorded [RCW 6004091(2)] While an action is ongoing an owner may withhold from this prime contractor the amount of money for which a claim is recorded by a subcontractor supplier or laborer [RCW 6004151]

It is recommended that your check be made payable jointly naming the contractor and the subcontractor or supplier as payees

Upon payment and acceptance of the amount due the owner has the right to an executed release of all lien rights by lien claimants [RCW 6004071]

Consider using an escrow agent to protect your interests Find out whether your escrow agent will protect you against liens when disbursing payments If you are interested in this alternative consult your attorney

Request that your contractor post a performance bond in the amount of the project cost That will give you recourse in the event the contractor fails to complete the building agreement

8 On the Web Find more information about hiring a contractor at

wwwLniwagovTradesLicensingContractorsHireCon

Contractor Registration Hotline1-800-647-0982

You may also call your local LampI office See listings under ldquoWashington State ofrdquo in the government section or the white pages of the telephone book

Please note This notice was prepared by the Department of Labor amp Industries Specialty Compliance Services Division for reproduction by lending institutions and contractors for distribution to their clients It explains the basics of the construction lien law to help you protect yourself This information is not a reflection upon the abilities or credit of your contractor

CCBA Nuts amp Bolts on Construction Law - 24 of 49

NOTICE OF CLAIM AGAINST

BOND AND RETAINED PERCENTAGE

RCW 3908030 RCW 6028010

VIA CERTIFIED MAIL ndash RETURN RECEIPT REQUESTED

TO [Public Owner] [Public Ownerrsquos Address]

Project [Project Name amp Address] NOTICE IS HEREBY GIVEN that the undersigned [Claimant] [Claimantrsquos Address] has a claim in the amount of ----- and 00100 Dollars ($XX) (not including attorneysrsquo fees or costs) together with interest at twelve percent (12) against [Public Owner] (ldquoOwnerrdquo) pursuant to RCW 6028 and the payment bond taken from [Prime Contractor] (ldquoContractorrdquo) [Prime Contractorrsquos Address] as principal and [Surety Company] (ldquoSuretyrdquo) [Suretyrsquos Address] as surety Bond No ________ pursuant to RCW 3908 for [describe services material supplies labor furnished] provided on the Project This Notice of Claim Against Bond and Retained Percentage supersedes and replaces previous Notices DATED This ___day of _________ 201_ [Claimant] By ______________________________________ Its ______________________________________ [Claimantrsquos Address]

_________________________________________

[Contractors Registration No if applicable]

(Copies furnished to General Contractor and General Contractorrsquos Bonding Company)

CCBA Nuts amp Bolts on Construction Law - 25 of 49

PRECLAIM NOTICE TO CONTRACTOR BY SUBCONTRACTORS MATERIALMEN OR SUPPLIERS FOR

CLAIM AGAINST BOND AND RETAINED PERCENTAGE

VIA CERTIFIED OR REGISTERED MAIL- RETURN RECEIPT REQUESTED

TO [Name of General Contractor] [Address]

YOU ARE HEREBY NOTIFIED that the undersigned ____________at the request of_________________ commenced to deliver or furnish materials supplies andor equipment for the use in the construction alteration andor repair of that certain project known as____________________ [project name] which is located at ____________________________ [address or description] If the undersigned is not paid for these materials supplies andor equipment it will file a claim against you and your bond andor retainage pursuant to RCW 3908 andor 6028 et seq for payment of any sum that is due and owing to the undersigned

DATED This __ day of _____________ 201_

[Name of Claimant]

By ____________________________________

Its ____________________________________

Address ______________________________

__________________________________________

__________________________________________

[Contractors Registration No if applicable]

(Mail via certified mail return receipt requested or hand deliver and obtain receipt)

CCBA Nuts amp Bolts on Construction Law - 26 of 49

Washington Liens amp Bonds ndash Pertinent Statutes

RCW 1827040 Bond or other security required mdash Actions against mdash Suspension of registration upon impairment (1) Each applicant shall file with the department a surety bond issued by a surety insurer who meets the requirements of chapter 4828 RCW in the sum of twelve thousand dollars if the applicant is a general contractor and six thousand dollars if the applicant is a specialty contractor If no valid bond is already on file with the department at the time the application is filed a bond must accompany the registration application The bond shall have the state of Washington named as obligee with good and sufficient surety in a form to be approved by the department The bond shall be continuous and may be canceled by the surety upon the surety giving written notice to the director A cancellation or revocation of the bond or withdrawal of the surety from the bond automatically suspends the registration issued to the contractor until a new bond or reinstatement notice has been filed and approved as provided in this section The bond shall be conditioned that the applicant will pay all persons performing labor including employee benefits for the contractor will pay all taxes and contributions due to the state of Washington and will pay all persons furnishing material or renting or supplying equipment to the contractor and will pay all amounts that may be adjudged against the contractor by reason of breach of contract including improper work in the conduct of the contracting business A change in the name of a business or a change in the type of business entity shall not impair a bond for the purposes of this section so long as one of the original applicants for such bond maintains partial ownership in the business covered by the bond (2) At the time of initial registration or renewal the contractor shall provide a bond or other security deposit as required by this chapter and comply with all of the other provisions of this chapter before the department shall issue or renew the contractors certificate of registration Any contractor registered as of July 1 2001 who maintains that registration in accordance with this chapter is in compliance with this chapter until the next renewal of the contractors certificate of registration (3) Any person firm or corporation having a claim against the contractor for any of the items referred to in this section may bring suit against the contractor and the bond or deposit in the superior court of the county in which the work was done or of any county in which jurisdiction of the contractor may be had The surety issuing the bond shall be named as a party to any suit upon the bond Action upon the bond or deposit brought by a residential homeowner for breach of contract by a party to the construction contract shall be commenced by filing the summons and complaint with the clerk of the appropriate superior court within two years from the date the claimed contract work was substantially completed or abandoned whichever occurred first Action upon the bond or deposit brought by any other authorized party shall be commenced by filing the summons and complaint with the clerk of the appropriate superior court within one year from the date the claimed labor was performed and benefits accrued taxes and contributions owing the state of Washington became due materials and equipment were furnished or the claimed contract work was substantially completed or abandoned whichever occurred first Service of process in an action filed under this chapter against the contractor and the contractors bond or the deposit shall be exclusively by service upon the department Three

CCBA Nuts amp Bolts on Construction Law - 27 of 49

copies of the summons and complaint and a fee adopted by rule of not less than fifty dollars to cover the costs shall be served by registered or certified mail or other delivery service requiring notice of receipt upon the department at the time suit is started and the department shall maintain a record available for public inspection of all suits so commenced Service is not complete until the department receives the fee and three copies of the summons and complaint The service shall constitute service and confer personal jurisdiction on the contractor and the surety for suit on claimants claim against the contractor and the bond or deposit and the department shall transmit the summons and complaint or a copy thereof to the contractor at the address listed in the contractors application and to the surety within two days after it shall have been received (4) The surety upon the bond shall not be liable in an aggregate amount in excess of the amount named in the bond nor for any monetary penalty assessed pursuant to this chapter for an infraction The liability of the surety shall not cumulate where the bond has been renewed continued reinstated reissued or otherwise extended The surety upon the bond may upon notice to the department and the parties tender to the clerk of the court having jurisdiction of the action an amount equal to the claims thereunder or the amount of the bond less the amount of judgments if any previously satisfied therefrom and to the extent of such tender the surety upon the bond shall be exonerated but if the actions commenced and pending and provided to the department as required in subsection (3) of this section at any one time exceed the amount of the bond then unimpaired claims shall be satisfied from the bond in the following order (a) Employee labor and claims of laborers including employee benefits (b) Claims for breach of contract by a party to the construction contract (c) Registered or licensed subcontractors material and equipment (d) Taxes and contributions due the state of Washington (e) Any court costs interest and attorneys fees plaintiff may be entitled to recover The surety is not liable for any amount in excess of the penal limit of its bond A payment made by the surety in good faith exonerates the bond to the extent of any payment made by the surety (5) The total amount paid from a bond or deposit required of a general contractor by this section to claimants other than residential homeowners must not exceed one-half of the bond amount The total amount paid from a bond or deposit required of a specialty contractor by this section to claimants other than residential homeowners must not exceed one-half of the bond amount or four thousand dollars whichever is greater (6) The prevailing party in an action filed under this section against the contractor and contractors bond or deposit for breach of contract by a party to the construction contract involving a residential homeowner is entitled to costs interest and reasonable attorneys fees The surety upon the bond or deposit is not liable in an aggregate amount in excess of the amount

CCBA Nuts amp Bolts on Construction Law - 28 of 49

named in the bond or deposit nor for any monetary penalty assessed pursuant to this chapter for an infraction (7) If a final judgment impairs the liability of the surety upon the bond or deposit so furnished that there is not in effect a bond or deposit in the full amount prescribed in this section the registration of the contractor is automatically suspended until the bond or deposit liability in the required amount unimpaired by unsatisfied judgment claims is furnished (8) In lieu of the surety bond required by this section the contractor may file with the department an assigned savings account upon forms provided by the department (9) Any person having filed and served a summons and complaint as required by this section having an unsatisfied final judgment against the registrant for any items referred to in this section may execute upon the security held by the department by serving a certified copy of the unsatisfied final judgment by registered or certified mail upon the department within one year of the date of entry of such judgment Upon the receipt of service of such certified copy the department shall pay or order paid from the deposit through the registry of the superior court which rendered judgment towards the amount of the unsatisfied judgment The priority of payment by the department shall be the order of receipt by the department but the department shall have no liability for payment in excess of the amount of the deposit (10) Within ten days after resolution of the case a certified copy of the final judgment and order or any settlement documents where a case is not disposed of by a court trial a certified copy of the dispositive settlement documents must be provided to the department by the prevailing party Failure to provide a copy of the final judgment and order or the dispositive settlement documents to the department within ten days of entry of such an order constitutes a violation of this chapter and a penalty adopted by rule of not less than two hundred fifty dollars may be assessed against the prevailing party (11) The director may require an applicant applying to renew or reinstate a registration or applying for a new registration to file a bond of up to three times the normally required amount if the director determines that an applicant or a previous registration of a corporate officer owner or partner of a current applicant has had in the past five years a total of three final judgments in actions under this chapter involving a residential single-family dwelling on two or more different structures (12) The director may adopt rules necessary for the proper administration of the security RCW 1827114 Disclosure statement required mdash Prerequisite to lien claim

(1) Any contractor agreeing to perform any contracting project (a) For the repair alteration or construction of four or fewer residential units or accessory structures on such residential property when the bid or contract price totals one thousand dollars or more or (b) for the repair alteration or construction of a commercial building when the bid or contract price totals one thousand dollars or more but less than sixty thousand dollars must provide the customer with

CCBA Nuts amp Bolts on Construction Law - 29 of 49

the following disclosure statement in substantially the following form using lower case and upper case twelve-point and bold type where appropriate prior to starting work on the project NOTICE TO CUSTOMER This contractor is registered with the state of Washington registration no and has posted with the state a bond or deposit of for the purpose of satisfying claims against the contractor for breach of contract including negligent or improper work in the conduct of the contractors business The expiration date of this contractors registration is THIS BOND OR DEPOSIT MIGHT NOT BE SUFFICIENT TO COVER A CLAIM THAT MIGHT ARISE FROM THE WORK DONE UNDER YOUR CONTRACT This bond or deposit is not for your exclusive use because it covers all work performed by this contractor The bond or deposit is intended to pay valid claims up to that you and other customers suppliers subcontractors or taxing authorities may have FOR GREATER PROTECTION YOU MAY WITHHOLD A PERCENTAGE OF YOUR CONTRACT You may withhold a contractually defined percentage of your construction contract as retainage for a stated period of time to provide protection to you and help insure that your project will be completed as required by your contract YOUR PROPERTY MAY BE LIENED If a supplier of materials used in your construction project or an employee or subcontractor of your contractor or subcontractors is not paid your property may be liened to force payment and you could pay twice for the same work FOR ADDITIONAL PROTECTION YOU MAY REQUEST THE CONTRACTOR TO PROVIDE YOU WITH ORIGINAL LIEN RELEASE DOCUMENTS FROM EACH SUPPLIER OR SUBCONTRACTOR ON YOUR PROJECT The contractor is required to provide you with further information about lien release documents if you request it General information is also available from the state Department of Labor and Industries I have received a copy of this disclosure statement

CCBA Nuts amp Bolts on Construction Law - 30 of 49

(Signature of customer) (2) The contractor must retain a signed copy of the disclosure statement in his or her files for a minimum of three years and produce a signed or electronic signature copy of the disclosure statement to the department upon request (3) A contractor subject to this section shall notify any consumer to whom notice is required under subsection (1) of this section if the contractors registration has expired or is revoked or suspended by the department prior to completion or other termination of the contract with the consumer (4) No contractor subject to this section may bring or maintain any lien claim under chapter 6004 RCW based on any contract to which this section applies without alleging and proving that the contractor has provided the customer with a copy of the disclosure statement as required in subsection (1) of this section (5) This section does not apply to contracts authorized under chapter 3904 RCW or to contractors contracting with other contractors (6) Failure to comply with this section shall constitute an infraction under the provisions of this chapter (7) The department shall produce model disclosure statements and public service announcements detailing the information needed to assist contractors and contractors customers to comply under this section As necessary the department shall periodically update these education materials RCW 3908010 Bond required mdash Conditions mdash Retention of contract amount in lieu of bond (1)(a) Whenever any board council commission trustees or body acting for the state or any county or municipality or any public body must contract with any person or corporation to do any work for the state county or municipality or other public body city town or district such board council commission trustees or body must require the person or persons with whom such contract is made to make execute and deliver to such board council commission trustees or body a good and sufficient bond with a surety company as surety conditioned that such person or persons must (i) Faithfully perform all the provisions of such contract (ii) Pay all laborers mechanics and subcontractors and material suppliers and all persons who supply such person or persons or subcontractors with provisions and supplies for the carrying on of such work and

CCBA Nuts amp Bolts on Construction Law - 31 of 49

(iii) Pay the taxes increases and penalties incurred on the project under Titles 50 51 and 82 RCW on (A) Projects referred to in RCW 6028011(1)(b) andor (B) projects for which the bond is conditioned on the payment of such taxes increases and penalties (b) The bond in cases of cities and towns must be filed with the clerk or comptroller thereof and any person or persons performing such services or furnishing material to any subcontractor has the same right under the provisions of such bond as if such work services or material was furnished to the original contractor (2) The provisions of RCW 3908010 through 3908030 do not apply to any money loaned or advanced to any such contractor subcontractor or other person in the performance of any such work (3) On contracts of thirty-five thousand dollars or less at the option of the contractor the respective public entity may in lieu of the bond retain fifty percent of the contract amount for a period of thirty days after date of final acceptance or until receipt of all necessary releases from the department of revenue the employment security department and the department of labor and industries and settlement of any liens filed under chapter 6028 RCW whichever is later (4) For contracts of one hundred thousand dollars or less the public entity may accept a full payment and performance bond from an individual surety or sureties (5) The surety must agree to be bound by the laws of the state of Washington and subjected to the jurisdiction of the state of Washington RCW 6004011 Definitions

Unless the context requires otherwise the definitions in this section apply throughout this chapter (1) Construction agent means any registered or licensed contractor registered or licensed subcontractor architect engineer or other person having charge of any improvement to real property who shall be deemed the agent of the owner for the limited purpose of establishing the lien created by this chapter (2) Contract price means the amount agreed upon by the contracting parties or if no amount is agreed upon then the customary and reasonable charge therefor (3) Draws means periodic disbursements of interim or construction financing by a lender (4) Furnishing labor professional services materials or equipment means the performance of any labor or professional services the contribution owed to any employee benefit plan on account of any labor the provision of any supplies or materials and the renting leasing or

CCBA Nuts amp Bolts on Construction Law - 32 of 49

otherwise supplying of equipment for the improvement of real property (5) Improvement means (a) Constructing altering repairing remodeling demolishing clearing grading or filling in of to or upon any real property or street or road in front of or adjoining the same (b) planting of trees vines shrubs plants hedges or lawns or providing other landscaping materials on any real property and (c) providing professional services upon real property or in preparation for or in conjunction with the intended activities in (a) or (b) of this subsection (6) Interim or construction financing means that portion of money secured by a mortgage deed of trust or other encumbrance to finance improvement of or to real property but does not include (a) Funds to acquire real property (b) Funds to pay interest insurance premiums lease deposits taxes assessments or prior encumbrances (c) Funds to pay loan commitment title legal closing recording or appraisal fees (d) Funds to pay other customary fees which pursuant to agreement with the owner or borrower are to be paid by the lender from time to time (e) Funds to acquire personal property for which the potential lien claimant may not claim a lien pursuant to this chapter (7) Labor means exertion of the powers of body or mind performed at the site for compensation Labor includes amounts due and owed to any employee benefit plan on account of such labor performed (8) Mortgagee means a person who has a valid mortgage of record or deed of trust of record securing a loan (9) Owner-occupied means a single-family residence occupied by the owner as his or her principal residence (10) Payment bond means a surety bond issued by a surety licensed to issue surety bonds in the state of Washington that confers upon potential claimants the rights of third party beneficiaries (11) Potential lien claimant means any person or entity entitled to assert lien rights under this chapter who has otherwise complied with the provisions of this chapter and is registered or licensed if required to be licensed or registered by the provisions of the laws of the state of Washington (12) Prime contractor includes all contractors general contractors and specialty

CCBA Nuts amp Bolts on Construction Law - 33 of 49

contractors as defined by chapter 1827 or 1928 RCW or who are otherwise required to be registered or licensed by law who contract directly with a property owner or their common law agent to assume primary responsibility for the creation of an improvement to real property and includes property owners or their common law agents who are contractors general contractors or specialty contractors as defined in chapter 1827 or 1928 RCW or who are otherwise required to be registered or licensed by law who offer to sell their property without occupying or using the structures projects developments or improvements for more than one year (13) Professional services means surveying establishing or marking the boundaries of preparing maps plans or specifications for or inspecting testing or otherwise performing any other architectural or engineering services for the improvement of real property (14) Real property lender means a bank savings bank savings and loan association credit union mortgage company or other corporation association partnership trust or individual that makes loans secured by real property located in the state of Washington (15) Site means the real property which is or is to be improved (16) Subcontractor means a general contractor or specialty contractor as defined by chapter 1827 or 1928 RCW or who is otherwise required to be registered or licensed by law who contracts for the improvement of real property with someone other than the owner of the property or their common law agent

6004021 Lien authorized

Except as provided in RCW 6004031 any person furnishing labor professional services materials or equipment for the improvement of real property shall have a lien upon the improvement for the contract price of labor professional services materials or equipment furnished at the instance of the owner or the agent or construction agent of the owner

6004031 Notices mdash Exceptions

(1) Except as otherwise provided in this section every person furnishing professional services materials or equipment for the improvement of real property shall give the owner or reputed owner notice in writing of the right to claim a lien If the prime contractor is in compliance with the requirements of RCW 1927095 6004230 and 6004261 this notice shall also be given to the prime contractor as described in this subsection unless the potential lien claimant has contracted directly with the prime contractor The notice may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after the date which is sixty days before (a) Mailing the notice by certified or registered mail to the owner or reputed owner or

CCBA Nuts amp Bolts on Construction Law - 34 of 49

(b) Delivering or serving the notice personally upon the owner or reputed owner and obtaining evidence of delivery in the form of a receipt or other acknowledgment signed by the owner or reputed owner or an affidavit of service In the case of new construction of a single-family residence the notice of a right to claim a lien may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after a date which is ten days before the notice is given as described in this subsection (2) Notices of a right to claim a lien shall not be required of (a) Persons who contract directly with the owner or the owners common law agent (b) Laborers whose claim of lien is based solely on performing labor or (c) Subcontractors who contract for the improvement of real property directly with the prime contractor except as provided in subsection (3)(b) of this section (3) Persons who furnish professional services materials or equipment in connection with the repair alteration or remodel of an existing owner-occupied single-family residence or appurtenant garage (a) Who contract directly with the owner-occupier or their common law agent shall not be required to send a written notice of the right to claim a lien and shall have a lien for the full amount due under their contract as provided in RCW 6004021 or (b) Who do not contract directly with the owner-occupier or their common law agent shall give notice of the right to claim a lien to the owner-occupier Liens of persons furnishing professional services materials or equipment who do not contract directly with the owner-occupier or their common law agent may only be satisfied from amounts not yet paid to the prime contractor by the owner at the time the notice described in this section is received regardless of whether amounts not yet paid to the prime contractor are due For the purposes of this subsection received means actual receipt of notice by personal service or registered or certified mail or three days after mailing by registered or certified mail excluding Saturdays Sundays or legal holidays (4) The notice of right to claim a lien described in subsection (1) of this section shall include but not be limited to the following information and shall substantially be in the following form using lower-case and upper-case ten-point type where appropriate

CCBA Nuts amp Bolts on Construction Law - 35 of 49

NOTICE TO OWNER

IMPORTANT READ BOTH SIDES OF THIS NOTICE CAREFULLY

PROTECT YOURSELF FROM PAYING TWICE

To Date

Re (description of property Street address or general location) From AT THE REQUEST OF (Name of person ordering the professional services materials or equipment) THIS IS NOT A LIEN This notice is sent to you to tell you who is providing professional services materials or equipment for the improvement of your property and to advise you of the rights of these persons and your responsibilities Also take note that laborers on your project may claim a lien without sending you a notice

OWNEROCCUPIER OF EXISTING

RESIDENTIAL PROPERTY

Under Washington law those who furnish labor professional services materials or equipment for the repair remodel or alteration of your owner-occupied principal residence and who are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien The law limits the amount that a lien claimant can claim against your property Claims may only be made against that portion of the contract price you have not yet paid to your prime contractor as of the time this notice was given to you or three days after this notice was mailed to you Review the back of this notice for more information and ways to avoid lien claims

COMMERCIAL ANDOR NEW

RESIDENTIAL PROPERTY

CCBA Nuts amp Bolts on Construction Law - 36 of 49

We have or will be providing professional services materials or equipment for the improvement of your commercial or new residential project In the event you or your contractor fail to pay us we may file a lien against your property A lien may be claimed for all professional services materials or equipment furnished after a date that is sixty days before this notice was given to you or mailed to you unless the improvement to your property is the construction of a new single-family residence then ten days before this notice was given to you or mailed to you Sender Address Telephone Brief description of professional services materials or equipment provided or to be provided

IMPORTANT INFORMATION

ON REVERSE SIDE

IMPORTANT INFORMATION

FOR YOUR PROTECTION This notice is sent to inform you that we have or will provide professional services materials or equipment for the improvement of your property We expect to be paid by the person who ordered our services but if we are not paid we have the right to enforce our claim by filing a construction lien against your property LEARN more about the lien laws and the meaning of this notice by discussing them with your contractor suppliers Department of Labor and Industries the firm sending you this notice your lender or your attorney

COMMON METHODS TO AVOID CONSTRUCTION LIENS There are several methods available to protect your property from construction liens The following are two of the more commonly used methods

DUAL PAYCHECKS (Joint Checks) When paying your contractor for services or materials you may make checks payable jointly to the contractor and the firms furnishing you this notice

CCBA Nuts amp Bolts on Construction Law - 37 of 49

LIEN RELEASES You may require your contractor to provide lien releases signed by all the suppliers and subcontractors from whom you have received this notice If they cannot obtain lien releases because you have not paid them you may use the dual payee check method to protect yourself

YOU SHOULD TAKE APPROPRIATE STEPS TO PROTECT YOUR PROPERTY FROM LIENS YOUR PRIME CONTRACTOR AND YOUR CONSTRUCTION LENDER ARE REQUIRED BY LAW TO GIVE YOU WRITTEN INFORMATION ABOUT LIEN CLAIMS IF YOU HAVE NOT RECEIVED IT ASK THEM FOR IT

(5) Every potential lien claimant providing professional services where no improvement as defined in RCW 6004011(5) (a) or (b) has been commenced and the professional services provided are not visible from an inspection of the real property may record in the real property records of the county where the property is located a notice which shall contain the professional service providers name address telephone number legal description of the property the owner or reputed owners name and the general nature of the professional services provided If such notice is not recorded the lien claimed shall be subordinate to the interest of any subsequent mortgagee and invalid as to the interest of any subsequent purchaser if the mortgagee or purchaser acts in good faith and for a valuable consideration acquires an interest in the property prior to the commencement of an improvement as defined in RCW 6004011(5) (a) or (b) without notice of the professional services being provided The notice described in this subsection shall be substantially in the following form

NOTICE OF FURNISHING

PROFESSIONAL SERVICES That on the (day) day of (month and year) (name of provider) began providing professional services upon or for the improvement of real property legally described as follows

[Legal Description is mandatory]

CCBA Nuts amp Bolts on Construction Law - 38 of 49

The general nature of the professional services provided is The owner or reputed owner of the real property is

(Signature)

(Name of Claimant)

(Street Address)

(City State Zip Code)

(Phone Number)

(6) A lien authorized by this chapter shall not be enforced unless the lien claimant has complied with the applicable provisions of this section

6004041 Contractor registration

A contractor or subcontractor required to be registered under chapter 1827 RCW or licensed under chapter 1928 RCW or otherwise required to be registered or licensed by law shall be deemed the construction agent of the owner for the purposes of establishing the lien created by this chapter only if so registered or licensed Persons dealing with contractors or subcontractors may rely for the purposes of this section upon a certificate of registration issued pursuant to chapter 1827 RCW or license issued pursuant to chapter 1928 RCW or other certificate or license issued pursuant to law covering the period when the labor professional services material or equipment shall be furnished and the lien rights shall not be lost by suspension or revocation of registration or license without their knowledge No lien rights described in this

CCBA Nuts amp Bolts on Construction Law - 39 of 49

chapter shall be lost or denied by virtue of the absence suspension or revocation of such registration or license with respect to any contractor or subcontractor not in immediate contractual privity with the lien claimant

6004081 Frivolous claim mdash Procedure

(1) Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who believes the claim of lien to be frivolous and made without reasonable cause or clearly excessive may apply by motion to the superior court for the county where the property or some part thereof is located for an order directing the lien claimant to appear before the court at a time no earlier than six nor later than fifteen days following the date of service of the application and order on the lien claimant and show cause if any he or she has why the relief requested should not be granted The motion shall state the grounds upon which relief is asked and shall be supported by the affidavit of the applicant or his or her attorney setting forth a concise statement of the facts upon which the motion is based (2) The order shall clearly state that if the lien claimant fails to appear at the time and place noted the lien shall be released with prejudice and that the lien claimant shall be ordered to pay the costs requested by the applicant including reasonable attorneys fees (3) If no action to foreclose the lien claim has been filed the clerk of the court shall assign a cause number to the application and obtain from the applicant a filing fee pursuant to RCW 3618016 If an action has been filed to foreclose the lien claim the application shall be made a part of that action (4) If following a hearing on the matter the court determines that the lien is frivolous and made without reasonable cause or clearly excessive the court shall issue an order releasing the lien if frivolous and made without reasonable cause or reducing the lien if clearly excessive and awarding costs and reasonable attorneys fees to the applicant to be paid by the lien claimant If the court determines that the lien is not frivolous and was made with reasonable cause and is not clearly excessive the court shall issue an order so stating and awarding costs and reasonable attorneys fees to the lien claimant to be paid by the applicant (5) Proceedings under this section shall not affect other rights and remedies available to the parties under this chapter or otherwise

6004091 Recording mdash Time mdash Contents of lien

Every person claiming a lien under RCW 6004021 shall file for recording in the county where the subject property is located a notice of claim of lien not later than ninety days after the person

CCBA Nuts amp Bolts on Construction Law - 40 of 49

has ceased to furnish labor professional services materials or equipment or the last date on which employee benefit contributions were due The notice of claim of lien (1) Shall state in substance and effect (a) The name phone number and address of the claimant (b) The first and last date on which the labor professional services materials or equipment was furnished or employee benefit contributions were due (c) The name of the person indebted to the claimant (d) The street address legal description or other description reasonably calculated to identify for a person familiar with the area the location of the real property to be charged with the lien (e) The name of the owner or reputed owner of the property if known and if not known that fact shall be stated and (f) The principal amount for which the lien is claimed (2) Shall be signed by the claimant or some person authorized to act on his or her behalf who shall affirmatively state they have read the notice of claim of lien and believe the notice of claim of lien to be true and correct under penalty of perjury and shall be acknowledged pursuant to chapter 6408 RCW If the lien has been assigned the name of the assignee shall be stated Where an action to foreclose the lien has been commenced such notice of claim of lien may be amended as pleadings may be by order of the court insofar as the interests of third parties are not adversely affected by such amendment A claim of lien substantially in the following form shall be sufficient

CLAIM OF LIEN

claimant vs name of person indebted to claimant

Notice is hereby given that the person named below claims a lien pursuant to chapter 6404 RCW In support of this lien the following information is submitted

1 NAME OF LIEN CLAIMANT

TELEPHONE NUMBER

CCBA Nuts amp Bolts on Construction Law - 41 of 49

ADDRESS

2 DATE ON WHICH THE CLAIMANT BEGAN TO PERFORM LABOR PROVIDE PROFESSIONAL SERVICES SUPPLY MATERIAL OR EQUIPMENT OR THE DATE ON WHICH EMPLOYEE BENEFIT CONTRIBUTIONS BECAME DUE

3 NAME OF PERSON INDEBTED TO THE CLAIMANT

4 DESCRIPTION OF THE PROPERTY AGAINST WHICH A LIEN IS CLAIMED (Street address legal description or other information that will reasonably describe the property)

5 NAME OF THE OWNER OR REPUTED OWNER (If not known state unknown)

6 THE LAST DATE ON WHICH LABOR WAS PERFORMED PROFESSIONAL SERVICES WERE FURNISHED CONTRIBUTIONS TO AN EMPLOYEE BENEFIT PLAN WERE DUE OR MATERIAL OR EQUIPMENT WAS FURNISHED

7 PRINCIPAL AMOUNT FOR WHICH THE LIEN IS CLAIMED IS

8 IF THE CLAIMANT IS THE ASSIGNEE OF THIS CLAIM SO STATE HERE

Claimant

(Phone number address city

CCBA Nuts amp Bolts on Construction Law - 42 of 49

and

state of claimant)

STATE OF WASHINGTON COUNTY OF ss being sworn says I am the claimant (or attorney of the claimant or administrator representative or agent of the trustees of an employee benefit plan) above named I have read or heard the foregoing claim read and know the contents thereof and believe the same to be true and correct and that the claim of lien is not frivolous and is made with reasonable cause and is not clearly excessive under penalty of perjury Subscribed and sworn to before me this day of The period provided for recording the claim of lien is a period of limitation and no action to foreclose a lien shall be maintained unless the claim of lien is filed for recording within the ninety-day period stated The lien claimant shall give a copy of the claim of lien to the owner or reputed owner by mailing it by certified or registered mail or by personal service within fourteen days of the time the claim of lien is filed for recording Failure to do so results in a forfeiture of any right the claimant may have to attorneys fees and costs against the owner under RCW 6004181

6004161 Bond in lieu of claim

Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who disputes the correctness or validity of the claim of lien may record either before or after the commencement of an action to enforce the lien in the office of the county recorder or auditor in the county where the claim of lien was recorded a bond issued by a surety company authorized to issue surety bonds in the state The surety shall be listed in the latest federal department of the treasury list of surety companies acceptable on federal bonds published in the Federal Register as authorized to issue bonds on United States government projects with an underwriting limitation including applicable reinsurance equal to or greater than the amount of the bond to be recorded The bond shall contain a description of the claim of lien and real property involved and be in an amount equal to the greater of five thousand dollars or two times the amount of the lien claimed if it is ten thousand dollars or less and in an amount equal to or greater than one and one-half times the amount of the lien if it is in

CCBA Nuts amp Bolts on Construction Law - 43 of 49

excess of ten thousand dollars If the claim of lien affects more than one parcel of real property and is segregated to each parcel the bond may be segregated the same as in the claim of lien A separate bond shall be required for each claim of lien made by separate claimants However a single bond may be used to guarantee payment of amounts claimed by more than one claim of lien by a single claimant so long as the amount of the bond meets the requirements of this section as applied to the aggregate sum of all claims by such claimant The condition of the bond shall be to guarantee payment of any judgment upon the lien in favor of the lien claimant entered in any action to recover the amount claimed in a claim of lien or on the claim asserted in the claim of lien The effect of recording a bond shall be to release the real property described in the notice of claim of lien from the lien and any action brought to recover the amount claimed Unless otherwise prohibited by law if no action is commenced to recover on a lien within the time specified in RCW 6004141 the surety shall be discharged from liability under the bond If an action is timely commenced then on payment of any judgment entered in the action or on payment of the full amount of the bond to the holder of the judgment whichever is less the surety shall be discharged from liability under the bond Nothing in this section shall in any way prohibit or limit the use of other methods devised by the affected parties to secure the obligation underlying a claim of lien and to obtain a release of real property from a claim of lien

6004181 Rank of lien mdash Application of proceeds mdash Attorneys fees

(1) In every case in which different construction liens are claimed against the same property the court shall declare the rank of such lien or class of liens which liens shall be in the following order (a) Liens for the performance of labor (b) Liens for contributions owed to employee benefit plans (c) Liens for furnishing material supplies or equipment (d) Liens for subcontractors including but not limited to their labor and materials and (e) Liens for prime contractors or for professional services (2) The proceeds of the sale of property must be applied to each lien or class of liens in order of its rank and in an action brought to foreclose a lien pro rata among each claimant in each separate priority class A personal judgment may be rendered against any party personally liable for any debt for which the lien is claimed If the lien is established the judgment shall provide

CCBA Nuts amp Bolts on Construction Law - 44 of 49

for the enforcement thereof upon the property liable as in the case of foreclosure of judgment liens The amount realized by such enforcement of the lien shall be credited upon the proper personal judgment The deficiency if any remaining unsatisfied shall stand as a personal judgment and may be collected by execution against any party liable therefor (3) The court may allow the prevailing party in the action whether plaintiff or defendant as part of the costs of the action the moneys paid for recording the claim of lien costs of title report bond costs and attorneys fees and necessary expenses incurred by the attorney in the superior court court of appeals supreme court or arbitration as the court or arbitrator deems reasonable Such costs shall have the priority of the class of lien to which they are related as established by subsection (1) of this section (4) Real property against which a lien under this chapter is enforced may be ordered sold by the court and the proceeds deposited into the registry of the clerk of the court pending further determination respecting distribution of the proceeds of the sale

6004900 Liberal construction mdash 1991 c 281

RCW 1927095 6004230 and 6004011 through 6004226 and 6004261 are to be liberally construed to provide security for all parties intended to be protected by their provisions

RCW 6028011

Retained percentage mdash Public transportation projects mdash Labor and material lien created mdash Bond in lieu of retained funds mdash Termination before completion mdash Chapter deemed exclusive mdash Release of ferry contract payments mdash Projects of farmers home administration mdash General contractorconstruction manager procedure mdash Definitions

(1)(a) Except as provided in (b) of this subsection public improvement contracts must provide and public bodies must reserve a contract retainage not to exceed five percent of the moneys earned by the contractor as a trust fund for the protection and payment of (i) The claims of any person arising under the contract and (ii) the state with respect to taxes increases and penalties imposed pursuant to Titles 50 51 and 82 RCW which may be due from such contractor (b) Public improvement contracts funded in whole or in part by federal transportation funds must rely upon the contract bond as referred to in chapter 3908 RCW for the protection and payment of (i) The claims of any person or persons arising under the contract to the extent such claims are provided for in RCW 3908010 and (ii) the state with respect to taxes increases and penalties incurred on the public improvement project under Titles 50 51 and 82 RCW which may be due The contract bond must remain in full force and effect until at a minimum all claims filed in compliance with chapter 3908 RCW are resolved

CCBA Nuts amp Bolts on Construction Law - 45 of 49

(2) Every person performing labor or furnishing supplies toward the completion of a public improvement contract has a lien upon moneys reserved by a public body under the provisions of a public improvement contract However the notice of the lien of the claimant must be given within forty-five days of completion of the contract work and in the manner provided in RCW 3908030 (3) The contractor at any time may request the contract retainage be reduced to one hundred percent of the value of the work remaining on the project (a) After completion of all contract work other than landscaping the contractor may request that the public body release and pay in full the amounts retained during the performance of the contract and sixty days thereafter the public body must release and pay in full the amounts retained (other than continuing retention of five percent of the moneys earned for landscaping) subject to the provisions of chapters 3912 and 6028 RCW (b) Sixty days after completion of all contract work the public body must release and pay in full the amounts retained during the performance of the contract subject to the provisions of chapters 3912 and 6028 RCW (4) The moneys reserved by a public body under the provisions of a public improvement contract at the option of the contractor must be (a) Retained in a fund by the public body (b) Deposited by the public body in an interest bearing account in a bank mutual savings bank or savings and loan association Interest on moneys reserved by a public body under the provision of a public improvement contract must be paid to the contractor (c) Placed in escrow with a bank or trust company by the public body When the moneys reserved are placed in escrow the public body must issue a check representing the sum of the moneys reserved payable to the bank or trust company and the contractor jointly This check must be converted into bonds and securities chosen by the contractor and approved by the public body and the bonds and securities must be held in escrow Interest on the bonds and securities must be paid to the contractor as the interest accrues (5) The contractor or subcontractor may withhold payment of not more than five percent from the moneys earned by any subcontractor or sub-subcontractor or supplier contracted with by the contractor to provide labor materials or equipment to the public project Whenever the contractor or subcontractor reserves funds earned by a subcontractor or sub-subcontractor or

CCBA Nuts amp Bolts on Construction Law - 46 of 49

supplier the contractor or subcontractor must pay interest to the subcontractor or sub-subcontractor or supplier at a rate equal to that received by the contractor or subcontractor from reserved funds (6) A contractor may submit a bond for all or any portion of the contract retainage in a form acceptable to the public body and from a bonding company meeting standards established by the public body The public body must accept a bond meeting these requirements unless the public body can demonstrate good cause for refusing to accept it This bond and any proceeds therefrom are subject to all claims and liens and in the same manner and priority as set forth for retained percentages in this chapter The public body must release the bonded portion of the retained funds to the contractor within thirty days of accepting the bond from the contractor Whenever a public body accepts a bond in lieu of retained funds from a contractor the contractor must accept like bonds from any subcontractors or suppliers from which the contractor has retained funds The contractor must then release the funds retained from the subcontractor or supplier to the subcontractor or supplier within thirty days of accepting the bond from the subcontractor or supplier (7) If the public body administering a contract after a substantial portion of the work has been completed finds that an unreasonable delay will occur in the completion of the remaining portion of the contract for any reason not the result of a breach thereof it may if the contractor agrees delete from the contract the remaining work and accept as final the improvement at the stage of completion then attained and make payment in proportion to the amount of the work accomplished and in this case any amounts retained and accumulated under this section must be held for a period of sixty days following the completion In the event that the work is terminated before final completion as provided in this section the public body may thereafter enter into a new contract with the same contractor to perform the remaining work or improvement for an amount equal to or less than the cost of the remaining work as was provided for in the original contract without advertisement or bid The provisions of this chapter are exclusive and supersede all provisions and regulations in conflict herewith (8) Whenever the department of transportation has contracted for the construction of two or more ferry vessels sixty days after completion of all contract work on each ferry vessel the department must release and pay in full the amounts retained in connection with the construction of the vessel subject to the provisions of RCW 6028021 and chapter 3912 RCW However the department of transportation may at its discretion condition the release of funds retained in connection with the completed ferry upon the contractor delivering a good and sufficient bond with two or more sureties or with a surety company in the amount of the retained funds to be released to the contractor conditioned that no taxes may be certified or claims filed for work on the ferry after a period of sixty days following completion of the ferry and if taxes are certified or claims filed recovery may be had on the bond by the department of revenue the employment

CCBA Nuts amp Bolts on Construction Law - 47 of 49

security department the department of labor and industries and the material suppliers and laborers filing claims (9) Except as provided in subsection (1) of this section reservation by a public body for any purpose from the moneys earned by a contractor by fulfilling its responsibilities under public improvement contracts is prohibited (10) Contracts on projects funded in whole or in part by farmers home administration and subject to farmers home administration regulations are not subject to subsections (1) through (9) of this section (11) This subsection applies only to a public body that has contracted for the construction of a facility using the general contractorconstruction manager procedure as defined under RCW 3910210 If the work performed by a subcontractor on the project has been completed within the first half of the time provided in the general contractorconstruction manager contract for completing the work the public body may accept the completion of the subcontract The public body must give public notice of this acceptance After a forty-five day period for giving notice of liens and compliance with the retainage release procedures in RCW 6028021 the public body may release that portion of the retained funds associated with the subcontract Claims against the retained funds after the forty-five day period are not valid (12) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise (a) Contract retainage means an amount reserved by a public body from the moneys earned by a person under a public improvement contract (b) Person means a person or persons mechanic subcontractor or materialperson who performs labor or provides materials for a public improvement contract and any other person who supplies the person with provisions or supplies for the carrying on of a public improvement contract (c) Public body means the state or a county city town district board or other public body (d) Public improvement contract means a contract for public improvements or work other than for professional services or a work order as defined in RCW 3910210

CCBA Nuts amp Bolts on Construction Law - 48 of 49

RCW 6432070 Liens or encumbrances mdash Enforcement mdash Satisfaction

(1) Subsequent to recording the declaration as provided in this chapter and while the property remains subject to this chapter no lien shall thereafter arise or be effective against the property During such period liens or encumbrances shall arise or be created only against each apartment and the percentage of undivided interest in the common areas and facilities and appurtenant to such apartment in the same manner and under the same conditions in every respect as liens or encumbrances may arise or be created upon or against any other separate parcel of real property subject to individual ownership PROVIDED That no labor performed or materials furnished with the consent of or at the request of the owner of any apartment or such owners agent contractor or subcontractor shall be the basis for the filing of a lien against any other apartment or any other property of any other apartment owner not expressly consenting to or requesting the same except that such express consent shall be deemed to be given by any apartment owner in the case of emergency repairs Labor performed or materials furnished for the common areas and facilities if authorized by the association of apartment owners the manager or board of directors shall be deemed to be performed or furnished with the express consent of each apartment owner and shall be the basis for the filing of a lien against each of the apartments and shall be subject to the provisions of subsection (2) of this section (2) In the event a lien against two or more apartments becomes effective the apartment owners of the separate apartments may remove their apartment and the percentage of undivided interest in the common areas and facilities appurtenant to such apartment from the lien by payment of the fractional or proportional amounts attributable to each of the apartments affected Such individual payments shall be computed by reference to the percentages appearing on the declaration Subsequent to any such payment discharge or satisfaction the apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto shall thereafter be free and clear of the liens so paid satisfied or discharged Such partial payment satisfaction or discharge shall not prevent the lienor from proceeding to enforce his or her rights against any apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto not so paid satisfied or discharged

CCBA Nuts amp Bolts on Construction Law - 49 of 49

  • Cover Sheet
  • 20141110 - Washington Lien and Bond CLE
  • LampI Lien Summary
  • Claim of Lien
  • Form Notice to Owner
  • Model Disclosure Statement (Notice to Customer)
  • LampI Facts about Construction Liens
    • What you should know about contracts
    • How to protect your investment
    • For more information
      • Notice of Claim Against Bond and Retained Percentage
      • Preclaim Notice Bond amp Retained Percentage
      • Statute Handout
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 ESP 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geoptimaliseerd voor prepress-afdrukken van hoge kwaliteit De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 50 en hoger) NOR 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 PTB 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 SVE 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 ENU (Use these settings to create Adobe PDF documents best suited for high-quality prepress printing Created PDF documents can be opened with Acrobat and Adobe Reader 50 and later) gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false ConvertColors ConvertToCMYK DestinationProfileName () DestinationProfileSelector DocumentCMYK Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles false MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector DocumentCMYK PreserveEditing true UntaggedCMYKHandling LeaveUntagged UntaggedRGBHandling 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          1. To
          2. Date
          3. Re
          4. From
          5. AT THE REQUEST OF
          6. Sender
          7. Address
          8. Telephone
          9. Brief description of professional services materials or equipment provided or to be provided
          10. 1
          11. 2
          12. 3
          13. reg no
          14. deposit $
          15. expiration date
          16. claims up to $
          17. Reset

Facts About Construction LiensWhat you should know about contractsIf your contractor fails to pay subcontractors suppliers or laborers or neglects to make other legally required payments those who are owed money can look to your property for payment even if you have paid your contractor in full This is true if you have hired a contractor to build a new home or are buying a newly built home

It is also true when you remodel or improve your property although the amount of your liability may be limited to the amount you owe the prime contractor at the time a lien is filed

Under Washington laws those who work on your property or provide materials and are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien

People who supply materials or labor ordered by your contractor are permitted by law to file a lien only if they do so within 90 days of cessation of performance or delivery of materials The time frame is spelled out in RCW 6004091

If you enter into a contract to buy a newly built home you may not receive a notice of a lien based on a claim by a contractor or material handler Be aware that a lien may be claimed even though you have not received a notice

Before making final payment on the project request a completed lien release form from each contractor and material supplier A sample of this release of lien form is available from the Department of Labor amp Industries Contractor Registration Section

You have final responsibility for seeing that all bills are paid even if you have paid your contractor in full

If you receive a notice to enforce a lien take the notice seriously Let your contractor know you have received the notice Find out what arrangements are being made to pay the sender of the notice

When in doubt or if you need more details consult your attorney When and how to pay your contractor is a decision that requires serious consideration

Reminder Washington laws require contractors to give you a disclosure statement if your contract exceeds $1000 [RCW 1827114(A) or (B)]

CCBA Nuts amp Bolts on Construction Law - 23 of 49

PUBLICATION F625-017-000 [01-2008]

Other formats for persons with disabilities are available on request Call 1-800-647-0982 TDD users call 360-902-5797 LampI is an equal opportunity employer

For more information

How to protect your investment

If you are dealing with a lending institution ask your loan officer what precautions the lending institution takes to verify that subcontractors and material suppliers are being paid when mortgage money is paid to your contractor

Request lender supervision when dealing with a lending institution that provides interim or construction financing

Ask the prime contractor to disclose all potential lien claimants as a condition of payment A lien claimant must mail (by certified or registered mail or by personal service) a copy of the claim of lien to the owner within 14 days of the time the lien is recorded [RCW 6004091(2)] While an action is ongoing an owner may withhold from this prime contractor the amount of money for which a claim is recorded by a subcontractor supplier or laborer [RCW 6004151]

It is recommended that your check be made payable jointly naming the contractor and the subcontractor or supplier as payees

Upon payment and acceptance of the amount due the owner has the right to an executed release of all lien rights by lien claimants [RCW 6004071]

Consider using an escrow agent to protect your interests Find out whether your escrow agent will protect you against liens when disbursing payments If you are interested in this alternative consult your attorney

Request that your contractor post a performance bond in the amount of the project cost That will give you recourse in the event the contractor fails to complete the building agreement

8 On the Web Find more information about hiring a contractor at

wwwLniwagovTradesLicensingContractorsHireCon

Contractor Registration Hotline1-800-647-0982

You may also call your local LampI office See listings under ldquoWashington State ofrdquo in the government section or the white pages of the telephone book

Please note This notice was prepared by the Department of Labor amp Industries Specialty Compliance Services Division for reproduction by lending institutions and contractors for distribution to their clients It explains the basics of the construction lien law to help you protect yourself This information is not a reflection upon the abilities or credit of your contractor

CCBA Nuts amp Bolts on Construction Law - 24 of 49

NOTICE OF CLAIM AGAINST

BOND AND RETAINED PERCENTAGE

RCW 3908030 RCW 6028010

VIA CERTIFIED MAIL ndash RETURN RECEIPT REQUESTED

TO [Public Owner] [Public Ownerrsquos Address]

Project [Project Name amp Address] NOTICE IS HEREBY GIVEN that the undersigned [Claimant] [Claimantrsquos Address] has a claim in the amount of ----- and 00100 Dollars ($XX) (not including attorneysrsquo fees or costs) together with interest at twelve percent (12) against [Public Owner] (ldquoOwnerrdquo) pursuant to RCW 6028 and the payment bond taken from [Prime Contractor] (ldquoContractorrdquo) [Prime Contractorrsquos Address] as principal and [Surety Company] (ldquoSuretyrdquo) [Suretyrsquos Address] as surety Bond No ________ pursuant to RCW 3908 for [describe services material supplies labor furnished] provided on the Project This Notice of Claim Against Bond and Retained Percentage supersedes and replaces previous Notices DATED This ___day of _________ 201_ [Claimant] By ______________________________________ Its ______________________________________ [Claimantrsquos Address]

_________________________________________

[Contractors Registration No if applicable]

(Copies furnished to General Contractor and General Contractorrsquos Bonding Company)

CCBA Nuts amp Bolts on Construction Law - 25 of 49

PRECLAIM NOTICE TO CONTRACTOR BY SUBCONTRACTORS MATERIALMEN OR SUPPLIERS FOR

CLAIM AGAINST BOND AND RETAINED PERCENTAGE

VIA CERTIFIED OR REGISTERED MAIL- RETURN RECEIPT REQUESTED

TO [Name of General Contractor] [Address]

YOU ARE HEREBY NOTIFIED that the undersigned ____________at the request of_________________ commenced to deliver or furnish materials supplies andor equipment for the use in the construction alteration andor repair of that certain project known as____________________ [project name] which is located at ____________________________ [address or description] If the undersigned is not paid for these materials supplies andor equipment it will file a claim against you and your bond andor retainage pursuant to RCW 3908 andor 6028 et seq for payment of any sum that is due and owing to the undersigned

DATED This __ day of _____________ 201_

[Name of Claimant]

By ____________________________________

Its ____________________________________

Address ______________________________

__________________________________________

__________________________________________

[Contractors Registration No if applicable]

(Mail via certified mail return receipt requested or hand deliver and obtain receipt)

CCBA Nuts amp Bolts on Construction Law - 26 of 49

Washington Liens amp Bonds ndash Pertinent Statutes

RCW 1827040 Bond or other security required mdash Actions against mdash Suspension of registration upon impairment (1) Each applicant shall file with the department a surety bond issued by a surety insurer who meets the requirements of chapter 4828 RCW in the sum of twelve thousand dollars if the applicant is a general contractor and six thousand dollars if the applicant is a specialty contractor If no valid bond is already on file with the department at the time the application is filed a bond must accompany the registration application The bond shall have the state of Washington named as obligee with good and sufficient surety in a form to be approved by the department The bond shall be continuous and may be canceled by the surety upon the surety giving written notice to the director A cancellation or revocation of the bond or withdrawal of the surety from the bond automatically suspends the registration issued to the contractor until a new bond or reinstatement notice has been filed and approved as provided in this section The bond shall be conditioned that the applicant will pay all persons performing labor including employee benefits for the contractor will pay all taxes and contributions due to the state of Washington and will pay all persons furnishing material or renting or supplying equipment to the contractor and will pay all amounts that may be adjudged against the contractor by reason of breach of contract including improper work in the conduct of the contracting business A change in the name of a business or a change in the type of business entity shall not impair a bond for the purposes of this section so long as one of the original applicants for such bond maintains partial ownership in the business covered by the bond (2) At the time of initial registration or renewal the contractor shall provide a bond or other security deposit as required by this chapter and comply with all of the other provisions of this chapter before the department shall issue or renew the contractors certificate of registration Any contractor registered as of July 1 2001 who maintains that registration in accordance with this chapter is in compliance with this chapter until the next renewal of the contractors certificate of registration (3) Any person firm or corporation having a claim against the contractor for any of the items referred to in this section may bring suit against the contractor and the bond or deposit in the superior court of the county in which the work was done or of any county in which jurisdiction of the contractor may be had The surety issuing the bond shall be named as a party to any suit upon the bond Action upon the bond or deposit brought by a residential homeowner for breach of contract by a party to the construction contract shall be commenced by filing the summons and complaint with the clerk of the appropriate superior court within two years from the date the claimed contract work was substantially completed or abandoned whichever occurred first Action upon the bond or deposit brought by any other authorized party shall be commenced by filing the summons and complaint with the clerk of the appropriate superior court within one year from the date the claimed labor was performed and benefits accrued taxes and contributions owing the state of Washington became due materials and equipment were furnished or the claimed contract work was substantially completed or abandoned whichever occurred first Service of process in an action filed under this chapter against the contractor and the contractors bond or the deposit shall be exclusively by service upon the department Three

CCBA Nuts amp Bolts on Construction Law - 27 of 49

copies of the summons and complaint and a fee adopted by rule of not less than fifty dollars to cover the costs shall be served by registered or certified mail or other delivery service requiring notice of receipt upon the department at the time suit is started and the department shall maintain a record available for public inspection of all suits so commenced Service is not complete until the department receives the fee and three copies of the summons and complaint The service shall constitute service and confer personal jurisdiction on the contractor and the surety for suit on claimants claim against the contractor and the bond or deposit and the department shall transmit the summons and complaint or a copy thereof to the contractor at the address listed in the contractors application and to the surety within two days after it shall have been received (4) The surety upon the bond shall not be liable in an aggregate amount in excess of the amount named in the bond nor for any monetary penalty assessed pursuant to this chapter for an infraction The liability of the surety shall not cumulate where the bond has been renewed continued reinstated reissued or otherwise extended The surety upon the bond may upon notice to the department and the parties tender to the clerk of the court having jurisdiction of the action an amount equal to the claims thereunder or the amount of the bond less the amount of judgments if any previously satisfied therefrom and to the extent of such tender the surety upon the bond shall be exonerated but if the actions commenced and pending and provided to the department as required in subsection (3) of this section at any one time exceed the amount of the bond then unimpaired claims shall be satisfied from the bond in the following order (a) Employee labor and claims of laborers including employee benefits (b) Claims for breach of contract by a party to the construction contract (c) Registered or licensed subcontractors material and equipment (d) Taxes and contributions due the state of Washington (e) Any court costs interest and attorneys fees plaintiff may be entitled to recover The surety is not liable for any amount in excess of the penal limit of its bond A payment made by the surety in good faith exonerates the bond to the extent of any payment made by the surety (5) The total amount paid from a bond or deposit required of a general contractor by this section to claimants other than residential homeowners must not exceed one-half of the bond amount The total amount paid from a bond or deposit required of a specialty contractor by this section to claimants other than residential homeowners must not exceed one-half of the bond amount or four thousand dollars whichever is greater (6) The prevailing party in an action filed under this section against the contractor and contractors bond or deposit for breach of contract by a party to the construction contract involving a residential homeowner is entitled to costs interest and reasonable attorneys fees The surety upon the bond or deposit is not liable in an aggregate amount in excess of the amount

CCBA Nuts amp Bolts on Construction Law - 28 of 49

named in the bond or deposit nor for any monetary penalty assessed pursuant to this chapter for an infraction (7) If a final judgment impairs the liability of the surety upon the bond or deposit so furnished that there is not in effect a bond or deposit in the full amount prescribed in this section the registration of the contractor is automatically suspended until the bond or deposit liability in the required amount unimpaired by unsatisfied judgment claims is furnished (8) In lieu of the surety bond required by this section the contractor may file with the department an assigned savings account upon forms provided by the department (9) Any person having filed and served a summons and complaint as required by this section having an unsatisfied final judgment against the registrant for any items referred to in this section may execute upon the security held by the department by serving a certified copy of the unsatisfied final judgment by registered or certified mail upon the department within one year of the date of entry of such judgment Upon the receipt of service of such certified copy the department shall pay or order paid from the deposit through the registry of the superior court which rendered judgment towards the amount of the unsatisfied judgment The priority of payment by the department shall be the order of receipt by the department but the department shall have no liability for payment in excess of the amount of the deposit (10) Within ten days after resolution of the case a certified copy of the final judgment and order or any settlement documents where a case is not disposed of by a court trial a certified copy of the dispositive settlement documents must be provided to the department by the prevailing party Failure to provide a copy of the final judgment and order or the dispositive settlement documents to the department within ten days of entry of such an order constitutes a violation of this chapter and a penalty adopted by rule of not less than two hundred fifty dollars may be assessed against the prevailing party (11) The director may require an applicant applying to renew or reinstate a registration or applying for a new registration to file a bond of up to three times the normally required amount if the director determines that an applicant or a previous registration of a corporate officer owner or partner of a current applicant has had in the past five years a total of three final judgments in actions under this chapter involving a residential single-family dwelling on two or more different structures (12) The director may adopt rules necessary for the proper administration of the security RCW 1827114 Disclosure statement required mdash Prerequisite to lien claim

(1) Any contractor agreeing to perform any contracting project (a) For the repair alteration or construction of four or fewer residential units or accessory structures on such residential property when the bid or contract price totals one thousand dollars or more or (b) for the repair alteration or construction of a commercial building when the bid or contract price totals one thousand dollars or more but less than sixty thousand dollars must provide the customer with

CCBA Nuts amp Bolts on Construction Law - 29 of 49

the following disclosure statement in substantially the following form using lower case and upper case twelve-point and bold type where appropriate prior to starting work on the project NOTICE TO CUSTOMER This contractor is registered with the state of Washington registration no and has posted with the state a bond or deposit of for the purpose of satisfying claims against the contractor for breach of contract including negligent or improper work in the conduct of the contractors business The expiration date of this contractors registration is THIS BOND OR DEPOSIT MIGHT NOT BE SUFFICIENT TO COVER A CLAIM THAT MIGHT ARISE FROM THE WORK DONE UNDER YOUR CONTRACT This bond or deposit is not for your exclusive use because it covers all work performed by this contractor The bond or deposit is intended to pay valid claims up to that you and other customers suppliers subcontractors or taxing authorities may have FOR GREATER PROTECTION YOU MAY WITHHOLD A PERCENTAGE OF YOUR CONTRACT You may withhold a contractually defined percentage of your construction contract as retainage for a stated period of time to provide protection to you and help insure that your project will be completed as required by your contract YOUR PROPERTY MAY BE LIENED If a supplier of materials used in your construction project or an employee or subcontractor of your contractor or subcontractors is not paid your property may be liened to force payment and you could pay twice for the same work FOR ADDITIONAL PROTECTION YOU MAY REQUEST THE CONTRACTOR TO PROVIDE YOU WITH ORIGINAL LIEN RELEASE DOCUMENTS FROM EACH SUPPLIER OR SUBCONTRACTOR ON YOUR PROJECT The contractor is required to provide you with further information about lien release documents if you request it General information is also available from the state Department of Labor and Industries I have received a copy of this disclosure statement

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(Signature of customer) (2) The contractor must retain a signed copy of the disclosure statement in his or her files for a minimum of three years and produce a signed or electronic signature copy of the disclosure statement to the department upon request (3) A contractor subject to this section shall notify any consumer to whom notice is required under subsection (1) of this section if the contractors registration has expired or is revoked or suspended by the department prior to completion or other termination of the contract with the consumer (4) No contractor subject to this section may bring or maintain any lien claim under chapter 6004 RCW based on any contract to which this section applies without alleging and proving that the contractor has provided the customer with a copy of the disclosure statement as required in subsection (1) of this section (5) This section does not apply to contracts authorized under chapter 3904 RCW or to contractors contracting with other contractors (6) Failure to comply with this section shall constitute an infraction under the provisions of this chapter (7) The department shall produce model disclosure statements and public service announcements detailing the information needed to assist contractors and contractors customers to comply under this section As necessary the department shall periodically update these education materials RCW 3908010 Bond required mdash Conditions mdash Retention of contract amount in lieu of bond (1)(a) Whenever any board council commission trustees or body acting for the state or any county or municipality or any public body must contract with any person or corporation to do any work for the state county or municipality or other public body city town or district such board council commission trustees or body must require the person or persons with whom such contract is made to make execute and deliver to such board council commission trustees or body a good and sufficient bond with a surety company as surety conditioned that such person or persons must (i) Faithfully perform all the provisions of such contract (ii) Pay all laborers mechanics and subcontractors and material suppliers and all persons who supply such person or persons or subcontractors with provisions and supplies for the carrying on of such work and

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(iii) Pay the taxes increases and penalties incurred on the project under Titles 50 51 and 82 RCW on (A) Projects referred to in RCW 6028011(1)(b) andor (B) projects for which the bond is conditioned on the payment of such taxes increases and penalties (b) The bond in cases of cities and towns must be filed with the clerk or comptroller thereof and any person or persons performing such services or furnishing material to any subcontractor has the same right under the provisions of such bond as if such work services or material was furnished to the original contractor (2) The provisions of RCW 3908010 through 3908030 do not apply to any money loaned or advanced to any such contractor subcontractor or other person in the performance of any such work (3) On contracts of thirty-five thousand dollars or less at the option of the contractor the respective public entity may in lieu of the bond retain fifty percent of the contract amount for a period of thirty days after date of final acceptance or until receipt of all necessary releases from the department of revenue the employment security department and the department of labor and industries and settlement of any liens filed under chapter 6028 RCW whichever is later (4) For contracts of one hundred thousand dollars or less the public entity may accept a full payment and performance bond from an individual surety or sureties (5) The surety must agree to be bound by the laws of the state of Washington and subjected to the jurisdiction of the state of Washington RCW 6004011 Definitions

Unless the context requires otherwise the definitions in this section apply throughout this chapter (1) Construction agent means any registered or licensed contractor registered or licensed subcontractor architect engineer or other person having charge of any improvement to real property who shall be deemed the agent of the owner for the limited purpose of establishing the lien created by this chapter (2) Contract price means the amount agreed upon by the contracting parties or if no amount is agreed upon then the customary and reasonable charge therefor (3) Draws means periodic disbursements of interim or construction financing by a lender (4) Furnishing labor professional services materials or equipment means the performance of any labor or professional services the contribution owed to any employee benefit plan on account of any labor the provision of any supplies or materials and the renting leasing or

CCBA Nuts amp Bolts on Construction Law - 32 of 49

otherwise supplying of equipment for the improvement of real property (5) Improvement means (a) Constructing altering repairing remodeling demolishing clearing grading or filling in of to or upon any real property or street or road in front of or adjoining the same (b) planting of trees vines shrubs plants hedges or lawns or providing other landscaping materials on any real property and (c) providing professional services upon real property or in preparation for or in conjunction with the intended activities in (a) or (b) of this subsection (6) Interim or construction financing means that portion of money secured by a mortgage deed of trust or other encumbrance to finance improvement of or to real property but does not include (a) Funds to acquire real property (b) Funds to pay interest insurance premiums lease deposits taxes assessments or prior encumbrances (c) Funds to pay loan commitment title legal closing recording or appraisal fees (d) Funds to pay other customary fees which pursuant to agreement with the owner or borrower are to be paid by the lender from time to time (e) Funds to acquire personal property for which the potential lien claimant may not claim a lien pursuant to this chapter (7) Labor means exertion of the powers of body or mind performed at the site for compensation Labor includes amounts due and owed to any employee benefit plan on account of such labor performed (8) Mortgagee means a person who has a valid mortgage of record or deed of trust of record securing a loan (9) Owner-occupied means a single-family residence occupied by the owner as his or her principal residence (10) Payment bond means a surety bond issued by a surety licensed to issue surety bonds in the state of Washington that confers upon potential claimants the rights of third party beneficiaries (11) Potential lien claimant means any person or entity entitled to assert lien rights under this chapter who has otherwise complied with the provisions of this chapter and is registered or licensed if required to be licensed or registered by the provisions of the laws of the state of Washington (12) Prime contractor includes all contractors general contractors and specialty

CCBA Nuts amp Bolts on Construction Law - 33 of 49

contractors as defined by chapter 1827 or 1928 RCW or who are otherwise required to be registered or licensed by law who contract directly with a property owner or their common law agent to assume primary responsibility for the creation of an improvement to real property and includes property owners or their common law agents who are contractors general contractors or specialty contractors as defined in chapter 1827 or 1928 RCW or who are otherwise required to be registered or licensed by law who offer to sell their property without occupying or using the structures projects developments or improvements for more than one year (13) Professional services means surveying establishing or marking the boundaries of preparing maps plans or specifications for or inspecting testing or otherwise performing any other architectural or engineering services for the improvement of real property (14) Real property lender means a bank savings bank savings and loan association credit union mortgage company or other corporation association partnership trust or individual that makes loans secured by real property located in the state of Washington (15) Site means the real property which is or is to be improved (16) Subcontractor means a general contractor or specialty contractor as defined by chapter 1827 or 1928 RCW or who is otherwise required to be registered or licensed by law who contracts for the improvement of real property with someone other than the owner of the property or their common law agent

6004021 Lien authorized

Except as provided in RCW 6004031 any person furnishing labor professional services materials or equipment for the improvement of real property shall have a lien upon the improvement for the contract price of labor professional services materials or equipment furnished at the instance of the owner or the agent or construction agent of the owner

6004031 Notices mdash Exceptions

(1) Except as otherwise provided in this section every person furnishing professional services materials or equipment for the improvement of real property shall give the owner or reputed owner notice in writing of the right to claim a lien If the prime contractor is in compliance with the requirements of RCW 1927095 6004230 and 6004261 this notice shall also be given to the prime contractor as described in this subsection unless the potential lien claimant has contracted directly with the prime contractor The notice may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after the date which is sixty days before (a) Mailing the notice by certified or registered mail to the owner or reputed owner or

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(b) Delivering or serving the notice personally upon the owner or reputed owner and obtaining evidence of delivery in the form of a receipt or other acknowledgment signed by the owner or reputed owner or an affidavit of service In the case of new construction of a single-family residence the notice of a right to claim a lien may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after a date which is ten days before the notice is given as described in this subsection (2) Notices of a right to claim a lien shall not be required of (a) Persons who contract directly with the owner or the owners common law agent (b) Laborers whose claim of lien is based solely on performing labor or (c) Subcontractors who contract for the improvement of real property directly with the prime contractor except as provided in subsection (3)(b) of this section (3) Persons who furnish professional services materials or equipment in connection with the repair alteration or remodel of an existing owner-occupied single-family residence or appurtenant garage (a) Who contract directly with the owner-occupier or their common law agent shall not be required to send a written notice of the right to claim a lien and shall have a lien for the full amount due under their contract as provided in RCW 6004021 or (b) Who do not contract directly with the owner-occupier or their common law agent shall give notice of the right to claim a lien to the owner-occupier Liens of persons furnishing professional services materials or equipment who do not contract directly with the owner-occupier or their common law agent may only be satisfied from amounts not yet paid to the prime contractor by the owner at the time the notice described in this section is received regardless of whether amounts not yet paid to the prime contractor are due For the purposes of this subsection received means actual receipt of notice by personal service or registered or certified mail or three days after mailing by registered or certified mail excluding Saturdays Sundays or legal holidays (4) The notice of right to claim a lien described in subsection (1) of this section shall include but not be limited to the following information and shall substantially be in the following form using lower-case and upper-case ten-point type where appropriate

CCBA Nuts amp Bolts on Construction Law - 35 of 49

NOTICE TO OWNER

IMPORTANT READ BOTH SIDES OF THIS NOTICE CAREFULLY

PROTECT YOURSELF FROM PAYING TWICE

To Date

Re (description of property Street address or general location) From AT THE REQUEST OF (Name of person ordering the professional services materials or equipment) THIS IS NOT A LIEN This notice is sent to you to tell you who is providing professional services materials or equipment for the improvement of your property and to advise you of the rights of these persons and your responsibilities Also take note that laborers on your project may claim a lien without sending you a notice

OWNEROCCUPIER OF EXISTING

RESIDENTIAL PROPERTY

Under Washington law those who furnish labor professional services materials or equipment for the repair remodel or alteration of your owner-occupied principal residence and who are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien The law limits the amount that a lien claimant can claim against your property Claims may only be made against that portion of the contract price you have not yet paid to your prime contractor as of the time this notice was given to you or three days after this notice was mailed to you Review the back of this notice for more information and ways to avoid lien claims

COMMERCIAL ANDOR NEW

RESIDENTIAL PROPERTY

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We have or will be providing professional services materials or equipment for the improvement of your commercial or new residential project In the event you or your contractor fail to pay us we may file a lien against your property A lien may be claimed for all professional services materials or equipment furnished after a date that is sixty days before this notice was given to you or mailed to you unless the improvement to your property is the construction of a new single-family residence then ten days before this notice was given to you or mailed to you Sender Address Telephone Brief description of professional services materials or equipment provided or to be provided

IMPORTANT INFORMATION

ON REVERSE SIDE

IMPORTANT INFORMATION

FOR YOUR PROTECTION This notice is sent to inform you that we have or will provide professional services materials or equipment for the improvement of your property We expect to be paid by the person who ordered our services but if we are not paid we have the right to enforce our claim by filing a construction lien against your property LEARN more about the lien laws and the meaning of this notice by discussing them with your contractor suppliers Department of Labor and Industries the firm sending you this notice your lender or your attorney

COMMON METHODS TO AVOID CONSTRUCTION LIENS There are several methods available to protect your property from construction liens The following are two of the more commonly used methods

DUAL PAYCHECKS (Joint Checks) When paying your contractor for services or materials you may make checks payable jointly to the contractor and the firms furnishing you this notice

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LIEN RELEASES You may require your contractor to provide lien releases signed by all the suppliers and subcontractors from whom you have received this notice If they cannot obtain lien releases because you have not paid them you may use the dual payee check method to protect yourself

YOU SHOULD TAKE APPROPRIATE STEPS TO PROTECT YOUR PROPERTY FROM LIENS YOUR PRIME CONTRACTOR AND YOUR CONSTRUCTION LENDER ARE REQUIRED BY LAW TO GIVE YOU WRITTEN INFORMATION ABOUT LIEN CLAIMS IF YOU HAVE NOT RECEIVED IT ASK THEM FOR IT

(5) Every potential lien claimant providing professional services where no improvement as defined in RCW 6004011(5) (a) or (b) has been commenced and the professional services provided are not visible from an inspection of the real property may record in the real property records of the county where the property is located a notice which shall contain the professional service providers name address telephone number legal description of the property the owner or reputed owners name and the general nature of the professional services provided If such notice is not recorded the lien claimed shall be subordinate to the interest of any subsequent mortgagee and invalid as to the interest of any subsequent purchaser if the mortgagee or purchaser acts in good faith and for a valuable consideration acquires an interest in the property prior to the commencement of an improvement as defined in RCW 6004011(5) (a) or (b) without notice of the professional services being provided The notice described in this subsection shall be substantially in the following form

NOTICE OF FURNISHING

PROFESSIONAL SERVICES That on the (day) day of (month and year) (name of provider) began providing professional services upon or for the improvement of real property legally described as follows

[Legal Description is mandatory]

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The general nature of the professional services provided is The owner or reputed owner of the real property is

(Signature)

(Name of Claimant)

(Street Address)

(City State Zip Code)

(Phone Number)

(6) A lien authorized by this chapter shall not be enforced unless the lien claimant has complied with the applicable provisions of this section

6004041 Contractor registration

A contractor or subcontractor required to be registered under chapter 1827 RCW or licensed under chapter 1928 RCW or otherwise required to be registered or licensed by law shall be deemed the construction agent of the owner for the purposes of establishing the lien created by this chapter only if so registered or licensed Persons dealing with contractors or subcontractors may rely for the purposes of this section upon a certificate of registration issued pursuant to chapter 1827 RCW or license issued pursuant to chapter 1928 RCW or other certificate or license issued pursuant to law covering the period when the labor professional services material or equipment shall be furnished and the lien rights shall not be lost by suspension or revocation of registration or license without their knowledge No lien rights described in this

CCBA Nuts amp Bolts on Construction Law - 39 of 49

chapter shall be lost or denied by virtue of the absence suspension or revocation of such registration or license with respect to any contractor or subcontractor not in immediate contractual privity with the lien claimant

6004081 Frivolous claim mdash Procedure

(1) Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who believes the claim of lien to be frivolous and made without reasonable cause or clearly excessive may apply by motion to the superior court for the county where the property or some part thereof is located for an order directing the lien claimant to appear before the court at a time no earlier than six nor later than fifteen days following the date of service of the application and order on the lien claimant and show cause if any he or she has why the relief requested should not be granted The motion shall state the grounds upon which relief is asked and shall be supported by the affidavit of the applicant or his or her attorney setting forth a concise statement of the facts upon which the motion is based (2) The order shall clearly state that if the lien claimant fails to appear at the time and place noted the lien shall be released with prejudice and that the lien claimant shall be ordered to pay the costs requested by the applicant including reasonable attorneys fees (3) If no action to foreclose the lien claim has been filed the clerk of the court shall assign a cause number to the application and obtain from the applicant a filing fee pursuant to RCW 3618016 If an action has been filed to foreclose the lien claim the application shall be made a part of that action (4) If following a hearing on the matter the court determines that the lien is frivolous and made without reasonable cause or clearly excessive the court shall issue an order releasing the lien if frivolous and made without reasonable cause or reducing the lien if clearly excessive and awarding costs and reasonable attorneys fees to the applicant to be paid by the lien claimant If the court determines that the lien is not frivolous and was made with reasonable cause and is not clearly excessive the court shall issue an order so stating and awarding costs and reasonable attorneys fees to the lien claimant to be paid by the applicant (5) Proceedings under this section shall not affect other rights and remedies available to the parties under this chapter or otherwise

6004091 Recording mdash Time mdash Contents of lien

Every person claiming a lien under RCW 6004021 shall file for recording in the county where the subject property is located a notice of claim of lien not later than ninety days after the person

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has ceased to furnish labor professional services materials or equipment or the last date on which employee benefit contributions were due The notice of claim of lien (1) Shall state in substance and effect (a) The name phone number and address of the claimant (b) The first and last date on which the labor professional services materials or equipment was furnished or employee benefit contributions were due (c) The name of the person indebted to the claimant (d) The street address legal description or other description reasonably calculated to identify for a person familiar with the area the location of the real property to be charged with the lien (e) The name of the owner or reputed owner of the property if known and if not known that fact shall be stated and (f) The principal amount for which the lien is claimed (2) Shall be signed by the claimant or some person authorized to act on his or her behalf who shall affirmatively state they have read the notice of claim of lien and believe the notice of claim of lien to be true and correct under penalty of perjury and shall be acknowledged pursuant to chapter 6408 RCW If the lien has been assigned the name of the assignee shall be stated Where an action to foreclose the lien has been commenced such notice of claim of lien may be amended as pleadings may be by order of the court insofar as the interests of third parties are not adversely affected by such amendment A claim of lien substantially in the following form shall be sufficient

CLAIM OF LIEN

claimant vs name of person indebted to claimant

Notice is hereby given that the person named below claims a lien pursuant to chapter 6404 RCW In support of this lien the following information is submitted

1 NAME OF LIEN CLAIMANT

TELEPHONE NUMBER

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ADDRESS

2 DATE ON WHICH THE CLAIMANT BEGAN TO PERFORM LABOR PROVIDE PROFESSIONAL SERVICES SUPPLY MATERIAL OR EQUIPMENT OR THE DATE ON WHICH EMPLOYEE BENEFIT CONTRIBUTIONS BECAME DUE

3 NAME OF PERSON INDEBTED TO THE CLAIMANT

4 DESCRIPTION OF THE PROPERTY AGAINST WHICH A LIEN IS CLAIMED (Street address legal description or other information that will reasonably describe the property)

5 NAME OF THE OWNER OR REPUTED OWNER (If not known state unknown)

6 THE LAST DATE ON WHICH LABOR WAS PERFORMED PROFESSIONAL SERVICES WERE FURNISHED CONTRIBUTIONS TO AN EMPLOYEE BENEFIT PLAN WERE DUE OR MATERIAL OR EQUIPMENT WAS FURNISHED

7 PRINCIPAL AMOUNT FOR WHICH THE LIEN IS CLAIMED IS

8 IF THE CLAIMANT IS THE ASSIGNEE OF THIS CLAIM SO STATE HERE

Claimant

(Phone number address city

CCBA Nuts amp Bolts on Construction Law - 42 of 49

and

state of claimant)

STATE OF WASHINGTON COUNTY OF ss being sworn says I am the claimant (or attorney of the claimant or administrator representative or agent of the trustees of an employee benefit plan) above named I have read or heard the foregoing claim read and know the contents thereof and believe the same to be true and correct and that the claim of lien is not frivolous and is made with reasonable cause and is not clearly excessive under penalty of perjury Subscribed and sworn to before me this day of The period provided for recording the claim of lien is a period of limitation and no action to foreclose a lien shall be maintained unless the claim of lien is filed for recording within the ninety-day period stated The lien claimant shall give a copy of the claim of lien to the owner or reputed owner by mailing it by certified or registered mail or by personal service within fourteen days of the time the claim of lien is filed for recording Failure to do so results in a forfeiture of any right the claimant may have to attorneys fees and costs against the owner under RCW 6004181

6004161 Bond in lieu of claim

Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who disputes the correctness or validity of the claim of lien may record either before or after the commencement of an action to enforce the lien in the office of the county recorder or auditor in the county where the claim of lien was recorded a bond issued by a surety company authorized to issue surety bonds in the state The surety shall be listed in the latest federal department of the treasury list of surety companies acceptable on federal bonds published in the Federal Register as authorized to issue bonds on United States government projects with an underwriting limitation including applicable reinsurance equal to or greater than the amount of the bond to be recorded The bond shall contain a description of the claim of lien and real property involved and be in an amount equal to the greater of five thousand dollars or two times the amount of the lien claimed if it is ten thousand dollars or less and in an amount equal to or greater than one and one-half times the amount of the lien if it is in

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excess of ten thousand dollars If the claim of lien affects more than one parcel of real property and is segregated to each parcel the bond may be segregated the same as in the claim of lien A separate bond shall be required for each claim of lien made by separate claimants However a single bond may be used to guarantee payment of amounts claimed by more than one claim of lien by a single claimant so long as the amount of the bond meets the requirements of this section as applied to the aggregate sum of all claims by such claimant The condition of the bond shall be to guarantee payment of any judgment upon the lien in favor of the lien claimant entered in any action to recover the amount claimed in a claim of lien or on the claim asserted in the claim of lien The effect of recording a bond shall be to release the real property described in the notice of claim of lien from the lien and any action brought to recover the amount claimed Unless otherwise prohibited by law if no action is commenced to recover on a lien within the time specified in RCW 6004141 the surety shall be discharged from liability under the bond If an action is timely commenced then on payment of any judgment entered in the action or on payment of the full amount of the bond to the holder of the judgment whichever is less the surety shall be discharged from liability under the bond Nothing in this section shall in any way prohibit or limit the use of other methods devised by the affected parties to secure the obligation underlying a claim of lien and to obtain a release of real property from a claim of lien

6004181 Rank of lien mdash Application of proceeds mdash Attorneys fees

(1) In every case in which different construction liens are claimed against the same property the court shall declare the rank of such lien or class of liens which liens shall be in the following order (a) Liens for the performance of labor (b) Liens for contributions owed to employee benefit plans (c) Liens for furnishing material supplies or equipment (d) Liens for subcontractors including but not limited to their labor and materials and (e) Liens for prime contractors or for professional services (2) The proceeds of the sale of property must be applied to each lien or class of liens in order of its rank and in an action brought to foreclose a lien pro rata among each claimant in each separate priority class A personal judgment may be rendered against any party personally liable for any debt for which the lien is claimed If the lien is established the judgment shall provide

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for the enforcement thereof upon the property liable as in the case of foreclosure of judgment liens The amount realized by such enforcement of the lien shall be credited upon the proper personal judgment The deficiency if any remaining unsatisfied shall stand as a personal judgment and may be collected by execution against any party liable therefor (3) The court may allow the prevailing party in the action whether plaintiff or defendant as part of the costs of the action the moneys paid for recording the claim of lien costs of title report bond costs and attorneys fees and necessary expenses incurred by the attorney in the superior court court of appeals supreme court or arbitration as the court or arbitrator deems reasonable Such costs shall have the priority of the class of lien to which they are related as established by subsection (1) of this section (4) Real property against which a lien under this chapter is enforced may be ordered sold by the court and the proceeds deposited into the registry of the clerk of the court pending further determination respecting distribution of the proceeds of the sale

6004900 Liberal construction mdash 1991 c 281

RCW 1927095 6004230 and 6004011 through 6004226 and 6004261 are to be liberally construed to provide security for all parties intended to be protected by their provisions

RCW 6028011

Retained percentage mdash Public transportation projects mdash Labor and material lien created mdash Bond in lieu of retained funds mdash Termination before completion mdash Chapter deemed exclusive mdash Release of ferry contract payments mdash Projects of farmers home administration mdash General contractorconstruction manager procedure mdash Definitions

(1)(a) Except as provided in (b) of this subsection public improvement contracts must provide and public bodies must reserve a contract retainage not to exceed five percent of the moneys earned by the contractor as a trust fund for the protection and payment of (i) The claims of any person arising under the contract and (ii) the state with respect to taxes increases and penalties imposed pursuant to Titles 50 51 and 82 RCW which may be due from such contractor (b) Public improvement contracts funded in whole or in part by federal transportation funds must rely upon the contract bond as referred to in chapter 3908 RCW for the protection and payment of (i) The claims of any person or persons arising under the contract to the extent such claims are provided for in RCW 3908010 and (ii) the state with respect to taxes increases and penalties incurred on the public improvement project under Titles 50 51 and 82 RCW which may be due The contract bond must remain in full force and effect until at a minimum all claims filed in compliance with chapter 3908 RCW are resolved

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(2) Every person performing labor or furnishing supplies toward the completion of a public improvement contract has a lien upon moneys reserved by a public body under the provisions of a public improvement contract However the notice of the lien of the claimant must be given within forty-five days of completion of the contract work and in the manner provided in RCW 3908030 (3) The contractor at any time may request the contract retainage be reduced to one hundred percent of the value of the work remaining on the project (a) After completion of all contract work other than landscaping the contractor may request that the public body release and pay in full the amounts retained during the performance of the contract and sixty days thereafter the public body must release and pay in full the amounts retained (other than continuing retention of five percent of the moneys earned for landscaping) subject to the provisions of chapters 3912 and 6028 RCW (b) Sixty days after completion of all contract work the public body must release and pay in full the amounts retained during the performance of the contract subject to the provisions of chapters 3912 and 6028 RCW (4) The moneys reserved by a public body under the provisions of a public improvement contract at the option of the contractor must be (a) Retained in a fund by the public body (b) Deposited by the public body in an interest bearing account in a bank mutual savings bank or savings and loan association Interest on moneys reserved by a public body under the provision of a public improvement contract must be paid to the contractor (c) Placed in escrow with a bank or trust company by the public body When the moneys reserved are placed in escrow the public body must issue a check representing the sum of the moneys reserved payable to the bank or trust company and the contractor jointly This check must be converted into bonds and securities chosen by the contractor and approved by the public body and the bonds and securities must be held in escrow Interest on the bonds and securities must be paid to the contractor as the interest accrues (5) The contractor or subcontractor may withhold payment of not more than five percent from the moneys earned by any subcontractor or sub-subcontractor or supplier contracted with by the contractor to provide labor materials or equipment to the public project Whenever the contractor or subcontractor reserves funds earned by a subcontractor or sub-subcontractor or

CCBA Nuts amp Bolts on Construction Law - 46 of 49

supplier the contractor or subcontractor must pay interest to the subcontractor or sub-subcontractor or supplier at a rate equal to that received by the contractor or subcontractor from reserved funds (6) A contractor may submit a bond for all or any portion of the contract retainage in a form acceptable to the public body and from a bonding company meeting standards established by the public body The public body must accept a bond meeting these requirements unless the public body can demonstrate good cause for refusing to accept it This bond and any proceeds therefrom are subject to all claims and liens and in the same manner and priority as set forth for retained percentages in this chapter The public body must release the bonded portion of the retained funds to the contractor within thirty days of accepting the bond from the contractor Whenever a public body accepts a bond in lieu of retained funds from a contractor the contractor must accept like bonds from any subcontractors or suppliers from which the contractor has retained funds The contractor must then release the funds retained from the subcontractor or supplier to the subcontractor or supplier within thirty days of accepting the bond from the subcontractor or supplier (7) If the public body administering a contract after a substantial portion of the work has been completed finds that an unreasonable delay will occur in the completion of the remaining portion of the contract for any reason not the result of a breach thereof it may if the contractor agrees delete from the contract the remaining work and accept as final the improvement at the stage of completion then attained and make payment in proportion to the amount of the work accomplished and in this case any amounts retained and accumulated under this section must be held for a period of sixty days following the completion In the event that the work is terminated before final completion as provided in this section the public body may thereafter enter into a new contract with the same contractor to perform the remaining work or improvement for an amount equal to or less than the cost of the remaining work as was provided for in the original contract without advertisement or bid The provisions of this chapter are exclusive and supersede all provisions and regulations in conflict herewith (8) Whenever the department of transportation has contracted for the construction of two or more ferry vessels sixty days after completion of all contract work on each ferry vessel the department must release and pay in full the amounts retained in connection with the construction of the vessel subject to the provisions of RCW 6028021 and chapter 3912 RCW However the department of transportation may at its discretion condition the release of funds retained in connection with the completed ferry upon the contractor delivering a good and sufficient bond with two or more sureties or with a surety company in the amount of the retained funds to be released to the contractor conditioned that no taxes may be certified or claims filed for work on the ferry after a period of sixty days following completion of the ferry and if taxes are certified or claims filed recovery may be had on the bond by the department of revenue the employment

CCBA Nuts amp Bolts on Construction Law - 47 of 49

security department the department of labor and industries and the material suppliers and laborers filing claims (9) Except as provided in subsection (1) of this section reservation by a public body for any purpose from the moneys earned by a contractor by fulfilling its responsibilities under public improvement contracts is prohibited (10) Contracts on projects funded in whole or in part by farmers home administration and subject to farmers home administration regulations are not subject to subsections (1) through (9) of this section (11) This subsection applies only to a public body that has contracted for the construction of a facility using the general contractorconstruction manager procedure as defined under RCW 3910210 If the work performed by a subcontractor on the project has been completed within the first half of the time provided in the general contractorconstruction manager contract for completing the work the public body may accept the completion of the subcontract The public body must give public notice of this acceptance After a forty-five day period for giving notice of liens and compliance with the retainage release procedures in RCW 6028021 the public body may release that portion of the retained funds associated with the subcontract Claims against the retained funds after the forty-five day period are not valid (12) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise (a) Contract retainage means an amount reserved by a public body from the moneys earned by a person under a public improvement contract (b) Person means a person or persons mechanic subcontractor or materialperson who performs labor or provides materials for a public improvement contract and any other person who supplies the person with provisions or supplies for the carrying on of a public improvement contract (c) Public body means the state or a county city town district board or other public body (d) Public improvement contract means a contract for public improvements or work other than for professional services or a work order as defined in RCW 3910210

CCBA Nuts amp Bolts on Construction Law - 48 of 49

RCW 6432070 Liens or encumbrances mdash Enforcement mdash Satisfaction

(1) Subsequent to recording the declaration as provided in this chapter and while the property remains subject to this chapter no lien shall thereafter arise or be effective against the property During such period liens or encumbrances shall arise or be created only against each apartment and the percentage of undivided interest in the common areas and facilities and appurtenant to such apartment in the same manner and under the same conditions in every respect as liens or encumbrances may arise or be created upon or against any other separate parcel of real property subject to individual ownership PROVIDED That no labor performed or materials furnished with the consent of or at the request of the owner of any apartment or such owners agent contractor or subcontractor shall be the basis for the filing of a lien against any other apartment or any other property of any other apartment owner not expressly consenting to or requesting the same except that such express consent shall be deemed to be given by any apartment owner in the case of emergency repairs Labor performed or materials furnished for the common areas and facilities if authorized by the association of apartment owners the manager or board of directors shall be deemed to be performed or furnished with the express consent of each apartment owner and shall be the basis for the filing of a lien against each of the apartments and shall be subject to the provisions of subsection (2) of this section (2) In the event a lien against two or more apartments becomes effective the apartment owners of the separate apartments may remove their apartment and the percentage of undivided interest in the common areas and facilities appurtenant to such apartment from the lien by payment of the fractional or proportional amounts attributable to each of the apartments affected Such individual payments shall be computed by reference to the percentages appearing on the declaration Subsequent to any such payment discharge or satisfaction the apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto shall thereafter be free and clear of the liens so paid satisfied or discharged Such partial payment satisfaction or discharge shall not prevent the lienor from proceeding to enforce his or her rights against any apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto not so paid satisfied or discharged

CCBA Nuts amp Bolts on Construction Law - 49 of 49

  • Cover Sheet
  • 20141110 - Washington Lien and Bond CLE
  • LampI Lien Summary
  • Claim of Lien
  • Form Notice to Owner
  • Model Disclosure Statement (Notice to Customer)
  • LampI Facts about Construction Liens
    • What you should know about contracts
    • How to protect your investment
    • For more information
      • Notice of Claim Against Bond and Retained Percentage
      • Preclaim Notice Bond amp Retained Percentage
      • Statute Handout
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ltFEFF4f7f75288fd94e9b8bbe5b9a521b5efa7684002000410064006f006200650020005000440046002065876863900275284e8e9ad88d2891cf76845370524d53705237300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200035002e003000204ee553ca66f49ad87248672c676562535f00521b5efa768400200050004400460020658768633002gt CHT ltFEFF4f7f752890194e9b8a2d7f6e5efa7acb7684002000410064006f006200650020005000440046002065874ef69069752865bc9ad854c18cea76845370524d5370523786557406300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200035002e003000204ee553ca66f49ad87248672c4f86958b555f5df25efa7acb76840020005000440046002065874ef63002gt DAN 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 DEU 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 ESP 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 FRA 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ltFEFF9ad854c18cea306a30d730ea30d730ec30b951fa529b7528002000410064006f0062006500200050004400460020658766f8306e4f5c6210306b4f7f75283057307e305930023053306e8a2d5b9a30674f5c62103055308c305f0020005000440046002030d530a130a430eb306f3001004100630072006f0062006100740020304a30883073002000410064006f00620065002000520065006100640065007200200035002e003000204ee5964d3067958b304f30533068304c3067304d307e305930023053306e8a2d5b9a306b306f30d530a930f330c8306e57cb30818fbc307f304c5fc59808306730593002gt KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020ace0d488c9c80020c2dcd5d80020c778c1c4c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200035002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor prepress-afdrukken van hoge kwaliteit De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 50 en hoger) NOR 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 PTB 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 SUO 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 SVE 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 ENU (Use these settings to create Adobe PDF documents best suited for high-quality prepress printing Created PDF documents can be opened with Acrobat and Adobe Reader 50 and later) gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false ConvertColors ConvertToCMYK DestinationProfileName () DestinationProfileSelector DocumentCMYK Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles false MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector DocumentCMYK PreserveEditing true UntaggedCMYKHandling LeaveUntagged UntaggedRGBHandling 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          1. To
          2. Date
          3. Re
          4. From
          5. AT THE REQUEST OF
          6. Sender
          7. Address
          8. Telephone
          9. Brief description of professional services materials or equipment provided or to be provided
          10. 1
          11. 2
          12. 3
          13. reg no
          14. deposit $
          15. expiration date
          16. claims up to $
          17. Reset

PUBLICATION F625-017-000 [01-2008]

Other formats for persons with disabilities are available on request Call 1-800-647-0982 TDD users call 360-902-5797 LampI is an equal opportunity employer

For more information

How to protect your investment

If you are dealing with a lending institution ask your loan officer what precautions the lending institution takes to verify that subcontractors and material suppliers are being paid when mortgage money is paid to your contractor

Request lender supervision when dealing with a lending institution that provides interim or construction financing

Ask the prime contractor to disclose all potential lien claimants as a condition of payment A lien claimant must mail (by certified or registered mail or by personal service) a copy of the claim of lien to the owner within 14 days of the time the lien is recorded [RCW 6004091(2)] While an action is ongoing an owner may withhold from this prime contractor the amount of money for which a claim is recorded by a subcontractor supplier or laborer [RCW 6004151]

It is recommended that your check be made payable jointly naming the contractor and the subcontractor or supplier as payees

Upon payment and acceptance of the amount due the owner has the right to an executed release of all lien rights by lien claimants [RCW 6004071]

Consider using an escrow agent to protect your interests Find out whether your escrow agent will protect you against liens when disbursing payments If you are interested in this alternative consult your attorney

Request that your contractor post a performance bond in the amount of the project cost That will give you recourse in the event the contractor fails to complete the building agreement

8 On the Web Find more information about hiring a contractor at

wwwLniwagovTradesLicensingContractorsHireCon

Contractor Registration Hotline1-800-647-0982

You may also call your local LampI office See listings under ldquoWashington State ofrdquo in the government section or the white pages of the telephone book

Please note This notice was prepared by the Department of Labor amp Industries Specialty Compliance Services Division for reproduction by lending institutions and contractors for distribution to their clients It explains the basics of the construction lien law to help you protect yourself This information is not a reflection upon the abilities or credit of your contractor

CCBA Nuts amp Bolts on Construction Law - 24 of 49

NOTICE OF CLAIM AGAINST

BOND AND RETAINED PERCENTAGE

RCW 3908030 RCW 6028010

VIA CERTIFIED MAIL ndash RETURN RECEIPT REQUESTED

TO [Public Owner] [Public Ownerrsquos Address]

Project [Project Name amp Address] NOTICE IS HEREBY GIVEN that the undersigned [Claimant] [Claimantrsquos Address] has a claim in the amount of ----- and 00100 Dollars ($XX) (not including attorneysrsquo fees or costs) together with interest at twelve percent (12) against [Public Owner] (ldquoOwnerrdquo) pursuant to RCW 6028 and the payment bond taken from [Prime Contractor] (ldquoContractorrdquo) [Prime Contractorrsquos Address] as principal and [Surety Company] (ldquoSuretyrdquo) [Suretyrsquos Address] as surety Bond No ________ pursuant to RCW 3908 for [describe services material supplies labor furnished] provided on the Project This Notice of Claim Against Bond and Retained Percentage supersedes and replaces previous Notices DATED This ___day of _________ 201_ [Claimant] By ______________________________________ Its ______________________________________ [Claimantrsquos Address]

_________________________________________

[Contractors Registration No if applicable]

(Copies furnished to General Contractor and General Contractorrsquos Bonding Company)

CCBA Nuts amp Bolts on Construction Law - 25 of 49

PRECLAIM NOTICE TO CONTRACTOR BY SUBCONTRACTORS MATERIALMEN OR SUPPLIERS FOR

CLAIM AGAINST BOND AND RETAINED PERCENTAGE

VIA CERTIFIED OR REGISTERED MAIL- RETURN RECEIPT REQUESTED

TO [Name of General Contractor] [Address]

YOU ARE HEREBY NOTIFIED that the undersigned ____________at the request of_________________ commenced to deliver or furnish materials supplies andor equipment for the use in the construction alteration andor repair of that certain project known as____________________ [project name] which is located at ____________________________ [address or description] If the undersigned is not paid for these materials supplies andor equipment it will file a claim against you and your bond andor retainage pursuant to RCW 3908 andor 6028 et seq for payment of any sum that is due and owing to the undersigned

DATED This __ day of _____________ 201_

[Name of Claimant]

By ____________________________________

Its ____________________________________

Address ______________________________

__________________________________________

__________________________________________

[Contractors Registration No if applicable]

(Mail via certified mail return receipt requested or hand deliver and obtain receipt)

CCBA Nuts amp Bolts on Construction Law - 26 of 49

Washington Liens amp Bonds ndash Pertinent Statutes

RCW 1827040 Bond or other security required mdash Actions against mdash Suspension of registration upon impairment (1) Each applicant shall file with the department a surety bond issued by a surety insurer who meets the requirements of chapter 4828 RCW in the sum of twelve thousand dollars if the applicant is a general contractor and six thousand dollars if the applicant is a specialty contractor If no valid bond is already on file with the department at the time the application is filed a bond must accompany the registration application The bond shall have the state of Washington named as obligee with good and sufficient surety in a form to be approved by the department The bond shall be continuous and may be canceled by the surety upon the surety giving written notice to the director A cancellation or revocation of the bond or withdrawal of the surety from the bond automatically suspends the registration issued to the contractor until a new bond or reinstatement notice has been filed and approved as provided in this section The bond shall be conditioned that the applicant will pay all persons performing labor including employee benefits for the contractor will pay all taxes and contributions due to the state of Washington and will pay all persons furnishing material or renting or supplying equipment to the contractor and will pay all amounts that may be adjudged against the contractor by reason of breach of contract including improper work in the conduct of the contracting business A change in the name of a business or a change in the type of business entity shall not impair a bond for the purposes of this section so long as one of the original applicants for such bond maintains partial ownership in the business covered by the bond (2) At the time of initial registration or renewal the contractor shall provide a bond or other security deposit as required by this chapter and comply with all of the other provisions of this chapter before the department shall issue or renew the contractors certificate of registration Any contractor registered as of July 1 2001 who maintains that registration in accordance with this chapter is in compliance with this chapter until the next renewal of the contractors certificate of registration (3) Any person firm or corporation having a claim against the contractor for any of the items referred to in this section may bring suit against the contractor and the bond or deposit in the superior court of the county in which the work was done or of any county in which jurisdiction of the contractor may be had The surety issuing the bond shall be named as a party to any suit upon the bond Action upon the bond or deposit brought by a residential homeowner for breach of contract by a party to the construction contract shall be commenced by filing the summons and complaint with the clerk of the appropriate superior court within two years from the date the claimed contract work was substantially completed or abandoned whichever occurred first Action upon the bond or deposit brought by any other authorized party shall be commenced by filing the summons and complaint with the clerk of the appropriate superior court within one year from the date the claimed labor was performed and benefits accrued taxes and contributions owing the state of Washington became due materials and equipment were furnished or the claimed contract work was substantially completed or abandoned whichever occurred first Service of process in an action filed under this chapter against the contractor and the contractors bond or the deposit shall be exclusively by service upon the department Three

CCBA Nuts amp Bolts on Construction Law - 27 of 49

copies of the summons and complaint and a fee adopted by rule of not less than fifty dollars to cover the costs shall be served by registered or certified mail or other delivery service requiring notice of receipt upon the department at the time suit is started and the department shall maintain a record available for public inspection of all suits so commenced Service is not complete until the department receives the fee and three copies of the summons and complaint The service shall constitute service and confer personal jurisdiction on the contractor and the surety for suit on claimants claim against the contractor and the bond or deposit and the department shall transmit the summons and complaint or a copy thereof to the contractor at the address listed in the contractors application and to the surety within two days after it shall have been received (4) The surety upon the bond shall not be liable in an aggregate amount in excess of the amount named in the bond nor for any monetary penalty assessed pursuant to this chapter for an infraction The liability of the surety shall not cumulate where the bond has been renewed continued reinstated reissued or otherwise extended The surety upon the bond may upon notice to the department and the parties tender to the clerk of the court having jurisdiction of the action an amount equal to the claims thereunder or the amount of the bond less the amount of judgments if any previously satisfied therefrom and to the extent of such tender the surety upon the bond shall be exonerated but if the actions commenced and pending and provided to the department as required in subsection (3) of this section at any one time exceed the amount of the bond then unimpaired claims shall be satisfied from the bond in the following order (a) Employee labor and claims of laborers including employee benefits (b) Claims for breach of contract by a party to the construction contract (c) Registered or licensed subcontractors material and equipment (d) Taxes and contributions due the state of Washington (e) Any court costs interest and attorneys fees plaintiff may be entitled to recover The surety is not liable for any amount in excess of the penal limit of its bond A payment made by the surety in good faith exonerates the bond to the extent of any payment made by the surety (5) The total amount paid from a bond or deposit required of a general contractor by this section to claimants other than residential homeowners must not exceed one-half of the bond amount The total amount paid from a bond or deposit required of a specialty contractor by this section to claimants other than residential homeowners must not exceed one-half of the bond amount or four thousand dollars whichever is greater (6) The prevailing party in an action filed under this section against the contractor and contractors bond or deposit for breach of contract by a party to the construction contract involving a residential homeowner is entitled to costs interest and reasonable attorneys fees The surety upon the bond or deposit is not liable in an aggregate amount in excess of the amount

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named in the bond or deposit nor for any monetary penalty assessed pursuant to this chapter for an infraction (7) If a final judgment impairs the liability of the surety upon the bond or deposit so furnished that there is not in effect a bond or deposit in the full amount prescribed in this section the registration of the contractor is automatically suspended until the bond or deposit liability in the required amount unimpaired by unsatisfied judgment claims is furnished (8) In lieu of the surety bond required by this section the contractor may file with the department an assigned savings account upon forms provided by the department (9) Any person having filed and served a summons and complaint as required by this section having an unsatisfied final judgment against the registrant for any items referred to in this section may execute upon the security held by the department by serving a certified copy of the unsatisfied final judgment by registered or certified mail upon the department within one year of the date of entry of such judgment Upon the receipt of service of such certified copy the department shall pay or order paid from the deposit through the registry of the superior court which rendered judgment towards the amount of the unsatisfied judgment The priority of payment by the department shall be the order of receipt by the department but the department shall have no liability for payment in excess of the amount of the deposit (10) Within ten days after resolution of the case a certified copy of the final judgment and order or any settlement documents where a case is not disposed of by a court trial a certified copy of the dispositive settlement documents must be provided to the department by the prevailing party Failure to provide a copy of the final judgment and order or the dispositive settlement documents to the department within ten days of entry of such an order constitutes a violation of this chapter and a penalty adopted by rule of not less than two hundred fifty dollars may be assessed against the prevailing party (11) The director may require an applicant applying to renew or reinstate a registration or applying for a new registration to file a bond of up to three times the normally required amount if the director determines that an applicant or a previous registration of a corporate officer owner or partner of a current applicant has had in the past five years a total of three final judgments in actions under this chapter involving a residential single-family dwelling on two or more different structures (12) The director may adopt rules necessary for the proper administration of the security RCW 1827114 Disclosure statement required mdash Prerequisite to lien claim

(1) Any contractor agreeing to perform any contracting project (a) For the repair alteration or construction of four or fewer residential units or accessory structures on such residential property when the bid or contract price totals one thousand dollars or more or (b) for the repair alteration or construction of a commercial building when the bid or contract price totals one thousand dollars or more but less than sixty thousand dollars must provide the customer with

CCBA Nuts amp Bolts on Construction Law - 29 of 49

the following disclosure statement in substantially the following form using lower case and upper case twelve-point and bold type where appropriate prior to starting work on the project NOTICE TO CUSTOMER This contractor is registered with the state of Washington registration no and has posted with the state a bond or deposit of for the purpose of satisfying claims against the contractor for breach of contract including negligent or improper work in the conduct of the contractors business The expiration date of this contractors registration is THIS BOND OR DEPOSIT MIGHT NOT BE SUFFICIENT TO COVER A CLAIM THAT MIGHT ARISE FROM THE WORK DONE UNDER YOUR CONTRACT This bond or deposit is not for your exclusive use because it covers all work performed by this contractor The bond or deposit is intended to pay valid claims up to that you and other customers suppliers subcontractors or taxing authorities may have FOR GREATER PROTECTION YOU MAY WITHHOLD A PERCENTAGE OF YOUR CONTRACT You may withhold a contractually defined percentage of your construction contract as retainage for a stated period of time to provide protection to you and help insure that your project will be completed as required by your contract YOUR PROPERTY MAY BE LIENED If a supplier of materials used in your construction project or an employee or subcontractor of your contractor or subcontractors is not paid your property may be liened to force payment and you could pay twice for the same work FOR ADDITIONAL PROTECTION YOU MAY REQUEST THE CONTRACTOR TO PROVIDE YOU WITH ORIGINAL LIEN RELEASE DOCUMENTS FROM EACH SUPPLIER OR SUBCONTRACTOR ON YOUR PROJECT The contractor is required to provide you with further information about lien release documents if you request it General information is also available from the state Department of Labor and Industries I have received a copy of this disclosure statement

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(Signature of customer) (2) The contractor must retain a signed copy of the disclosure statement in his or her files for a minimum of three years and produce a signed or electronic signature copy of the disclosure statement to the department upon request (3) A contractor subject to this section shall notify any consumer to whom notice is required under subsection (1) of this section if the contractors registration has expired or is revoked or suspended by the department prior to completion or other termination of the contract with the consumer (4) No contractor subject to this section may bring or maintain any lien claim under chapter 6004 RCW based on any contract to which this section applies without alleging and proving that the contractor has provided the customer with a copy of the disclosure statement as required in subsection (1) of this section (5) This section does not apply to contracts authorized under chapter 3904 RCW or to contractors contracting with other contractors (6) Failure to comply with this section shall constitute an infraction under the provisions of this chapter (7) The department shall produce model disclosure statements and public service announcements detailing the information needed to assist contractors and contractors customers to comply under this section As necessary the department shall periodically update these education materials RCW 3908010 Bond required mdash Conditions mdash Retention of contract amount in lieu of bond (1)(a) Whenever any board council commission trustees or body acting for the state or any county or municipality or any public body must contract with any person or corporation to do any work for the state county or municipality or other public body city town or district such board council commission trustees or body must require the person or persons with whom such contract is made to make execute and deliver to such board council commission trustees or body a good and sufficient bond with a surety company as surety conditioned that such person or persons must (i) Faithfully perform all the provisions of such contract (ii) Pay all laborers mechanics and subcontractors and material suppliers and all persons who supply such person or persons or subcontractors with provisions and supplies for the carrying on of such work and

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(iii) Pay the taxes increases and penalties incurred on the project under Titles 50 51 and 82 RCW on (A) Projects referred to in RCW 6028011(1)(b) andor (B) projects for which the bond is conditioned on the payment of such taxes increases and penalties (b) The bond in cases of cities and towns must be filed with the clerk or comptroller thereof and any person or persons performing such services or furnishing material to any subcontractor has the same right under the provisions of such bond as if such work services or material was furnished to the original contractor (2) The provisions of RCW 3908010 through 3908030 do not apply to any money loaned or advanced to any such contractor subcontractor or other person in the performance of any such work (3) On contracts of thirty-five thousand dollars or less at the option of the contractor the respective public entity may in lieu of the bond retain fifty percent of the contract amount for a period of thirty days after date of final acceptance or until receipt of all necessary releases from the department of revenue the employment security department and the department of labor and industries and settlement of any liens filed under chapter 6028 RCW whichever is later (4) For contracts of one hundred thousand dollars or less the public entity may accept a full payment and performance bond from an individual surety or sureties (5) The surety must agree to be bound by the laws of the state of Washington and subjected to the jurisdiction of the state of Washington RCW 6004011 Definitions

Unless the context requires otherwise the definitions in this section apply throughout this chapter (1) Construction agent means any registered or licensed contractor registered or licensed subcontractor architect engineer or other person having charge of any improvement to real property who shall be deemed the agent of the owner for the limited purpose of establishing the lien created by this chapter (2) Contract price means the amount agreed upon by the contracting parties or if no amount is agreed upon then the customary and reasonable charge therefor (3) Draws means periodic disbursements of interim or construction financing by a lender (4) Furnishing labor professional services materials or equipment means the performance of any labor or professional services the contribution owed to any employee benefit plan on account of any labor the provision of any supplies or materials and the renting leasing or

CCBA Nuts amp Bolts on Construction Law - 32 of 49

otherwise supplying of equipment for the improvement of real property (5) Improvement means (a) Constructing altering repairing remodeling demolishing clearing grading or filling in of to or upon any real property or street or road in front of or adjoining the same (b) planting of trees vines shrubs plants hedges or lawns or providing other landscaping materials on any real property and (c) providing professional services upon real property or in preparation for or in conjunction with the intended activities in (a) or (b) of this subsection (6) Interim or construction financing means that portion of money secured by a mortgage deed of trust or other encumbrance to finance improvement of or to real property but does not include (a) Funds to acquire real property (b) Funds to pay interest insurance premiums lease deposits taxes assessments or prior encumbrances (c) Funds to pay loan commitment title legal closing recording or appraisal fees (d) Funds to pay other customary fees which pursuant to agreement with the owner or borrower are to be paid by the lender from time to time (e) Funds to acquire personal property for which the potential lien claimant may not claim a lien pursuant to this chapter (7) Labor means exertion of the powers of body or mind performed at the site for compensation Labor includes amounts due and owed to any employee benefit plan on account of such labor performed (8) Mortgagee means a person who has a valid mortgage of record or deed of trust of record securing a loan (9) Owner-occupied means a single-family residence occupied by the owner as his or her principal residence (10) Payment bond means a surety bond issued by a surety licensed to issue surety bonds in the state of Washington that confers upon potential claimants the rights of third party beneficiaries (11) Potential lien claimant means any person or entity entitled to assert lien rights under this chapter who has otherwise complied with the provisions of this chapter and is registered or licensed if required to be licensed or registered by the provisions of the laws of the state of Washington (12) Prime contractor includes all contractors general contractors and specialty

CCBA Nuts amp Bolts on Construction Law - 33 of 49

contractors as defined by chapter 1827 or 1928 RCW or who are otherwise required to be registered or licensed by law who contract directly with a property owner or their common law agent to assume primary responsibility for the creation of an improvement to real property and includes property owners or their common law agents who are contractors general contractors or specialty contractors as defined in chapter 1827 or 1928 RCW or who are otherwise required to be registered or licensed by law who offer to sell their property without occupying or using the structures projects developments or improvements for more than one year (13) Professional services means surveying establishing or marking the boundaries of preparing maps plans or specifications for or inspecting testing or otherwise performing any other architectural or engineering services for the improvement of real property (14) Real property lender means a bank savings bank savings and loan association credit union mortgage company or other corporation association partnership trust or individual that makes loans secured by real property located in the state of Washington (15) Site means the real property which is or is to be improved (16) Subcontractor means a general contractor or specialty contractor as defined by chapter 1827 or 1928 RCW or who is otherwise required to be registered or licensed by law who contracts for the improvement of real property with someone other than the owner of the property or their common law agent

6004021 Lien authorized

Except as provided in RCW 6004031 any person furnishing labor professional services materials or equipment for the improvement of real property shall have a lien upon the improvement for the contract price of labor professional services materials or equipment furnished at the instance of the owner or the agent or construction agent of the owner

6004031 Notices mdash Exceptions

(1) Except as otherwise provided in this section every person furnishing professional services materials or equipment for the improvement of real property shall give the owner or reputed owner notice in writing of the right to claim a lien If the prime contractor is in compliance with the requirements of RCW 1927095 6004230 and 6004261 this notice shall also be given to the prime contractor as described in this subsection unless the potential lien claimant has contracted directly with the prime contractor The notice may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after the date which is sixty days before (a) Mailing the notice by certified or registered mail to the owner or reputed owner or

CCBA Nuts amp Bolts on Construction Law - 34 of 49

(b) Delivering or serving the notice personally upon the owner or reputed owner and obtaining evidence of delivery in the form of a receipt or other acknowledgment signed by the owner or reputed owner or an affidavit of service In the case of new construction of a single-family residence the notice of a right to claim a lien may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after a date which is ten days before the notice is given as described in this subsection (2) Notices of a right to claim a lien shall not be required of (a) Persons who contract directly with the owner or the owners common law agent (b) Laborers whose claim of lien is based solely on performing labor or (c) Subcontractors who contract for the improvement of real property directly with the prime contractor except as provided in subsection (3)(b) of this section (3) Persons who furnish professional services materials or equipment in connection with the repair alteration or remodel of an existing owner-occupied single-family residence or appurtenant garage (a) Who contract directly with the owner-occupier or their common law agent shall not be required to send a written notice of the right to claim a lien and shall have a lien for the full amount due under their contract as provided in RCW 6004021 or (b) Who do not contract directly with the owner-occupier or their common law agent shall give notice of the right to claim a lien to the owner-occupier Liens of persons furnishing professional services materials or equipment who do not contract directly with the owner-occupier or their common law agent may only be satisfied from amounts not yet paid to the prime contractor by the owner at the time the notice described in this section is received regardless of whether amounts not yet paid to the prime contractor are due For the purposes of this subsection received means actual receipt of notice by personal service or registered or certified mail or three days after mailing by registered or certified mail excluding Saturdays Sundays or legal holidays (4) The notice of right to claim a lien described in subsection (1) of this section shall include but not be limited to the following information and shall substantially be in the following form using lower-case and upper-case ten-point type where appropriate

CCBA Nuts amp Bolts on Construction Law - 35 of 49

NOTICE TO OWNER

IMPORTANT READ BOTH SIDES OF THIS NOTICE CAREFULLY

PROTECT YOURSELF FROM PAYING TWICE

To Date

Re (description of property Street address or general location) From AT THE REQUEST OF (Name of person ordering the professional services materials or equipment) THIS IS NOT A LIEN This notice is sent to you to tell you who is providing professional services materials or equipment for the improvement of your property and to advise you of the rights of these persons and your responsibilities Also take note that laborers on your project may claim a lien without sending you a notice

OWNEROCCUPIER OF EXISTING

RESIDENTIAL PROPERTY

Under Washington law those who furnish labor professional services materials or equipment for the repair remodel or alteration of your owner-occupied principal residence and who are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien The law limits the amount that a lien claimant can claim against your property Claims may only be made against that portion of the contract price you have not yet paid to your prime contractor as of the time this notice was given to you or three days after this notice was mailed to you Review the back of this notice for more information and ways to avoid lien claims

COMMERCIAL ANDOR NEW

RESIDENTIAL PROPERTY

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We have or will be providing professional services materials or equipment for the improvement of your commercial or new residential project In the event you or your contractor fail to pay us we may file a lien against your property A lien may be claimed for all professional services materials or equipment furnished after a date that is sixty days before this notice was given to you or mailed to you unless the improvement to your property is the construction of a new single-family residence then ten days before this notice was given to you or mailed to you Sender Address Telephone Brief description of professional services materials or equipment provided or to be provided

IMPORTANT INFORMATION

ON REVERSE SIDE

IMPORTANT INFORMATION

FOR YOUR PROTECTION This notice is sent to inform you that we have or will provide professional services materials or equipment for the improvement of your property We expect to be paid by the person who ordered our services but if we are not paid we have the right to enforce our claim by filing a construction lien against your property LEARN more about the lien laws and the meaning of this notice by discussing them with your contractor suppliers Department of Labor and Industries the firm sending you this notice your lender or your attorney

COMMON METHODS TO AVOID CONSTRUCTION LIENS There are several methods available to protect your property from construction liens The following are two of the more commonly used methods

DUAL PAYCHECKS (Joint Checks) When paying your contractor for services or materials you may make checks payable jointly to the contractor and the firms furnishing you this notice

CCBA Nuts amp Bolts on Construction Law - 37 of 49

LIEN RELEASES You may require your contractor to provide lien releases signed by all the suppliers and subcontractors from whom you have received this notice If they cannot obtain lien releases because you have not paid them you may use the dual payee check method to protect yourself

YOU SHOULD TAKE APPROPRIATE STEPS TO PROTECT YOUR PROPERTY FROM LIENS YOUR PRIME CONTRACTOR AND YOUR CONSTRUCTION LENDER ARE REQUIRED BY LAW TO GIVE YOU WRITTEN INFORMATION ABOUT LIEN CLAIMS IF YOU HAVE NOT RECEIVED IT ASK THEM FOR IT

(5) Every potential lien claimant providing professional services where no improvement as defined in RCW 6004011(5) (a) or (b) has been commenced and the professional services provided are not visible from an inspection of the real property may record in the real property records of the county where the property is located a notice which shall contain the professional service providers name address telephone number legal description of the property the owner or reputed owners name and the general nature of the professional services provided If such notice is not recorded the lien claimed shall be subordinate to the interest of any subsequent mortgagee and invalid as to the interest of any subsequent purchaser if the mortgagee or purchaser acts in good faith and for a valuable consideration acquires an interest in the property prior to the commencement of an improvement as defined in RCW 6004011(5) (a) or (b) without notice of the professional services being provided The notice described in this subsection shall be substantially in the following form

NOTICE OF FURNISHING

PROFESSIONAL SERVICES That on the (day) day of (month and year) (name of provider) began providing professional services upon or for the improvement of real property legally described as follows

[Legal Description is mandatory]

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The general nature of the professional services provided is The owner or reputed owner of the real property is

(Signature)

(Name of Claimant)

(Street Address)

(City State Zip Code)

(Phone Number)

(6) A lien authorized by this chapter shall not be enforced unless the lien claimant has complied with the applicable provisions of this section

6004041 Contractor registration

A contractor or subcontractor required to be registered under chapter 1827 RCW or licensed under chapter 1928 RCW or otherwise required to be registered or licensed by law shall be deemed the construction agent of the owner for the purposes of establishing the lien created by this chapter only if so registered or licensed Persons dealing with contractors or subcontractors may rely for the purposes of this section upon a certificate of registration issued pursuant to chapter 1827 RCW or license issued pursuant to chapter 1928 RCW or other certificate or license issued pursuant to law covering the period when the labor professional services material or equipment shall be furnished and the lien rights shall not be lost by suspension or revocation of registration or license without their knowledge No lien rights described in this

CCBA Nuts amp Bolts on Construction Law - 39 of 49

chapter shall be lost or denied by virtue of the absence suspension or revocation of such registration or license with respect to any contractor or subcontractor not in immediate contractual privity with the lien claimant

6004081 Frivolous claim mdash Procedure

(1) Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who believes the claim of lien to be frivolous and made without reasonable cause or clearly excessive may apply by motion to the superior court for the county where the property or some part thereof is located for an order directing the lien claimant to appear before the court at a time no earlier than six nor later than fifteen days following the date of service of the application and order on the lien claimant and show cause if any he or she has why the relief requested should not be granted The motion shall state the grounds upon which relief is asked and shall be supported by the affidavit of the applicant or his or her attorney setting forth a concise statement of the facts upon which the motion is based (2) The order shall clearly state that if the lien claimant fails to appear at the time and place noted the lien shall be released with prejudice and that the lien claimant shall be ordered to pay the costs requested by the applicant including reasonable attorneys fees (3) If no action to foreclose the lien claim has been filed the clerk of the court shall assign a cause number to the application and obtain from the applicant a filing fee pursuant to RCW 3618016 If an action has been filed to foreclose the lien claim the application shall be made a part of that action (4) If following a hearing on the matter the court determines that the lien is frivolous and made without reasonable cause or clearly excessive the court shall issue an order releasing the lien if frivolous and made without reasonable cause or reducing the lien if clearly excessive and awarding costs and reasonable attorneys fees to the applicant to be paid by the lien claimant If the court determines that the lien is not frivolous and was made with reasonable cause and is not clearly excessive the court shall issue an order so stating and awarding costs and reasonable attorneys fees to the lien claimant to be paid by the applicant (5) Proceedings under this section shall not affect other rights and remedies available to the parties under this chapter or otherwise

6004091 Recording mdash Time mdash Contents of lien

Every person claiming a lien under RCW 6004021 shall file for recording in the county where the subject property is located a notice of claim of lien not later than ninety days after the person

CCBA Nuts amp Bolts on Construction Law - 40 of 49

has ceased to furnish labor professional services materials or equipment or the last date on which employee benefit contributions were due The notice of claim of lien (1) Shall state in substance and effect (a) The name phone number and address of the claimant (b) The first and last date on which the labor professional services materials or equipment was furnished or employee benefit contributions were due (c) The name of the person indebted to the claimant (d) The street address legal description or other description reasonably calculated to identify for a person familiar with the area the location of the real property to be charged with the lien (e) The name of the owner or reputed owner of the property if known and if not known that fact shall be stated and (f) The principal amount for which the lien is claimed (2) Shall be signed by the claimant or some person authorized to act on his or her behalf who shall affirmatively state they have read the notice of claim of lien and believe the notice of claim of lien to be true and correct under penalty of perjury and shall be acknowledged pursuant to chapter 6408 RCW If the lien has been assigned the name of the assignee shall be stated Where an action to foreclose the lien has been commenced such notice of claim of lien may be amended as pleadings may be by order of the court insofar as the interests of third parties are not adversely affected by such amendment A claim of lien substantially in the following form shall be sufficient

CLAIM OF LIEN

claimant vs name of person indebted to claimant

Notice is hereby given that the person named below claims a lien pursuant to chapter 6404 RCW In support of this lien the following information is submitted

1 NAME OF LIEN CLAIMANT

TELEPHONE NUMBER

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ADDRESS

2 DATE ON WHICH THE CLAIMANT BEGAN TO PERFORM LABOR PROVIDE PROFESSIONAL SERVICES SUPPLY MATERIAL OR EQUIPMENT OR THE DATE ON WHICH EMPLOYEE BENEFIT CONTRIBUTIONS BECAME DUE

3 NAME OF PERSON INDEBTED TO THE CLAIMANT

4 DESCRIPTION OF THE PROPERTY AGAINST WHICH A LIEN IS CLAIMED (Street address legal description or other information that will reasonably describe the property)

5 NAME OF THE OWNER OR REPUTED OWNER (If not known state unknown)

6 THE LAST DATE ON WHICH LABOR WAS PERFORMED PROFESSIONAL SERVICES WERE FURNISHED CONTRIBUTIONS TO AN EMPLOYEE BENEFIT PLAN WERE DUE OR MATERIAL OR EQUIPMENT WAS FURNISHED

7 PRINCIPAL AMOUNT FOR WHICH THE LIEN IS CLAIMED IS

8 IF THE CLAIMANT IS THE ASSIGNEE OF THIS CLAIM SO STATE HERE

Claimant

(Phone number address city

CCBA Nuts amp Bolts on Construction Law - 42 of 49

and

state of claimant)

STATE OF WASHINGTON COUNTY OF ss being sworn says I am the claimant (or attorney of the claimant or administrator representative or agent of the trustees of an employee benefit plan) above named I have read or heard the foregoing claim read and know the contents thereof and believe the same to be true and correct and that the claim of lien is not frivolous and is made with reasonable cause and is not clearly excessive under penalty of perjury Subscribed and sworn to before me this day of The period provided for recording the claim of lien is a period of limitation and no action to foreclose a lien shall be maintained unless the claim of lien is filed for recording within the ninety-day period stated The lien claimant shall give a copy of the claim of lien to the owner or reputed owner by mailing it by certified or registered mail or by personal service within fourteen days of the time the claim of lien is filed for recording Failure to do so results in a forfeiture of any right the claimant may have to attorneys fees and costs against the owner under RCW 6004181

6004161 Bond in lieu of claim

Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who disputes the correctness or validity of the claim of lien may record either before or after the commencement of an action to enforce the lien in the office of the county recorder or auditor in the county where the claim of lien was recorded a bond issued by a surety company authorized to issue surety bonds in the state The surety shall be listed in the latest federal department of the treasury list of surety companies acceptable on federal bonds published in the Federal Register as authorized to issue bonds on United States government projects with an underwriting limitation including applicable reinsurance equal to or greater than the amount of the bond to be recorded The bond shall contain a description of the claim of lien and real property involved and be in an amount equal to the greater of five thousand dollars or two times the amount of the lien claimed if it is ten thousand dollars or less and in an amount equal to or greater than one and one-half times the amount of the lien if it is in

CCBA Nuts amp Bolts on Construction Law - 43 of 49

excess of ten thousand dollars If the claim of lien affects more than one parcel of real property and is segregated to each parcel the bond may be segregated the same as in the claim of lien A separate bond shall be required for each claim of lien made by separate claimants However a single bond may be used to guarantee payment of amounts claimed by more than one claim of lien by a single claimant so long as the amount of the bond meets the requirements of this section as applied to the aggregate sum of all claims by such claimant The condition of the bond shall be to guarantee payment of any judgment upon the lien in favor of the lien claimant entered in any action to recover the amount claimed in a claim of lien or on the claim asserted in the claim of lien The effect of recording a bond shall be to release the real property described in the notice of claim of lien from the lien and any action brought to recover the amount claimed Unless otherwise prohibited by law if no action is commenced to recover on a lien within the time specified in RCW 6004141 the surety shall be discharged from liability under the bond If an action is timely commenced then on payment of any judgment entered in the action or on payment of the full amount of the bond to the holder of the judgment whichever is less the surety shall be discharged from liability under the bond Nothing in this section shall in any way prohibit or limit the use of other methods devised by the affected parties to secure the obligation underlying a claim of lien and to obtain a release of real property from a claim of lien

6004181 Rank of lien mdash Application of proceeds mdash Attorneys fees

(1) In every case in which different construction liens are claimed against the same property the court shall declare the rank of such lien or class of liens which liens shall be in the following order (a) Liens for the performance of labor (b) Liens for contributions owed to employee benefit plans (c) Liens for furnishing material supplies or equipment (d) Liens for subcontractors including but not limited to their labor and materials and (e) Liens for prime contractors or for professional services (2) The proceeds of the sale of property must be applied to each lien or class of liens in order of its rank and in an action brought to foreclose a lien pro rata among each claimant in each separate priority class A personal judgment may be rendered against any party personally liable for any debt for which the lien is claimed If the lien is established the judgment shall provide

CCBA Nuts amp Bolts on Construction Law - 44 of 49

for the enforcement thereof upon the property liable as in the case of foreclosure of judgment liens The amount realized by such enforcement of the lien shall be credited upon the proper personal judgment The deficiency if any remaining unsatisfied shall stand as a personal judgment and may be collected by execution against any party liable therefor (3) The court may allow the prevailing party in the action whether plaintiff or defendant as part of the costs of the action the moneys paid for recording the claim of lien costs of title report bond costs and attorneys fees and necessary expenses incurred by the attorney in the superior court court of appeals supreme court or arbitration as the court or arbitrator deems reasonable Such costs shall have the priority of the class of lien to which they are related as established by subsection (1) of this section (4) Real property against which a lien under this chapter is enforced may be ordered sold by the court and the proceeds deposited into the registry of the clerk of the court pending further determination respecting distribution of the proceeds of the sale

6004900 Liberal construction mdash 1991 c 281

RCW 1927095 6004230 and 6004011 through 6004226 and 6004261 are to be liberally construed to provide security for all parties intended to be protected by their provisions

RCW 6028011

Retained percentage mdash Public transportation projects mdash Labor and material lien created mdash Bond in lieu of retained funds mdash Termination before completion mdash Chapter deemed exclusive mdash Release of ferry contract payments mdash Projects of farmers home administration mdash General contractorconstruction manager procedure mdash Definitions

(1)(a) Except as provided in (b) of this subsection public improvement contracts must provide and public bodies must reserve a contract retainage not to exceed five percent of the moneys earned by the contractor as a trust fund for the protection and payment of (i) The claims of any person arising under the contract and (ii) the state with respect to taxes increases and penalties imposed pursuant to Titles 50 51 and 82 RCW which may be due from such contractor (b) Public improvement contracts funded in whole or in part by federal transportation funds must rely upon the contract bond as referred to in chapter 3908 RCW for the protection and payment of (i) The claims of any person or persons arising under the contract to the extent such claims are provided for in RCW 3908010 and (ii) the state with respect to taxes increases and penalties incurred on the public improvement project under Titles 50 51 and 82 RCW which may be due The contract bond must remain in full force and effect until at a minimum all claims filed in compliance with chapter 3908 RCW are resolved

CCBA Nuts amp Bolts on Construction Law - 45 of 49

(2) Every person performing labor or furnishing supplies toward the completion of a public improvement contract has a lien upon moneys reserved by a public body under the provisions of a public improvement contract However the notice of the lien of the claimant must be given within forty-five days of completion of the contract work and in the manner provided in RCW 3908030 (3) The contractor at any time may request the contract retainage be reduced to one hundred percent of the value of the work remaining on the project (a) After completion of all contract work other than landscaping the contractor may request that the public body release and pay in full the amounts retained during the performance of the contract and sixty days thereafter the public body must release and pay in full the amounts retained (other than continuing retention of five percent of the moneys earned for landscaping) subject to the provisions of chapters 3912 and 6028 RCW (b) Sixty days after completion of all contract work the public body must release and pay in full the amounts retained during the performance of the contract subject to the provisions of chapters 3912 and 6028 RCW (4) The moneys reserved by a public body under the provisions of a public improvement contract at the option of the contractor must be (a) Retained in a fund by the public body (b) Deposited by the public body in an interest bearing account in a bank mutual savings bank or savings and loan association Interest on moneys reserved by a public body under the provision of a public improvement contract must be paid to the contractor (c) Placed in escrow with a bank or trust company by the public body When the moneys reserved are placed in escrow the public body must issue a check representing the sum of the moneys reserved payable to the bank or trust company and the contractor jointly This check must be converted into bonds and securities chosen by the contractor and approved by the public body and the bonds and securities must be held in escrow Interest on the bonds and securities must be paid to the contractor as the interest accrues (5) The contractor or subcontractor may withhold payment of not more than five percent from the moneys earned by any subcontractor or sub-subcontractor or supplier contracted with by the contractor to provide labor materials or equipment to the public project Whenever the contractor or subcontractor reserves funds earned by a subcontractor or sub-subcontractor or

CCBA Nuts amp Bolts on Construction Law - 46 of 49

supplier the contractor or subcontractor must pay interest to the subcontractor or sub-subcontractor or supplier at a rate equal to that received by the contractor or subcontractor from reserved funds (6) A contractor may submit a bond for all or any portion of the contract retainage in a form acceptable to the public body and from a bonding company meeting standards established by the public body The public body must accept a bond meeting these requirements unless the public body can demonstrate good cause for refusing to accept it This bond and any proceeds therefrom are subject to all claims and liens and in the same manner and priority as set forth for retained percentages in this chapter The public body must release the bonded portion of the retained funds to the contractor within thirty days of accepting the bond from the contractor Whenever a public body accepts a bond in lieu of retained funds from a contractor the contractor must accept like bonds from any subcontractors or suppliers from which the contractor has retained funds The contractor must then release the funds retained from the subcontractor or supplier to the subcontractor or supplier within thirty days of accepting the bond from the subcontractor or supplier (7) If the public body administering a contract after a substantial portion of the work has been completed finds that an unreasonable delay will occur in the completion of the remaining portion of the contract for any reason not the result of a breach thereof it may if the contractor agrees delete from the contract the remaining work and accept as final the improvement at the stage of completion then attained and make payment in proportion to the amount of the work accomplished and in this case any amounts retained and accumulated under this section must be held for a period of sixty days following the completion In the event that the work is terminated before final completion as provided in this section the public body may thereafter enter into a new contract with the same contractor to perform the remaining work or improvement for an amount equal to or less than the cost of the remaining work as was provided for in the original contract without advertisement or bid The provisions of this chapter are exclusive and supersede all provisions and regulations in conflict herewith (8) Whenever the department of transportation has contracted for the construction of two or more ferry vessels sixty days after completion of all contract work on each ferry vessel the department must release and pay in full the amounts retained in connection with the construction of the vessel subject to the provisions of RCW 6028021 and chapter 3912 RCW However the department of transportation may at its discretion condition the release of funds retained in connection with the completed ferry upon the contractor delivering a good and sufficient bond with two or more sureties or with a surety company in the amount of the retained funds to be released to the contractor conditioned that no taxes may be certified or claims filed for work on the ferry after a period of sixty days following completion of the ferry and if taxes are certified or claims filed recovery may be had on the bond by the department of revenue the employment

CCBA Nuts amp Bolts on Construction Law - 47 of 49

security department the department of labor and industries and the material suppliers and laborers filing claims (9) Except as provided in subsection (1) of this section reservation by a public body for any purpose from the moneys earned by a contractor by fulfilling its responsibilities under public improvement contracts is prohibited (10) Contracts on projects funded in whole or in part by farmers home administration and subject to farmers home administration regulations are not subject to subsections (1) through (9) of this section (11) This subsection applies only to a public body that has contracted for the construction of a facility using the general contractorconstruction manager procedure as defined under RCW 3910210 If the work performed by a subcontractor on the project has been completed within the first half of the time provided in the general contractorconstruction manager contract for completing the work the public body may accept the completion of the subcontract The public body must give public notice of this acceptance After a forty-five day period for giving notice of liens and compliance with the retainage release procedures in RCW 6028021 the public body may release that portion of the retained funds associated with the subcontract Claims against the retained funds after the forty-five day period are not valid (12) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise (a) Contract retainage means an amount reserved by a public body from the moneys earned by a person under a public improvement contract (b) Person means a person or persons mechanic subcontractor or materialperson who performs labor or provides materials for a public improvement contract and any other person who supplies the person with provisions or supplies for the carrying on of a public improvement contract (c) Public body means the state or a county city town district board or other public body (d) Public improvement contract means a contract for public improvements or work other than for professional services or a work order as defined in RCW 3910210

CCBA Nuts amp Bolts on Construction Law - 48 of 49

RCW 6432070 Liens or encumbrances mdash Enforcement mdash Satisfaction

(1) Subsequent to recording the declaration as provided in this chapter and while the property remains subject to this chapter no lien shall thereafter arise or be effective against the property During such period liens or encumbrances shall arise or be created only against each apartment and the percentage of undivided interest in the common areas and facilities and appurtenant to such apartment in the same manner and under the same conditions in every respect as liens or encumbrances may arise or be created upon or against any other separate parcel of real property subject to individual ownership PROVIDED That no labor performed or materials furnished with the consent of or at the request of the owner of any apartment or such owners agent contractor or subcontractor shall be the basis for the filing of a lien against any other apartment or any other property of any other apartment owner not expressly consenting to or requesting the same except that such express consent shall be deemed to be given by any apartment owner in the case of emergency repairs Labor performed or materials furnished for the common areas and facilities if authorized by the association of apartment owners the manager or board of directors shall be deemed to be performed or furnished with the express consent of each apartment owner and shall be the basis for the filing of a lien against each of the apartments and shall be subject to the provisions of subsection (2) of this section (2) In the event a lien against two or more apartments becomes effective the apartment owners of the separate apartments may remove their apartment and the percentage of undivided interest in the common areas and facilities appurtenant to such apartment from the lien by payment of the fractional or proportional amounts attributable to each of the apartments affected Such individual payments shall be computed by reference to the percentages appearing on the declaration Subsequent to any such payment discharge or satisfaction the apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto shall thereafter be free and clear of the liens so paid satisfied or discharged Such partial payment satisfaction or discharge shall not prevent the lienor from proceeding to enforce his or her rights against any apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto not so paid satisfied or discharged

CCBA Nuts amp Bolts on Construction Law - 49 of 49

  • Cover Sheet
  • 20141110 - Washington Lien and Bond CLE
  • LampI Lien Summary
  • Claim of Lien
  • Form Notice to Owner
  • Model Disclosure Statement (Notice to Customer)
  • LampI Facts about Construction Liens
    • What you should know about contracts
    • How to protect your investment
    • For more information
      • Notice of Claim Against Bond and Retained Percentage
      • Preclaim Notice Bond amp Retained Percentage
      • Statute Handout
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 ENU (Use these settings to create Adobe PDF documents best suited for high-quality prepress printing Created PDF documents can be opened with Acrobat and Adobe Reader 50 and later) gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false ConvertColors ConvertToCMYK DestinationProfileName () DestinationProfileSelector DocumentCMYK Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles false MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector DocumentCMYK PreserveEditing true UntaggedCMYKHandling LeaveUntagged UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ]gtgt setdistillerparamsltlt HWResolution [2400 2400] PageSize [612000 792000]gtgt setpagedevice

          ltlt ASCII85EncodePages false AllowTransparency false AutoPositionEPSFiles true AutoRotatePages None Binding Left CalGrayProfile (Dot Gain 20) CalRGBProfile (sRGB IEC61966-21) CalCMYKProfile (US Web Coated 050SWOP051 v2) sRGBProfile (sRGB IEC61966-21) CannotEmbedFontPolicy Warning CompatibilityLevel 14 CompressObjects Tags CompressPages true ConvertImagesToIndexed true PassThroughJPEGImages true CreateJDFFile false CreateJobTicket false DefaultRenderingIntent Default DetectBlends true DetectCurves 00000 ColorConversionStrategy LeaveColorUnchanged DoThumbnails false EmbedAllFonts true EmbedOpenType false ParseICCProfilesInComments true EmbedJobOptions true DSCReportingLevel 0 EmitDSCWarnings false EndPage -1 ImageMemory 1048576 LockDistillerParams true MaxSubsetPct 100 Optimize true OPM 1 ParseDSCComments true ParseDSCCommentsForDocInfo true PreserveCopyPage true PreserveDICMYKValues true PreserveEPSInfo true PreserveFlatness true PreserveHalftoneInfo false PreserveOPIComments true PreserveOverprintSettings true StartPage 1 SubsetFonts true TransferFunctionInfo Apply UCRandBGInfo Preserve UsePrologue false ColorSettingsFile () AlwaysEmbed [ true Algerian Arial-Black Arial-BoldItalicMT Arial-BoldMT Arial-ItalicMT ArialMT ArialNarrow ArialNarrow-Bold ArialNarrow-BoldItalic ArialNarrow-Italic BaskOldFace Bauhaus93 BellMT BellMTBold BellMTItalic BerlinSansFB-Bold BerlinSansFBDemi-Bold BerlinSansFB-Reg BernardMT-Condensed BodoniMTPosterCompressed BookAntiqua BookAntiqua-Bold BookAntiqua-BoldItalic BookAntiqua-Italic BookmanOldStyle BookmanOldStyle-Bold BookmanOldStyle-BoldItalic BookmanOldStyle-Italic BookshelfSymbolSeven BritannicBold Broadway BrushScriptMT CalifornianFB-Bold CalifornianFB-Italic CalifornianFB-Reg Centaur CenturyGothic CenturyGothic-Bold CenturyGothic-BoldItalic CenturyGothic-Italic Chiller-Regular ColonnaMT ComicSansMS ComicSansMS-Bold CooperBlack CourierNewPS-BoldItalicMT CourierNewPS-BoldMT CourierNewPS-ItalicMT CourierNewPSMT EstrangeloEdessa EXTRAAPLNew-Regular EXTRAOIANew-Regular FootlightMTLight FranklinGothic-Medium FranklinGothic-MediumItalic FreestyleScript-Regular Garamond Garamond-Bold Garamond-Italic Gautami Georgia Georgia-Bold Georgia-BoldItalic Georgia-Italic HarlowSolid Harrington HighTowerText-Italic HighTowerText-Reg Impact InformalRoman-Regular Jokerman-Regular JuiceITC-Regular Kartika KristenITC-Regular KunstlerScript Latha LatinWide LucidaATTMSpecial LucidaBright LucidaBright-Demi LucidaBright-DemiItalic LucidaBright-Italic LucidaCalligraphy-Italic LucidaConsole LucidaFax LucidaFax-Demi LucidaFax-DemiItalic LucidaFax-Italic LucidaforAttachmate LucidaHandwriting-Italic LucidaSans LucidaSans-Demi LucidaSans-DemiItalic LucidaSans-Italic LucidaSansUnicode Magneto-Bold Mangal-Regular MaturaMTScriptCapitals MicrosoftSansSerif Mistral Modern-Regular Monospace821BT-Roman MonotypeCorsiva MSOutlook MSReferenceSansSerif MSReferenceSpecialty MVBoli NiagaraEngraved-Reg NiagaraSolid-Reg OldEnglishTextMT Onyx PalatinoLinotype-Bold PalatinoLinotype-BoldItalic PalatinoLinotype-Italic PalatinoLinotype-Roman Parchment-Regular Playbill PoorRichard-Regular Raavi Ravie ShowcardGothic-Reg Shruti SnapITC-Regular Stencil Sylfaen SymbolMT Tahoma Tahoma-Bold TempusSansITC TimesNewRomanPS-BoldItalicMT TimesNewRomanPS-BoldMT TimesNewRomanPS-ItalicMT TimesNewRomanPSMT Trebuchet-BoldItalic TrebuchetMS TrebuchetMS-Bold TrebuchetMS-Italic Tunga-Regular Verdana Verdana-Bold Verdana-BoldItalic Verdana-Italic VinerHandITC Vivaldii VladimirScript Vrinda Webdings Wingdings2 Wingdings3 Wingdings-Regular ZWAdobeF ] NeverEmbed [ true ] AntiAliasColorImages false CropColorImages true ColorImageMinResolution 300 ColorImageMinResolutionPolicy OK DownsampleColorImages true ColorImageDownsampleType Bicubic ColorImageResolution 300 ColorImageDepth -1 ColorImageMinDownsampleDepth 1 ColorImageDownsampleThreshold 150000 EncodeColorImages false ColorImageFilter DCTEncode AutoFilterColorImages true ColorImageAutoFilterStrategy JPEG ColorACSImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt ColorImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000ColorACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000ColorImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasGrayImages false CropGrayImages true GrayImageMinResolution 300 GrayImageMinResolutionPolicy OK DownsampleGrayImages true GrayImageDownsampleType Bicubic GrayImageResolution 300 GrayImageDepth -1 GrayImageMinDownsampleDepth 2 GrayImageDownsampleThreshold 150000 EncodeGrayImages false GrayImageFilter DCTEncode AutoFilterGrayImages true GrayImageAutoFilterStrategy JPEG GrayACSImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt GrayImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000GrayACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000GrayImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasMonoImages false CropMonoImages true MonoImageMinResolution 1200 MonoImageMinResolutionPolicy OK DownsampleMonoImages true MonoImageDownsampleType Bicubic MonoImageResolution 1200 MonoImageDepth -1 MonoImageDownsampleThreshold 150000 EncodeMonoImages false MonoImageFilter CCITTFaxEncode MonoImageDict ltlt K -1 gtgt AllowPSXObjects false CheckCompliance [ None ] PDFX1aCheck false PDFX3Check false PDFXCompliantPDFOnly false PDFXNoTrimBoxError true PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile (None) PDFXOutputConditionIdentifier () PDFXOutputCondition () PDFXRegistryName () PDFXTrapped False Description ltlt CHS ltFEFF4f7f75288fd94e9b8bbe5b9a521b5efa7684002000410064006f006200650020005000440046002065876863900275284e8e9ad88d2891cf76845370524d53705237300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200035002e003000204ee553ca66f49ad87248672c676562535f00521b5efa768400200050004400460020658768633002gt CHT ltFEFF4f7f752890194e9b8a2d7f6e5efa7acb7684002000410064006f006200650020005000440046002065874ef69069752865bc9ad854c18cea76845370524d5370523786557406300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200035002e003000204ee553ca66f49ad87248672c4f86958b555f5df25efa7acb76840020005000440046002065874ef63002gt DAN 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 DEU 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 ESP ltFEFF005500740069006c0069006300650020006500730074006100200063006f006e0066006900670075007200610063006900f3006e0020007000610072006100200063007200650061007200200064006f00630075006d0065006e0074006f00730020005000440046002000640065002000410064006f0062006500200061006400650063007500610064006f00730020007000610072006100200069006d0070007200650073006900f3006e0020007000720065002d0065006400690074006f007200690061006c00200064006500200061006c00740061002000630061006c0069006400610064002e002000530065002000700075006500640065006e00200061006200720069007200200064006f00630075006d0065006e0074006f00730020005000440046002000630072006500610064006f007300200063006f006e0020004100630072006f006200610074002c002000410064006f00620065002000520065006100640065007200200035002e003000200079002000760065007200730069006f006e0065007300200070006f00730074006500720069006f007200650073002egt FRA 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 ITA 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 JPN ltFEFF9ad854c18cea306a30d730ea30d730ec30b951fa529b7528002000410064006f0062006500200050004400460020658766f8306e4f5c6210306b4f7f75283057307e305930023053306e8a2d5b9a30674f5c62103055308c305f0020005000440046002030d530a130a430eb306f3001004100630072006f0062006100740020304a30883073002000410064006f00620065002000520065006100640065007200200035002e003000204ee5964d3067958b304f30533068304c3067304d307e305930023053306e8a2d5b9a306b306f30d530a930f330c8306e57cb30818fbc307f304c5fc59808306730593002gt KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020ace0d488c9c80020c2dcd5d80020c778c1c4c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200035002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor prepress-afdrukken van hoge kwaliteit De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 50 en hoger) NOR ltFEFF004200720075006b00200064006900730073006500200069006e006e007300740069006c006c0069006e00670065006e0065002000740069006c002000e50020006f0070007000720065007400740065002000410064006f006200650020005000440046002d0064006f006b0075006d0065006e00740065007200200073006f006d00200065007200200062006500730074002000650067006e0065007400200066006f00720020006600f80072007400720079006b006b0073007500740073006b00720069006600740020006100760020006800f800790020006b00760061006c0069007400650074002e0020005000440046002d0064006f006b0075006d0065006e00740065006e00650020006b0061006e002000e50070006e00650073002000690020004100630072006f00620061007400200065006c006c00650072002000410064006f00620065002000520065006100640065007200200035002e003000200065006c006c00650072002000730065006e006500720065002egt PTB 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 SUO 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 SVE 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 ENU (Use these settings to create Adobe PDF documents best suited for high-quality prepress printing Created PDF documents can be opened with Acrobat and Adobe Reader 50 and later) gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false ConvertColors ConvertToCMYK DestinationProfileName () DestinationProfileSelector DocumentCMYK Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles false MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector DocumentCMYK PreserveEditing true UntaggedCMYKHandling LeaveUntagged UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ]gtgt setdistillerparamsltlt HWResolution [2400 2400] PageSize [612000 792000]gtgt setpagedevice

          1. To
          2. Date
          3. Re
          4. From
          5. AT THE REQUEST OF
          6. Sender
          7. Address
          8. Telephone
          9. Brief description of professional services materials or equipment provided or to be provided
          10. 1
          11. 2
          12. 3
          13. reg no
          14. deposit $
          15. expiration date
          16. claims up to $
          17. Reset

NOTICE OF CLAIM AGAINST

BOND AND RETAINED PERCENTAGE

RCW 3908030 RCW 6028010

VIA CERTIFIED MAIL ndash RETURN RECEIPT REQUESTED

TO [Public Owner] [Public Ownerrsquos Address]

Project [Project Name amp Address] NOTICE IS HEREBY GIVEN that the undersigned [Claimant] [Claimantrsquos Address] has a claim in the amount of ----- and 00100 Dollars ($XX) (not including attorneysrsquo fees or costs) together with interest at twelve percent (12) against [Public Owner] (ldquoOwnerrdquo) pursuant to RCW 6028 and the payment bond taken from [Prime Contractor] (ldquoContractorrdquo) [Prime Contractorrsquos Address] as principal and [Surety Company] (ldquoSuretyrdquo) [Suretyrsquos Address] as surety Bond No ________ pursuant to RCW 3908 for [describe services material supplies labor furnished] provided on the Project This Notice of Claim Against Bond and Retained Percentage supersedes and replaces previous Notices DATED This ___day of _________ 201_ [Claimant] By ______________________________________ Its ______________________________________ [Claimantrsquos Address]

_________________________________________

[Contractors Registration No if applicable]

(Copies furnished to General Contractor and General Contractorrsquos Bonding Company)

CCBA Nuts amp Bolts on Construction Law - 25 of 49

PRECLAIM NOTICE TO CONTRACTOR BY SUBCONTRACTORS MATERIALMEN OR SUPPLIERS FOR

CLAIM AGAINST BOND AND RETAINED PERCENTAGE

VIA CERTIFIED OR REGISTERED MAIL- RETURN RECEIPT REQUESTED

TO [Name of General Contractor] [Address]

YOU ARE HEREBY NOTIFIED that the undersigned ____________at the request of_________________ commenced to deliver or furnish materials supplies andor equipment for the use in the construction alteration andor repair of that certain project known as____________________ [project name] which is located at ____________________________ [address or description] If the undersigned is not paid for these materials supplies andor equipment it will file a claim against you and your bond andor retainage pursuant to RCW 3908 andor 6028 et seq for payment of any sum that is due and owing to the undersigned

DATED This __ day of _____________ 201_

[Name of Claimant]

By ____________________________________

Its ____________________________________

Address ______________________________

__________________________________________

__________________________________________

[Contractors Registration No if applicable]

(Mail via certified mail return receipt requested or hand deliver and obtain receipt)

CCBA Nuts amp Bolts on Construction Law - 26 of 49

Washington Liens amp Bonds ndash Pertinent Statutes

RCW 1827040 Bond or other security required mdash Actions against mdash Suspension of registration upon impairment (1) Each applicant shall file with the department a surety bond issued by a surety insurer who meets the requirements of chapter 4828 RCW in the sum of twelve thousand dollars if the applicant is a general contractor and six thousand dollars if the applicant is a specialty contractor If no valid bond is already on file with the department at the time the application is filed a bond must accompany the registration application The bond shall have the state of Washington named as obligee with good and sufficient surety in a form to be approved by the department The bond shall be continuous and may be canceled by the surety upon the surety giving written notice to the director A cancellation or revocation of the bond or withdrawal of the surety from the bond automatically suspends the registration issued to the contractor until a new bond or reinstatement notice has been filed and approved as provided in this section The bond shall be conditioned that the applicant will pay all persons performing labor including employee benefits for the contractor will pay all taxes and contributions due to the state of Washington and will pay all persons furnishing material or renting or supplying equipment to the contractor and will pay all amounts that may be adjudged against the contractor by reason of breach of contract including improper work in the conduct of the contracting business A change in the name of a business or a change in the type of business entity shall not impair a bond for the purposes of this section so long as one of the original applicants for such bond maintains partial ownership in the business covered by the bond (2) At the time of initial registration or renewal the contractor shall provide a bond or other security deposit as required by this chapter and comply with all of the other provisions of this chapter before the department shall issue or renew the contractors certificate of registration Any contractor registered as of July 1 2001 who maintains that registration in accordance with this chapter is in compliance with this chapter until the next renewal of the contractors certificate of registration (3) Any person firm or corporation having a claim against the contractor for any of the items referred to in this section may bring suit against the contractor and the bond or deposit in the superior court of the county in which the work was done or of any county in which jurisdiction of the contractor may be had The surety issuing the bond shall be named as a party to any suit upon the bond Action upon the bond or deposit brought by a residential homeowner for breach of contract by a party to the construction contract shall be commenced by filing the summons and complaint with the clerk of the appropriate superior court within two years from the date the claimed contract work was substantially completed or abandoned whichever occurred first Action upon the bond or deposit brought by any other authorized party shall be commenced by filing the summons and complaint with the clerk of the appropriate superior court within one year from the date the claimed labor was performed and benefits accrued taxes and contributions owing the state of Washington became due materials and equipment were furnished or the claimed contract work was substantially completed or abandoned whichever occurred first Service of process in an action filed under this chapter against the contractor and the contractors bond or the deposit shall be exclusively by service upon the department Three

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copies of the summons and complaint and a fee adopted by rule of not less than fifty dollars to cover the costs shall be served by registered or certified mail or other delivery service requiring notice of receipt upon the department at the time suit is started and the department shall maintain a record available for public inspection of all suits so commenced Service is not complete until the department receives the fee and three copies of the summons and complaint The service shall constitute service and confer personal jurisdiction on the contractor and the surety for suit on claimants claim against the contractor and the bond or deposit and the department shall transmit the summons and complaint or a copy thereof to the contractor at the address listed in the contractors application and to the surety within two days after it shall have been received (4) The surety upon the bond shall not be liable in an aggregate amount in excess of the amount named in the bond nor for any monetary penalty assessed pursuant to this chapter for an infraction The liability of the surety shall not cumulate where the bond has been renewed continued reinstated reissued or otherwise extended The surety upon the bond may upon notice to the department and the parties tender to the clerk of the court having jurisdiction of the action an amount equal to the claims thereunder or the amount of the bond less the amount of judgments if any previously satisfied therefrom and to the extent of such tender the surety upon the bond shall be exonerated but if the actions commenced and pending and provided to the department as required in subsection (3) of this section at any one time exceed the amount of the bond then unimpaired claims shall be satisfied from the bond in the following order (a) Employee labor and claims of laborers including employee benefits (b) Claims for breach of contract by a party to the construction contract (c) Registered or licensed subcontractors material and equipment (d) Taxes and contributions due the state of Washington (e) Any court costs interest and attorneys fees plaintiff may be entitled to recover The surety is not liable for any amount in excess of the penal limit of its bond A payment made by the surety in good faith exonerates the bond to the extent of any payment made by the surety (5) The total amount paid from a bond or deposit required of a general contractor by this section to claimants other than residential homeowners must not exceed one-half of the bond amount The total amount paid from a bond or deposit required of a specialty contractor by this section to claimants other than residential homeowners must not exceed one-half of the bond amount or four thousand dollars whichever is greater (6) The prevailing party in an action filed under this section against the contractor and contractors bond or deposit for breach of contract by a party to the construction contract involving a residential homeowner is entitled to costs interest and reasonable attorneys fees The surety upon the bond or deposit is not liable in an aggregate amount in excess of the amount

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named in the bond or deposit nor for any monetary penalty assessed pursuant to this chapter for an infraction (7) If a final judgment impairs the liability of the surety upon the bond or deposit so furnished that there is not in effect a bond or deposit in the full amount prescribed in this section the registration of the contractor is automatically suspended until the bond or deposit liability in the required amount unimpaired by unsatisfied judgment claims is furnished (8) In lieu of the surety bond required by this section the contractor may file with the department an assigned savings account upon forms provided by the department (9) Any person having filed and served a summons and complaint as required by this section having an unsatisfied final judgment against the registrant for any items referred to in this section may execute upon the security held by the department by serving a certified copy of the unsatisfied final judgment by registered or certified mail upon the department within one year of the date of entry of such judgment Upon the receipt of service of such certified copy the department shall pay or order paid from the deposit through the registry of the superior court which rendered judgment towards the amount of the unsatisfied judgment The priority of payment by the department shall be the order of receipt by the department but the department shall have no liability for payment in excess of the amount of the deposit (10) Within ten days after resolution of the case a certified copy of the final judgment and order or any settlement documents where a case is not disposed of by a court trial a certified copy of the dispositive settlement documents must be provided to the department by the prevailing party Failure to provide a copy of the final judgment and order or the dispositive settlement documents to the department within ten days of entry of such an order constitutes a violation of this chapter and a penalty adopted by rule of not less than two hundred fifty dollars may be assessed against the prevailing party (11) The director may require an applicant applying to renew or reinstate a registration or applying for a new registration to file a bond of up to three times the normally required amount if the director determines that an applicant or a previous registration of a corporate officer owner or partner of a current applicant has had in the past five years a total of three final judgments in actions under this chapter involving a residential single-family dwelling on two or more different structures (12) The director may adopt rules necessary for the proper administration of the security RCW 1827114 Disclosure statement required mdash Prerequisite to lien claim

(1) Any contractor agreeing to perform any contracting project (a) For the repair alteration or construction of four or fewer residential units or accessory structures on such residential property when the bid or contract price totals one thousand dollars or more or (b) for the repair alteration or construction of a commercial building when the bid or contract price totals one thousand dollars or more but less than sixty thousand dollars must provide the customer with

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the following disclosure statement in substantially the following form using lower case and upper case twelve-point and bold type where appropriate prior to starting work on the project NOTICE TO CUSTOMER This contractor is registered with the state of Washington registration no and has posted with the state a bond or deposit of for the purpose of satisfying claims against the contractor for breach of contract including negligent or improper work in the conduct of the contractors business The expiration date of this contractors registration is THIS BOND OR DEPOSIT MIGHT NOT BE SUFFICIENT TO COVER A CLAIM THAT MIGHT ARISE FROM THE WORK DONE UNDER YOUR CONTRACT This bond or deposit is not for your exclusive use because it covers all work performed by this contractor The bond or deposit is intended to pay valid claims up to that you and other customers suppliers subcontractors or taxing authorities may have FOR GREATER PROTECTION YOU MAY WITHHOLD A PERCENTAGE OF YOUR CONTRACT You may withhold a contractually defined percentage of your construction contract as retainage for a stated period of time to provide protection to you and help insure that your project will be completed as required by your contract YOUR PROPERTY MAY BE LIENED If a supplier of materials used in your construction project or an employee or subcontractor of your contractor or subcontractors is not paid your property may be liened to force payment and you could pay twice for the same work FOR ADDITIONAL PROTECTION YOU MAY REQUEST THE CONTRACTOR TO PROVIDE YOU WITH ORIGINAL LIEN RELEASE DOCUMENTS FROM EACH SUPPLIER OR SUBCONTRACTOR ON YOUR PROJECT The contractor is required to provide you with further information about lien release documents if you request it General information is also available from the state Department of Labor and Industries I have received a copy of this disclosure statement

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(Signature of customer) (2) The contractor must retain a signed copy of the disclosure statement in his or her files for a minimum of three years and produce a signed or electronic signature copy of the disclosure statement to the department upon request (3) A contractor subject to this section shall notify any consumer to whom notice is required under subsection (1) of this section if the contractors registration has expired or is revoked or suspended by the department prior to completion or other termination of the contract with the consumer (4) No contractor subject to this section may bring or maintain any lien claim under chapter 6004 RCW based on any contract to which this section applies without alleging and proving that the contractor has provided the customer with a copy of the disclosure statement as required in subsection (1) of this section (5) This section does not apply to contracts authorized under chapter 3904 RCW or to contractors contracting with other contractors (6) Failure to comply with this section shall constitute an infraction under the provisions of this chapter (7) The department shall produce model disclosure statements and public service announcements detailing the information needed to assist contractors and contractors customers to comply under this section As necessary the department shall periodically update these education materials RCW 3908010 Bond required mdash Conditions mdash Retention of contract amount in lieu of bond (1)(a) Whenever any board council commission trustees or body acting for the state or any county or municipality or any public body must contract with any person or corporation to do any work for the state county or municipality or other public body city town or district such board council commission trustees or body must require the person or persons with whom such contract is made to make execute and deliver to such board council commission trustees or body a good and sufficient bond with a surety company as surety conditioned that such person or persons must (i) Faithfully perform all the provisions of such contract (ii) Pay all laborers mechanics and subcontractors and material suppliers and all persons who supply such person or persons or subcontractors with provisions and supplies for the carrying on of such work and

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(iii) Pay the taxes increases and penalties incurred on the project under Titles 50 51 and 82 RCW on (A) Projects referred to in RCW 6028011(1)(b) andor (B) projects for which the bond is conditioned on the payment of such taxes increases and penalties (b) The bond in cases of cities and towns must be filed with the clerk or comptroller thereof and any person or persons performing such services or furnishing material to any subcontractor has the same right under the provisions of such bond as if such work services or material was furnished to the original contractor (2) The provisions of RCW 3908010 through 3908030 do not apply to any money loaned or advanced to any such contractor subcontractor or other person in the performance of any such work (3) On contracts of thirty-five thousand dollars or less at the option of the contractor the respective public entity may in lieu of the bond retain fifty percent of the contract amount for a period of thirty days after date of final acceptance or until receipt of all necessary releases from the department of revenue the employment security department and the department of labor and industries and settlement of any liens filed under chapter 6028 RCW whichever is later (4) For contracts of one hundred thousand dollars or less the public entity may accept a full payment and performance bond from an individual surety or sureties (5) The surety must agree to be bound by the laws of the state of Washington and subjected to the jurisdiction of the state of Washington RCW 6004011 Definitions

Unless the context requires otherwise the definitions in this section apply throughout this chapter (1) Construction agent means any registered or licensed contractor registered or licensed subcontractor architect engineer or other person having charge of any improvement to real property who shall be deemed the agent of the owner for the limited purpose of establishing the lien created by this chapter (2) Contract price means the amount agreed upon by the contracting parties or if no amount is agreed upon then the customary and reasonable charge therefor (3) Draws means periodic disbursements of interim or construction financing by a lender (4) Furnishing labor professional services materials or equipment means the performance of any labor or professional services the contribution owed to any employee benefit plan on account of any labor the provision of any supplies or materials and the renting leasing or

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otherwise supplying of equipment for the improvement of real property (5) Improvement means (a) Constructing altering repairing remodeling demolishing clearing grading or filling in of to or upon any real property or street or road in front of or adjoining the same (b) planting of trees vines shrubs plants hedges or lawns or providing other landscaping materials on any real property and (c) providing professional services upon real property or in preparation for or in conjunction with the intended activities in (a) or (b) of this subsection (6) Interim or construction financing means that portion of money secured by a mortgage deed of trust or other encumbrance to finance improvement of or to real property but does not include (a) Funds to acquire real property (b) Funds to pay interest insurance premiums lease deposits taxes assessments or prior encumbrances (c) Funds to pay loan commitment title legal closing recording or appraisal fees (d) Funds to pay other customary fees which pursuant to agreement with the owner or borrower are to be paid by the lender from time to time (e) Funds to acquire personal property for which the potential lien claimant may not claim a lien pursuant to this chapter (7) Labor means exertion of the powers of body or mind performed at the site for compensation Labor includes amounts due and owed to any employee benefit plan on account of such labor performed (8) Mortgagee means a person who has a valid mortgage of record or deed of trust of record securing a loan (9) Owner-occupied means a single-family residence occupied by the owner as his or her principal residence (10) Payment bond means a surety bond issued by a surety licensed to issue surety bonds in the state of Washington that confers upon potential claimants the rights of third party beneficiaries (11) Potential lien claimant means any person or entity entitled to assert lien rights under this chapter who has otherwise complied with the provisions of this chapter and is registered or licensed if required to be licensed or registered by the provisions of the laws of the state of Washington (12) Prime contractor includes all contractors general contractors and specialty

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contractors as defined by chapter 1827 or 1928 RCW or who are otherwise required to be registered or licensed by law who contract directly with a property owner or their common law agent to assume primary responsibility for the creation of an improvement to real property and includes property owners or their common law agents who are contractors general contractors or specialty contractors as defined in chapter 1827 or 1928 RCW or who are otherwise required to be registered or licensed by law who offer to sell their property without occupying or using the structures projects developments or improvements for more than one year (13) Professional services means surveying establishing or marking the boundaries of preparing maps plans or specifications for or inspecting testing or otherwise performing any other architectural or engineering services for the improvement of real property (14) Real property lender means a bank savings bank savings and loan association credit union mortgage company or other corporation association partnership trust or individual that makes loans secured by real property located in the state of Washington (15) Site means the real property which is or is to be improved (16) Subcontractor means a general contractor or specialty contractor as defined by chapter 1827 or 1928 RCW or who is otherwise required to be registered or licensed by law who contracts for the improvement of real property with someone other than the owner of the property or their common law agent

6004021 Lien authorized

Except as provided in RCW 6004031 any person furnishing labor professional services materials or equipment for the improvement of real property shall have a lien upon the improvement for the contract price of labor professional services materials or equipment furnished at the instance of the owner or the agent or construction agent of the owner

6004031 Notices mdash Exceptions

(1) Except as otherwise provided in this section every person furnishing professional services materials or equipment for the improvement of real property shall give the owner or reputed owner notice in writing of the right to claim a lien If the prime contractor is in compliance with the requirements of RCW 1927095 6004230 and 6004261 this notice shall also be given to the prime contractor as described in this subsection unless the potential lien claimant has contracted directly with the prime contractor The notice may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after the date which is sixty days before (a) Mailing the notice by certified or registered mail to the owner or reputed owner or

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(b) Delivering or serving the notice personally upon the owner or reputed owner and obtaining evidence of delivery in the form of a receipt or other acknowledgment signed by the owner or reputed owner or an affidavit of service In the case of new construction of a single-family residence the notice of a right to claim a lien may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after a date which is ten days before the notice is given as described in this subsection (2) Notices of a right to claim a lien shall not be required of (a) Persons who contract directly with the owner or the owners common law agent (b) Laborers whose claim of lien is based solely on performing labor or (c) Subcontractors who contract for the improvement of real property directly with the prime contractor except as provided in subsection (3)(b) of this section (3) Persons who furnish professional services materials or equipment in connection with the repair alteration or remodel of an existing owner-occupied single-family residence or appurtenant garage (a) Who contract directly with the owner-occupier or their common law agent shall not be required to send a written notice of the right to claim a lien and shall have a lien for the full amount due under their contract as provided in RCW 6004021 or (b) Who do not contract directly with the owner-occupier or their common law agent shall give notice of the right to claim a lien to the owner-occupier Liens of persons furnishing professional services materials or equipment who do not contract directly with the owner-occupier or their common law agent may only be satisfied from amounts not yet paid to the prime contractor by the owner at the time the notice described in this section is received regardless of whether amounts not yet paid to the prime contractor are due For the purposes of this subsection received means actual receipt of notice by personal service or registered or certified mail or three days after mailing by registered or certified mail excluding Saturdays Sundays or legal holidays (4) The notice of right to claim a lien described in subsection (1) of this section shall include but not be limited to the following information and shall substantially be in the following form using lower-case and upper-case ten-point type where appropriate

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NOTICE TO OWNER

IMPORTANT READ BOTH SIDES OF THIS NOTICE CAREFULLY

PROTECT YOURSELF FROM PAYING TWICE

To Date

Re (description of property Street address or general location) From AT THE REQUEST OF (Name of person ordering the professional services materials or equipment) THIS IS NOT A LIEN This notice is sent to you to tell you who is providing professional services materials or equipment for the improvement of your property and to advise you of the rights of these persons and your responsibilities Also take note that laborers on your project may claim a lien without sending you a notice

OWNEROCCUPIER OF EXISTING

RESIDENTIAL PROPERTY

Under Washington law those who furnish labor professional services materials or equipment for the repair remodel or alteration of your owner-occupied principal residence and who are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien The law limits the amount that a lien claimant can claim against your property Claims may only be made against that portion of the contract price you have not yet paid to your prime contractor as of the time this notice was given to you or three days after this notice was mailed to you Review the back of this notice for more information and ways to avoid lien claims

COMMERCIAL ANDOR NEW

RESIDENTIAL PROPERTY

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We have or will be providing professional services materials or equipment for the improvement of your commercial or new residential project In the event you or your contractor fail to pay us we may file a lien against your property A lien may be claimed for all professional services materials or equipment furnished after a date that is sixty days before this notice was given to you or mailed to you unless the improvement to your property is the construction of a new single-family residence then ten days before this notice was given to you or mailed to you Sender Address Telephone Brief description of professional services materials or equipment provided or to be provided

IMPORTANT INFORMATION

ON REVERSE SIDE

IMPORTANT INFORMATION

FOR YOUR PROTECTION This notice is sent to inform you that we have or will provide professional services materials or equipment for the improvement of your property We expect to be paid by the person who ordered our services but if we are not paid we have the right to enforce our claim by filing a construction lien against your property LEARN more about the lien laws and the meaning of this notice by discussing them with your contractor suppliers Department of Labor and Industries the firm sending you this notice your lender or your attorney

COMMON METHODS TO AVOID CONSTRUCTION LIENS There are several methods available to protect your property from construction liens The following are two of the more commonly used methods

DUAL PAYCHECKS (Joint Checks) When paying your contractor for services or materials you may make checks payable jointly to the contractor and the firms furnishing you this notice

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LIEN RELEASES You may require your contractor to provide lien releases signed by all the suppliers and subcontractors from whom you have received this notice If they cannot obtain lien releases because you have not paid them you may use the dual payee check method to protect yourself

YOU SHOULD TAKE APPROPRIATE STEPS TO PROTECT YOUR PROPERTY FROM LIENS YOUR PRIME CONTRACTOR AND YOUR CONSTRUCTION LENDER ARE REQUIRED BY LAW TO GIVE YOU WRITTEN INFORMATION ABOUT LIEN CLAIMS IF YOU HAVE NOT RECEIVED IT ASK THEM FOR IT

(5) Every potential lien claimant providing professional services where no improvement as defined in RCW 6004011(5) (a) or (b) has been commenced and the professional services provided are not visible from an inspection of the real property may record in the real property records of the county where the property is located a notice which shall contain the professional service providers name address telephone number legal description of the property the owner or reputed owners name and the general nature of the professional services provided If such notice is not recorded the lien claimed shall be subordinate to the interest of any subsequent mortgagee and invalid as to the interest of any subsequent purchaser if the mortgagee or purchaser acts in good faith and for a valuable consideration acquires an interest in the property prior to the commencement of an improvement as defined in RCW 6004011(5) (a) or (b) without notice of the professional services being provided The notice described in this subsection shall be substantially in the following form

NOTICE OF FURNISHING

PROFESSIONAL SERVICES That on the (day) day of (month and year) (name of provider) began providing professional services upon or for the improvement of real property legally described as follows

[Legal Description is mandatory]

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The general nature of the professional services provided is The owner or reputed owner of the real property is

(Signature)

(Name of Claimant)

(Street Address)

(City State Zip Code)

(Phone Number)

(6) A lien authorized by this chapter shall not be enforced unless the lien claimant has complied with the applicable provisions of this section

6004041 Contractor registration

A contractor or subcontractor required to be registered under chapter 1827 RCW or licensed under chapter 1928 RCW or otherwise required to be registered or licensed by law shall be deemed the construction agent of the owner for the purposes of establishing the lien created by this chapter only if so registered or licensed Persons dealing with contractors or subcontractors may rely for the purposes of this section upon a certificate of registration issued pursuant to chapter 1827 RCW or license issued pursuant to chapter 1928 RCW or other certificate or license issued pursuant to law covering the period when the labor professional services material or equipment shall be furnished and the lien rights shall not be lost by suspension or revocation of registration or license without their knowledge No lien rights described in this

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chapter shall be lost or denied by virtue of the absence suspension or revocation of such registration or license with respect to any contractor or subcontractor not in immediate contractual privity with the lien claimant

6004081 Frivolous claim mdash Procedure

(1) Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who believes the claim of lien to be frivolous and made without reasonable cause or clearly excessive may apply by motion to the superior court for the county where the property or some part thereof is located for an order directing the lien claimant to appear before the court at a time no earlier than six nor later than fifteen days following the date of service of the application and order on the lien claimant and show cause if any he or she has why the relief requested should not be granted The motion shall state the grounds upon which relief is asked and shall be supported by the affidavit of the applicant or his or her attorney setting forth a concise statement of the facts upon which the motion is based (2) The order shall clearly state that if the lien claimant fails to appear at the time and place noted the lien shall be released with prejudice and that the lien claimant shall be ordered to pay the costs requested by the applicant including reasonable attorneys fees (3) If no action to foreclose the lien claim has been filed the clerk of the court shall assign a cause number to the application and obtain from the applicant a filing fee pursuant to RCW 3618016 If an action has been filed to foreclose the lien claim the application shall be made a part of that action (4) If following a hearing on the matter the court determines that the lien is frivolous and made without reasonable cause or clearly excessive the court shall issue an order releasing the lien if frivolous and made without reasonable cause or reducing the lien if clearly excessive and awarding costs and reasonable attorneys fees to the applicant to be paid by the lien claimant If the court determines that the lien is not frivolous and was made with reasonable cause and is not clearly excessive the court shall issue an order so stating and awarding costs and reasonable attorneys fees to the lien claimant to be paid by the applicant (5) Proceedings under this section shall not affect other rights and remedies available to the parties under this chapter or otherwise

6004091 Recording mdash Time mdash Contents of lien

Every person claiming a lien under RCW 6004021 shall file for recording in the county where the subject property is located a notice of claim of lien not later than ninety days after the person

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has ceased to furnish labor professional services materials or equipment or the last date on which employee benefit contributions were due The notice of claim of lien (1) Shall state in substance and effect (a) The name phone number and address of the claimant (b) The first and last date on which the labor professional services materials or equipment was furnished or employee benefit contributions were due (c) The name of the person indebted to the claimant (d) The street address legal description or other description reasonably calculated to identify for a person familiar with the area the location of the real property to be charged with the lien (e) The name of the owner or reputed owner of the property if known and if not known that fact shall be stated and (f) The principal amount for which the lien is claimed (2) Shall be signed by the claimant or some person authorized to act on his or her behalf who shall affirmatively state they have read the notice of claim of lien and believe the notice of claim of lien to be true and correct under penalty of perjury and shall be acknowledged pursuant to chapter 6408 RCW If the lien has been assigned the name of the assignee shall be stated Where an action to foreclose the lien has been commenced such notice of claim of lien may be amended as pleadings may be by order of the court insofar as the interests of third parties are not adversely affected by such amendment A claim of lien substantially in the following form shall be sufficient

CLAIM OF LIEN

claimant vs name of person indebted to claimant

Notice is hereby given that the person named below claims a lien pursuant to chapter 6404 RCW In support of this lien the following information is submitted

1 NAME OF LIEN CLAIMANT

TELEPHONE NUMBER

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ADDRESS

2 DATE ON WHICH THE CLAIMANT BEGAN TO PERFORM LABOR PROVIDE PROFESSIONAL SERVICES SUPPLY MATERIAL OR EQUIPMENT OR THE DATE ON WHICH EMPLOYEE BENEFIT CONTRIBUTIONS BECAME DUE

3 NAME OF PERSON INDEBTED TO THE CLAIMANT

4 DESCRIPTION OF THE PROPERTY AGAINST WHICH A LIEN IS CLAIMED (Street address legal description or other information that will reasonably describe the property)

5 NAME OF THE OWNER OR REPUTED OWNER (If not known state unknown)

6 THE LAST DATE ON WHICH LABOR WAS PERFORMED PROFESSIONAL SERVICES WERE FURNISHED CONTRIBUTIONS TO AN EMPLOYEE BENEFIT PLAN WERE DUE OR MATERIAL OR EQUIPMENT WAS FURNISHED

7 PRINCIPAL AMOUNT FOR WHICH THE LIEN IS CLAIMED IS

8 IF THE CLAIMANT IS THE ASSIGNEE OF THIS CLAIM SO STATE HERE

Claimant

(Phone number address city

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and

state of claimant)

STATE OF WASHINGTON COUNTY OF ss being sworn says I am the claimant (or attorney of the claimant or administrator representative or agent of the trustees of an employee benefit plan) above named I have read or heard the foregoing claim read and know the contents thereof and believe the same to be true and correct and that the claim of lien is not frivolous and is made with reasonable cause and is not clearly excessive under penalty of perjury Subscribed and sworn to before me this day of The period provided for recording the claim of lien is a period of limitation and no action to foreclose a lien shall be maintained unless the claim of lien is filed for recording within the ninety-day period stated The lien claimant shall give a copy of the claim of lien to the owner or reputed owner by mailing it by certified or registered mail or by personal service within fourteen days of the time the claim of lien is filed for recording Failure to do so results in a forfeiture of any right the claimant may have to attorneys fees and costs against the owner under RCW 6004181

6004161 Bond in lieu of claim

Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who disputes the correctness or validity of the claim of lien may record either before or after the commencement of an action to enforce the lien in the office of the county recorder or auditor in the county where the claim of lien was recorded a bond issued by a surety company authorized to issue surety bonds in the state The surety shall be listed in the latest federal department of the treasury list of surety companies acceptable on federal bonds published in the Federal Register as authorized to issue bonds on United States government projects with an underwriting limitation including applicable reinsurance equal to or greater than the amount of the bond to be recorded The bond shall contain a description of the claim of lien and real property involved and be in an amount equal to the greater of five thousand dollars or two times the amount of the lien claimed if it is ten thousand dollars or less and in an amount equal to or greater than one and one-half times the amount of the lien if it is in

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excess of ten thousand dollars If the claim of lien affects more than one parcel of real property and is segregated to each parcel the bond may be segregated the same as in the claim of lien A separate bond shall be required for each claim of lien made by separate claimants However a single bond may be used to guarantee payment of amounts claimed by more than one claim of lien by a single claimant so long as the amount of the bond meets the requirements of this section as applied to the aggregate sum of all claims by such claimant The condition of the bond shall be to guarantee payment of any judgment upon the lien in favor of the lien claimant entered in any action to recover the amount claimed in a claim of lien or on the claim asserted in the claim of lien The effect of recording a bond shall be to release the real property described in the notice of claim of lien from the lien and any action brought to recover the amount claimed Unless otherwise prohibited by law if no action is commenced to recover on a lien within the time specified in RCW 6004141 the surety shall be discharged from liability under the bond If an action is timely commenced then on payment of any judgment entered in the action or on payment of the full amount of the bond to the holder of the judgment whichever is less the surety shall be discharged from liability under the bond Nothing in this section shall in any way prohibit or limit the use of other methods devised by the affected parties to secure the obligation underlying a claim of lien and to obtain a release of real property from a claim of lien

6004181 Rank of lien mdash Application of proceeds mdash Attorneys fees

(1) In every case in which different construction liens are claimed against the same property the court shall declare the rank of such lien or class of liens which liens shall be in the following order (a) Liens for the performance of labor (b) Liens for contributions owed to employee benefit plans (c) Liens for furnishing material supplies or equipment (d) Liens for subcontractors including but not limited to their labor and materials and (e) Liens for prime contractors or for professional services (2) The proceeds of the sale of property must be applied to each lien or class of liens in order of its rank and in an action brought to foreclose a lien pro rata among each claimant in each separate priority class A personal judgment may be rendered against any party personally liable for any debt for which the lien is claimed If the lien is established the judgment shall provide

CCBA Nuts amp Bolts on Construction Law - 44 of 49

for the enforcement thereof upon the property liable as in the case of foreclosure of judgment liens The amount realized by such enforcement of the lien shall be credited upon the proper personal judgment The deficiency if any remaining unsatisfied shall stand as a personal judgment and may be collected by execution against any party liable therefor (3) The court may allow the prevailing party in the action whether plaintiff or defendant as part of the costs of the action the moneys paid for recording the claim of lien costs of title report bond costs and attorneys fees and necessary expenses incurred by the attorney in the superior court court of appeals supreme court or arbitration as the court or arbitrator deems reasonable Such costs shall have the priority of the class of lien to which they are related as established by subsection (1) of this section (4) Real property against which a lien under this chapter is enforced may be ordered sold by the court and the proceeds deposited into the registry of the clerk of the court pending further determination respecting distribution of the proceeds of the sale

6004900 Liberal construction mdash 1991 c 281

RCW 1927095 6004230 and 6004011 through 6004226 and 6004261 are to be liberally construed to provide security for all parties intended to be protected by their provisions

RCW 6028011

Retained percentage mdash Public transportation projects mdash Labor and material lien created mdash Bond in lieu of retained funds mdash Termination before completion mdash Chapter deemed exclusive mdash Release of ferry contract payments mdash Projects of farmers home administration mdash General contractorconstruction manager procedure mdash Definitions

(1)(a) Except as provided in (b) of this subsection public improvement contracts must provide and public bodies must reserve a contract retainage not to exceed five percent of the moneys earned by the contractor as a trust fund for the protection and payment of (i) The claims of any person arising under the contract and (ii) the state with respect to taxes increases and penalties imposed pursuant to Titles 50 51 and 82 RCW which may be due from such contractor (b) Public improvement contracts funded in whole or in part by federal transportation funds must rely upon the contract bond as referred to in chapter 3908 RCW for the protection and payment of (i) The claims of any person or persons arising under the contract to the extent such claims are provided for in RCW 3908010 and (ii) the state with respect to taxes increases and penalties incurred on the public improvement project under Titles 50 51 and 82 RCW which may be due The contract bond must remain in full force and effect until at a minimum all claims filed in compliance with chapter 3908 RCW are resolved

CCBA Nuts amp Bolts on Construction Law - 45 of 49

(2) Every person performing labor or furnishing supplies toward the completion of a public improvement contract has a lien upon moneys reserved by a public body under the provisions of a public improvement contract However the notice of the lien of the claimant must be given within forty-five days of completion of the contract work and in the manner provided in RCW 3908030 (3) The contractor at any time may request the contract retainage be reduced to one hundred percent of the value of the work remaining on the project (a) After completion of all contract work other than landscaping the contractor may request that the public body release and pay in full the amounts retained during the performance of the contract and sixty days thereafter the public body must release and pay in full the amounts retained (other than continuing retention of five percent of the moneys earned for landscaping) subject to the provisions of chapters 3912 and 6028 RCW (b) Sixty days after completion of all contract work the public body must release and pay in full the amounts retained during the performance of the contract subject to the provisions of chapters 3912 and 6028 RCW (4) The moneys reserved by a public body under the provisions of a public improvement contract at the option of the contractor must be (a) Retained in a fund by the public body (b) Deposited by the public body in an interest bearing account in a bank mutual savings bank or savings and loan association Interest on moneys reserved by a public body under the provision of a public improvement contract must be paid to the contractor (c) Placed in escrow with a bank or trust company by the public body When the moneys reserved are placed in escrow the public body must issue a check representing the sum of the moneys reserved payable to the bank or trust company and the contractor jointly This check must be converted into bonds and securities chosen by the contractor and approved by the public body and the bonds and securities must be held in escrow Interest on the bonds and securities must be paid to the contractor as the interest accrues (5) The contractor or subcontractor may withhold payment of not more than five percent from the moneys earned by any subcontractor or sub-subcontractor or supplier contracted with by the contractor to provide labor materials or equipment to the public project Whenever the contractor or subcontractor reserves funds earned by a subcontractor or sub-subcontractor or

CCBA Nuts amp Bolts on Construction Law - 46 of 49

supplier the contractor or subcontractor must pay interest to the subcontractor or sub-subcontractor or supplier at a rate equal to that received by the contractor or subcontractor from reserved funds (6) A contractor may submit a bond for all or any portion of the contract retainage in a form acceptable to the public body and from a bonding company meeting standards established by the public body The public body must accept a bond meeting these requirements unless the public body can demonstrate good cause for refusing to accept it This bond and any proceeds therefrom are subject to all claims and liens and in the same manner and priority as set forth for retained percentages in this chapter The public body must release the bonded portion of the retained funds to the contractor within thirty days of accepting the bond from the contractor Whenever a public body accepts a bond in lieu of retained funds from a contractor the contractor must accept like bonds from any subcontractors or suppliers from which the contractor has retained funds The contractor must then release the funds retained from the subcontractor or supplier to the subcontractor or supplier within thirty days of accepting the bond from the subcontractor or supplier (7) If the public body administering a contract after a substantial portion of the work has been completed finds that an unreasonable delay will occur in the completion of the remaining portion of the contract for any reason not the result of a breach thereof it may if the contractor agrees delete from the contract the remaining work and accept as final the improvement at the stage of completion then attained and make payment in proportion to the amount of the work accomplished and in this case any amounts retained and accumulated under this section must be held for a period of sixty days following the completion In the event that the work is terminated before final completion as provided in this section the public body may thereafter enter into a new contract with the same contractor to perform the remaining work or improvement for an amount equal to or less than the cost of the remaining work as was provided for in the original contract without advertisement or bid The provisions of this chapter are exclusive and supersede all provisions and regulations in conflict herewith (8) Whenever the department of transportation has contracted for the construction of two or more ferry vessels sixty days after completion of all contract work on each ferry vessel the department must release and pay in full the amounts retained in connection with the construction of the vessel subject to the provisions of RCW 6028021 and chapter 3912 RCW However the department of transportation may at its discretion condition the release of funds retained in connection with the completed ferry upon the contractor delivering a good and sufficient bond with two or more sureties or with a surety company in the amount of the retained funds to be released to the contractor conditioned that no taxes may be certified or claims filed for work on the ferry after a period of sixty days following completion of the ferry and if taxes are certified or claims filed recovery may be had on the bond by the department of revenue the employment

CCBA Nuts amp Bolts on Construction Law - 47 of 49

security department the department of labor and industries and the material suppliers and laborers filing claims (9) Except as provided in subsection (1) of this section reservation by a public body for any purpose from the moneys earned by a contractor by fulfilling its responsibilities under public improvement contracts is prohibited (10) Contracts on projects funded in whole or in part by farmers home administration and subject to farmers home administration regulations are not subject to subsections (1) through (9) of this section (11) This subsection applies only to a public body that has contracted for the construction of a facility using the general contractorconstruction manager procedure as defined under RCW 3910210 If the work performed by a subcontractor on the project has been completed within the first half of the time provided in the general contractorconstruction manager contract for completing the work the public body may accept the completion of the subcontract The public body must give public notice of this acceptance After a forty-five day period for giving notice of liens and compliance with the retainage release procedures in RCW 6028021 the public body may release that portion of the retained funds associated with the subcontract Claims against the retained funds after the forty-five day period are not valid (12) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise (a) Contract retainage means an amount reserved by a public body from the moneys earned by a person under a public improvement contract (b) Person means a person or persons mechanic subcontractor or materialperson who performs labor or provides materials for a public improvement contract and any other person who supplies the person with provisions or supplies for the carrying on of a public improvement contract (c) Public body means the state or a county city town district board or other public body (d) Public improvement contract means a contract for public improvements or work other than for professional services or a work order as defined in RCW 3910210

CCBA Nuts amp Bolts on Construction Law - 48 of 49

RCW 6432070 Liens or encumbrances mdash Enforcement mdash Satisfaction

(1) Subsequent to recording the declaration as provided in this chapter and while the property remains subject to this chapter no lien shall thereafter arise or be effective against the property During such period liens or encumbrances shall arise or be created only against each apartment and the percentage of undivided interest in the common areas and facilities and appurtenant to such apartment in the same manner and under the same conditions in every respect as liens or encumbrances may arise or be created upon or against any other separate parcel of real property subject to individual ownership PROVIDED That no labor performed or materials furnished with the consent of or at the request of the owner of any apartment or such owners agent contractor or subcontractor shall be the basis for the filing of a lien against any other apartment or any other property of any other apartment owner not expressly consenting to or requesting the same except that such express consent shall be deemed to be given by any apartment owner in the case of emergency repairs Labor performed or materials furnished for the common areas and facilities if authorized by the association of apartment owners the manager or board of directors shall be deemed to be performed or furnished with the express consent of each apartment owner and shall be the basis for the filing of a lien against each of the apartments and shall be subject to the provisions of subsection (2) of this section (2) In the event a lien against two or more apartments becomes effective the apartment owners of the separate apartments may remove their apartment and the percentage of undivided interest in the common areas and facilities appurtenant to such apartment from the lien by payment of the fractional or proportional amounts attributable to each of the apartments affected Such individual payments shall be computed by reference to the percentages appearing on the declaration Subsequent to any such payment discharge or satisfaction the apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto shall thereafter be free and clear of the liens so paid satisfied or discharged Such partial payment satisfaction or discharge shall not prevent the lienor from proceeding to enforce his or her rights against any apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto not so paid satisfied or discharged

CCBA Nuts amp Bolts on Construction Law - 49 of 49

  • Cover Sheet
  • 20141110 - Washington Lien and Bond CLE
  • LampI Lien Summary
  • Claim of Lien
  • Form Notice to Owner
  • Model Disclosure Statement (Notice to Customer)
  • LampI Facts about Construction Liens
    • What you should know about contracts
    • How to protect your investment
    • For more information
      • Notice of Claim Against Bond and Retained Percentage
      • Preclaim Notice Bond amp Retained Percentage
      • Statute Handout
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 ENU (Use these settings to create Adobe PDF documents best suited for high-quality prepress printing Created PDF documents can be opened with Acrobat and Adobe Reader 50 and later) gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false ConvertColors ConvertToCMYK DestinationProfileName () DestinationProfileSelector DocumentCMYK Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles false MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector DocumentCMYK PreserveEditing true UntaggedCMYKHandling LeaveUntagged UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ]gtgt setdistillerparamsltlt HWResolution [2400 2400] PageSize [612000 792000]gtgt setpagedevice

          ltlt ASCII85EncodePages false AllowTransparency false AutoPositionEPSFiles true AutoRotatePages None Binding Left CalGrayProfile (Dot Gain 20) CalRGBProfile (sRGB IEC61966-21) CalCMYKProfile (US Web Coated 050SWOP051 v2) sRGBProfile (sRGB IEC61966-21) CannotEmbedFontPolicy Warning CompatibilityLevel 14 CompressObjects Tags CompressPages true ConvertImagesToIndexed true PassThroughJPEGImages true CreateJDFFile false CreateJobTicket false DefaultRenderingIntent Default DetectBlends true DetectCurves 00000 ColorConversionStrategy LeaveColorUnchanged DoThumbnails false EmbedAllFonts true EmbedOpenType false ParseICCProfilesInComments true EmbedJobOptions true DSCReportingLevel 0 EmitDSCWarnings false EndPage -1 ImageMemory 1048576 LockDistillerParams true MaxSubsetPct 100 Optimize true OPM 1 ParseDSCComments true ParseDSCCommentsForDocInfo true PreserveCopyPage true PreserveDICMYKValues true PreserveEPSInfo true PreserveFlatness true PreserveHalftoneInfo false PreserveOPIComments true PreserveOverprintSettings true StartPage 1 SubsetFonts true TransferFunctionInfo Apply UCRandBGInfo Preserve UsePrologue false ColorSettingsFile () AlwaysEmbed [ true Algerian Arial-Black Arial-BoldItalicMT Arial-BoldMT Arial-ItalicMT ArialMT ArialNarrow ArialNarrow-Bold ArialNarrow-BoldItalic ArialNarrow-Italic BaskOldFace Bauhaus93 BellMT BellMTBold BellMTItalic BerlinSansFB-Bold BerlinSansFBDemi-Bold BerlinSansFB-Reg BernardMT-Condensed BodoniMTPosterCompressed BookAntiqua BookAntiqua-Bold BookAntiqua-BoldItalic BookAntiqua-Italic BookmanOldStyle BookmanOldStyle-Bold BookmanOldStyle-BoldItalic BookmanOldStyle-Italic BookshelfSymbolSeven BritannicBold Broadway BrushScriptMT CalifornianFB-Bold CalifornianFB-Italic CalifornianFB-Reg Centaur CenturyGothic CenturyGothic-Bold CenturyGothic-BoldItalic CenturyGothic-Italic Chiller-Regular ColonnaMT ComicSansMS ComicSansMS-Bold CooperBlack CourierNewPS-BoldItalicMT CourierNewPS-BoldMT CourierNewPS-ItalicMT CourierNewPSMT EstrangeloEdessa EXTRAAPLNew-Regular EXTRAOIANew-Regular FootlightMTLight FranklinGothic-Medium FranklinGothic-MediumItalic FreestyleScript-Regular Garamond Garamond-Bold Garamond-Italic Gautami Georgia Georgia-Bold Georgia-BoldItalic Georgia-Italic HarlowSolid Harrington HighTowerText-Italic HighTowerText-Reg Impact InformalRoman-Regular Jokerman-Regular JuiceITC-Regular Kartika KristenITC-Regular KunstlerScript Latha LatinWide LucidaATTMSpecial LucidaBright LucidaBright-Demi LucidaBright-DemiItalic LucidaBright-Italic LucidaCalligraphy-Italic LucidaConsole LucidaFax LucidaFax-Demi LucidaFax-DemiItalic LucidaFax-Italic LucidaforAttachmate LucidaHandwriting-Italic LucidaSans LucidaSans-Demi LucidaSans-DemiItalic LucidaSans-Italic LucidaSansUnicode Magneto-Bold Mangal-Regular MaturaMTScriptCapitals MicrosoftSansSerif Mistral Modern-Regular Monospace821BT-Roman MonotypeCorsiva MSOutlook MSReferenceSansSerif MSReferenceSpecialty MVBoli NiagaraEngraved-Reg NiagaraSolid-Reg OldEnglishTextMT Onyx PalatinoLinotype-Bold PalatinoLinotype-BoldItalic PalatinoLinotype-Italic PalatinoLinotype-Roman Parchment-Regular Playbill PoorRichard-Regular Raavi Ravie ShowcardGothic-Reg Shruti SnapITC-Regular Stencil Sylfaen SymbolMT Tahoma Tahoma-Bold TempusSansITC TimesNewRomanPS-BoldItalicMT TimesNewRomanPS-BoldMT TimesNewRomanPS-ItalicMT TimesNewRomanPSMT Trebuchet-BoldItalic TrebuchetMS TrebuchetMS-Bold TrebuchetMS-Italic Tunga-Regular Verdana Verdana-Bold Verdana-BoldItalic Verdana-Italic VinerHandITC Vivaldii VladimirScript Vrinda Webdings Wingdings2 Wingdings3 Wingdings-Regular ZWAdobeF ] NeverEmbed [ true ] AntiAliasColorImages false CropColorImages true ColorImageMinResolution 300 ColorImageMinResolutionPolicy OK DownsampleColorImages true ColorImageDownsampleType Bicubic ColorImageResolution 300 ColorImageDepth -1 ColorImageMinDownsampleDepth 1 ColorImageDownsampleThreshold 150000 EncodeColorImages false ColorImageFilter DCTEncode AutoFilterColorImages true ColorImageAutoFilterStrategy JPEG ColorACSImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt ColorImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000ColorACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000ColorImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasGrayImages false CropGrayImages true GrayImageMinResolution 300 GrayImageMinResolutionPolicy OK DownsampleGrayImages true GrayImageDownsampleType Bicubic GrayImageResolution 300 GrayImageDepth -1 GrayImageMinDownsampleDepth 2 GrayImageDownsampleThreshold 150000 EncodeGrayImages false GrayImageFilter DCTEncode AutoFilterGrayImages true GrayImageAutoFilterStrategy JPEG GrayACSImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt GrayImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000GrayACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000GrayImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasMonoImages false CropMonoImages true MonoImageMinResolution 1200 MonoImageMinResolutionPolicy OK DownsampleMonoImages true MonoImageDownsampleType Bicubic MonoImageResolution 1200 MonoImageDepth -1 MonoImageDownsampleThreshold 150000 EncodeMonoImages false MonoImageFilter CCITTFaxEncode MonoImageDict ltlt K -1 gtgt AllowPSXObjects false CheckCompliance [ None ] PDFX1aCheck false PDFX3Check false PDFXCompliantPDFOnly false PDFXNoTrimBoxError true PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile (None) PDFXOutputConditionIdentifier () PDFXOutputCondition () PDFXRegistryName () PDFXTrapped False Description ltlt CHS ltFEFF4f7f75288fd94e9b8bbe5b9a521b5efa7684002000410064006f006200650020005000440046002065876863900275284e8e9ad88d2891cf76845370524d53705237300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200035002e003000204ee553ca66f49ad87248672c676562535f00521b5efa768400200050004400460020658768633002gt CHT ltFEFF4f7f752890194e9b8a2d7f6e5efa7acb7684002000410064006f006200650020005000440046002065874ef69069752865bc9ad854c18cea76845370524d5370523786557406300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200035002e003000204ee553ca66f49ad87248672c4f86958b555f5df25efa7acb76840020005000440046002065874ef63002gt DAN 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 DEU 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 ESP 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 FRA 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 ITA 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 JPN ltFEFF9ad854c18cea306a30d730ea30d730ec30b951fa529b7528002000410064006f0062006500200050004400460020658766f8306e4f5c6210306b4f7f75283057307e305930023053306e8a2d5b9a30674f5c62103055308c305f0020005000440046002030d530a130a430eb306f3001004100630072006f0062006100740020304a30883073002000410064006f00620065002000520065006100640065007200200035002e003000204ee5964d3067958b304f30533068304c3067304d307e305930023053306e8a2d5b9a306b306f30d530a930f330c8306e57cb30818fbc307f304c5fc59808306730593002gt KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020ace0d488c9c80020c2dcd5d80020c778c1c4c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200035002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor prepress-afdrukken van hoge kwaliteit De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 50 en hoger) NOR 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 PTB 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 SUO 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 SVE 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 ENU (Use these settings to create Adobe PDF documents best suited for high-quality prepress printing Created PDF documents can be opened with Acrobat and Adobe Reader 50 and later) gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false ConvertColors ConvertToCMYK DestinationProfileName () DestinationProfileSelector DocumentCMYK Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles false MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector DocumentCMYK PreserveEditing true UntaggedCMYKHandling LeaveUntagged UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ]gtgt setdistillerparamsltlt HWResolution [2400 2400] PageSize [612000 792000]gtgt setpagedevice

          1. To
          2. Date
          3. Re
          4. From
          5. AT THE REQUEST OF
          6. Sender
          7. Address
          8. Telephone
          9. Brief description of professional services materials or equipment provided or to be provided
          10. 1
          11. 2
          12. 3
          13. reg no
          14. deposit $
          15. expiration date
          16. claims up to $
          17. Reset

PRECLAIM NOTICE TO CONTRACTOR BY SUBCONTRACTORS MATERIALMEN OR SUPPLIERS FOR

CLAIM AGAINST BOND AND RETAINED PERCENTAGE

VIA CERTIFIED OR REGISTERED MAIL- RETURN RECEIPT REQUESTED

TO [Name of General Contractor] [Address]

YOU ARE HEREBY NOTIFIED that the undersigned ____________at the request of_________________ commenced to deliver or furnish materials supplies andor equipment for the use in the construction alteration andor repair of that certain project known as____________________ [project name] which is located at ____________________________ [address or description] If the undersigned is not paid for these materials supplies andor equipment it will file a claim against you and your bond andor retainage pursuant to RCW 3908 andor 6028 et seq for payment of any sum that is due and owing to the undersigned

DATED This __ day of _____________ 201_

[Name of Claimant]

By ____________________________________

Its ____________________________________

Address ______________________________

__________________________________________

__________________________________________

[Contractors Registration No if applicable]

(Mail via certified mail return receipt requested or hand deliver and obtain receipt)

CCBA Nuts amp Bolts on Construction Law - 26 of 49

Washington Liens amp Bonds ndash Pertinent Statutes

RCW 1827040 Bond or other security required mdash Actions against mdash Suspension of registration upon impairment (1) Each applicant shall file with the department a surety bond issued by a surety insurer who meets the requirements of chapter 4828 RCW in the sum of twelve thousand dollars if the applicant is a general contractor and six thousand dollars if the applicant is a specialty contractor If no valid bond is already on file with the department at the time the application is filed a bond must accompany the registration application The bond shall have the state of Washington named as obligee with good and sufficient surety in a form to be approved by the department The bond shall be continuous and may be canceled by the surety upon the surety giving written notice to the director A cancellation or revocation of the bond or withdrawal of the surety from the bond automatically suspends the registration issued to the contractor until a new bond or reinstatement notice has been filed and approved as provided in this section The bond shall be conditioned that the applicant will pay all persons performing labor including employee benefits for the contractor will pay all taxes and contributions due to the state of Washington and will pay all persons furnishing material or renting or supplying equipment to the contractor and will pay all amounts that may be adjudged against the contractor by reason of breach of contract including improper work in the conduct of the contracting business A change in the name of a business or a change in the type of business entity shall not impair a bond for the purposes of this section so long as one of the original applicants for such bond maintains partial ownership in the business covered by the bond (2) At the time of initial registration or renewal the contractor shall provide a bond or other security deposit as required by this chapter and comply with all of the other provisions of this chapter before the department shall issue or renew the contractors certificate of registration Any contractor registered as of July 1 2001 who maintains that registration in accordance with this chapter is in compliance with this chapter until the next renewal of the contractors certificate of registration (3) Any person firm or corporation having a claim against the contractor for any of the items referred to in this section may bring suit against the contractor and the bond or deposit in the superior court of the county in which the work was done or of any county in which jurisdiction of the contractor may be had The surety issuing the bond shall be named as a party to any suit upon the bond Action upon the bond or deposit brought by a residential homeowner for breach of contract by a party to the construction contract shall be commenced by filing the summons and complaint with the clerk of the appropriate superior court within two years from the date the claimed contract work was substantially completed or abandoned whichever occurred first Action upon the bond or deposit brought by any other authorized party shall be commenced by filing the summons and complaint with the clerk of the appropriate superior court within one year from the date the claimed labor was performed and benefits accrued taxes and contributions owing the state of Washington became due materials and equipment were furnished or the claimed contract work was substantially completed or abandoned whichever occurred first Service of process in an action filed under this chapter against the contractor and the contractors bond or the deposit shall be exclusively by service upon the department Three

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copies of the summons and complaint and a fee adopted by rule of not less than fifty dollars to cover the costs shall be served by registered or certified mail or other delivery service requiring notice of receipt upon the department at the time suit is started and the department shall maintain a record available for public inspection of all suits so commenced Service is not complete until the department receives the fee and three copies of the summons and complaint The service shall constitute service and confer personal jurisdiction on the contractor and the surety for suit on claimants claim against the contractor and the bond or deposit and the department shall transmit the summons and complaint or a copy thereof to the contractor at the address listed in the contractors application and to the surety within two days after it shall have been received (4) The surety upon the bond shall not be liable in an aggregate amount in excess of the amount named in the bond nor for any monetary penalty assessed pursuant to this chapter for an infraction The liability of the surety shall not cumulate where the bond has been renewed continued reinstated reissued or otherwise extended The surety upon the bond may upon notice to the department and the parties tender to the clerk of the court having jurisdiction of the action an amount equal to the claims thereunder or the amount of the bond less the amount of judgments if any previously satisfied therefrom and to the extent of such tender the surety upon the bond shall be exonerated but if the actions commenced and pending and provided to the department as required in subsection (3) of this section at any one time exceed the amount of the bond then unimpaired claims shall be satisfied from the bond in the following order (a) Employee labor and claims of laborers including employee benefits (b) Claims for breach of contract by a party to the construction contract (c) Registered or licensed subcontractors material and equipment (d) Taxes and contributions due the state of Washington (e) Any court costs interest and attorneys fees plaintiff may be entitled to recover The surety is not liable for any amount in excess of the penal limit of its bond A payment made by the surety in good faith exonerates the bond to the extent of any payment made by the surety (5) The total amount paid from a bond or deposit required of a general contractor by this section to claimants other than residential homeowners must not exceed one-half of the bond amount The total amount paid from a bond or deposit required of a specialty contractor by this section to claimants other than residential homeowners must not exceed one-half of the bond amount or four thousand dollars whichever is greater (6) The prevailing party in an action filed under this section against the contractor and contractors bond or deposit for breach of contract by a party to the construction contract involving a residential homeowner is entitled to costs interest and reasonable attorneys fees The surety upon the bond or deposit is not liable in an aggregate amount in excess of the amount

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named in the bond or deposit nor for any monetary penalty assessed pursuant to this chapter for an infraction (7) If a final judgment impairs the liability of the surety upon the bond or deposit so furnished that there is not in effect a bond or deposit in the full amount prescribed in this section the registration of the contractor is automatically suspended until the bond or deposit liability in the required amount unimpaired by unsatisfied judgment claims is furnished (8) In lieu of the surety bond required by this section the contractor may file with the department an assigned savings account upon forms provided by the department (9) Any person having filed and served a summons and complaint as required by this section having an unsatisfied final judgment against the registrant for any items referred to in this section may execute upon the security held by the department by serving a certified copy of the unsatisfied final judgment by registered or certified mail upon the department within one year of the date of entry of such judgment Upon the receipt of service of such certified copy the department shall pay or order paid from the deposit through the registry of the superior court which rendered judgment towards the amount of the unsatisfied judgment The priority of payment by the department shall be the order of receipt by the department but the department shall have no liability for payment in excess of the amount of the deposit (10) Within ten days after resolution of the case a certified copy of the final judgment and order or any settlement documents where a case is not disposed of by a court trial a certified copy of the dispositive settlement documents must be provided to the department by the prevailing party Failure to provide a copy of the final judgment and order or the dispositive settlement documents to the department within ten days of entry of such an order constitutes a violation of this chapter and a penalty adopted by rule of not less than two hundred fifty dollars may be assessed against the prevailing party (11) The director may require an applicant applying to renew or reinstate a registration or applying for a new registration to file a bond of up to three times the normally required amount if the director determines that an applicant or a previous registration of a corporate officer owner or partner of a current applicant has had in the past five years a total of three final judgments in actions under this chapter involving a residential single-family dwelling on two or more different structures (12) The director may adopt rules necessary for the proper administration of the security RCW 1827114 Disclosure statement required mdash Prerequisite to lien claim

(1) Any contractor agreeing to perform any contracting project (a) For the repair alteration or construction of four or fewer residential units or accessory structures on such residential property when the bid or contract price totals one thousand dollars or more or (b) for the repair alteration or construction of a commercial building when the bid or contract price totals one thousand dollars or more but less than sixty thousand dollars must provide the customer with

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the following disclosure statement in substantially the following form using lower case and upper case twelve-point and bold type where appropriate prior to starting work on the project NOTICE TO CUSTOMER This contractor is registered with the state of Washington registration no and has posted with the state a bond or deposit of for the purpose of satisfying claims against the contractor for breach of contract including negligent or improper work in the conduct of the contractors business The expiration date of this contractors registration is THIS BOND OR DEPOSIT MIGHT NOT BE SUFFICIENT TO COVER A CLAIM THAT MIGHT ARISE FROM THE WORK DONE UNDER YOUR CONTRACT This bond or deposit is not for your exclusive use because it covers all work performed by this contractor The bond or deposit is intended to pay valid claims up to that you and other customers suppliers subcontractors or taxing authorities may have FOR GREATER PROTECTION YOU MAY WITHHOLD A PERCENTAGE OF YOUR CONTRACT You may withhold a contractually defined percentage of your construction contract as retainage for a stated period of time to provide protection to you and help insure that your project will be completed as required by your contract YOUR PROPERTY MAY BE LIENED If a supplier of materials used in your construction project or an employee or subcontractor of your contractor or subcontractors is not paid your property may be liened to force payment and you could pay twice for the same work FOR ADDITIONAL PROTECTION YOU MAY REQUEST THE CONTRACTOR TO PROVIDE YOU WITH ORIGINAL LIEN RELEASE DOCUMENTS FROM EACH SUPPLIER OR SUBCONTRACTOR ON YOUR PROJECT The contractor is required to provide you with further information about lien release documents if you request it General information is also available from the state Department of Labor and Industries I have received a copy of this disclosure statement

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(Signature of customer) (2) The contractor must retain a signed copy of the disclosure statement in his or her files for a minimum of three years and produce a signed or electronic signature copy of the disclosure statement to the department upon request (3) A contractor subject to this section shall notify any consumer to whom notice is required under subsection (1) of this section if the contractors registration has expired or is revoked or suspended by the department prior to completion or other termination of the contract with the consumer (4) No contractor subject to this section may bring or maintain any lien claim under chapter 6004 RCW based on any contract to which this section applies without alleging and proving that the contractor has provided the customer with a copy of the disclosure statement as required in subsection (1) of this section (5) This section does not apply to contracts authorized under chapter 3904 RCW or to contractors contracting with other contractors (6) Failure to comply with this section shall constitute an infraction under the provisions of this chapter (7) The department shall produce model disclosure statements and public service announcements detailing the information needed to assist contractors and contractors customers to comply under this section As necessary the department shall periodically update these education materials RCW 3908010 Bond required mdash Conditions mdash Retention of contract amount in lieu of bond (1)(a) Whenever any board council commission trustees or body acting for the state or any county or municipality or any public body must contract with any person or corporation to do any work for the state county or municipality or other public body city town or district such board council commission trustees or body must require the person or persons with whom such contract is made to make execute and deliver to such board council commission trustees or body a good and sufficient bond with a surety company as surety conditioned that such person or persons must (i) Faithfully perform all the provisions of such contract (ii) Pay all laborers mechanics and subcontractors and material suppliers and all persons who supply such person or persons or subcontractors with provisions and supplies for the carrying on of such work and

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(iii) Pay the taxes increases and penalties incurred on the project under Titles 50 51 and 82 RCW on (A) Projects referred to in RCW 6028011(1)(b) andor (B) projects for which the bond is conditioned on the payment of such taxes increases and penalties (b) The bond in cases of cities and towns must be filed with the clerk or comptroller thereof and any person or persons performing such services or furnishing material to any subcontractor has the same right under the provisions of such bond as if such work services or material was furnished to the original contractor (2) The provisions of RCW 3908010 through 3908030 do not apply to any money loaned or advanced to any such contractor subcontractor or other person in the performance of any such work (3) On contracts of thirty-five thousand dollars or less at the option of the contractor the respective public entity may in lieu of the bond retain fifty percent of the contract amount for a period of thirty days after date of final acceptance or until receipt of all necessary releases from the department of revenue the employment security department and the department of labor and industries and settlement of any liens filed under chapter 6028 RCW whichever is later (4) For contracts of one hundred thousand dollars or less the public entity may accept a full payment and performance bond from an individual surety or sureties (5) The surety must agree to be bound by the laws of the state of Washington and subjected to the jurisdiction of the state of Washington RCW 6004011 Definitions

Unless the context requires otherwise the definitions in this section apply throughout this chapter (1) Construction agent means any registered or licensed contractor registered or licensed subcontractor architect engineer or other person having charge of any improvement to real property who shall be deemed the agent of the owner for the limited purpose of establishing the lien created by this chapter (2) Contract price means the amount agreed upon by the contracting parties or if no amount is agreed upon then the customary and reasonable charge therefor (3) Draws means periodic disbursements of interim or construction financing by a lender (4) Furnishing labor professional services materials or equipment means the performance of any labor or professional services the contribution owed to any employee benefit plan on account of any labor the provision of any supplies or materials and the renting leasing or

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otherwise supplying of equipment for the improvement of real property (5) Improvement means (a) Constructing altering repairing remodeling demolishing clearing grading or filling in of to or upon any real property or street or road in front of or adjoining the same (b) planting of trees vines shrubs plants hedges or lawns or providing other landscaping materials on any real property and (c) providing professional services upon real property or in preparation for or in conjunction with the intended activities in (a) or (b) of this subsection (6) Interim or construction financing means that portion of money secured by a mortgage deed of trust or other encumbrance to finance improvement of or to real property but does not include (a) Funds to acquire real property (b) Funds to pay interest insurance premiums lease deposits taxes assessments or prior encumbrances (c) Funds to pay loan commitment title legal closing recording or appraisal fees (d) Funds to pay other customary fees which pursuant to agreement with the owner or borrower are to be paid by the lender from time to time (e) Funds to acquire personal property for which the potential lien claimant may not claim a lien pursuant to this chapter (7) Labor means exertion of the powers of body or mind performed at the site for compensation Labor includes amounts due and owed to any employee benefit plan on account of such labor performed (8) Mortgagee means a person who has a valid mortgage of record or deed of trust of record securing a loan (9) Owner-occupied means a single-family residence occupied by the owner as his or her principal residence (10) Payment bond means a surety bond issued by a surety licensed to issue surety bonds in the state of Washington that confers upon potential claimants the rights of third party beneficiaries (11) Potential lien claimant means any person or entity entitled to assert lien rights under this chapter who has otherwise complied with the provisions of this chapter and is registered or licensed if required to be licensed or registered by the provisions of the laws of the state of Washington (12) Prime contractor includes all contractors general contractors and specialty

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contractors as defined by chapter 1827 or 1928 RCW or who are otherwise required to be registered or licensed by law who contract directly with a property owner or their common law agent to assume primary responsibility for the creation of an improvement to real property and includes property owners or their common law agents who are contractors general contractors or specialty contractors as defined in chapter 1827 or 1928 RCW or who are otherwise required to be registered or licensed by law who offer to sell their property without occupying or using the structures projects developments or improvements for more than one year (13) Professional services means surveying establishing or marking the boundaries of preparing maps plans or specifications for or inspecting testing or otherwise performing any other architectural or engineering services for the improvement of real property (14) Real property lender means a bank savings bank savings and loan association credit union mortgage company or other corporation association partnership trust or individual that makes loans secured by real property located in the state of Washington (15) Site means the real property which is or is to be improved (16) Subcontractor means a general contractor or specialty contractor as defined by chapter 1827 or 1928 RCW or who is otherwise required to be registered or licensed by law who contracts for the improvement of real property with someone other than the owner of the property or their common law agent

6004021 Lien authorized

Except as provided in RCW 6004031 any person furnishing labor professional services materials or equipment for the improvement of real property shall have a lien upon the improvement for the contract price of labor professional services materials or equipment furnished at the instance of the owner or the agent or construction agent of the owner

6004031 Notices mdash Exceptions

(1) Except as otherwise provided in this section every person furnishing professional services materials or equipment for the improvement of real property shall give the owner or reputed owner notice in writing of the right to claim a lien If the prime contractor is in compliance with the requirements of RCW 1927095 6004230 and 6004261 this notice shall also be given to the prime contractor as described in this subsection unless the potential lien claimant has contracted directly with the prime contractor The notice may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after the date which is sixty days before (a) Mailing the notice by certified or registered mail to the owner or reputed owner or

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(b) Delivering or serving the notice personally upon the owner or reputed owner and obtaining evidence of delivery in the form of a receipt or other acknowledgment signed by the owner or reputed owner or an affidavit of service In the case of new construction of a single-family residence the notice of a right to claim a lien may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after a date which is ten days before the notice is given as described in this subsection (2) Notices of a right to claim a lien shall not be required of (a) Persons who contract directly with the owner or the owners common law agent (b) Laborers whose claim of lien is based solely on performing labor or (c) Subcontractors who contract for the improvement of real property directly with the prime contractor except as provided in subsection (3)(b) of this section (3) Persons who furnish professional services materials or equipment in connection with the repair alteration or remodel of an existing owner-occupied single-family residence or appurtenant garage (a) Who contract directly with the owner-occupier or their common law agent shall not be required to send a written notice of the right to claim a lien and shall have a lien for the full amount due under their contract as provided in RCW 6004021 or (b) Who do not contract directly with the owner-occupier or their common law agent shall give notice of the right to claim a lien to the owner-occupier Liens of persons furnishing professional services materials or equipment who do not contract directly with the owner-occupier or their common law agent may only be satisfied from amounts not yet paid to the prime contractor by the owner at the time the notice described in this section is received regardless of whether amounts not yet paid to the prime contractor are due For the purposes of this subsection received means actual receipt of notice by personal service or registered or certified mail or three days after mailing by registered or certified mail excluding Saturdays Sundays or legal holidays (4) The notice of right to claim a lien described in subsection (1) of this section shall include but not be limited to the following information and shall substantially be in the following form using lower-case and upper-case ten-point type where appropriate

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NOTICE TO OWNER

IMPORTANT READ BOTH SIDES OF THIS NOTICE CAREFULLY

PROTECT YOURSELF FROM PAYING TWICE

To Date

Re (description of property Street address or general location) From AT THE REQUEST OF (Name of person ordering the professional services materials or equipment) THIS IS NOT A LIEN This notice is sent to you to tell you who is providing professional services materials or equipment for the improvement of your property and to advise you of the rights of these persons and your responsibilities Also take note that laborers on your project may claim a lien without sending you a notice

OWNEROCCUPIER OF EXISTING

RESIDENTIAL PROPERTY

Under Washington law those who furnish labor professional services materials or equipment for the repair remodel or alteration of your owner-occupied principal residence and who are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien The law limits the amount that a lien claimant can claim against your property Claims may only be made against that portion of the contract price you have not yet paid to your prime contractor as of the time this notice was given to you or three days after this notice was mailed to you Review the back of this notice for more information and ways to avoid lien claims

COMMERCIAL ANDOR NEW

RESIDENTIAL PROPERTY

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We have or will be providing professional services materials or equipment for the improvement of your commercial or new residential project In the event you or your contractor fail to pay us we may file a lien against your property A lien may be claimed for all professional services materials or equipment furnished after a date that is sixty days before this notice was given to you or mailed to you unless the improvement to your property is the construction of a new single-family residence then ten days before this notice was given to you or mailed to you Sender Address Telephone Brief description of professional services materials or equipment provided or to be provided

IMPORTANT INFORMATION

ON REVERSE SIDE

IMPORTANT INFORMATION

FOR YOUR PROTECTION This notice is sent to inform you that we have or will provide professional services materials or equipment for the improvement of your property We expect to be paid by the person who ordered our services but if we are not paid we have the right to enforce our claim by filing a construction lien against your property LEARN more about the lien laws and the meaning of this notice by discussing them with your contractor suppliers Department of Labor and Industries the firm sending you this notice your lender or your attorney

COMMON METHODS TO AVOID CONSTRUCTION LIENS There are several methods available to protect your property from construction liens The following are two of the more commonly used methods

DUAL PAYCHECKS (Joint Checks) When paying your contractor for services or materials you may make checks payable jointly to the contractor and the firms furnishing you this notice

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LIEN RELEASES You may require your contractor to provide lien releases signed by all the suppliers and subcontractors from whom you have received this notice If they cannot obtain lien releases because you have not paid them you may use the dual payee check method to protect yourself

YOU SHOULD TAKE APPROPRIATE STEPS TO PROTECT YOUR PROPERTY FROM LIENS YOUR PRIME CONTRACTOR AND YOUR CONSTRUCTION LENDER ARE REQUIRED BY LAW TO GIVE YOU WRITTEN INFORMATION ABOUT LIEN CLAIMS IF YOU HAVE NOT RECEIVED IT ASK THEM FOR IT

(5) Every potential lien claimant providing professional services where no improvement as defined in RCW 6004011(5) (a) or (b) has been commenced and the professional services provided are not visible from an inspection of the real property may record in the real property records of the county where the property is located a notice which shall contain the professional service providers name address telephone number legal description of the property the owner or reputed owners name and the general nature of the professional services provided If such notice is not recorded the lien claimed shall be subordinate to the interest of any subsequent mortgagee and invalid as to the interest of any subsequent purchaser if the mortgagee or purchaser acts in good faith and for a valuable consideration acquires an interest in the property prior to the commencement of an improvement as defined in RCW 6004011(5) (a) or (b) without notice of the professional services being provided The notice described in this subsection shall be substantially in the following form

NOTICE OF FURNISHING

PROFESSIONAL SERVICES That on the (day) day of (month and year) (name of provider) began providing professional services upon or for the improvement of real property legally described as follows

[Legal Description is mandatory]

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The general nature of the professional services provided is The owner or reputed owner of the real property is

(Signature)

(Name of Claimant)

(Street Address)

(City State Zip Code)

(Phone Number)

(6) A lien authorized by this chapter shall not be enforced unless the lien claimant has complied with the applicable provisions of this section

6004041 Contractor registration

A contractor or subcontractor required to be registered under chapter 1827 RCW or licensed under chapter 1928 RCW or otherwise required to be registered or licensed by law shall be deemed the construction agent of the owner for the purposes of establishing the lien created by this chapter only if so registered or licensed Persons dealing with contractors or subcontractors may rely for the purposes of this section upon a certificate of registration issued pursuant to chapter 1827 RCW or license issued pursuant to chapter 1928 RCW or other certificate or license issued pursuant to law covering the period when the labor professional services material or equipment shall be furnished and the lien rights shall not be lost by suspension or revocation of registration or license without their knowledge No lien rights described in this

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chapter shall be lost or denied by virtue of the absence suspension or revocation of such registration or license with respect to any contractor or subcontractor not in immediate contractual privity with the lien claimant

6004081 Frivolous claim mdash Procedure

(1) Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who believes the claim of lien to be frivolous and made without reasonable cause or clearly excessive may apply by motion to the superior court for the county where the property or some part thereof is located for an order directing the lien claimant to appear before the court at a time no earlier than six nor later than fifteen days following the date of service of the application and order on the lien claimant and show cause if any he or she has why the relief requested should not be granted The motion shall state the grounds upon which relief is asked and shall be supported by the affidavit of the applicant or his or her attorney setting forth a concise statement of the facts upon which the motion is based (2) The order shall clearly state that if the lien claimant fails to appear at the time and place noted the lien shall be released with prejudice and that the lien claimant shall be ordered to pay the costs requested by the applicant including reasonable attorneys fees (3) If no action to foreclose the lien claim has been filed the clerk of the court shall assign a cause number to the application and obtain from the applicant a filing fee pursuant to RCW 3618016 If an action has been filed to foreclose the lien claim the application shall be made a part of that action (4) If following a hearing on the matter the court determines that the lien is frivolous and made without reasonable cause or clearly excessive the court shall issue an order releasing the lien if frivolous and made without reasonable cause or reducing the lien if clearly excessive and awarding costs and reasonable attorneys fees to the applicant to be paid by the lien claimant If the court determines that the lien is not frivolous and was made with reasonable cause and is not clearly excessive the court shall issue an order so stating and awarding costs and reasonable attorneys fees to the lien claimant to be paid by the applicant (5) Proceedings under this section shall not affect other rights and remedies available to the parties under this chapter or otherwise

6004091 Recording mdash Time mdash Contents of lien

Every person claiming a lien under RCW 6004021 shall file for recording in the county where the subject property is located a notice of claim of lien not later than ninety days after the person

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has ceased to furnish labor professional services materials or equipment or the last date on which employee benefit contributions were due The notice of claim of lien (1) Shall state in substance and effect (a) The name phone number and address of the claimant (b) The first and last date on which the labor professional services materials or equipment was furnished or employee benefit contributions were due (c) The name of the person indebted to the claimant (d) The street address legal description or other description reasonably calculated to identify for a person familiar with the area the location of the real property to be charged with the lien (e) The name of the owner or reputed owner of the property if known and if not known that fact shall be stated and (f) The principal amount for which the lien is claimed (2) Shall be signed by the claimant or some person authorized to act on his or her behalf who shall affirmatively state they have read the notice of claim of lien and believe the notice of claim of lien to be true and correct under penalty of perjury and shall be acknowledged pursuant to chapter 6408 RCW If the lien has been assigned the name of the assignee shall be stated Where an action to foreclose the lien has been commenced such notice of claim of lien may be amended as pleadings may be by order of the court insofar as the interests of third parties are not adversely affected by such amendment A claim of lien substantially in the following form shall be sufficient

CLAIM OF LIEN

claimant vs name of person indebted to claimant

Notice is hereby given that the person named below claims a lien pursuant to chapter 6404 RCW In support of this lien the following information is submitted

1 NAME OF LIEN CLAIMANT

TELEPHONE NUMBER

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ADDRESS

2 DATE ON WHICH THE CLAIMANT BEGAN TO PERFORM LABOR PROVIDE PROFESSIONAL SERVICES SUPPLY MATERIAL OR EQUIPMENT OR THE DATE ON WHICH EMPLOYEE BENEFIT CONTRIBUTIONS BECAME DUE

3 NAME OF PERSON INDEBTED TO THE CLAIMANT

4 DESCRIPTION OF THE PROPERTY AGAINST WHICH A LIEN IS CLAIMED (Street address legal description or other information that will reasonably describe the property)

5 NAME OF THE OWNER OR REPUTED OWNER (If not known state unknown)

6 THE LAST DATE ON WHICH LABOR WAS PERFORMED PROFESSIONAL SERVICES WERE FURNISHED CONTRIBUTIONS TO AN EMPLOYEE BENEFIT PLAN WERE DUE OR MATERIAL OR EQUIPMENT WAS FURNISHED

7 PRINCIPAL AMOUNT FOR WHICH THE LIEN IS CLAIMED IS

8 IF THE CLAIMANT IS THE ASSIGNEE OF THIS CLAIM SO STATE HERE

Claimant

(Phone number address city

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and

state of claimant)

STATE OF WASHINGTON COUNTY OF ss being sworn says I am the claimant (or attorney of the claimant or administrator representative or agent of the trustees of an employee benefit plan) above named I have read or heard the foregoing claim read and know the contents thereof and believe the same to be true and correct and that the claim of lien is not frivolous and is made with reasonable cause and is not clearly excessive under penalty of perjury Subscribed and sworn to before me this day of The period provided for recording the claim of lien is a period of limitation and no action to foreclose a lien shall be maintained unless the claim of lien is filed for recording within the ninety-day period stated The lien claimant shall give a copy of the claim of lien to the owner or reputed owner by mailing it by certified or registered mail or by personal service within fourteen days of the time the claim of lien is filed for recording Failure to do so results in a forfeiture of any right the claimant may have to attorneys fees and costs against the owner under RCW 6004181

6004161 Bond in lieu of claim

Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who disputes the correctness or validity of the claim of lien may record either before or after the commencement of an action to enforce the lien in the office of the county recorder or auditor in the county where the claim of lien was recorded a bond issued by a surety company authorized to issue surety bonds in the state The surety shall be listed in the latest federal department of the treasury list of surety companies acceptable on federal bonds published in the Federal Register as authorized to issue bonds on United States government projects with an underwriting limitation including applicable reinsurance equal to or greater than the amount of the bond to be recorded The bond shall contain a description of the claim of lien and real property involved and be in an amount equal to the greater of five thousand dollars or two times the amount of the lien claimed if it is ten thousand dollars or less and in an amount equal to or greater than one and one-half times the amount of the lien if it is in

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excess of ten thousand dollars If the claim of lien affects more than one parcel of real property and is segregated to each parcel the bond may be segregated the same as in the claim of lien A separate bond shall be required for each claim of lien made by separate claimants However a single bond may be used to guarantee payment of amounts claimed by more than one claim of lien by a single claimant so long as the amount of the bond meets the requirements of this section as applied to the aggregate sum of all claims by such claimant The condition of the bond shall be to guarantee payment of any judgment upon the lien in favor of the lien claimant entered in any action to recover the amount claimed in a claim of lien or on the claim asserted in the claim of lien The effect of recording a bond shall be to release the real property described in the notice of claim of lien from the lien and any action brought to recover the amount claimed Unless otherwise prohibited by law if no action is commenced to recover on a lien within the time specified in RCW 6004141 the surety shall be discharged from liability under the bond If an action is timely commenced then on payment of any judgment entered in the action or on payment of the full amount of the bond to the holder of the judgment whichever is less the surety shall be discharged from liability under the bond Nothing in this section shall in any way prohibit or limit the use of other methods devised by the affected parties to secure the obligation underlying a claim of lien and to obtain a release of real property from a claim of lien

6004181 Rank of lien mdash Application of proceeds mdash Attorneys fees

(1) In every case in which different construction liens are claimed against the same property the court shall declare the rank of such lien or class of liens which liens shall be in the following order (a) Liens for the performance of labor (b) Liens for contributions owed to employee benefit plans (c) Liens for furnishing material supplies or equipment (d) Liens for subcontractors including but not limited to their labor and materials and (e) Liens for prime contractors or for professional services (2) The proceeds of the sale of property must be applied to each lien or class of liens in order of its rank and in an action brought to foreclose a lien pro rata among each claimant in each separate priority class A personal judgment may be rendered against any party personally liable for any debt for which the lien is claimed If the lien is established the judgment shall provide

CCBA Nuts amp Bolts on Construction Law - 44 of 49

for the enforcement thereof upon the property liable as in the case of foreclosure of judgment liens The amount realized by such enforcement of the lien shall be credited upon the proper personal judgment The deficiency if any remaining unsatisfied shall stand as a personal judgment and may be collected by execution against any party liable therefor (3) The court may allow the prevailing party in the action whether plaintiff or defendant as part of the costs of the action the moneys paid for recording the claim of lien costs of title report bond costs and attorneys fees and necessary expenses incurred by the attorney in the superior court court of appeals supreme court or arbitration as the court or arbitrator deems reasonable Such costs shall have the priority of the class of lien to which they are related as established by subsection (1) of this section (4) Real property against which a lien under this chapter is enforced may be ordered sold by the court and the proceeds deposited into the registry of the clerk of the court pending further determination respecting distribution of the proceeds of the sale

6004900 Liberal construction mdash 1991 c 281

RCW 1927095 6004230 and 6004011 through 6004226 and 6004261 are to be liberally construed to provide security for all parties intended to be protected by their provisions

RCW 6028011

Retained percentage mdash Public transportation projects mdash Labor and material lien created mdash Bond in lieu of retained funds mdash Termination before completion mdash Chapter deemed exclusive mdash Release of ferry contract payments mdash Projects of farmers home administration mdash General contractorconstruction manager procedure mdash Definitions

(1)(a) Except as provided in (b) of this subsection public improvement contracts must provide and public bodies must reserve a contract retainage not to exceed five percent of the moneys earned by the contractor as a trust fund for the protection and payment of (i) The claims of any person arising under the contract and (ii) the state with respect to taxes increases and penalties imposed pursuant to Titles 50 51 and 82 RCW which may be due from such contractor (b) Public improvement contracts funded in whole or in part by federal transportation funds must rely upon the contract bond as referred to in chapter 3908 RCW for the protection and payment of (i) The claims of any person or persons arising under the contract to the extent such claims are provided for in RCW 3908010 and (ii) the state with respect to taxes increases and penalties incurred on the public improvement project under Titles 50 51 and 82 RCW which may be due The contract bond must remain in full force and effect until at a minimum all claims filed in compliance with chapter 3908 RCW are resolved

CCBA Nuts amp Bolts on Construction Law - 45 of 49

(2) Every person performing labor or furnishing supplies toward the completion of a public improvement contract has a lien upon moneys reserved by a public body under the provisions of a public improvement contract However the notice of the lien of the claimant must be given within forty-five days of completion of the contract work and in the manner provided in RCW 3908030 (3) The contractor at any time may request the contract retainage be reduced to one hundred percent of the value of the work remaining on the project (a) After completion of all contract work other than landscaping the contractor may request that the public body release and pay in full the amounts retained during the performance of the contract and sixty days thereafter the public body must release and pay in full the amounts retained (other than continuing retention of five percent of the moneys earned for landscaping) subject to the provisions of chapters 3912 and 6028 RCW (b) Sixty days after completion of all contract work the public body must release and pay in full the amounts retained during the performance of the contract subject to the provisions of chapters 3912 and 6028 RCW (4) The moneys reserved by a public body under the provisions of a public improvement contract at the option of the contractor must be (a) Retained in a fund by the public body (b) Deposited by the public body in an interest bearing account in a bank mutual savings bank or savings and loan association Interest on moneys reserved by a public body under the provision of a public improvement contract must be paid to the contractor (c) Placed in escrow with a bank or trust company by the public body When the moneys reserved are placed in escrow the public body must issue a check representing the sum of the moneys reserved payable to the bank or trust company and the contractor jointly This check must be converted into bonds and securities chosen by the contractor and approved by the public body and the bonds and securities must be held in escrow Interest on the bonds and securities must be paid to the contractor as the interest accrues (5) The contractor or subcontractor may withhold payment of not more than five percent from the moneys earned by any subcontractor or sub-subcontractor or supplier contracted with by the contractor to provide labor materials or equipment to the public project Whenever the contractor or subcontractor reserves funds earned by a subcontractor or sub-subcontractor or

CCBA Nuts amp Bolts on Construction Law - 46 of 49

supplier the contractor or subcontractor must pay interest to the subcontractor or sub-subcontractor or supplier at a rate equal to that received by the contractor or subcontractor from reserved funds (6) A contractor may submit a bond for all or any portion of the contract retainage in a form acceptable to the public body and from a bonding company meeting standards established by the public body The public body must accept a bond meeting these requirements unless the public body can demonstrate good cause for refusing to accept it This bond and any proceeds therefrom are subject to all claims and liens and in the same manner and priority as set forth for retained percentages in this chapter The public body must release the bonded portion of the retained funds to the contractor within thirty days of accepting the bond from the contractor Whenever a public body accepts a bond in lieu of retained funds from a contractor the contractor must accept like bonds from any subcontractors or suppliers from which the contractor has retained funds The contractor must then release the funds retained from the subcontractor or supplier to the subcontractor or supplier within thirty days of accepting the bond from the subcontractor or supplier (7) If the public body administering a contract after a substantial portion of the work has been completed finds that an unreasonable delay will occur in the completion of the remaining portion of the contract for any reason not the result of a breach thereof it may if the contractor agrees delete from the contract the remaining work and accept as final the improvement at the stage of completion then attained and make payment in proportion to the amount of the work accomplished and in this case any amounts retained and accumulated under this section must be held for a period of sixty days following the completion In the event that the work is terminated before final completion as provided in this section the public body may thereafter enter into a new contract with the same contractor to perform the remaining work or improvement for an amount equal to or less than the cost of the remaining work as was provided for in the original contract without advertisement or bid The provisions of this chapter are exclusive and supersede all provisions and regulations in conflict herewith (8) Whenever the department of transportation has contracted for the construction of two or more ferry vessels sixty days after completion of all contract work on each ferry vessel the department must release and pay in full the amounts retained in connection with the construction of the vessel subject to the provisions of RCW 6028021 and chapter 3912 RCW However the department of transportation may at its discretion condition the release of funds retained in connection with the completed ferry upon the contractor delivering a good and sufficient bond with two or more sureties or with a surety company in the amount of the retained funds to be released to the contractor conditioned that no taxes may be certified or claims filed for work on the ferry after a period of sixty days following completion of the ferry and if taxes are certified or claims filed recovery may be had on the bond by the department of revenue the employment

CCBA Nuts amp Bolts on Construction Law - 47 of 49

security department the department of labor and industries and the material suppliers and laborers filing claims (9) Except as provided in subsection (1) of this section reservation by a public body for any purpose from the moneys earned by a contractor by fulfilling its responsibilities under public improvement contracts is prohibited (10) Contracts on projects funded in whole or in part by farmers home administration and subject to farmers home administration regulations are not subject to subsections (1) through (9) of this section (11) This subsection applies only to a public body that has contracted for the construction of a facility using the general contractorconstruction manager procedure as defined under RCW 3910210 If the work performed by a subcontractor on the project has been completed within the first half of the time provided in the general contractorconstruction manager contract for completing the work the public body may accept the completion of the subcontract The public body must give public notice of this acceptance After a forty-five day period for giving notice of liens and compliance with the retainage release procedures in RCW 6028021 the public body may release that portion of the retained funds associated with the subcontract Claims against the retained funds after the forty-five day period are not valid (12) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise (a) Contract retainage means an amount reserved by a public body from the moneys earned by a person under a public improvement contract (b) Person means a person or persons mechanic subcontractor or materialperson who performs labor or provides materials for a public improvement contract and any other person who supplies the person with provisions or supplies for the carrying on of a public improvement contract (c) Public body means the state or a county city town district board or other public body (d) Public improvement contract means a contract for public improvements or work other than for professional services or a work order as defined in RCW 3910210

CCBA Nuts amp Bolts on Construction Law - 48 of 49

RCW 6432070 Liens or encumbrances mdash Enforcement mdash Satisfaction

(1) Subsequent to recording the declaration as provided in this chapter and while the property remains subject to this chapter no lien shall thereafter arise or be effective against the property During such period liens or encumbrances shall arise or be created only against each apartment and the percentage of undivided interest in the common areas and facilities and appurtenant to such apartment in the same manner and under the same conditions in every respect as liens or encumbrances may arise or be created upon or against any other separate parcel of real property subject to individual ownership PROVIDED That no labor performed or materials furnished with the consent of or at the request of the owner of any apartment or such owners agent contractor or subcontractor shall be the basis for the filing of a lien against any other apartment or any other property of any other apartment owner not expressly consenting to or requesting the same except that such express consent shall be deemed to be given by any apartment owner in the case of emergency repairs Labor performed or materials furnished for the common areas and facilities if authorized by the association of apartment owners the manager or board of directors shall be deemed to be performed or furnished with the express consent of each apartment owner and shall be the basis for the filing of a lien against each of the apartments and shall be subject to the provisions of subsection (2) of this section (2) In the event a lien against two or more apartments becomes effective the apartment owners of the separate apartments may remove their apartment and the percentage of undivided interest in the common areas and facilities appurtenant to such apartment from the lien by payment of the fractional or proportional amounts attributable to each of the apartments affected Such individual payments shall be computed by reference to the percentages appearing on the declaration Subsequent to any such payment discharge or satisfaction the apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto shall thereafter be free and clear of the liens so paid satisfied or discharged Such partial payment satisfaction or discharge shall not prevent the lienor from proceeding to enforce his or her rights against any apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto not so paid satisfied or discharged

CCBA Nuts amp Bolts on Construction Law - 49 of 49

  • Cover Sheet
  • 20141110 - Washington Lien and Bond CLE
  • LampI Lien Summary
  • Claim of Lien
  • Form Notice to Owner
  • Model Disclosure Statement (Notice to Customer)
  • LampI Facts about Construction Liens
    • What you should know about contracts
    • How to protect your investment
    • For more information
      • Notice of Claim Against Bond and Retained Percentage
      • Preclaim Notice Bond amp Retained Percentage
      • Statute Handout
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UseDocumentProfile UseDocumentBleed false gtgt ]gtgt setdistillerparamsltlt HWResolution [2400 2400] PageSize [612000 792000]gtgt setpagedevice

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ltFEFF4f7f75288fd94e9b8bbe5b9a521b5efa7684002000410064006f006200650020005000440046002065876863900275284e8e9ad88d2891cf76845370524d53705237300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200035002e003000204ee553ca66f49ad87248672c676562535f00521b5efa768400200050004400460020658768633002gt CHT ltFEFF4f7f752890194e9b8a2d7f6e5efa7acb7684002000410064006f006200650020005000440046002065874ef69069752865bc9ad854c18cea76845370524d5370523786557406300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200035002e003000204ee553ca66f49ad87248672c4f86958b555f5df25efa7acb76840020005000440046002065874ef63002gt DAN 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 DEU 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 ESP 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 FRA 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 ITA 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 JPN ltFEFF9ad854c18cea306a30d730ea30d730ec30b951fa529b7528002000410064006f0062006500200050004400460020658766f8306e4f5c6210306b4f7f75283057307e305930023053306e8a2d5b9a30674f5c62103055308c305f0020005000440046002030d530a130a430eb306f3001004100630072006f0062006100740020304a30883073002000410064006f00620065002000520065006100640065007200200035002e003000204ee5964d3067958b304f30533068304c3067304d307e305930023053306e8a2d5b9a306b306f30d530a930f330c8306e57cb30818fbc307f304c5fc59808306730593002gt KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020ace0d488c9c80020c2dcd5d80020c778c1c4c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200035002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor prepress-afdrukken van hoge kwaliteit De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 50 en hoger) NOR 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 PTB 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ltFEFF004b00e40079007400e40020006e00e40069007400e4002000610073006500740075006b007300690061002c0020006b0075006e0020006c0075006f00740020006c00e400680069006e006e00e4002000760061006100740069007600610061006e0020007000610069006e006100740075006b00730065006e002000760061006c006d0069007300740065006c00750074007900f6006800f6006e00200073006f00700069007600690061002000410064006f0062006500200050004400460020002d0064006f006b0075006d0065006e007400740065006a0061002e0020004c0075006f0064007500740020005000440046002d0064006f006b0075006d0065006e00740069007400200076006f0069006400610061006e0020006100760061007400610020004100630072006f0062006100740069006c006c00610020006a0061002000410064006f00620065002000520065006100640065007200200035002e0030003a006c006c00610020006a006100200075007500640065006d006d0069006c006c0061002egt SVE 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 ENU (Use these settings to create Adobe PDF documents best suited for high-quality prepress printing Created PDF documents can be opened with Acrobat and Adobe Reader 50 and later) gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false ConvertColors ConvertToCMYK DestinationProfileName () DestinationProfileSelector DocumentCMYK Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles false MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector DocumentCMYK PreserveEditing true UntaggedCMYKHandling LeaveUntagged UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ]gtgt setdistillerparamsltlt HWResolution [2400 2400] PageSize [612000 792000]gtgt setpagedevice

          1. To
          2. Date
          3. Re
          4. From
          5. AT THE REQUEST OF
          6. Sender
          7. Address
          8. Telephone
          9. Brief description of professional services materials or equipment provided or to be provided
          10. 1
          11. 2
          12. 3
          13. reg no
          14. deposit $
          15. expiration date
          16. claims up to $
          17. Reset

Washington Liens amp Bonds ndash Pertinent Statutes

RCW 1827040 Bond or other security required mdash Actions against mdash Suspension of registration upon impairment (1) Each applicant shall file with the department a surety bond issued by a surety insurer who meets the requirements of chapter 4828 RCW in the sum of twelve thousand dollars if the applicant is a general contractor and six thousand dollars if the applicant is a specialty contractor If no valid bond is already on file with the department at the time the application is filed a bond must accompany the registration application The bond shall have the state of Washington named as obligee with good and sufficient surety in a form to be approved by the department The bond shall be continuous and may be canceled by the surety upon the surety giving written notice to the director A cancellation or revocation of the bond or withdrawal of the surety from the bond automatically suspends the registration issued to the contractor until a new bond or reinstatement notice has been filed and approved as provided in this section The bond shall be conditioned that the applicant will pay all persons performing labor including employee benefits for the contractor will pay all taxes and contributions due to the state of Washington and will pay all persons furnishing material or renting or supplying equipment to the contractor and will pay all amounts that may be adjudged against the contractor by reason of breach of contract including improper work in the conduct of the contracting business A change in the name of a business or a change in the type of business entity shall not impair a bond for the purposes of this section so long as one of the original applicants for such bond maintains partial ownership in the business covered by the bond (2) At the time of initial registration or renewal the contractor shall provide a bond or other security deposit as required by this chapter and comply with all of the other provisions of this chapter before the department shall issue or renew the contractors certificate of registration Any contractor registered as of July 1 2001 who maintains that registration in accordance with this chapter is in compliance with this chapter until the next renewal of the contractors certificate of registration (3) Any person firm or corporation having a claim against the contractor for any of the items referred to in this section may bring suit against the contractor and the bond or deposit in the superior court of the county in which the work was done or of any county in which jurisdiction of the contractor may be had The surety issuing the bond shall be named as a party to any suit upon the bond Action upon the bond or deposit brought by a residential homeowner for breach of contract by a party to the construction contract shall be commenced by filing the summons and complaint with the clerk of the appropriate superior court within two years from the date the claimed contract work was substantially completed or abandoned whichever occurred first Action upon the bond or deposit brought by any other authorized party shall be commenced by filing the summons and complaint with the clerk of the appropriate superior court within one year from the date the claimed labor was performed and benefits accrued taxes and contributions owing the state of Washington became due materials and equipment were furnished or the claimed contract work was substantially completed or abandoned whichever occurred first Service of process in an action filed under this chapter against the contractor and the contractors bond or the deposit shall be exclusively by service upon the department Three

CCBA Nuts amp Bolts on Construction Law - 27 of 49

copies of the summons and complaint and a fee adopted by rule of not less than fifty dollars to cover the costs shall be served by registered or certified mail or other delivery service requiring notice of receipt upon the department at the time suit is started and the department shall maintain a record available for public inspection of all suits so commenced Service is not complete until the department receives the fee and three copies of the summons and complaint The service shall constitute service and confer personal jurisdiction on the contractor and the surety for suit on claimants claim against the contractor and the bond or deposit and the department shall transmit the summons and complaint or a copy thereof to the contractor at the address listed in the contractors application and to the surety within two days after it shall have been received (4) The surety upon the bond shall not be liable in an aggregate amount in excess of the amount named in the bond nor for any monetary penalty assessed pursuant to this chapter for an infraction The liability of the surety shall not cumulate where the bond has been renewed continued reinstated reissued or otherwise extended The surety upon the bond may upon notice to the department and the parties tender to the clerk of the court having jurisdiction of the action an amount equal to the claims thereunder or the amount of the bond less the amount of judgments if any previously satisfied therefrom and to the extent of such tender the surety upon the bond shall be exonerated but if the actions commenced and pending and provided to the department as required in subsection (3) of this section at any one time exceed the amount of the bond then unimpaired claims shall be satisfied from the bond in the following order (a) Employee labor and claims of laborers including employee benefits (b) Claims for breach of contract by a party to the construction contract (c) Registered or licensed subcontractors material and equipment (d) Taxes and contributions due the state of Washington (e) Any court costs interest and attorneys fees plaintiff may be entitled to recover The surety is not liable for any amount in excess of the penal limit of its bond A payment made by the surety in good faith exonerates the bond to the extent of any payment made by the surety (5) The total amount paid from a bond or deposit required of a general contractor by this section to claimants other than residential homeowners must not exceed one-half of the bond amount The total amount paid from a bond or deposit required of a specialty contractor by this section to claimants other than residential homeowners must not exceed one-half of the bond amount or four thousand dollars whichever is greater (6) The prevailing party in an action filed under this section against the contractor and contractors bond or deposit for breach of contract by a party to the construction contract involving a residential homeowner is entitled to costs interest and reasonable attorneys fees The surety upon the bond or deposit is not liable in an aggregate amount in excess of the amount

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named in the bond or deposit nor for any monetary penalty assessed pursuant to this chapter for an infraction (7) If a final judgment impairs the liability of the surety upon the bond or deposit so furnished that there is not in effect a bond or deposit in the full amount prescribed in this section the registration of the contractor is automatically suspended until the bond or deposit liability in the required amount unimpaired by unsatisfied judgment claims is furnished (8) In lieu of the surety bond required by this section the contractor may file with the department an assigned savings account upon forms provided by the department (9) Any person having filed and served a summons and complaint as required by this section having an unsatisfied final judgment against the registrant for any items referred to in this section may execute upon the security held by the department by serving a certified copy of the unsatisfied final judgment by registered or certified mail upon the department within one year of the date of entry of such judgment Upon the receipt of service of such certified copy the department shall pay or order paid from the deposit through the registry of the superior court which rendered judgment towards the amount of the unsatisfied judgment The priority of payment by the department shall be the order of receipt by the department but the department shall have no liability for payment in excess of the amount of the deposit (10) Within ten days after resolution of the case a certified copy of the final judgment and order or any settlement documents where a case is not disposed of by a court trial a certified copy of the dispositive settlement documents must be provided to the department by the prevailing party Failure to provide a copy of the final judgment and order or the dispositive settlement documents to the department within ten days of entry of such an order constitutes a violation of this chapter and a penalty adopted by rule of not less than two hundred fifty dollars may be assessed against the prevailing party (11) The director may require an applicant applying to renew or reinstate a registration or applying for a new registration to file a bond of up to three times the normally required amount if the director determines that an applicant or a previous registration of a corporate officer owner or partner of a current applicant has had in the past five years a total of three final judgments in actions under this chapter involving a residential single-family dwelling on two or more different structures (12) The director may adopt rules necessary for the proper administration of the security RCW 1827114 Disclosure statement required mdash Prerequisite to lien claim

(1) Any contractor agreeing to perform any contracting project (a) For the repair alteration or construction of four or fewer residential units or accessory structures on such residential property when the bid or contract price totals one thousand dollars or more or (b) for the repair alteration or construction of a commercial building when the bid or contract price totals one thousand dollars or more but less than sixty thousand dollars must provide the customer with

CCBA Nuts amp Bolts on Construction Law - 29 of 49

the following disclosure statement in substantially the following form using lower case and upper case twelve-point and bold type where appropriate prior to starting work on the project NOTICE TO CUSTOMER This contractor is registered with the state of Washington registration no and has posted with the state a bond or deposit of for the purpose of satisfying claims against the contractor for breach of contract including negligent or improper work in the conduct of the contractors business The expiration date of this contractors registration is THIS BOND OR DEPOSIT MIGHT NOT BE SUFFICIENT TO COVER A CLAIM THAT MIGHT ARISE FROM THE WORK DONE UNDER YOUR CONTRACT This bond or deposit is not for your exclusive use because it covers all work performed by this contractor The bond or deposit is intended to pay valid claims up to that you and other customers suppliers subcontractors or taxing authorities may have FOR GREATER PROTECTION YOU MAY WITHHOLD A PERCENTAGE OF YOUR CONTRACT You may withhold a contractually defined percentage of your construction contract as retainage for a stated period of time to provide protection to you and help insure that your project will be completed as required by your contract YOUR PROPERTY MAY BE LIENED If a supplier of materials used in your construction project or an employee or subcontractor of your contractor or subcontractors is not paid your property may be liened to force payment and you could pay twice for the same work FOR ADDITIONAL PROTECTION YOU MAY REQUEST THE CONTRACTOR TO PROVIDE YOU WITH ORIGINAL LIEN RELEASE DOCUMENTS FROM EACH SUPPLIER OR SUBCONTRACTOR ON YOUR PROJECT The contractor is required to provide you with further information about lien release documents if you request it General information is also available from the state Department of Labor and Industries I have received a copy of this disclosure statement

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(Signature of customer) (2) The contractor must retain a signed copy of the disclosure statement in his or her files for a minimum of three years and produce a signed or electronic signature copy of the disclosure statement to the department upon request (3) A contractor subject to this section shall notify any consumer to whom notice is required under subsection (1) of this section if the contractors registration has expired or is revoked or suspended by the department prior to completion or other termination of the contract with the consumer (4) No contractor subject to this section may bring or maintain any lien claim under chapter 6004 RCW based on any contract to which this section applies without alleging and proving that the contractor has provided the customer with a copy of the disclosure statement as required in subsection (1) of this section (5) This section does not apply to contracts authorized under chapter 3904 RCW or to contractors contracting with other contractors (6) Failure to comply with this section shall constitute an infraction under the provisions of this chapter (7) The department shall produce model disclosure statements and public service announcements detailing the information needed to assist contractors and contractors customers to comply under this section As necessary the department shall periodically update these education materials RCW 3908010 Bond required mdash Conditions mdash Retention of contract amount in lieu of bond (1)(a) Whenever any board council commission trustees or body acting for the state or any county or municipality or any public body must contract with any person or corporation to do any work for the state county or municipality or other public body city town or district such board council commission trustees or body must require the person or persons with whom such contract is made to make execute and deliver to such board council commission trustees or body a good and sufficient bond with a surety company as surety conditioned that such person or persons must (i) Faithfully perform all the provisions of such contract (ii) Pay all laborers mechanics and subcontractors and material suppliers and all persons who supply such person or persons or subcontractors with provisions and supplies for the carrying on of such work and

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(iii) Pay the taxes increases and penalties incurred on the project under Titles 50 51 and 82 RCW on (A) Projects referred to in RCW 6028011(1)(b) andor (B) projects for which the bond is conditioned on the payment of such taxes increases and penalties (b) The bond in cases of cities and towns must be filed with the clerk or comptroller thereof and any person or persons performing such services or furnishing material to any subcontractor has the same right under the provisions of such bond as if such work services or material was furnished to the original contractor (2) The provisions of RCW 3908010 through 3908030 do not apply to any money loaned or advanced to any such contractor subcontractor or other person in the performance of any such work (3) On contracts of thirty-five thousand dollars or less at the option of the contractor the respective public entity may in lieu of the bond retain fifty percent of the contract amount for a period of thirty days after date of final acceptance or until receipt of all necessary releases from the department of revenue the employment security department and the department of labor and industries and settlement of any liens filed under chapter 6028 RCW whichever is later (4) For contracts of one hundred thousand dollars or less the public entity may accept a full payment and performance bond from an individual surety or sureties (5) The surety must agree to be bound by the laws of the state of Washington and subjected to the jurisdiction of the state of Washington RCW 6004011 Definitions

Unless the context requires otherwise the definitions in this section apply throughout this chapter (1) Construction agent means any registered or licensed contractor registered or licensed subcontractor architect engineer or other person having charge of any improvement to real property who shall be deemed the agent of the owner for the limited purpose of establishing the lien created by this chapter (2) Contract price means the amount agreed upon by the contracting parties or if no amount is agreed upon then the customary and reasonable charge therefor (3) Draws means periodic disbursements of interim or construction financing by a lender (4) Furnishing labor professional services materials or equipment means the performance of any labor or professional services the contribution owed to any employee benefit plan on account of any labor the provision of any supplies or materials and the renting leasing or

CCBA Nuts amp Bolts on Construction Law - 32 of 49

otherwise supplying of equipment for the improvement of real property (5) Improvement means (a) Constructing altering repairing remodeling demolishing clearing grading or filling in of to or upon any real property or street or road in front of or adjoining the same (b) planting of trees vines shrubs plants hedges or lawns or providing other landscaping materials on any real property and (c) providing professional services upon real property or in preparation for or in conjunction with the intended activities in (a) or (b) of this subsection (6) Interim or construction financing means that portion of money secured by a mortgage deed of trust or other encumbrance to finance improvement of or to real property but does not include (a) Funds to acquire real property (b) Funds to pay interest insurance premiums lease deposits taxes assessments or prior encumbrances (c) Funds to pay loan commitment title legal closing recording or appraisal fees (d) Funds to pay other customary fees which pursuant to agreement with the owner or borrower are to be paid by the lender from time to time (e) Funds to acquire personal property for which the potential lien claimant may not claim a lien pursuant to this chapter (7) Labor means exertion of the powers of body or mind performed at the site for compensation Labor includes amounts due and owed to any employee benefit plan on account of such labor performed (8) Mortgagee means a person who has a valid mortgage of record or deed of trust of record securing a loan (9) Owner-occupied means a single-family residence occupied by the owner as his or her principal residence (10) Payment bond means a surety bond issued by a surety licensed to issue surety bonds in the state of Washington that confers upon potential claimants the rights of third party beneficiaries (11) Potential lien claimant means any person or entity entitled to assert lien rights under this chapter who has otherwise complied with the provisions of this chapter and is registered or licensed if required to be licensed or registered by the provisions of the laws of the state of Washington (12) Prime contractor includes all contractors general contractors and specialty

CCBA Nuts amp Bolts on Construction Law - 33 of 49

contractors as defined by chapter 1827 or 1928 RCW or who are otherwise required to be registered or licensed by law who contract directly with a property owner or their common law agent to assume primary responsibility for the creation of an improvement to real property and includes property owners or their common law agents who are contractors general contractors or specialty contractors as defined in chapter 1827 or 1928 RCW or who are otherwise required to be registered or licensed by law who offer to sell their property without occupying or using the structures projects developments or improvements for more than one year (13) Professional services means surveying establishing or marking the boundaries of preparing maps plans or specifications for or inspecting testing or otherwise performing any other architectural or engineering services for the improvement of real property (14) Real property lender means a bank savings bank savings and loan association credit union mortgage company or other corporation association partnership trust or individual that makes loans secured by real property located in the state of Washington (15) Site means the real property which is or is to be improved (16) Subcontractor means a general contractor or specialty contractor as defined by chapter 1827 or 1928 RCW or who is otherwise required to be registered or licensed by law who contracts for the improvement of real property with someone other than the owner of the property or their common law agent

6004021 Lien authorized

Except as provided in RCW 6004031 any person furnishing labor professional services materials or equipment for the improvement of real property shall have a lien upon the improvement for the contract price of labor professional services materials or equipment furnished at the instance of the owner or the agent or construction agent of the owner

6004031 Notices mdash Exceptions

(1) Except as otherwise provided in this section every person furnishing professional services materials or equipment for the improvement of real property shall give the owner or reputed owner notice in writing of the right to claim a lien If the prime contractor is in compliance with the requirements of RCW 1927095 6004230 and 6004261 this notice shall also be given to the prime contractor as described in this subsection unless the potential lien claimant has contracted directly with the prime contractor The notice may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after the date which is sixty days before (a) Mailing the notice by certified or registered mail to the owner or reputed owner or

CCBA Nuts amp Bolts on Construction Law - 34 of 49

(b) Delivering or serving the notice personally upon the owner or reputed owner and obtaining evidence of delivery in the form of a receipt or other acknowledgment signed by the owner or reputed owner or an affidavit of service In the case of new construction of a single-family residence the notice of a right to claim a lien may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after a date which is ten days before the notice is given as described in this subsection (2) Notices of a right to claim a lien shall not be required of (a) Persons who contract directly with the owner or the owners common law agent (b) Laborers whose claim of lien is based solely on performing labor or (c) Subcontractors who contract for the improvement of real property directly with the prime contractor except as provided in subsection (3)(b) of this section (3) Persons who furnish professional services materials or equipment in connection with the repair alteration or remodel of an existing owner-occupied single-family residence or appurtenant garage (a) Who contract directly with the owner-occupier or their common law agent shall not be required to send a written notice of the right to claim a lien and shall have a lien for the full amount due under their contract as provided in RCW 6004021 or (b) Who do not contract directly with the owner-occupier or their common law agent shall give notice of the right to claim a lien to the owner-occupier Liens of persons furnishing professional services materials or equipment who do not contract directly with the owner-occupier or their common law agent may only be satisfied from amounts not yet paid to the prime contractor by the owner at the time the notice described in this section is received regardless of whether amounts not yet paid to the prime contractor are due For the purposes of this subsection received means actual receipt of notice by personal service or registered or certified mail or three days after mailing by registered or certified mail excluding Saturdays Sundays or legal holidays (4) The notice of right to claim a lien described in subsection (1) of this section shall include but not be limited to the following information and shall substantially be in the following form using lower-case and upper-case ten-point type where appropriate

CCBA Nuts amp Bolts on Construction Law - 35 of 49

NOTICE TO OWNER

IMPORTANT READ BOTH SIDES OF THIS NOTICE CAREFULLY

PROTECT YOURSELF FROM PAYING TWICE

To Date

Re (description of property Street address or general location) From AT THE REQUEST OF (Name of person ordering the professional services materials or equipment) THIS IS NOT A LIEN This notice is sent to you to tell you who is providing professional services materials or equipment for the improvement of your property and to advise you of the rights of these persons and your responsibilities Also take note that laborers on your project may claim a lien without sending you a notice

OWNEROCCUPIER OF EXISTING

RESIDENTIAL PROPERTY

Under Washington law those who furnish labor professional services materials or equipment for the repair remodel or alteration of your owner-occupied principal residence and who are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien The law limits the amount that a lien claimant can claim against your property Claims may only be made against that portion of the contract price you have not yet paid to your prime contractor as of the time this notice was given to you or three days after this notice was mailed to you Review the back of this notice for more information and ways to avoid lien claims

COMMERCIAL ANDOR NEW

RESIDENTIAL PROPERTY

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We have or will be providing professional services materials or equipment for the improvement of your commercial or new residential project In the event you or your contractor fail to pay us we may file a lien against your property A lien may be claimed for all professional services materials or equipment furnished after a date that is sixty days before this notice was given to you or mailed to you unless the improvement to your property is the construction of a new single-family residence then ten days before this notice was given to you or mailed to you Sender Address Telephone Brief description of professional services materials or equipment provided or to be provided

IMPORTANT INFORMATION

ON REVERSE SIDE

IMPORTANT INFORMATION

FOR YOUR PROTECTION This notice is sent to inform you that we have or will provide professional services materials or equipment for the improvement of your property We expect to be paid by the person who ordered our services but if we are not paid we have the right to enforce our claim by filing a construction lien against your property LEARN more about the lien laws and the meaning of this notice by discussing them with your contractor suppliers Department of Labor and Industries the firm sending you this notice your lender or your attorney

COMMON METHODS TO AVOID CONSTRUCTION LIENS There are several methods available to protect your property from construction liens The following are two of the more commonly used methods

DUAL PAYCHECKS (Joint Checks) When paying your contractor for services or materials you may make checks payable jointly to the contractor and the firms furnishing you this notice

CCBA Nuts amp Bolts on Construction Law - 37 of 49

LIEN RELEASES You may require your contractor to provide lien releases signed by all the suppliers and subcontractors from whom you have received this notice If they cannot obtain lien releases because you have not paid them you may use the dual payee check method to protect yourself

YOU SHOULD TAKE APPROPRIATE STEPS TO PROTECT YOUR PROPERTY FROM LIENS YOUR PRIME CONTRACTOR AND YOUR CONSTRUCTION LENDER ARE REQUIRED BY LAW TO GIVE YOU WRITTEN INFORMATION ABOUT LIEN CLAIMS IF YOU HAVE NOT RECEIVED IT ASK THEM FOR IT

(5) Every potential lien claimant providing professional services where no improvement as defined in RCW 6004011(5) (a) or (b) has been commenced and the professional services provided are not visible from an inspection of the real property may record in the real property records of the county where the property is located a notice which shall contain the professional service providers name address telephone number legal description of the property the owner or reputed owners name and the general nature of the professional services provided If such notice is not recorded the lien claimed shall be subordinate to the interest of any subsequent mortgagee and invalid as to the interest of any subsequent purchaser if the mortgagee or purchaser acts in good faith and for a valuable consideration acquires an interest in the property prior to the commencement of an improvement as defined in RCW 6004011(5) (a) or (b) without notice of the professional services being provided The notice described in this subsection shall be substantially in the following form

NOTICE OF FURNISHING

PROFESSIONAL SERVICES That on the (day) day of (month and year) (name of provider) began providing professional services upon or for the improvement of real property legally described as follows

[Legal Description is mandatory]

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The general nature of the professional services provided is The owner or reputed owner of the real property is

(Signature)

(Name of Claimant)

(Street Address)

(City State Zip Code)

(Phone Number)

(6) A lien authorized by this chapter shall not be enforced unless the lien claimant has complied with the applicable provisions of this section

6004041 Contractor registration

A contractor or subcontractor required to be registered under chapter 1827 RCW or licensed under chapter 1928 RCW or otherwise required to be registered or licensed by law shall be deemed the construction agent of the owner for the purposes of establishing the lien created by this chapter only if so registered or licensed Persons dealing with contractors or subcontractors may rely for the purposes of this section upon a certificate of registration issued pursuant to chapter 1827 RCW or license issued pursuant to chapter 1928 RCW or other certificate or license issued pursuant to law covering the period when the labor professional services material or equipment shall be furnished and the lien rights shall not be lost by suspension or revocation of registration or license without their knowledge No lien rights described in this

CCBA Nuts amp Bolts on Construction Law - 39 of 49

chapter shall be lost or denied by virtue of the absence suspension or revocation of such registration or license with respect to any contractor or subcontractor not in immediate contractual privity with the lien claimant

6004081 Frivolous claim mdash Procedure

(1) Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who believes the claim of lien to be frivolous and made without reasonable cause or clearly excessive may apply by motion to the superior court for the county where the property or some part thereof is located for an order directing the lien claimant to appear before the court at a time no earlier than six nor later than fifteen days following the date of service of the application and order on the lien claimant and show cause if any he or she has why the relief requested should not be granted The motion shall state the grounds upon which relief is asked and shall be supported by the affidavit of the applicant or his or her attorney setting forth a concise statement of the facts upon which the motion is based (2) The order shall clearly state that if the lien claimant fails to appear at the time and place noted the lien shall be released with prejudice and that the lien claimant shall be ordered to pay the costs requested by the applicant including reasonable attorneys fees (3) If no action to foreclose the lien claim has been filed the clerk of the court shall assign a cause number to the application and obtain from the applicant a filing fee pursuant to RCW 3618016 If an action has been filed to foreclose the lien claim the application shall be made a part of that action (4) If following a hearing on the matter the court determines that the lien is frivolous and made without reasonable cause or clearly excessive the court shall issue an order releasing the lien if frivolous and made without reasonable cause or reducing the lien if clearly excessive and awarding costs and reasonable attorneys fees to the applicant to be paid by the lien claimant If the court determines that the lien is not frivolous and was made with reasonable cause and is not clearly excessive the court shall issue an order so stating and awarding costs and reasonable attorneys fees to the lien claimant to be paid by the applicant (5) Proceedings under this section shall not affect other rights and remedies available to the parties under this chapter or otherwise

6004091 Recording mdash Time mdash Contents of lien

Every person claiming a lien under RCW 6004021 shall file for recording in the county where the subject property is located a notice of claim of lien not later than ninety days after the person

CCBA Nuts amp Bolts on Construction Law - 40 of 49

has ceased to furnish labor professional services materials or equipment or the last date on which employee benefit contributions were due The notice of claim of lien (1) Shall state in substance and effect (a) The name phone number and address of the claimant (b) The first and last date on which the labor professional services materials or equipment was furnished or employee benefit contributions were due (c) The name of the person indebted to the claimant (d) The street address legal description or other description reasonably calculated to identify for a person familiar with the area the location of the real property to be charged with the lien (e) The name of the owner or reputed owner of the property if known and if not known that fact shall be stated and (f) The principal amount for which the lien is claimed (2) Shall be signed by the claimant or some person authorized to act on his or her behalf who shall affirmatively state they have read the notice of claim of lien and believe the notice of claim of lien to be true and correct under penalty of perjury and shall be acknowledged pursuant to chapter 6408 RCW If the lien has been assigned the name of the assignee shall be stated Where an action to foreclose the lien has been commenced such notice of claim of lien may be amended as pleadings may be by order of the court insofar as the interests of third parties are not adversely affected by such amendment A claim of lien substantially in the following form shall be sufficient

CLAIM OF LIEN

claimant vs name of person indebted to claimant

Notice is hereby given that the person named below claims a lien pursuant to chapter 6404 RCW In support of this lien the following information is submitted

1 NAME OF LIEN CLAIMANT

TELEPHONE NUMBER

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ADDRESS

2 DATE ON WHICH THE CLAIMANT BEGAN TO PERFORM LABOR PROVIDE PROFESSIONAL SERVICES SUPPLY MATERIAL OR EQUIPMENT OR THE DATE ON WHICH EMPLOYEE BENEFIT CONTRIBUTIONS BECAME DUE

3 NAME OF PERSON INDEBTED TO THE CLAIMANT

4 DESCRIPTION OF THE PROPERTY AGAINST WHICH A LIEN IS CLAIMED (Street address legal description or other information that will reasonably describe the property)

5 NAME OF THE OWNER OR REPUTED OWNER (If not known state unknown)

6 THE LAST DATE ON WHICH LABOR WAS PERFORMED PROFESSIONAL SERVICES WERE FURNISHED CONTRIBUTIONS TO AN EMPLOYEE BENEFIT PLAN WERE DUE OR MATERIAL OR EQUIPMENT WAS FURNISHED

7 PRINCIPAL AMOUNT FOR WHICH THE LIEN IS CLAIMED IS

8 IF THE CLAIMANT IS THE ASSIGNEE OF THIS CLAIM SO STATE HERE

Claimant

(Phone number address city

CCBA Nuts amp Bolts on Construction Law - 42 of 49

and

state of claimant)

STATE OF WASHINGTON COUNTY OF ss being sworn says I am the claimant (or attorney of the claimant or administrator representative or agent of the trustees of an employee benefit plan) above named I have read or heard the foregoing claim read and know the contents thereof and believe the same to be true and correct and that the claim of lien is not frivolous and is made with reasonable cause and is not clearly excessive under penalty of perjury Subscribed and sworn to before me this day of The period provided for recording the claim of lien is a period of limitation and no action to foreclose a lien shall be maintained unless the claim of lien is filed for recording within the ninety-day period stated The lien claimant shall give a copy of the claim of lien to the owner or reputed owner by mailing it by certified or registered mail or by personal service within fourteen days of the time the claim of lien is filed for recording Failure to do so results in a forfeiture of any right the claimant may have to attorneys fees and costs against the owner under RCW 6004181

6004161 Bond in lieu of claim

Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who disputes the correctness or validity of the claim of lien may record either before or after the commencement of an action to enforce the lien in the office of the county recorder or auditor in the county where the claim of lien was recorded a bond issued by a surety company authorized to issue surety bonds in the state The surety shall be listed in the latest federal department of the treasury list of surety companies acceptable on federal bonds published in the Federal Register as authorized to issue bonds on United States government projects with an underwriting limitation including applicable reinsurance equal to or greater than the amount of the bond to be recorded The bond shall contain a description of the claim of lien and real property involved and be in an amount equal to the greater of five thousand dollars or two times the amount of the lien claimed if it is ten thousand dollars or less and in an amount equal to or greater than one and one-half times the amount of the lien if it is in

CCBA Nuts amp Bolts on Construction Law - 43 of 49

excess of ten thousand dollars If the claim of lien affects more than one parcel of real property and is segregated to each parcel the bond may be segregated the same as in the claim of lien A separate bond shall be required for each claim of lien made by separate claimants However a single bond may be used to guarantee payment of amounts claimed by more than one claim of lien by a single claimant so long as the amount of the bond meets the requirements of this section as applied to the aggregate sum of all claims by such claimant The condition of the bond shall be to guarantee payment of any judgment upon the lien in favor of the lien claimant entered in any action to recover the amount claimed in a claim of lien or on the claim asserted in the claim of lien The effect of recording a bond shall be to release the real property described in the notice of claim of lien from the lien and any action brought to recover the amount claimed Unless otherwise prohibited by law if no action is commenced to recover on a lien within the time specified in RCW 6004141 the surety shall be discharged from liability under the bond If an action is timely commenced then on payment of any judgment entered in the action or on payment of the full amount of the bond to the holder of the judgment whichever is less the surety shall be discharged from liability under the bond Nothing in this section shall in any way prohibit or limit the use of other methods devised by the affected parties to secure the obligation underlying a claim of lien and to obtain a release of real property from a claim of lien

6004181 Rank of lien mdash Application of proceeds mdash Attorneys fees

(1) In every case in which different construction liens are claimed against the same property the court shall declare the rank of such lien or class of liens which liens shall be in the following order (a) Liens for the performance of labor (b) Liens for contributions owed to employee benefit plans (c) Liens for furnishing material supplies or equipment (d) Liens for subcontractors including but not limited to their labor and materials and (e) Liens for prime contractors or for professional services (2) The proceeds of the sale of property must be applied to each lien or class of liens in order of its rank and in an action brought to foreclose a lien pro rata among each claimant in each separate priority class A personal judgment may be rendered against any party personally liable for any debt for which the lien is claimed If the lien is established the judgment shall provide

CCBA Nuts amp Bolts on Construction Law - 44 of 49

for the enforcement thereof upon the property liable as in the case of foreclosure of judgment liens The amount realized by such enforcement of the lien shall be credited upon the proper personal judgment The deficiency if any remaining unsatisfied shall stand as a personal judgment and may be collected by execution against any party liable therefor (3) The court may allow the prevailing party in the action whether plaintiff or defendant as part of the costs of the action the moneys paid for recording the claim of lien costs of title report bond costs and attorneys fees and necessary expenses incurred by the attorney in the superior court court of appeals supreme court or arbitration as the court or arbitrator deems reasonable Such costs shall have the priority of the class of lien to which they are related as established by subsection (1) of this section (4) Real property against which a lien under this chapter is enforced may be ordered sold by the court and the proceeds deposited into the registry of the clerk of the court pending further determination respecting distribution of the proceeds of the sale

6004900 Liberal construction mdash 1991 c 281

RCW 1927095 6004230 and 6004011 through 6004226 and 6004261 are to be liberally construed to provide security for all parties intended to be protected by their provisions

RCW 6028011

Retained percentage mdash Public transportation projects mdash Labor and material lien created mdash Bond in lieu of retained funds mdash Termination before completion mdash Chapter deemed exclusive mdash Release of ferry contract payments mdash Projects of farmers home administration mdash General contractorconstruction manager procedure mdash Definitions

(1)(a) Except as provided in (b) of this subsection public improvement contracts must provide and public bodies must reserve a contract retainage not to exceed five percent of the moneys earned by the contractor as a trust fund for the protection and payment of (i) The claims of any person arising under the contract and (ii) the state with respect to taxes increases and penalties imposed pursuant to Titles 50 51 and 82 RCW which may be due from such contractor (b) Public improvement contracts funded in whole or in part by federal transportation funds must rely upon the contract bond as referred to in chapter 3908 RCW for the protection and payment of (i) The claims of any person or persons arising under the contract to the extent such claims are provided for in RCW 3908010 and (ii) the state with respect to taxes increases and penalties incurred on the public improvement project under Titles 50 51 and 82 RCW which may be due The contract bond must remain in full force and effect until at a minimum all claims filed in compliance with chapter 3908 RCW are resolved

CCBA Nuts amp Bolts on Construction Law - 45 of 49

(2) Every person performing labor or furnishing supplies toward the completion of a public improvement contract has a lien upon moneys reserved by a public body under the provisions of a public improvement contract However the notice of the lien of the claimant must be given within forty-five days of completion of the contract work and in the manner provided in RCW 3908030 (3) The contractor at any time may request the contract retainage be reduced to one hundred percent of the value of the work remaining on the project (a) After completion of all contract work other than landscaping the contractor may request that the public body release and pay in full the amounts retained during the performance of the contract and sixty days thereafter the public body must release and pay in full the amounts retained (other than continuing retention of five percent of the moneys earned for landscaping) subject to the provisions of chapters 3912 and 6028 RCW (b) Sixty days after completion of all contract work the public body must release and pay in full the amounts retained during the performance of the contract subject to the provisions of chapters 3912 and 6028 RCW (4) The moneys reserved by a public body under the provisions of a public improvement contract at the option of the contractor must be (a) Retained in a fund by the public body (b) Deposited by the public body in an interest bearing account in a bank mutual savings bank or savings and loan association Interest on moneys reserved by a public body under the provision of a public improvement contract must be paid to the contractor (c) Placed in escrow with a bank or trust company by the public body When the moneys reserved are placed in escrow the public body must issue a check representing the sum of the moneys reserved payable to the bank or trust company and the contractor jointly This check must be converted into bonds and securities chosen by the contractor and approved by the public body and the bonds and securities must be held in escrow Interest on the bonds and securities must be paid to the contractor as the interest accrues (5) The contractor or subcontractor may withhold payment of not more than five percent from the moneys earned by any subcontractor or sub-subcontractor or supplier contracted with by the contractor to provide labor materials or equipment to the public project Whenever the contractor or subcontractor reserves funds earned by a subcontractor or sub-subcontractor or

CCBA Nuts amp Bolts on Construction Law - 46 of 49

supplier the contractor or subcontractor must pay interest to the subcontractor or sub-subcontractor or supplier at a rate equal to that received by the contractor or subcontractor from reserved funds (6) A contractor may submit a bond for all or any portion of the contract retainage in a form acceptable to the public body and from a bonding company meeting standards established by the public body The public body must accept a bond meeting these requirements unless the public body can demonstrate good cause for refusing to accept it This bond and any proceeds therefrom are subject to all claims and liens and in the same manner and priority as set forth for retained percentages in this chapter The public body must release the bonded portion of the retained funds to the contractor within thirty days of accepting the bond from the contractor Whenever a public body accepts a bond in lieu of retained funds from a contractor the contractor must accept like bonds from any subcontractors or suppliers from which the contractor has retained funds The contractor must then release the funds retained from the subcontractor or supplier to the subcontractor or supplier within thirty days of accepting the bond from the subcontractor or supplier (7) If the public body administering a contract after a substantial portion of the work has been completed finds that an unreasonable delay will occur in the completion of the remaining portion of the contract for any reason not the result of a breach thereof it may if the contractor agrees delete from the contract the remaining work and accept as final the improvement at the stage of completion then attained and make payment in proportion to the amount of the work accomplished and in this case any amounts retained and accumulated under this section must be held for a period of sixty days following the completion In the event that the work is terminated before final completion as provided in this section the public body may thereafter enter into a new contract with the same contractor to perform the remaining work or improvement for an amount equal to or less than the cost of the remaining work as was provided for in the original contract without advertisement or bid The provisions of this chapter are exclusive and supersede all provisions and regulations in conflict herewith (8) Whenever the department of transportation has contracted for the construction of two or more ferry vessels sixty days after completion of all contract work on each ferry vessel the department must release and pay in full the amounts retained in connection with the construction of the vessel subject to the provisions of RCW 6028021 and chapter 3912 RCW However the department of transportation may at its discretion condition the release of funds retained in connection with the completed ferry upon the contractor delivering a good and sufficient bond with two or more sureties or with a surety company in the amount of the retained funds to be released to the contractor conditioned that no taxes may be certified or claims filed for work on the ferry after a period of sixty days following completion of the ferry and if taxes are certified or claims filed recovery may be had on the bond by the department of revenue the employment

CCBA Nuts amp Bolts on Construction Law - 47 of 49

security department the department of labor and industries and the material suppliers and laborers filing claims (9) Except as provided in subsection (1) of this section reservation by a public body for any purpose from the moneys earned by a contractor by fulfilling its responsibilities under public improvement contracts is prohibited (10) Contracts on projects funded in whole or in part by farmers home administration and subject to farmers home administration regulations are not subject to subsections (1) through (9) of this section (11) This subsection applies only to a public body that has contracted for the construction of a facility using the general contractorconstruction manager procedure as defined under RCW 3910210 If the work performed by a subcontractor on the project has been completed within the first half of the time provided in the general contractorconstruction manager contract for completing the work the public body may accept the completion of the subcontract The public body must give public notice of this acceptance After a forty-five day period for giving notice of liens and compliance with the retainage release procedures in RCW 6028021 the public body may release that portion of the retained funds associated with the subcontract Claims against the retained funds after the forty-five day period are not valid (12) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise (a) Contract retainage means an amount reserved by a public body from the moneys earned by a person under a public improvement contract (b) Person means a person or persons mechanic subcontractor or materialperson who performs labor or provides materials for a public improvement contract and any other person who supplies the person with provisions or supplies for the carrying on of a public improvement contract (c) Public body means the state or a county city town district board or other public body (d) Public improvement contract means a contract for public improvements or work other than for professional services or a work order as defined in RCW 3910210

CCBA Nuts amp Bolts on Construction Law - 48 of 49

RCW 6432070 Liens or encumbrances mdash Enforcement mdash Satisfaction

(1) Subsequent to recording the declaration as provided in this chapter and while the property remains subject to this chapter no lien shall thereafter arise or be effective against the property During such period liens or encumbrances shall arise or be created only against each apartment and the percentage of undivided interest in the common areas and facilities and appurtenant to such apartment in the same manner and under the same conditions in every respect as liens or encumbrances may arise or be created upon or against any other separate parcel of real property subject to individual ownership PROVIDED That no labor performed or materials furnished with the consent of or at the request of the owner of any apartment or such owners agent contractor or subcontractor shall be the basis for the filing of a lien against any other apartment or any other property of any other apartment owner not expressly consenting to or requesting the same except that such express consent shall be deemed to be given by any apartment owner in the case of emergency repairs Labor performed or materials furnished for the common areas and facilities if authorized by the association of apartment owners the manager or board of directors shall be deemed to be performed or furnished with the express consent of each apartment owner and shall be the basis for the filing of a lien against each of the apartments and shall be subject to the provisions of subsection (2) of this section (2) In the event a lien against two or more apartments becomes effective the apartment owners of the separate apartments may remove their apartment and the percentage of undivided interest in the common areas and facilities appurtenant to such apartment from the lien by payment of the fractional or proportional amounts attributable to each of the apartments affected Such individual payments shall be computed by reference to the percentages appearing on the declaration Subsequent to any such payment discharge or satisfaction the apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto shall thereafter be free and clear of the liens so paid satisfied or discharged Such partial payment satisfaction or discharge shall not prevent the lienor from proceeding to enforce his or her rights against any apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto not so paid satisfied or discharged

CCBA Nuts amp Bolts on Construction Law - 49 of 49

  • Cover Sheet
  • 20141110 - Washington Lien and Bond CLE
  • LampI Lien Summary
  • Claim of Lien
  • Form Notice to Owner
  • Model Disclosure Statement (Notice to Customer)
  • LampI Facts about Construction Liens
    • What you should know about contracts
    • How to protect your investment
    • For more information
      • Notice of Claim Against Bond and Retained Percentage
      • Preclaim Notice Bond amp Retained Percentage
      • Statute Handout
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UseDocumentProfile UseDocumentBleed false gtgt ]gtgt setdistillerparamsltlt HWResolution [2400 2400] PageSize [612000 792000]gtgt setpagedevice

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 DEU ltFEFF00560065007200770065006e00640065006e0020005300690065002000640069006500730065002000450069006e007300740065006c006c0075006e00670065006e0020007a0075006d002000450072007300740065006c006c0065006e00200076006f006e002000410064006f006200650020005000440046002d0044006f006b0075006d0065006e00740065006e002c00200076006f006e002000640065006e0065006e002000530069006500200068006f006300680077006500720074006900670065002000500072006500700072006500730073002d0044007200750063006b0065002000650072007a0065007500670065006e0020006d00f60063006800740065006e002e002000450072007300740065006c006c007400650020005000440046002d0044006f006b0075006d0065006e007400650020006b00f6006e006e0065006e0020006d006900740020004100630072006f00620061007400200075006e0064002000410064006f00620065002000520065006100640065007200200035002e00300020006f0064006500720020006800f600680065007200200067006500f600660066006e00650074002000770065007200640065006e002egt ESP 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 FRA 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 ITA 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 JPN ltFEFF9ad854c18cea306a30d730ea30d730ec30b951fa529b7528002000410064006f0062006500200050004400460020658766f8306e4f5c6210306b4f7f75283057307e305930023053306e8a2d5b9a30674f5c62103055308c305f0020005000440046002030d530a130a430eb306f3001004100630072006f0062006100740020304a30883073002000410064006f00620065002000520065006100640065007200200035002e003000204ee5964d3067958b304f30533068304c3067304d307e305930023053306e8a2d5b9a306b306f30d530a930f330c8306e57cb30818fbc307f304c5fc59808306730593002gt KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020ace0d488c9c80020c2dcd5d80020c778c1c4c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200035002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor prepress-afdrukken van hoge kwaliteit De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 50 en hoger) NOR ltFEFF004200720075006b00200064006900730073006500200069006e006e007300740069006c006c0069006e00670065006e0065002000740069006c002000e50020006f0070007000720065007400740065002000410064006f006200650020005000440046002d0064006f006b0075006d0065006e00740065007200200073006f006d00200065007200200062006500730074002000650067006e0065007400200066006f00720020006600f80072007400720079006b006b0073007500740073006b00720069006600740020006100760020006800f800790020006b00760061006c0069007400650074002e0020005000440046002d0064006f006b0075006d0065006e00740065006e00650020006b0061006e002000e50070006e00650073002000690020004100630072006f00620061007400200065006c006c00650072002000410064006f00620065002000520065006100640065007200200035002e003000200065006c006c00650072002000730065006e006500720065002egt PTB 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 SVE 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 ENU (Use these settings to create Adobe PDF documents best suited for high-quality prepress printing Created PDF documents can be opened with Acrobat and Adobe Reader 50 and later) gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false ConvertColors ConvertToCMYK DestinationProfileName () DestinationProfileSelector DocumentCMYK Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles false MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector DocumentCMYK PreserveEditing true UntaggedCMYKHandling LeaveUntagged UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ]gtgt setdistillerparamsltlt HWResolution [2400 2400] PageSize [612000 792000]gtgt setpagedevice

          1. To
          2. Date
          3. Re
          4. From
          5. AT THE REQUEST OF
          6. Sender
          7. Address
          8. Telephone
          9. Brief description of professional services materials or equipment provided or to be provided
          10. 1
          11. 2
          12. 3
          13. reg no
          14. deposit $
          15. expiration date
          16. claims up to $
          17. Reset

copies of the summons and complaint and a fee adopted by rule of not less than fifty dollars to cover the costs shall be served by registered or certified mail or other delivery service requiring notice of receipt upon the department at the time suit is started and the department shall maintain a record available for public inspection of all suits so commenced Service is not complete until the department receives the fee and three copies of the summons and complaint The service shall constitute service and confer personal jurisdiction on the contractor and the surety for suit on claimants claim against the contractor and the bond or deposit and the department shall transmit the summons and complaint or a copy thereof to the contractor at the address listed in the contractors application and to the surety within two days after it shall have been received (4) The surety upon the bond shall not be liable in an aggregate amount in excess of the amount named in the bond nor for any monetary penalty assessed pursuant to this chapter for an infraction The liability of the surety shall not cumulate where the bond has been renewed continued reinstated reissued or otherwise extended The surety upon the bond may upon notice to the department and the parties tender to the clerk of the court having jurisdiction of the action an amount equal to the claims thereunder or the amount of the bond less the amount of judgments if any previously satisfied therefrom and to the extent of such tender the surety upon the bond shall be exonerated but if the actions commenced and pending and provided to the department as required in subsection (3) of this section at any one time exceed the amount of the bond then unimpaired claims shall be satisfied from the bond in the following order (a) Employee labor and claims of laborers including employee benefits (b) Claims for breach of contract by a party to the construction contract (c) Registered or licensed subcontractors material and equipment (d) Taxes and contributions due the state of Washington (e) Any court costs interest and attorneys fees plaintiff may be entitled to recover The surety is not liable for any amount in excess of the penal limit of its bond A payment made by the surety in good faith exonerates the bond to the extent of any payment made by the surety (5) The total amount paid from a bond or deposit required of a general contractor by this section to claimants other than residential homeowners must not exceed one-half of the bond amount The total amount paid from a bond or deposit required of a specialty contractor by this section to claimants other than residential homeowners must not exceed one-half of the bond amount or four thousand dollars whichever is greater (6) The prevailing party in an action filed under this section against the contractor and contractors bond or deposit for breach of contract by a party to the construction contract involving a residential homeowner is entitled to costs interest and reasonable attorneys fees The surety upon the bond or deposit is not liable in an aggregate amount in excess of the amount

CCBA Nuts amp Bolts on Construction Law - 28 of 49

named in the bond or deposit nor for any monetary penalty assessed pursuant to this chapter for an infraction (7) If a final judgment impairs the liability of the surety upon the bond or deposit so furnished that there is not in effect a bond or deposit in the full amount prescribed in this section the registration of the contractor is automatically suspended until the bond or deposit liability in the required amount unimpaired by unsatisfied judgment claims is furnished (8) In lieu of the surety bond required by this section the contractor may file with the department an assigned savings account upon forms provided by the department (9) Any person having filed and served a summons and complaint as required by this section having an unsatisfied final judgment against the registrant for any items referred to in this section may execute upon the security held by the department by serving a certified copy of the unsatisfied final judgment by registered or certified mail upon the department within one year of the date of entry of such judgment Upon the receipt of service of such certified copy the department shall pay or order paid from the deposit through the registry of the superior court which rendered judgment towards the amount of the unsatisfied judgment The priority of payment by the department shall be the order of receipt by the department but the department shall have no liability for payment in excess of the amount of the deposit (10) Within ten days after resolution of the case a certified copy of the final judgment and order or any settlement documents where a case is not disposed of by a court trial a certified copy of the dispositive settlement documents must be provided to the department by the prevailing party Failure to provide a copy of the final judgment and order or the dispositive settlement documents to the department within ten days of entry of such an order constitutes a violation of this chapter and a penalty adopted by rule of not less than two hundred fifty dollars may be assessed against the prevailing party (11) The director may require an applicant applying to renew or reinstate a registration or applying for a new registration to file a bond of up to three times the normally required amount if the director determines that an applicant or a previous registration of a corporate officer owner or partner of a current applicant has had in the past five years a total of three final judgments in actions under this chapter involving a residential single-family dwelling on two or more different structures (12) The director may adopt rules necessary for the proper administration of the security RCW 1827114 Disclosure statement required mdash Prerequisite to lien claim

(1) Any contractor agreeing to perform any contracting project (a) For the repair alteration or construction of four or fewer residential units or accessory structures on such residential property when the bid or contract price totals one thousand dollars or more or (b) for the repair alteration or construction of a commercial building when the bid or contract price totals one thousand dollars or more but less than sixty thousand dollars must provide the customer with

CCBA Nuts amp Bolts on Construction Law - 29 of 49

the following disclosure statement in substantially the following form using lower case and upper case twelve-point and bold type where appropriate prior to starting work on the project NOTICE TO CUSTOMER This contractor is registered with the state of Washington registration no and has posted with the state a bond or deposit of for the purpose of satisfying claims against the contractor for breach of contract including negligent or improper work in the conduct of the contractors business The expiration date of this contractors registration is THIS BOND OR DEPOSIT MIGHT NOT BE SUFFICIENT TO COVER A CLAIM THAT MIGHT ARISE FROM THE WORK DONE UNDER YOUR CONTRACT This bond or deposit is not for your exclusive use because it covers all work performed by this contractor The bond or deposit is intended to pay valid claims up to that you and other customers suppliers subcontractors or taxing authorities may have FOR GREATER PROTECTION YOU MAY WITHHOLD A PERCENTAGE OF YOUR CONTRACT You may withhold a contractually defined percentage of your construction contract as retainage for a stated period of time to provide protection to you and help insure that your project will be completed as required by your contract YOUR PROPERTY MAY BE LIENED If a supplier of materials used in your construction project or an employee or subcontractor of your contractor or subcontractors is not paid your property may be liened to force payment and you could pay twice for the same work FOR ADDITIONAL PROTECTION YOU MAY REQUEST THE CONTRACTOR TO PROVIDE YOU WITH ORIGINAL LIEN RELEASE DOCUMENTS FROM EACH SUPPLIER OR SUBCONTRACTOR ON YOUR PROJECT The contractor is required to provide you with further information about lien release documents if you request it General information is also available from the state Department of Labor and Industries I have received a copy of this disclosure statement

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(Signature of customer) (2) The contractor must retain a signed copy of the disclosure statement in his or her files for a minimum of three years and produce a signed or electronic signature copy of the disclosure statement to the department upon request (3) A contractor subject to this section shall notify any consumer to whom notice is required under subsection (1) of this section if the contractors registration has expired or is revoked or suspended by the department prior to completion or other termination of the contract with the consumer (4) No contractor subject to this section may bring or maintain any lien claim under chapter 6004 RCW based on any contract to which this section applies without alleging and proving that the contractor has provided the customer with a copy of the disclosure statement as required in subsection (1) of this section (5) This section does not apply to contracts authorized under chapter 3904 RCW or to contractors contracting with other contractors (6) Failure to comply with this section shall constitute an infraction under the provisions of this chapter (7) The department shall produce model disclosure statements and public service announcements detailing the information needed to assist contractors and contractors customers to comply under this section As necessary the department shall periodically update these education materials RCW 3908010 Bond required mdash Conditions mdash Retention of contract amount in lieu of bond (1)(a) Whenever any board council commission trustees or body acting for the state or any county or municipality or any public body must contract with any person or corporation to do any work for the state county or municipality or other public body city town or district such board council commission trustees or body must require the person or persons with whom such contract is made to make execute and deliver to such board council commission trustees or body a good and sufficient bond with a surety company as surety conditioned that such person or persons must (i) Faithfully perform all the provisions of such contract (ii) Pay all laborers mechanics and subcontractors and material suppliers and all persons who supply such person or persons or subcontractors with provisions and supplies for the carrying on of such work and

CCBA Nuts amp Bolts on Construction Law - 31 of 49

(iii) Pay the taxes increases and penalties incurred on the project under Titles 50 51 and 82 RCW on (A) Projects referred to in RCW 6028011(1)(b) andor (B) projects for which the bond is conditioned on the payment of such taxes increases and penalties (b) The bond in cases of cities and towns must be filed with the clerk or comptroller thereof and any person or persons performing such services or furnishing material to any subcontractor has the same right under the provisions of such bond as if such work services or material was furnished to the original contractor (2) The provisions of RCW 3908010 through 3908030 do not apply to any money loaned or advanced to any such contractor subcontractor or other person in the performance of any such work (3) On contracts of thirty-five thousand dollars or less at the option of the contractor the respective public entity may in lieu of the bond retain fifty percent of the contract amount for a period of thirty days after date of final acceptance or until receipt of all necessary releases from the department of revenue the employment security department and the department of labor and industries and settlement of any liens filed under chapter 6028 RCW whichever is later (4) For contracts of one hundred thousand dollars or less the public entity may accept a full payment and performance bond from an individual surety or sureties (5) The surety must agree to be bound by the laws of the state of Washington and subjected to the jurisdiction of the state of Washington RCW 6004011 Definitions

Unless the context requires otherwise the definitions in this section apply throughout this chapter (1) Construction agent means any registered or licensed contractor registered or licensed subcontractor architect engineer or other person having charge of any improvement to real property who shall be deemed the agent of the owner for the limited purpose of establishing the lien created by this chapter (2) Contract price means the amount agreed upon by the contracting parties or if no amount is agreed upon then the customary and reasonable charge therefor (3) Draws means periodic disbursements of interim or construction financing by a lender (4) Furnishing labor professional services materials or equipment means the performance of any labor or professional services the contribution owed to any employee benefit plan on account of any labor the provision of any supplies or materials and the renting leasing or

CCBA Nuts amp Bolts on Construction Law - 32 of 49

otherwise supplying of equipment for the improvement of real property (5) Improvement means (a) Constructing altering repairing remodeling demolishing clearing grading or filling in of to or upon any real property or street or road in front of or adjoining the same (b) planting of trees vines shrubs plants hedges or lawns or providing other landscaping materials on any real property and (c) providing professional services upon real property or in preparation for or in conjunction with the intended activities in (a) or (b) of this subsection (6) Interim or construction financing means that portion of money secured by a mortgage deed of trust or other encumbrance to finance improvement of or to real property but does not include (a) Funds to acquire real property (b) Funds to pay interest insurance premiums lease deposits taxes assessments or prior encumbrances (c) Funds to pay loan commitment title legal closing recording or appraisal fees (d) Funds to pay other customary fees which pursuant to agreement with the owner or borrower are to be paid by the lender from time to time (e) Funds to acquire personal property for which the potential lien claimant may not claim a lien pursuant to this chapter (7) Labor means exertion of the powers of body or mind performed at the site for compensation Labor includes amounts due and owed to any employee benefit plan on account of such labor performed (8) Mortgagee means a person who has a valid mortgage of record or deed of trust of record securing a loan (9) Owner-occupied means a single-family residence occupied by the owner as his or her principal residence (10) Payment bond means a surety bond issued by a surety licensed to issue surety bonds in the state of Washington that confers upon potential claimants the rights of third party beneficiaries (11) Potential lien claimant means any person or entity entitled to assert lien rights under this chapter who has otherwise complied with the provisions of this chapter and is registered or licensed if required to be licensed or registered by the provisions of the laws of the state of Washington (12) Prime contractor includes all contractors general contractors and specialty

CCBA Nuts amp Bolts on Construction Law - 33 of 49

contractors as defined by chapter 1827 or 1928 RCW or who are otherwise required to be registered or licensed by law who contract directly with a property owner or their common law agent to assume primary responsibility for the creation of an improvement to real property and includes property owners or their common law agents who are contractors general contractors or specialty contractors as defined in chapter 1827 or 1928 RCW or who are otherwise required to be registered or licensed by law who offer to sell their property without occupying or using the structures projects developments or improvements for more than one year (13) Professional services means surveying establishing or marking the boundaries of preparing maps plans or specifications for or inspecting testing or otherwise performing any other architectural or engineering services for the improvement of real property (14) Real property lender means a bank savings bank savings and loan association credit union mortgage company or other corporation association partnership trust or individual that makes loans secured by real property located in the state of Washington (15) Site means the real property which is or is to be improved (16) Subcontractor means a general contractor or specialty contractor as defined by chapter 1827 or 1928 RCW or who is otherwise required to be registered or licensed by law who contracts for the improvement of real property with someone other than the owner of the property or their common law agent

6004021 Lien authorized

Except as provided in RCW 6004031 any person furnishing labor professional services materials or equipment for the improvement of real property shall have a lien upon the improvement for the contract price of labor professional services materials or equipment furnished at the instance of the owner or the agent or construction agent of the owner

6004031 Notices mdash Exceptions

(1) Except as otherwise provided in this section every person furnishing professional services materials or equipment for the improvement of real property shall give the owner or reputed owner notice in writing of the right to claim a lien If the prime contractor is in compliance with the requirements of RCW 1927095 6004230 and 6004261 this notice shall also be given to the prime contractor as described in this subsection unless the potential lien claimant has contracted directly with the prime contractor The notice may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after the date which is sixty days before (a) Mailing the notice by certified or registered mail to the owner or reputed owner or

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(b) Delivering or serving the notice personally upon the owner or reputed owner and obtaining evidence of delivery in the form of a receipt or other acknowledgment signed by the owner or reputed owner or an affidavit of service In the case of new construction of a single-family residence the notice of a right to claim a lien may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after a date which is ten days before the notice is given as described in this subsection (2) Notices of a right to claim a lien shall not be required of (a) Persons who contract directly with the owner or the owners common law agent (b) Laborers whose claim of lien is based solely on performing labor or (c) Subcontractors who contract for the improvement of real property directly with the prime contractor except as provided in subsection (3)(b) of this section (3) Persons who furnish professional services materials or equipment in connection with the repair alteration or remodel of an existing owner-occupied single-family residence or appurtenant garage (a) Who contract directly with the owner-occupier or their common law agent shall not be required to send a written notice of the right to claim a lien and shall have a lien for the full amount due under their contract as provided in RCW 6004021 or (b) Who do not contract directly with the owner-occupier or their common law agent shall give notice of the right to claim a lien to the owner-occupier Liens of persons furnishing professional services materials or equipment who do not contract directly with the owner-occupier or their common law agent may only be satisfied from amounts not yet paid to the prime contractor by the owner at the time the notice described in this section is received regardless of whether amounts not yet paid to the prime contractor are due For the purposes of this subsection received means actual receipt of notice by personal service or registered or certified mail or three days after mailing by registered or certified mail excluding Saturdays Sundays or legal holidays (4) The notice of right to claim a lien described in subsection (1) of this section shall include but not be limited to the following information and shall substantially be in the following form using lower-case and upper-case ten-point type where appropriate

CCBA Nuts amp Bolts on Construction Law - 35 of 49

NOTICE TO OWNER

IMPORTANT READ BOTH SIDES OF THIS NOTICE CAREFULLY

PROTECT YOURSELF FROM PAYING TWICE

To Date

Re (description of property Street address or general location) From AT THE REQUEST OF (Name of person ordering the professional services materials or equipment) THIS IS NOT A LIEN This notice is sent to you to tell you who is providing professional services materials or equipment for the improvement of your property and to advise you of the rights of these persons and your responsibilities Also take note that laborers on your project may claim a lien without sending you a notice

OWNEROCCUPIER OF EXISTING

RESIDENTIAL PROPERTY

Under Washington law those who furnish labor professional services materials or equipment for the repair remodel or alteration of your owner-occupied principal residence and who are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien The law limits the amount that a lien claimant can claim against your property Claims may only be made against that portion of the contract price you have not yet paid to your prime contractor as of the time this notice was given to you or three days after this notice was mailed to you Review the back of this notice for more information and ways to avoid lien claims

COMMERCIAL ANDOR NEW

RESIDENTIAL PROPERTY

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We have or will be providing professional services materials or equipment for the improvement of your commercial or new residential project In the event you or your contractor fail to pay us we may file a lien against your property A lien may be claimed for all professional services materials or equipment furnished after a date that is sixty days before this notice was given to you or mailed to you unless the improvement to your property is the construction of a new single-family residence then ten days before this notice was given to you or mailed to you Sender Address Telephone Brief description of professional services materials or equipment provided or to be provided

IMPORTANT INFORMATION

ON REVERSE SIDE

IMPORTANT INFORMATION

FOR YOUR PROTECTION This notice is sent to inform you that we have or will provide professional services materials or equipment for the improvement of your property We expect to be paid by the person who ordered our services but if we are not paid we have the right to enforce our claim by filing a construction lien against your property LEARN more about the lien laws and the meaning of this notice by discussing them with your contractor suppliers Department of Labor and Industries the firm sending you this notice your lender or your attorney

COMMON METHODS TO AVOID CONSTRUCTION LIENS There are several methods available to protect your property from construction liens The following are two of the more commonly used methods

DUAL PAYCHECKS (Joint Checks) When paying your contractor for services or materials you may make checks payable jointly to the contractor and the firms furnishing you this notice

CCBA Nuts amp Bolts on Construction Law - 37 of 49

LIEN RELEASES You may require your contractor to provide lien releases signed by all the suppliers and subcontractors from whom you have received this notice If they cannot obtain lien releases because you have not paid them you may use the dual payee check method to protect yourself

YOU SHOULD TAKE APPROPRIATE STEPS TO PROTECT YOUR PROPERTY FROM LIENS YOUR PRIME CONTRACTOR AND YOUR CONSTRUCTION LENDER ARE REQUIRED BY LAW TO GIVE YOU WRITTEN INFORMATION ABOUT LIEN CLAIMS IF YOU HAVE NOT RECEIVED IT ASK THEM FOR IT

(5) Every potential lien claimant providing professional services where no improvement as defined in RCW 6004011(5) (a) or (b) has been commenced and the professional services provided are not visible from an inspection of the real property may record in the real property records of the county where the property is located a notice which shall contain the professional service providers name address telephone number legal description of the property the owner or reputed owners name and the general nature of the professional services provided If such notice is not recorded the lien claimed shall be subordinate to the interest of any subsequent mortgagee and invalid as to the interest of any subsequent purchaser if the mortgagee or purchaser acts in good faith and for a valuable consideration acquires an interest in the property prior to the commencement of an improvement as defined in RCW 6004011(5) (a) or (b) without notice of the professional services being provided The notice described in this subsection shall be substantially in the following form

NOTICE OF FURNISHING

PROFESSIONAL SERVICES That on the (day) day of (month and year) (name of provider) began providing professional services upon or for the improvement of real property legally described as follows

[Legal Description is mandatory]

CCBA Nuts amp Bolts on Construction Law - 38 of 49

The general nature of the professional services provided is The owner or reputed owner of the real property is

(Signature)

(Name of Claimant)

(Street Address)

(City State Zip Code)

(Phone Number)

(6) A lien authorized by this chapter shall not be enforced unless the lien claimant has complied with the applicable provisions of this section

6004041 Contractor registration

A contractor or subcontractor required to be registered under chapter 1827 RCW or licensed under chapter 1928 RCW or otherwise required to be registered or licensed by law shall be deemed the construction agent of the owner for the purposes of establishing the lien created by this chapter only if so registered or licensed Persons dealing with contractors or subcontractors may rely for the purposes of this section upon a certificate of registration issued pursuant to chapter 1827 RCW or license issued pursuant to chapter 1928 RCW or other certificate or license issued pursuant to law covering the period when the labor professional services material or equipment shall be furnished and the lien rights shall not be lost by suspension or revocation of registration or license without their knowledge No lien rights described in this

CCBA Nuts amp Bolts on Construction Law - 39 of 49

chapter shall be lost or denied by virtue of the absence suspension or revocation of such registration or license with respect to any contractor or subcontractor not in immediate contractual privity with the lien claimant

6004081 Frivolous claim mdash Procedure

(1) Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who believes the claim of lien to be frivolous and made without reasonable cause or clearly excessive may apply by motion to the superior court for the county where the property or some part thereof is located for an order directing the lien claimant to appear before the court at a time no earlier than six nor later than fifteen days following the date of service of the application and order on the lien claimant and show cause if any he or she has why the relief requested should not be granted The motion shall state the grounds upon which relief is asked and shall be supported by the affidavit of the applicant or his or her attorney setting forth a concise statement of the facts upon which the motion is based (2) The order shall clearly state that if the lien claimant fails to appear at the time and place noted the lien shall be released with prejudice and that the lien claimant shall be ordered to pay the costs requested by the applicant including reasonable attorneys fees (3) If no action to foreclose the lien claim has been filed the clerk of the court shall assign a cause number to the application and obtain from the applicant a filing fee pursuant to RCW 3618016 If an action has been filed to foreclose the lien claim the application shall be made a part of that action (4) If following a hearing on the matter the court determines that the lien is frivolous and made without reasonable cause or clearly excessive the court shall issue an order releasing the lien if frivolous and made without reasonable cause or reducing the lien if clearly excessive and awarding costs and reasonable attorneys fees to the applicant to be paid by the lien claimant If the court determines that the lien is not frivolous and was made with reasonable cause and is not clearly excessive the court shall issue an order so stating and awarding costs and reasonable attorneys fees to the lien claimant to be paid by the applicant (5) Proceedings under this section shall not affect other rights and remedies available to the parties under this chapter or otherwise

6004091 Recording mdash Time mdash Contents of lien

Every person claiming a lien under RCW 6004021 shall file for recording in the county where the subject property is located a notice of claim of lien not later than ninety days after the person

CCBA Nuts amp Bolts on Construction Law - 40 of 49

has ceased to furnish labor professional services materials or equipment or the last date on which employee benefit contributions were due The notice of claim of lien (1) Shall state in substance and effect (a) The name phone number and address of the claimant (b) The first and last date on which the labor professional services materials or equipment was furnished or employee benefit contributions were due (c) The name of the person indebted to the claimant (d) The street address legal description or other description reasonably calculated to identify for a person familiar with the area the location of the real property to be charged with the lien (e) The name of the owner or reputed owner of the property if known and if not known that fact shall be stated and (f) The principal amount for which the lien is claimed (2) Shall be signed by the claimant or some person authorized to act on his or her behalf who shall affirmatively state they have read the notice of claim of lien and believe the notice of claim of lien to be true and correct under penalty of perjury and shall be acknowledged pursuant to chapter 6408 RCW If the lien has been assigned the name of the assignee shall be stated Where an action to foreclose the lien has been commenced such notice of claim of lien may be amended as pleadings may be by order of the court insofar as the interests of third parties are not adversely affected by such amendment A claim of lien substantially in the following form shall be sufficient

CLAIM OF LIEN

claimant vs name of person indebted to claimant

Notice is hereby given that the person named below claims a lien pursuant to chapter 6404 RCW In support of this lien the following information is submitted

1 NAME OF LIEN CLAIMANT

TELEPHONE NUMBER

CCBA Nuts amp Bolts on Construction Law - 41 of 49

ADDRESS

2 DATE ON WHICH THE CLAIMANT BEGAN TO PERFORM LABOR PROVIDE PROFESSIONAL SERVICES SUPPLY MATERIAL OR EQUIPMENT OR THE DATE ON WHICH EMPLOYEE BENEFIT CONTRIBUTIONS BECAME DUE

3 NAME OF PERSON INDEBTED TO THE CLAIMANT

4 DESCRIPTION OF THE PROPERTY AGAINST WHICH A LIEN IS CLAIMED (Street address legal description or other information that will reasonably describe the property)

5 NAME OF THE OWNER OR REPUTED OWNER (If not known state unknown)

6 THE LAST DATE ON WHICH LABOR WAS PERFORMED PROFESSIONAL SERVICES WERE FURNISHED CONTRIBUTIONS TO AN EMPLOYEE BENEFIT PLAN WERE DUE OR MATERIAL OR EQUIPMENT WAS FURNISHED

7 PRINCIPAL AMOUNT FOR WHICH THE LIEN IS CLAIMED IS

8 IF THE CLAIMANT IS THE ASSIGNEE OF THIS CLAIM SO STATE HERE

Claimant

(Phone number address city

CCBA Nuts amp Bolts on Construction Law - 42 of 49

and

state of claimant)

STATE OF WASHINGTON COUNTY OF ss being sworn says I am the claimant (or attorney of the claimant or administrator representative or agent of the trustees of an employee benefit plan) above named I have read or heard the foregoing claim read and know the contents thereof and believe the same to be true and correct and that the claim of lien is not frivolous and is made with reasonable cause and is not clearly excessive under penalty of perjury Subscribed and sworn to before me this day of The period provided for recording the claim of lien is a period of limitation and no action to foreclose a lien shall be maintained unless the claim of lien is filed for recording within the ninety-day period stated The lien claimant shall give a copy of the claim of lien to the owner or reputed owner by mailing it by certified or registered mail or by personal service within fourteen days of the time the claim of lien is filed for recording Failure to do so results in a forfeiture of any right the claimant may have to attorneys fees and costs against the owner under RCW 6004181

6004161 Bond in lieu of claim

Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who disputes the correctness or validity of the claim of lien may record either before or after the commencement of an action to enforce the lien in the office of the county recorder or auditor in the county where the claim of lien was recorded a bond issued by a surety company authorized to issue surety bonds in the state The surety shall be listed in the latest federal department of the treasury list of surety companies acceptable on federal bonds published in the Federal Register as authorized to issue bonds on United States government projects with an underwriting limitation including applicable reinsurance equal to or greater than the amount of the bond to be recorded The bond shall contain a description of the claim of lien and real property involved and be in an amount equal to the greater of five thousand dollars or two times the amount of the lien claimed if it is ten thousand dollars or less and in an amount equal to or greater than one and one-half times the amount of the lien if it is in

CCBA Nuts amp Bolts on Construction Law - 43 of 49

excess of ten thousand dollars If the claim of lien affects more than one parcel of real property and is segregated to each parcel the bond may be segregated the same as in the claim of lien A separate bond shall be required for each claim of lien made by separate claimants However a single bond may be used to guarantee payment of amounts claimed by more than one claim of lien by a single claimant so long as the amount of the bond meets the requirements of this section as applied to the aggregate sum of all claims by such claimant The condition of the bond shall be to guarantee payment of any judgment upon the lien in favor of the lien claimant entered in any action to recover the amount claimed in a claim of lien or on the claim asserted in the claim of lien The effect of recording a bond shall be to release the real property described in the notice of claim of lien from the lien and any action brought to recover the amount claimed Unless otherwise prohibited by law if no action is commenced to recover on a lien within the time specified in RCW 6004141 the surety shall be discharged from liability under the bond If an action is timely commenced then on payment of any judgment entered in the action or on payment of the full amount of the bond to the holder of the judgment whichever is less the surety shall be discharged from liability under the bond Nothing in this section shall in any way prohibit or limit the use of other methods devised by the affected parties to secure the obligation underlying a claim of lien and to obtain a release of real property from a claim of lien

6004181 Rank of lien mdash Application of proceeds mdash Attorneys fees

(1) In every case in which different construction liens are claimed against the same property the court shall declare the rank of such lien or class of liens which liens shall be in the following order (a) Liens for the performance of labor (b) Liens for contributions owed to employee benefit plans (c) Liens for furnishing material supplies or equipment (d) Liens for subcontractors including but not limited to their labor and materials and (e) Liens for prime contractors or for professional services (2) The proceeds of the sale of property must be applied to each lien or class of liens in order of its rank and in an action brought to foreclose a lien pro rata among each claimant in each separate priority class A personal judgment may be rendered against any party personally liable for any debt for which the lien is claimed If the lien is established the judgment shall provide

CCBA Nuts amp Bolts on Construction Law - 44 of 49

for the enforcement thereof upon the property liable as in the case of foreclosure of judgment liens The amount realized by such enforcement of the lien shall be credited upon the proper personal judgment The deficiency if any remaining unsatisfied shall stand as a personal judgment and may be collected by execution against any party liable therefor (3) The court may allow the prevailing party in the action whether plaintiff or defendant as part of the costs of the action the moneys paid for recording the claim of lien costs of title report bond costs and attorneys fees and necessary expenses incurred by the attorney in the superior court court of appeals supreme court or arbitration as the court or arbitrator deems reasonable Such costs shall have the priority of the class of lien to which they are related as established by subsection (1) of this section (4) Real property against which a lien under this chapter is enforced may be ordered sold by the court and the proceeds deposited into the registry of the clerk of the court pending further determination respecting distribution of the proceeds of the sale

6004900 Liberal construction mdash 1991 c 281

RCW 1927095 6004230 and 6004011 through 6004226 and 6004261 are to be liberally construed to provide security for all parties intended to be protected by their provisions

RCW 6028011

Retained percentage mdash Public transportation projects mdash Labor and material lien created mdash Bond in lieu of retained funds mdash Termination before completion mdash Chapter deemed exclusive mdash Release of ferry contract payments mdash Projects of farmers home administration mdash General contractorconstruction manager procedure mdash Definitions

(1)(a) Except as provided in (b) of this subsection public improvement contracts must provide and public bodies must reserve a contract retainage not to exceed five percent of the moneys earned by the contractor as a trust fund for the protection and payment of (i) The claims of any person arising under the contract and (ii) the state with respect to taxes increases and penalties imposed pursuant to Titles 50 51 and 82 RCW which may be due from such contractor (b) Public improvement contracts funded in whole or in part by federal transportation funds must rely upon the contract bond as referred to in chapter 3908 RCW for the protection and payment of (i) The claims of any person or persons arising under the contract to the extent such claims are provided for in RCW 3908010 and (ii) the state with respect to taxes increases and penalties incurred on the public improvement project under Titles 50 51 and 82 RCW which may be due The contract bond must remain in full force and effect until at a minimum all claims filed in compliance with chapter 3908 RCW are resolved

CCBA Nuts amp Bolts on Construction Law - 45 of 49

(2) Every person performing labor or furnishing supplies toward the completion of a public improvement contract has a lien upon moneys reserved by a public body under the provisions of a public improvement contract However the notice of the lien of the claimant must be given within forty-five days of completion of the contract work and in the manner provided in RCW 3908030 (3) The contractor at any time may request the contract retainage be reduced to one hundred percent of the value of the work remaining on the project (a) After completion of all contract work other than landscaping the contractor may request that the public body release and pay in full the amounts retained during the performance of the contract and sixty days thereafter the public body must release and pay in full the amounts retained (other than continuing retention of five percent of the moneys earned for landscaping) subject to the provisions of chapters 3912 and 6028 RCW (b) Sixty days after completion of all contract work the public body must release and pay in full the amounts retained during the performance of the contract subject to the provisions of chapters 3912 and 6028 RCW (4) The moneys reserved by a public body under the provisions of a public improvement contract at the option of the contractor must be (a) Retained in a fund by the public body (b) Deposited by the public body in an interest bearing account in a bank mutual savings bank or savings and loan association Interest on moneys reserved by a public body under the provision of a public improvement contract must be paid to the contractor (c) Placed in escrow with a bank or trust company by the public body When the moneys reserved are placed in escrow the public body must issue a check representing the sum of the moneys reserved payable to the bank or trust company and the contractor jointly This check must be converted into bonds and securities chosen by the contractor and approved by the public body and the bonds and securities must be held in escrow Interest on the bonds and securities must be paid to the contractor as the interest accrues (5) The contractor or subcontractor may withhold payment of not more than five percent from the moneys earned by any subcontractor or sub-subcontractor or supplier contracted with by the contractor to provide labor materials or equipment to the public project Whenever the contractor or subcontractor reserves funds earned by a subcontractor or sub-subcontractor or

CCBA Nuts amp Bolts on Construction Law - 46 of 49

supplier the contractor or subcontractor must pay interest to the subcontractor or sub-subcontractor or supplier at a rate equal to that received by the contractor or subcontractor from reserved funds (6) A contractor may submit a bond for all or any portion of the contract retainage in a form acceptable to the public body and from a bonding company meeting standards established by the public body The public body must accept a bond meeting these requirements unless the public body can demonstrate good cause for refusing to accept it This bond and any proceeds therefrom are subject to all claims and liens and in the same manner and priority as set forth for retained percentages in this chapter The public body must release the bonded portion of the retained funds to the contractor within thirty days of accepting the bond from the contractor Whenever a public body accepts a bond in lieu of retained funds from a contractor the contractor must accept like bonds from any subcontractors or suppliers from which the contractor has retained funds The contractor must then release the funds retained from the subcontractor or supplier to the subcontractor or supplier within thirty days of accepting the bond from the subcontractor or supplier (7) If the public body administering a contract after a substantial portion of the work has been completed finds that an unreasonable delay will occur in the completion of the remaining portion of the contract for any reason not the result of a breach thereof it may if the contractor agrees delete from the contract the remaining work and accept as final the improvement at the stage of completion then attained and make payment in proportion to the amount of the work accomplished and in this case any amounts retained and accumulated under this section must be held for a period of sixty days following the completion In the event that the work is terminated before final completion as provided in this section the public body may thereafter enter into a new contract with the same contractor to perform the remaining work or improvement for an amount equal to or less than the cost of the remaining work as was provided for in the original contract without advertisement or bid The provisions of this chapter are exclusive and supersede all provisions and regulations in conflict herewith (8) Whenever the department of transportation has contracted for the construction of two or more ferry vessels sixty days after completion of all contract work on each ferry vessel the department must release and pay in full the amounts retained in connection with the construction of the vessel subject to the provisions of RCW 6028021 and chapter 3912 RCW However the department of transportation may at its discretion condition the release of funds retained in connection with the completed ferry upon the contractor delivering a good and sufficient bond with two or more sureties or with a surety company in the amount of the retained funds to be released to the contractor conditioned that no taxes may be certified or claims filed for work on the ferry after a period of sixty days following completion of the ferry and if taxes are certified or claims filed recovery may be had on the bond by the department of revenue the employment

CCBA Nuts amp Bolts on Construction Law - 47 of 49

security department the department of labor and industries and the material suppliers and laborers filing claims (9) Except as provided in subsection (1) of this section reservation by a public body for any purpose from the moneys earned by a contractor by fulfilling its responsibilities under public improvement contracts is prohibited (10) Contracts on projects funded in whole or in part by farmers home administration and subject to farmers home administration regulations are not subject to subsections (1) through (9) of this section (11) This subsection applies only to a public body that has contracted for the construction of a facility using the general contractorconstruction manager procedure as defined under RCW 3910210 If the work performed by a subcontractor on the project has been completed within the first half of the time provided in the general contractorconstruction manager contract for completing the work the public body may accept the completion of the subcontract The public body must give public notice of this acceptance After a forty-five day period for giving notice of liens and compliance with the retainage release procedures in RCW 6028021 the public body may release that portion of the retained funds associated with the subcontract Claims against the retained funds after the forty-five day period are not valid (12) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise (a) Contract retainage means an amount reserved by a public body from the moneys earned by a person under a public improvement contract (b) Person means a person or persons mechanic subcontractor or materialperson who performs labor or provides materials for a public improvement contract and any other person who supplies the person with provisions or supplies for the carrying on of a public improvement contract (c) Public body means the state or a county city town district board or other public body (d) Public improvement contract means a contract for public improvements or work other than for professional services or a work order as defined in RCW 3910210

CCBA Nuts amp Bolts on Construction Law - 48 of 49

RCW 6432070 Liens or encumbrances mdash Enforcement mdash Satisfaction

(1) Subsequent to recording the declaration as provided in this chapter and while the property remains subject to this chapter no lien shall thereafter arise or be effective against the property During such period liens or encumbrances shall arise or be created only against each apartment and the percentage of undivided interest in the common areas and facilities and appurtenant to such apartment in the same manner and under the same conditions in every respect as liens or encumbrances may arise or be created upon or against any other separate parcel of real property subject to individual ownership PROVIDED That no labor performed or materials furnished with the consent of or at the request of the owner of any apartment or such owners agent contractor or subcontractor shall be the basis for the filing of a lien against any other apartment or any other property of any other apartment owner not expressly consenting to or requesting the same except that such express consent shall be deemed to be given by any apartment owner in the case of emergency repairs Labor performed or materials furnished for the common areas and facilities if authorized by the association of apartment owners the manager or board of directors shall be deemed to be performed or furnished with the express consent of each apartment owner and shall be the basis for the filing of a lien against each of the apartments and shall be subject to the provisions of subsection (2) of this section (2) In the event a lien against two or more apartments becomes effective the apartment owners of the separate apartments may remove their apartment and the percentage of undivided interest in the common areas and facilities appurtenant to such apartment from the lien by payment of the fractional or proportional amounts attributable to each of the apartments affected Such individual payments shall be computed by reference to the percentages appearing on the declaration Subsequent to any such payment discharge or satisfaction the apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto shall thereafter be free and clear of the liens so paid satisfied or discharged Such partial payment satisfaction or discharge shall not prevent the lienor from proceeding to enforce his or her rights against any apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto not so paid satisfied or discharged

CCBA Nuts amp Bolts on Construction Law - 49 of 49

  • Cover Sheet
  • 20141110 - Washington Lien and Bond CLE
  • LampI Lien Summary
  • Claim of Lien
  • Form Notice to Owner
  • Model Disclosure Statement (Notice to Customer)
  • LampI Facts about Construction Liens
    • What you should know about contracts
    • How to protect your investment
    • For more information
      • Notice of Claim Against Bond and Retained Percentage
      • Preclaim Notice Bond amp Retained Percentage
      • Statute Handout
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UseDocumentProfile UseDocumentBleed false gtgt ]gtgt setdistillerparamsltlt HWResolution [2400 2400] PageSize [612000 792000]gtgt setpagedevice

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Quality 30 gtgt AntiAliasMonoImages false CropMonoImages true MonoImageMinResolution 1200 MonoImageMinResolutionPolicy OK DownsampleMonoImages true MonoImageDownsampleType Bicubic MonoImageResolution 1200 MonoImageDepth -1 MonoImageDownsampleThreshold 150000 EncodeMonoImages false MonoImageFilter CCITTFaxEncode MonoImageDict ltlt K -1 gtgt AllowPSXObjects false CheckCompliance [ None ] PDFX1aCheck false PDFX3Check false PDFXCompliantPDFOnly false PDFXNoTrimBoxError true PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile (None) PDFXOutputConditionIdentifier () PDFXOutputCondition () PDFXRegistryName () PDFXTrapped False Description ltlt CHS 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 DEU 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 ESP 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 FRA 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 ITA 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 JPN ltFEFF9ad854c18cea306a30d730ea30d730ec30b951fa529b7528002000410064006f0062006500200050004400460020658766f8306e4f5c6210306b4f7f75283057307e305930023053306e8a2d5b9a30674f5c62103055308c305f0020005000440046002030d530a130a430eb306f3001004100630072006f0062006100740020304a30883073002000410064006f00620065002000520065006100640065007200200035002e003000204ee5964d3067958b304f30533068304c3067304d307e305930023053306e8a2d5b9a306b306f30d530a930f330c8306e57cb30818fbc307f304c5fc59808306730593002gt KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020ace0d488c9c80020c2dcd5d80020c778c1c4c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200035002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor prepress-afdrukken van hoge kwaliteit De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 50 en hoger) NOR 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 PTB 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 SUO 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 SVE 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 ENU (Use these settings to create Adobe PDF documents best suited for high-quality prepress printing Created PDF documents can be opened with Acrobat and Adobe Reader 50 and later) gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false ConvertColors ConvertToCMYK DestinationProfileName () DestinationProfileSelector DocumentCMYK Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles false MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector DocumentCMYK PreserveEditing true UntaggedCMYKHandling LeaveUntagged UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ]gtgt setdistillerparamsltlt HWResolution [2400 2400] PageSize [612000 792000]gtgt setpagedevice

          1. To
          2. Date
          3. Re
          4. From
          5. AT THE REQUEST OF
          6. Sender
          7. Address
          8. Telephone
          9. Brief description of professional services materials or equipment provided or to be provided
          10. 1
          11. 2
          12. 3
          13. reg no
          14. deposit $
          15. expiration date
          16. claims up to $
          17. Reset

named in the bond or deposit nor for any monetary penalty assessed pursuant to this chapter for an infraction (7) If a final judgment impairs the liability of the surety upon the bond or deposit so furnished that there is not in effect a bond or deposit in the full amount prescribed in this section the registration of the contractor is automatically suspended until the bond or deposit liability in the required amount unimpaired by unsatisfied judgment claims is furnished (8) In lieu of the surety bond required by this section the contractor may file with the department an assigned savings account upon forms provided by the department (9) Any person having filed and served a summons and complaint as required by this section having an unsatisfied final judgment against the registrant for any items referred to in this section may execute upon the security held by the department by serving a certified copy of the unsatisfied final judgment by registered or certified mail upon the department within one year of the date of entry of such judgment Upon the receipt of service of such certified copy the department shall pay or order paid from the deposit through the registry of the superior court which rendered judgment towards the amount of the unsatisfied judgment The priority of payment by the department shall be the order of receipt by the department but the department shall have no liability for payment in excess of the amount of the deposit (10) Within ten days after resolution of the case a certified copy of the final judgment and order or any settlement documents where a case is not disposed of by a court trial a certified copy of the dispositive settlement documents must be provided to the department by the prevailing party Failure to provide a copy of the final judgment and order or the dispositive settlement documents to the department within ten days of entry of such an order constitutes a violation of this chapter and a penalty adopted by rule of not less than two hundred fifty dollars may be assessed against the prevailing party (11) The director may require an applicant applying to renew or reinstate a registration or applying for a new registration to file a bond of up to three times the normally required amount if the director determines that an applicant or a previous registration of a corporate officer owner or partner of a current applicant has had in the past five years a total of three final judgments in actions under this chapter involving a residential single-family dwelling on two or more different structures (12) The director may adopt rules necessary for the proper administration of the security RCW 1827114 Disclosure statement required mdash Prerequisite to lien claim

(1) Any contractor agreeing to perform any contracting project (a) For the repair alteration or construction of four or fewer residential units or accessory structures on such residential property when the bid or contract price totals one thousand dollars or more or (b) for the repair alteration or construction of a commercial building when the bid or contract price totals one thousand dollars or more but less than sixty thousand dollars must provide the customer with

CCBA Nuts amp Bolts on Construction Law - 29 of 49

the following disclosure statement in substantially the following form using lower case and upper case twelve-point and bold type where appropriate prior to starting work on the project NOTICE TO CUSTOMER This contractor is registered with the state of Washington registration no and has posted with the state a bond or deposit of for the purpose of satisfying claims against the contractor for breach of contract including negligent or improper work in the conduct of the contractors business The expiration date of this contractors registration is THIS BOND OR DEPOSIT MIGHT NOT BE SUFFICIENT TO COVER A CLAIM THAT MIGHT ARISE FROM THE WORK DONE UNDER YOUR CONTRACT This bond or deposit is not for your exclusive use because it covers all work performed by this contractor The bond or deposit is intended to pay valid claims up to that you and other customers suppliers subcontractors or taxing authorities may have FOR GREATER PROTECTION YOU MAY WITHHOLD A PERCENTAGE OF YOUR CONTRACT You may withhold a contractually defined percentage of your construction contract as retainage for a stated period of time to provide protection to you and help insure that your project will be completed as required by your contract YOUR PROPERTY MAY BE LIENED If a supplier of materials used in your construction project or an employee or subcontractor of your contractor or subcontractors is not paid your property may be liened to force payment and you could pay twice for the same work FOR ADDITIONAL PROTECTION YOU MAY REQUEST THE CONTRACTOR TO PROVIDE YOU WITH ORIGINAL LIEN RELEASE DOCUMENTS FROM EACH SUPPLIER OR SUBCONTRACTOR ON YOUR PROJECT The contractor is required to provide you with further information about lien release documents if you request it General information is also available from the state Department of Labor and Industries I have received a copy of this disclosure statement

CCBA Nuts amp Bolts on Construction Law - 30 of 49

(Signature of customer) (2) The contractor must retain a signed copy of the disclosure statement in his or her files for a minimum of three years and produce a signed or electronic signature copy of the disclosure statement to the department upon request (3) A contractor subject to this section shall notify any consumer to whom notice is required under subsection (1) of this section if the contractors registration has expired or is revoked or suspended by the department prior to completion or other termination of the contract with the consumer (4) No contractor subject to this section may bring or maintain any lien claim under chapter 6004 RCW based on any contract to which this section applies without alleging and proving that the contractor has provided the customer with a copy of the disclosure statement as required in subsection (1) of this section (5) This section does not apply to contracts authorized under chapter 3904 RCW or to contractors contracting with other contractors (6) Failure to comply with this section shall constitute an infraction under the provisions of this chapter (7) The department shall produce model disclosure statements and public service announcements detailing the information needed to assist contractors and contractors customers to comply under this section As necessary the department shall periodically update these education materials RCW 3908010 Bond required mdash Conditions mdash Retention of contract amount in lieu of bond (1)(a) Whenever any board council commission trustees or body acting for the state or any county or municipality or any public body must contract with any person or corporation to do any work for the state county or municipality or other public body city town or district such board council commission trustees or body must require the person or persons with whom such contract is made to make execute and deliver to such board council commission trustees or body a good and sufficient bond with a surety company as surety conditioned that such person or persons must (i) Faithfully perform all the provisions of such contract (ii) Pay all laborers mechanics and subcontractors and material suppliers and all persons who supply such person or persons or subcontractors with provisions and supplies for the carrying on of such work and

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(iii) Pay the taxes increases and penalties incurred on the project under Titles 50 51 and 82 RCW on (A) Projects referred to in RCW 6028011(1)(b) andor (B) projects for which the bond is conditioned on the payment of such taxes increases and penalties (b) The bond in cases of cities and towns must be filed with the clerk or comptroller thereof and any person or persons performing such services or furnishing material to any subcontractor has the same right under the provisions of such bond as if such work services or material was furnished to the original contractor (2) The provisions of RCW 3908010 through 3908030 do not apply to any money loaned or advanced to any such contractor subcontractor or other person in the performance of any such work (3) On contracts of thirty-five thousand dollars or less at the option of the contractor the respective public entity may in lieu of the bond retain fifty percent of the contract amount for a period of thirty days after date of final acceptance or until receipt of all necessary releases from the department of revenue the employment security department and the department of labor and industries and settlement of any liens filed under chapter 6028 RCW whichever is later (4) For contracts of one hundred thousand dollars or less the public entity may accept a full payment and performance bond from an individual surety or sureties (5) The surety must agree to be bound by the laws of the state of Washington and subjected to the jurisdiction of the state of Washington RCW 6004011 Definitions

Unless the context requires otherwise the definitions in this section apply throughout this chapter (1) Construction agent means any registered or licensed contractor registered or licensed subcontractor architect engineer or other person having charge of any improvement to real property who shall be deemed the agent of the owner for the limited purpose of establishing the lien created by this chapter (2) Contract price means the amount agreed upon by the contracting parties or if no amount is agreed upon then the customary and reasonable charge therefor (3) Draws means periodic disbursements of interim or construction financing by a lender (4) Furnishing labor professional services materials or equipment means the performance of any labor or professional services the contribution owed to any employee benefit plan on account of any labor the provision of any supplies or materials and the renting leasing or

CCBA Nuts amp Bolts on Construction Law - 32 of 49

otherwise supplying of equipment for the improvement of real property (5) Improvement means (a) Constructing altering repairing remodeling demolishing clearing grading or filling in of to or upon any real property or street or road in front of or adjoining the same (b) planting of trees vines shrubs plants hedges or lawns or providing other landscaping materials on any real property and (c) providing professional services upon real property or in preparation for or in conjunction with the intended activities in (a) or (b) of this subsection (6) Interim or construction financing means that portion of money secured by a mortgage deed of trust or other encumbrance to finance improvement of or to real property but does not include (a) Funds to acquire real property (b) Funds to pay interest insurance premiums lease deposits taxes assessments or prior encumbrances (c) Funds to pay loan commitment title legal closing recording or appraisal fees (d) Funds to pay other customary fees which pursuant to agreement with the owner or borrower are to be paid by the lender from time to time (e) Funds to acquire personal property for which the potential lien claimant may not claim a lien pursuant to this chapter (7) Labor means exertion of the powers of body or mind performed at the site for compensation Labor includes amounts due and owed to any employee benefit plan on account of such labor performed (8) Mortgagee means a person who has a valid mortgage of record or deed of trust of record securing a loan (9) Owner-occupied means a single-family residence occupied by the owner as his or her principal residence (10) Payment bond means a surety bond issued by a surety licensed to issue surety bonds in the state of Washington that confers upon potential claimants the rights of third party beneficiaries (11) Potential lien claimant means any person or entity entitled to assert lien rights under this chapter who has otherwise complied with the provisions of this chapter and is registered or licensed if required to be licensed or registered by the provisions of the laws of the state of Washington (12) Prime contractor includes all contractors general contractors and specialty

CCBA Nuts amp Bolts on Construction Law - 33 of 49

contractors as defined by chapter 1827 or 1928 RCW or who are otherwise required to be registered or licensed by law who contract directly with a property owner or their common law agent to assume primary responsibility for the creation of an improvement to real property and includes property owners or their common law agents who are contractors general contractors or specialty contractors as defined in chapter 1827 or 1928 RCW or who are otherwise required to be registered or licensed by law who offer to sell their property without occupying or using the structures projects developments or improvements for more than one year (13) Professional services means surveying establishing or marking the boundaries of preparing maps plans or specifications for or inspecting testing or otherwise performing any other architectural or engineering services for the improvement of real property (14) Real property lender means a bank savings bank savings and loan association credit union mortgage company or other corporation association partnership trust or individual that makes loans secured by real property located in the state of Washington (15) Site means the real property which is or is to be improved (16) Subcontractor means a general contractor or specialty contractor as defined by chapter 1827 or 1928 RCW or who is otherwise required to be registered or licensed by law who contracts for the improvement of real property with someone other than the owner of the property or their common law agent

6004021 Lien authorized

Except as provided in RCW 6004031 any person furnishing labor professional services materials or equipment for the improvement of real property shall have a lien upon the improvement for the contract price of labor professional services materials or equipment furnished at the instance of the owner or the agent or construction agent of the owner

6004031 Notices mdash Exceptions

(1) Except as otherwise provided in this section every person furnishing professional services materials or equipment for the improvement of real property shall give the owner or reputed owner notice in writing of the right to claim a lien If the prime contractor is in compliance with the requirements of RCW 1927095 6004230 and 6004261 this notice shall also be given to the prime contractor as described in this subsection unless the potential lien claimant has contracted directly with the prime contractor The notice may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after the date which is sixty days before (a) Mailing the notice by certified or registered mail to the owner or reputed owner or

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(b) Delivering or serving the notice personally upon the owner or reputed owner and obtaining evidence of delivery in the form of a receipt or other acknowledgment signed by the owner or reputed owner or an affidavit of service In the case of new construction of a single-family residence the notice of a right to claim a lien may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after a date which is ten days before the notice is given as described in this subsection (2) Notices of a right to claim a lien shall not be required of (a) Persons who contract directly with the owner or the owners common law agent (b) Laborers whose claim of lien is based solely on performing labor or (c) Subcontractors who contract for the improvement of real property directly with the prime contractor except as provided in subsection (3)(b) of this section (3) Persons who furnish professional services materials or equipment in connection with the repair alteration or remodel of an existing owner-occupied single-family residence or appurtenant garage (a) Who contract directly with the owner-occupier or their common law agent shall not be required to send a written notice of the right to claim a lien and shall have a lien for the full amount due under their contract as provided in RCW 6004021 or (b) Who do not contract directly with the owner-occupier or their common law agent shall give notice of the right to claim a lien to the owner-occupier Liens of persons furnishing professional services materials or equipment who do not contract directly with the owner-occupier or their common law agent may only be satisfied from amounts not yet paid to the prime contractor by the owner at the time the notice described in this section is received regardless of whether amounts not yet paid to the prime contractor are due For the purposes of this subsection received means actual receipt of notice by personal service or registered or certified mail or three days after mailing by registered or certified mail excluding Saturdays Sundays or legal holidays (4) The notice of right to claim a lien described in subsection (1) of this section shall include but not be limited to the following information and shall substantially be in the following form using lower-case and upper-case ten-point type where appropriate

CCBA Nuts amp Bolts on Construction Law - 35 of 49

NOTICE TO OWNER

IMPORTANT READ BOTH SIDES OF THIS NOTICE CAREFULLY

PROTECT YOURSELF FROM PAYING TWICE

To Date

Re (description of property Street address or general location) From AT THE REQUEST OF (Name of person ordering the professional services materials or equipment) THIS IS NOT A LIEN This notice is sent to you to tell you who is providing professional services materials or equipment for the improvement of your property and to advise you of the rights of these persons and your responsibilities Also take note that laborers on your project may claim a lien without sending you a notice

OWNEROCCUPIER OF EXISTING

RESIDENTIAL PROPERTY

Under Washington law those who furnish labor professional services materials or equipment for the repair remodel or alteration of your owner-occupied principal residence and who are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien The law limits the amount that a lien claimant can claim against your property Claims may only be made against that portion of the contract price you have not yet paid to your prime contractor as of the time this notice was given to you or three days after this notice was mailed to you Review the back of this notice for more information and ways to avoid lien claims

COMMERCIAL ANDOR NEW

RESIDENTIAL PROPERTY

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We have or will be providing professional services materials or equipment for the improvement of your commercial or new residential project In the event you or your contractor fail to pay us we may file a lien against your property A lien may be claimed for all professional services materials or equipment furnished after a date that is sixty days before this notice was given to you or mailed to you unless the improvement to your property is the construction of a new single-family residence then ten days before this notice was given to you or mailed to you Sender Address Telephone Brief description of professional services materials or equipment provided or to be provided

IMPORTANT INFORMATION

ON REVERSE SIDE

IMPORTANT INFORMATION

FOR YOUR PROTECTION This notice is sent to inform you that we have or will provide professional services materials or equipment for the improvement of your property We expect to be paid by the person who ordered our services but if we are not paid we have the right to enforce our claim by filing a construction lien against your property LEARN more about the lien laws and the meaning of this notice by discussing them with your contractor suppliers Department of Labor and Industries the firm sending you this notice your lender or your attorney

COMMON METHODS TO AVOID CONSTRUCTION LIENS There are several methods available to protect your property from construction liens The following are two of the more commonly used methods

DUAL PAYCHECKS (Joint Checks) When paying your contractor for services or materials you may make checks payable jointly to the contractor and the firms furnishing you this notice

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LIEN RELEASES You may require your contractor to provide lien releases signed by all the suppliers and subcontractors from whom you have received this notice If they cannot obtain lien releases because you have not paid them you may use the dual payee check method to protect yourself

YOU SHOULD TAKE APPROPRIATE STEPS TO PROTECT YOUR PROPERTY FROM LIENS YOUR PRIME CONTRACTOR AND YOUR CONSTRUCTION LENDER ARE REQUIRED BY LAW TO GIVE YOU WRITTEN INFORMATION ABOUT LIEN CLAIMS IF YOU HAVE NOT RECEIVED IT ASK THEM FOR IT

(5) Every potential lien claimant providing professional services where no improvement as defined in RCW 6004011(5) (a) or (b) has been commenced and the professional services provided are not visible from an inspection of the real property may record in the real property records of the county where the property is located a notice which shall contain the professional service providers name address telephone number legal description of the property the owner or reputed owners name and the general nature of the professional services provided If such notice is not recorded the lien claimed shall be subordinate to the interest of any subsequent mortgagee and invalid as to the interest of any subsequent purchaser if the mortgagee or purchaser acts in good faith and for a valuable consideration acquires an interest in the property prior to the commencement of an improvement as defined in RCW 6004011(5) (a) or (b) without notice of the professional services being provided The notice described in this subsection shall be substantially in the following form

NOTICE OF FURNISHING

PROFESSIONAL SERVICES That on the (day) day of (month and year) (name of provider) began providing professional services upon or for the improvement of real property legally described as follows

[Legal Description is mandatory]

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The general nature of the professional services provided is The owner or reputed owner of the real property is

(Signature)

(Name of Claimant)

(Street Address)

(City State Zip Code)

(Phone Number)

(6) A lien authorized by this chapter shall not be enforced unless the lien claimant has complied with the applicable provisions of this section

6004041 Contractor registration

A contractor or subcontractor required to be registered under chapter 1827 RCW or licensed under chapter 1928 RCW or otherwise required to be registered or licensed by law shall be deemed the construction agent of the owner for the purposes of establishing the lien created by this chapter only if so registered or licensed Persons dealing with contractors or subcontractors may rely for the purposes of this section upon a certificate of registration issued pursuant to chapter 1827 RCW or license issued pursuant to chapter 1928 RCW or other certificate or license issued pursuant to law covering the period when the labor professional services material or equipment shall be furnished and the lien rights shall not be lost by suspension or revocation of registration or license without their knowledge No lien rights described in this

CCBA Nuts amp Bolts on Construction Law - 39 of 49

chapter shall be lost or denied by virtue of the absence suspension or revocation of such registration or license with respect to any contractor or subcontractor not in immediate contractual privity with the lien claimant

6004081 Frivolous claim mdash Procedure

(1) Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who believes the claim of lien to be frivolous and made without reasonable cause or clearly excessive may apply by motion to the superior court for the county where the property or some part thereof is located for an order directing the lien claimant to appear before the court at a time no earlier than six nor later than fifteen days following the date of service of the application and order on the lien claimant and show cause if any he or she has why the relief requested should not be granted The motion shall state the grounds upon which relief is asked and shall be supported by the affidavit of the applicant or his or her attorney setting forth a concise statement of the facts upon which the motion is based (2) The order shall clearly state that if the lien claimant fails to appear at the time and place noted the lien shall be released with prejudice and that the lien claimant shall be ordered to pay the costs requested by the applicant including reasonable attorneys fees (3) If no action to foreclose the lien claim has been filed the clerk of the court shall assign a cause number to the application and obtain from the applicant a filing fee pursuant to RCW 3618016 If an action has been filed to foreclose the lien claim the application shall be made a part of that action (4) If following a hearing on the matter the court determines that the lien is frivolous and made without reasonable cause or clearly excessive the court shall issue an order releasing the lien if frivolous and made without reasonable cause or reducing the lien if clearly excessive and awarding costs and reasonable attorneys fees to the applicant to be paid by the lien claimant If the court determines that the lien is not frivolous and was made with reasonable cause and is not clearly excessive the court shall issue an order so stating and awarding costs and reasonable attorneys fees to the lien claimant to be paid by the applicant (5) Proceedings under this section shall not affect other rights and remedies available to the parties under this chapter or otherwise

6004091 Recording mdash Time mdash Contents of lien

Every person claiming a lien under RCW 6004021 shall file for recording in the county where the subject property is located a notice of claim of lien not later than ninety days after the person

CCBA Nuts amp Bolts on Construction Law - 40 of 49

has ceased to furnish labor professional services materials or equipment or the last date on which employee benefit contributions were due The notice of claim of lien (1) Shall state in substance and effect (a) The name phone number and address of the claimant (b) The first and last date on which the labor professional services materials or equipment was furnished or employee benefit contributions were due (c) The name of the person indebted to the claimant (d) The street address legal description or other description reasonably calculated to identify for a person familiar with the area the location of the real property to be charged with the lien (e) The name of the owner or reputed owner of the property if known and if not known that fact shall be stated and (f) The principal amount for which the lien is claimed (2) Shall be signed by the claimant or some person authorized to act on his or her behalf who shall affirmatively state they have read the notice of claim of lien and believe the notice of claim of lien to be true and correct under penalty of perjury and shall be acknowledged pursuant to chapter 6408 RCW If the lien has been assigned the name of the assignee shall be stated Where an action to foreclose the lien has been commenced such notice of claim of lien may be amended as pleadings may be by order of the court insofar as the interests of third parties are not adversely affected by such amendment A claim of lien substantially in the following form shall be sufficient

CLAIM OF LIEN

claimant vs name of person indebted to claimant

Notice is hereby given that the person named below claims a lien pursuant to chapter 6404 RCW In support of this lien the following information is submitted

1 NAME OF LIEN CLAIMANT

TELEPHONE NUMBER

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ADDRESS

2 DATE ON WHICH THE CLAIMANT BEGAN TO PERFORM LABOR PROVIDE PROFESSIONAL SERVICES SUPPLY MATERIAL OR EQUIPMENT OR THE DATE ON WHICH EMPLOYEE BENEFIT CONTRIBUTIONS BECAME DUE

3 NAME OF PERSON INDEBTED TO THE CLAIMANT

4 DESCRIPTION OF THE PROPERTY AGAINST WHICH A LIEN IS CLAIMED (Street address legal description or other information that will reasonably describe the property)

5 NAME OF THE OWNER OR REPUTED OWNER (If not known state unknown)

6 THE LAST DATE ON WHICH LABOR WAS PERFORMED PROFESSIONAL SERVICES WERE FURNISHED CONTRIBUTIONS TO AN EMPLOYEE BENEFIT PLAN WERE DUE OR MATERIAL OR EQUIPMENT WAS FURNISHED

7 PRINCIPAL AMOUNT FOR WHICH THE LIEN IS CLAIMED IS

8 IF THE CLAIMANT IS THE ASSIGNEE OF THIS CLAIM SO STATE HERE

Claimant

(Phone number address city

CCBA Nuts amp Bolts on Construction Law - 42 of 49

and

state of claimant)

STATE OF WASHINGTON COUNTY OF ss being sworn says I am the claimant (or attorney of the claimant or administrator representative or agent of the trustees of an employee benefit plan) above named I have read or heard the foregoing claim read and know the contents thereof and believe the same to be true and correct and that the claim of lien is not frivolous and is made with reasonable cause and is not clearly excessive under penalty of perjury Subscribed and sworn to before me this day of The period provided for recording the claim of lien is a period of limitation and no action to foreclose a lien shall be maintained unless the claim of lien is filed for recording within the ninety-day period stated The lien claimant shall give a copy of the claim of lien to the owner or reputed owner by mailing it by certified or registered mail or by personal service within fourteen days of the time the claim of lien is filed for recording Failure to do so results in a forfeiture of any right the claimant may have to attorneys fees and costs against the owner under RCW 6004181

6004161 Bond in lieu of claim

Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who disputes the correctness or validity of the claim of lien may record either before or after the commencement of an action to enforce the lien in the office of the county recorder or auditor in the county where the claim of lien was recorded a bond issued by a surety company authorized to issue surety bonds in the state The surety shall be listed in the latest federal department of the treasury list of surety companies acceptable on federal bonds published in the Federal Register as authorized to issue bonds on United States government projects with an underwriting limitation including applicable reinsurance equal to or greater than the amount of the bond to be recorded The bond shall contain a description of the claim of lien and real property involved and be in an amount equal to the greater of five thousand dollars or two times the amount of the lien claimed if it is ten thousand dollars or less and in an amount equal to or greater than one and one-half times the amount of the lien if it is in

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excess of ten thousand dollars If the claim of lien affects more than one parcel of real property and is segregated to each parcel the bond may be segregated the same as in the claim of lien A separate bond shall be required for each claim of lien made by separate claimants However a single bond may be used to guarantee payment of amounts claimed by more than one claim of lien by a single claimant so long as the amount of the bond meets the requirements of this section as applied to the aggregate sum of all claims by such claimant The condition of the bond shall be to guarantee payment of any judgment upon the lien in favor of the lien claimant entered in any action to recover the amount claimed in a claim of lien or on the claim asserted in the claim of lien The effect of recording a bond shall be to release the real property described in the notice of claim of lien from the lien and any action brought to recover the amount claimed Unless otherwise prohibited by law if no action is commenced to recover on a lien within the time specified in RCW 6004141 the surety shall be discharged from liability under the bond If an action is timely commenced then on payment of any judgment entered in the action or on payment of the full amount of the bond to the holder of the judgment whichever is less the surety shall be discharged from liability under the bond Nothing in this section shall in any way prohibit or limit the use of other methods devised by the affected parties to secure the obligation underlying a claim of lien and to obtain a release of real property from a claim of lien

6004181 Rank of lien mdash Application of proceeds mdash Attorneys fees

(1) In every case in which different construction liens are claimed against the same property the court shall declare the rank of such lien or class of liens which liens shall be in the following order (a) Liens for the performance of labor (b) Liens for contributions owed to employee benefit plans (c) Liens for furnishing material supplies or equipment (d) Liens for subcontractors including but not limited to their labor and materials and (e) Liens for prime contractors or for professional services (2) The proceeds of the sale of property must be applied to each lien or class of liens in order of its rank and in an action brought to foreclose a lien pro rata among each claimant in each separate priority class A personal judgment may be rendered against any party personally liable for any debt for which the lien is claimed If the lien is established the judgment shall provide

CCBA Nuts amp Bolts on Construction Law - 44 of 49

for the enforcement thereof upon the property liable as in the case of foreclosure of judgment liens The amount realized by such enforcement of the lien shall be credited upon the proper personal judgment The deficiency if any remaining unsatisfied shall stand as a personal judgment and may be collected by execution against any party liable therefor (3) The court may allow the prevailing party in the action whether plaintiff or defendant as part of the costs of the action the moneys paid for recording the claim of lien costs of title report bond costs and attorneys fees and necessary expenses incurred by the attorney in the superior court court of appeals supreme court or arbitration as the court or arbitrator deems reasonable Such costs shall have the priority of the class of lien to which they are related as established by subsection (1) of this section (4) Real property against which a lien under this chapter is enforced may be ordered sold by the court and the proceeds deposited into the registry of the clerk of the court pending further determination respecting distribution of the proceeds of the sale

6004900 Liberal construction mdash 1991 c 281

RCW 1927095 6004230 and 6004011 through 6004226 and 6004261 are to be liberally construed to provide security for all parties intended to be protected by their provisions

RCW 6028011

Retained percentage mdash Public transportation projects mdash Labor and material lien created mdash Bond in lieu of retained funds mdash Termination before completion mdash Chapter deemed exclusive mdash Release of ferry contract payments mdash Projects of farmers home administration mdash General contractorconstruction manager procedure mdash Definitions

(1)(a) Except as provided in (b) of this subsection public improvement contracts must provide and public bodies must reserve a contract retainage not to exceed five percent of the moneys earned by the contractor as a trust fund for the protection and payment of (i) The claims of any person arising under the contract and (ii) the state with respect to taxes increases and penalties imposed pursuant to Titles 50 51 and 82 RCW which may be due from such contractor (b) Public improvement contracts funded in whole or in part by federal transportation funds must rely upon the contract bond as referred to in chapter 3908 RCW for the protection and payment of (i) The claims of any person or persons arising under the contract to the extent such claims are provided for in RCW 3908010 and (ii) the state with respect to taxes increases and penalties incurred on the public improvement project under Titles 50 51 and 82 RCW which may be due The contract bond must remain in full force and effect until at a minimum all claims filed in compliance with chapter 3908 RCW are resolved

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(2) Every person performing labor or furnishing supplies toward the completion of a public improvement contract has a lien upon moneys reserved by a public body under the provisions of a public improvement contract However the notice of the lien of the claimant must be given within forty-five days of completion of the contract work and in the manner provided in RCW 3908030 (3) The contractor at any time may request the contract retainage be reduced to one hundred percent of the value of the work remaining on the project (a) After completion of all contract work other than landscaping the contractor may request that the public body release and pay in full the amounts retained during the performance of the contract and sixty days thereafter the public body must release and pay in full the amounts retained (other than continuing retention of five percent of the moneys earned for landscaping) subject to the provisions of chapters 3912 and 6028 RCW (b) Sixty days after completion of all contract work the public body must release and pay in full the amounts retained during the performance of the contract subject to the provisions of chapters 3912 and 6028 RCW (4) The moneys reserved by a public body under the provisions of a public improvement contract at the option of the contractor must be (a) Retained in a fund by the public body (b) Deposited by the public body in an interest bearing account in a bank mutual savings bank or savings and loan association Interest on moneys reserved by a public body under the provision of a public improvement contract must be paid to the contractor (c) Placed in escrow with a bank or trust company by the public body When the moneys reserved are placed in escrow the public body must issue a check representing the sum of the moneys reserved payable to the bank or trust company and the contractor jointly This check must be converted into bonds and securities chosen by the contractor and approved by the public body and the bonds and securities must be held in escrow Interest on the bonds and securities must be paid to the contractor as the interest accrues (5) The contractor or subcontractor may withhold payment of not more than five percent from the moneys earned by any subcontractor or sub-subcontractor or supplier contracted with by the contractor to provide labor materials or equipment to the public project Whenever the contractor or subcontractor reserves funds earned by a subcontractor or sub-subcontractor or

CCBA Nuts amp Bolts on Construction Law - 46 of 49

supplier the contractor or subcontractor must pay interest to the subcontractor or sub-subcontractor or supplier at a rate equal to that received by the contractor or subcontractor from reserved funds (6) A contractor may submit a bond for all or any portion of the contract retainage in a form acceptable to the public body and from a bonding company meeting standards established by the public body The public body must accept a bond meeting these requirements unless the public body can demonstrate good cause for refusing to accept it This bond and any proceeds therefrom are subject to all claims and liens and in the same manner and priority as set forth for retained percentages in this chapter The public body must release the bonded portion of the retained funds to the contractor within thirty days of accepting the bond from the contractor Whenever a public body accepts a bond in lieu of retained funds from a contractor the contractor must accept like bonds from any subcontractors or suppliers from which the contractor has retained funds The contractor must then release the funds retained from the subcontractor or supplier to the subcontractor or supplier within thirty days of accepting the bond from the subcontractor or supplier (7) If the public body administering a contract after a substantial portion of the work has been completed finds that an unreasonable delay will occur in the completion of the remaining portion of the contract for any reason not the result of a breach thereof it may if the contractor agrees delete from the contract the remaining work and accept as final the improvement at the stage of completion then attained and make payment in proportion to the amount of the work accomplished and in this case any amounts retained and accumulated under this section must be held for a period of sixty days following the completion In the event that the work is terminated before final completion as provided in this section the public body may thereafter enter into a new contract with the same contractor to perform the remaining work or improvement for an amount equal to or less than the cost of the remaining work as was provided for in the original contract without advertisement or bid The provisions of this chapter are exclusive and supersede all provisions and regulations in conflict herewith (8) Whenever the department of transportation has contracted for the construction of two or more ferry vessels sixty days after completion of all contract work on each ferry vessel the department must release and pay in full the amounts retained in connection with the construction of the vessel subject to the provisions of RCW 6028021 and chapter 3912 RCW However the department of transportation may at its discretion condition the release of funds retained in connection with the completed ferry upon the contractor delivering a good and sufficient bond with two or more sureties or with a surety company in the amount of the retained funds to be released to the contractor conditioned that no taxes may be certified or claims filed for work on the ferry after a period of sixty days following completion of the ferry and if taxes are certified or claims filed recovery may be had on the bond by the department of revenue the employment

CCBA Nuts amp Bolts on Construction Law - 47 of 49

security department the department of labor and industries and the material suppliers and laborers filing claims (9) Except as provided in subsection (1) of this section reservation by a public body for any purpose from the moneys earned by a contractor by fulfilling its responsibilities under public improvement contracts is prohibited (10) Contracts on projects funded in whole or in part by farmers home administration and subject to farmers home administration regulations are not subject to subsections (1) through (9) of this section (11) This subsection applies only to a public body that has contracted for the construction of a facility using the general contractorconstruction manager procedure as defined under RCW 3910210 If the work performed by a subcontractor on the project has been completed within the first half of the time provided in the general contractorconstruction manager contract for completing the work the public body may accept the completion of the subcontract The public body must give public notice of this acceptance After a forty-five day period for giving notice of liens and compliance with the retainage release procedures in RCW 6028021 the public body may release that portion of the retained funds associated with the subcontract Claims against the retained funds after the forty-five day period are not valid (12) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise (a) Contract retainage means an amount reserved by a public body from the moneys earned by a person under a public improvement contract (b) Person means a person or persons mechanic subcontractor or materialperson who performs labor or provides materials for a public improvement contract and any other person who supplies the person with provisions or supplies for the carrying on of a public improvement contract (c) Public body means the state or a county city town district board or other public body (d) Public improvement contract means a contract for public improvements or work other than for professional services or a work order as defined in RCW 3910210

CCBA Nuts amp Bolts on Construction Law - 48 of 49

RCW 6432070 Liens or encumbrances mdash Enforcement mdash Satisfaction

(1) Subsequent to recording the declaration as provided in this chapter and while the property remains subject to this chapter no lien shall thereafter arise or be effective against the property During such period liens or encumbrances shall arise or be created only against each apartment and the percentage of undivided interest in the common areas and facilities and appurtenant to such apartment in the same manner and under the same conditions in every respect as liens or encumbrances may arise or be created upon or against any other separate parcel of real property subject to individual ownership PROVIDED That no labor performed or materials furnished with the consent of or at the request of the owner of any apartment or such owners agent contractor or subcontractor shall be the basis for the filing of a lien against any other apartment or any other property of any other apartment owner not expressly consenting to or requesting the same except that such express consent shall be deemed to be given by any apartment owner in the case of emergency repairs Labor performed or materials furnished for the common areas and facilities if authorized by the association of apartment owners the manager or board of directors shall be deemed to be performed or furnished with the express consent of each apartment owner and shall be the basis for the filing of a lien against each of the apartments and shall be subject to the provisions of subsection (2) of this section (2) In the event a lien against two or more apartments becomes effective the apartment owners of the separate apartments may remove their apartment and the percentage of undivided interest in the common areas and facilities appurtenant to such apartment from the lien by payment of the fractional or proportional amounts attributable to each of the apartments affected Such individual payments shall be computed by reference to the percentages appearing on the declaration Subsequent to any such payment discharge or satisfaction the apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto shall thereafter be free and clear of the liens so paid satisfied or discharged Such partial payment satisfaction or discharge shall not prevent the lienor from proceeding to enforce his or her rights against any apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto not so paid satisfied or discharged

CCBA Nuts amp Bolts on Construction Law - 49 of 49

  • Cover Sheet
  • 20141110 - Washington Lien and Bond CLE
  • LampI Lien Summary
  • Claim of Lien
  • Form Notice to Owner
  • Model Disclosure Statement (Notice to Customer)
  • LampI Facts about Construction Liens
    • What you should know about contracts
    • How to protect your investment
    • For more information
      • Notice of Claim Against Bond and Retained Percentage
      • Preclaim Notice Bond amp Retained Percentage
      • Statute Handout
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geoptimaliseerd voor prepress-afdrukken van hoge kwaliteit De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 50 en hoger) NOR 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 PTB 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          1. To
          2. Date
          3. Re
          4. From
          5. AT THE REQUEST OF
          6. Sender
          7. Address
          8. Telephone
          9. Brief description of professional services materials or equipment provided or to be provided
          10. 1
          11. 2
          12. 3
          13. reg no
          14. deposit $
          15. expiration date
          16. claims up to $
          17. Reset

the following disclosure statement in substantially the following form using lower case and upper case twelve-point and bold type where appropriate prior to starting work on the project NOTICE TO CUSTOMER This contractor is registered with the state of Washington registration no and has posted with the state a bond or deposit of for the purpose of satisfying claims against the contractor for breach of contract including negligent or improper work in the conduct of the contractors business The expiration date of this contractors registration is THIS BOND OR DEPOSIT MIGHT NOT BE SUFFICIENT TO COVER A CLAIM THAT MIGHT ARISE FROM THE WORK DONE UNDER YOUR CONTRACT This bond or deposit is not for your exclusive use because it covers all work performed by this contractor The bond or deposit is intended to pay valid claims up to that you and other customers suppliers subcontractors or taxing authorities may have FOR GREATER PROTECTION YOU MAY WITHHOLD A PERCENTAGE OF YOUR CONTRACT You may withhold a contractually defined percentage of your construction contract as retainage for a stated period of time to provide protection to you and help insure that your project will be completed as required by your contract YOUR PROPERTY MAY BE LIENED If a supplier of materials used in your construction project or an employee or subcontractor of your contractor or subcontractors is not paid your property may be liened to force payment and you could pay twice for the same work FOR ADDITIONAL PROTECTION YOU MAY REQUEST THE CONTRACTOR TO PROVIDE YOU WITH ORIGINAL LIEN RELEASE DOCUMENTS FROM EACH SUPPLIER OR SUBCONTRACTOR ON YOUR PROJECT The contractor is required to provide you with further information about lien release documents if you request it General information is also available from the state Department of Labor and Industries I have received a copy of this disclosure statement

CCBA Nuts amp Bolts on Construction Law - 30 of 49

(Signature of customer) (2) The contractor must retain a signed copy of the disclosure statement in his or her files for a minimum of three years and produce a signed or electronic signature copy of the disclosure statement to the department upon request (3) A contractor subject to this section shall notify any consumer to whom notice is required under subsection (1) of this section if the contractors registration has expired or is revoked or suspended by the department prior to completion or other termination of the contract with the consumer (4) No contractor subject to this section may bring or maintain any lien claim under chapter 6004 RCW based on any contract to which this section applies without alleging and proving that the contractor has provided the customer with a copy of the disclosure statement as required in subsection (1) of this section (5) This section does not apply to contracts authorized under chapter 3904 RCW or to contractors contracting with other contractors (6) Failure to comply with this section shall constitute an infraction under the provisions of this chapter (7) The department shall produce model disclosure statements and public service announcements detailing the information needed to assist contractors and contractors customers to comply under this section As necessary the department shall periodically update these education materials RCW 3908010 Bond required mdash Conditions mdash Retention of contract amount in lieu of bond (1)(a) Whenever any board council commission trustees or body acting for the state or any county or municipality or any public body must contract with any person or corporation to do any work for the state county or municipality or other public body city town or district such board council commission trustees or body must require the person or persons with whom such contract is made to make execute and deliver to such board council commission trustees or body a good and sufficient bond with a surety company as surety conditioned that such person or persons must (i) Faithfully perform all the provisions of such contract (ii) Pay all laborers mechanics and subcontractors and material suppliers and all persons who supply such person or persons or subcontractors with provisions and supplies for the carrying on of such work and

CCBA Nuts amp Bolts on Construction Law - 31 of 49

(iii) Pay the taxes increases and penalties incurred on the project under Titles 50 51 and 82 RCW on (A) Projects referred to in RCW 6028011(1)(b) andor (B) projects for which the bond is conditioned on the payment of such taxes increases and penalties (b) The bond in cases of cities and towns must be filed with the clerk or comptroller thereof and any person or persons performing such services or furnishing material to any subcontractor has the same right under the provisions of such bond as if such work services or material was furnished to the original contractor (2) The provisions of RCW 3908010 through 3908030 do not apply to any money loaned or advanced to any such contractor subcontractor or other person in the performance of any such work (3) On contracts of thirty-five thousand dollars or less at the option of the contractor the respective public entity may in lieu of the bond retain fifty percent of the contract amount for a period of thirty days after date of final acceptance or until receipt of all necessary releases from the department of revenue the employment security department and the department of labor and industries and settlement of any liens filed under chapter 6028 RCW whichever is later (4) For contracts of one hundred thousand dollars or less the public entity may accept a full payment and performance bond from an individual surety or sureties (5) The surety must agree to be bound by the laws of the state of Washington and subjected to the jurisdiction of the state of Washington RCW 6004011 Definitions

Unless the context requires otherwise the definitions in this section apply throughout this chapter (1) Construction agent means any registered or licensed contractor registered or licensed subcontractor architect engineer or other person having charge of any improvement to real property who shall be deemed the agent of the owner for the limited purpose of establishing the lien created by this chapter (2) Contract price means the amount agreed upon by the contracting parties or if no amount is agreed upon then the customary and reasonable charge therefor (3) Draws means periodic disbursements of interim or construction financing by a lender (4) Furnishing labor professional services materials or equipment means the performance of any labor or professional services the contribution owed to any employee benefit plan on account of any labor the provision of any supplies or materials and the renting leasing or

CCBA Nuts amp Bolts on Construction Law - 32 of 49

otherwise supplying of equipment for the improvement of real property (5) Improvement means (a) Constructing altering repairing remodeling demolishing clearing grading or filling in of to or upon any real property or street or road in front of or adjoining the same (b) planting of trees vines shrubs plants hedges or lawns or providing other landscaping materials on any real property and (c) providing professional services upon real property or in preparation for or in conjunction with the intended activities in (a) or (b) of this subsection (6) Interim or construction financing means that portion of money secured by a mortgage deed of trust or other encumbrance to finance improvement of or to real property but does not include (a) Funds to acquire real property (b) Funds to pay interest insurance premiums lease deposits taxes assessments or prior encumbrances (c) Funds to pay loan commitment title legal closing recording or appraisal fees (d) Funds to pay other customary fees which pursuant to agreement with the owner or borrower are to be paid by the lender from time to time (e) Funds to acquire personal property for which the potential lien claimant may not claim a lien pursuant to this chapter (7) Labor means exertion of the powers of body or mind performed at the site for compensation Labor includes amounts due and owed to any employee benefit plan on account of such labor performed (8) Mortgagee means a person who has a valid mortgage of record or deed of trust of record securing a loan (9) Owner-occupied means a single-family residence occupied by the owner as his or her principal residence (10) Payment bond means a surety bond issued by a surety licensed to issue surety bonds in the state of Washington that confers upon potential claimants the rights of third party beneficiaries (11) Potential lien claimant means any person or entity entitled to assert lien rights under this chapter who has otherwise complied with the provisions of this chapter and is registered or licensed if required to be licensed or registered by the provisions of the laws of the state of Washington (12) Prime contractor includes all contractors general contractors and specialty

CCBA Nuts amp Bolts on Construction Law - 33 of 49

contractors as defined by chapter 1827 or 1928 RCW or who are otherwise required to be registered or licensed by law who contract directly with a property owner or their common law agent to assume primary responsibility for the creation of an improvement to real property and includes property owners or their common law agents who are contractors general contractors or specialty contractors as defined in chapter 1827 or 1928 RCW or who are otherwise required to be registered or licensed by law who offer to sell their property without occupying or using the structures projects developments or improvements for more than one year (13) Professional services means surveying establishing or marking the boundaries of preparing maps plans or specifications for or inspecting testing or otherwise performing any other architectural or engineering services for the improvement of real property (14) Real property lender means a bank savings bank savings and loan association credit union mortgage company or other corporation association partnership trust or individual that makes loans secured by real property located in the state of Washington (15) Site means the real property which is or is to be improved (16) Subcontractor means a general contractor or specialty contractor as defined by chapter 1827 or 1928 RCW or who is otherwise required to be registered or licensed by law who contracts for the improvement of real property with someone other than the owner of the property or their common law agent

6004021 Lien authorized

Except as provided in RCW 6004031 any person furnishing labor professional services materials or equipment for the improvement of real property shall have a lien upon the improvement for the contract price of labor professional services materials or equipment furnished at the instance of the owner or the agent or construction agent of the owner

6004031 Notices mdash Exceptions

(1) Except as otherwise provided in this section every person furnishing professional services materials or equipment for the improvement of real property shall give the owner or reputed owner notice in writing of the right to claim a lien If the prime contractor is in compliance with the requirements of RCW 1927095 6004230 and 6004261 this notice shall also be given to the prime contractor as described in this subsection unless the potential lien claimant has contracted directly with the prime contractor The notice may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after the date which is sixty days before (a) Mailing the notice by certified or registered mail to the owner or reputed owner or

CCBA Nuts amp Bolts on Construction Law - 34 of 49

(b) Delivering or serving the notice personally upon the owner or reputed owner and obtaining evidence of delivery in the form of a receipt or other acknowledgment signed by the owner or reputed owner or an affidavit of service In the case of new construction of a single-family residence the notice of a right to claim a lien may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after a date which is ten days before the notice is given as described in this subsection (2) Notices of a right to claim a lien shall not be required of (a) Persons who contract directly with the owner or the owners common law agent (b) Laborers whose claim of lien is based solely on performing labor or (c) Subcontractors who contract for the improvement of real property directly with the prime contractor except as provided in subsection (3)(b) of this section (3) Persons who furnish professional services materials or equipment in connection with the repair alteration or remodel of an existing owner-occupied single-family residence or appurtenant garage (a) Who contract directly with the owner-occupier or their common law agent shall not be required to send a written notice of the right to claim a lien and shall have a lien for the full amount due under their contract as provided in RCW 6004021 or (b) Who do not contract directly with the owner-occupier or their common law agent shall give notice of the right to claim a lien to the owner-occupier Liens of persons furnishing professional services materials or equipment who do not contract directly with the owner-occupier or their common law agent may only be satisfied from amounts not yet paid to the prime contractor by the owner at the time the notice described in this section is received regardless of whether amounts not yet paid to the prime contractor are due For the purposes of this subsection received means actual receipt of notice by personal service or registered or certified mail or three days after mailing by registered or certified mail excluding Saturdays Sundays or legal holidays (4) The notice of right to claim a lien described in subsection (1) of this section shall include but not be limited to the following information and shall substantially be in the following form using lower-case and upper-case ten-point type where appropriate

CCBA Nuts amp Bolts on Construction Law - 35 of 49

NOTICE TO OWNER

IMPORTANT READ BOTH SIDES OF THIS NOTICE CAREFULLY

PROTECT YOURSELF FROM PAYING TWICE

To Date

Re (description of property Street address or general location) From AT THE REQUEST OF (Name of person ordering the professional services materials or equipment) THIS IS NOT A LIEN This notice is sent to you to tell you who is providing professional services materials or equipment for the improvement of your property and to advise you of the rights of these persons and your responsibilities Also take note that laborers on your project may claim a lien without sending you a notice

OWNEROCCUPIER OF EXISTING

RESIDENTIAL PROPERTY

Under Washington law those who furnish labor professional services materials or equipment for the repair remodel or alteration of your owner-occupied principal residence and who are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien The law limits the amount that a lien claimant can claim against your property Claims may only be made against that portion of the contract price you have not yet paid to your prime contractor as of the time this notice was given to you or three days after this notice was mailed to you Review the back of this notice for more information and ways to avoid lien claims

COMMERCIAL ANDOR NEW

RESIDENTIAL PROPERTY

CCBA Nuts amp Bolts on Construction Law - 36 of 49

We have or will be providing professional services materials or equipment for the improvement of your commercial or new residential project In the event you or your contractor fail to pay us we may file a lien against your property A lien may be claimed for all professional services materials or equipment furnished after a date that is sixty days before this notice was given to you or mailed to you unless the improvement to your property is the construction of a new single-family residence then ten days before this notice was given to you or mailed to you Sender Address Telephone Brief description of professional services materials or equipment provided or to be provided

IMPORTANT INFORMATION

ON REVERSE SIDE

IMPORTANT INFORMATION

FOR YOUR PROTECTION This notice is sent to inform you that we have or will provide professional services materials or equipment for the improvement of your property We expect to be paid by the person who ordered our services but if we are not paid we have the right to enforce our claim by filing a construction lien against your property LEARN more about the lien laws and the meaning of this notice by discussing them with your contractor suppliers Department of Labor and Industries the firm sending you this notice your lender or your attorney

COMMON METHODS TO AVOID CONSTRUCTION LIENS There are several methods available to protect your property from construction liens The following are two of the more commonly used methods

DUAL PAYCHECKS (Joint Checks) When paying your contractor for services or materials you may make checks payable jointly to the contractor and the firms furnishing you this notice

CCBA Nuts amp Bolts on Construction Law - 37 of 49

LIEN RELEASES You may require your contractor to provide lien releases signed by all the suppliers and subcontractors from whom you have received this notice If they cannot obtain lien releases because you have not paid them you may use the dual payee check method to protect yourself

YOU SHOULD TAKE APPROPRIATE STEPS TO PROTECT YOUR PROPERTY FROM LIENS YOUR PRIME CONTRACTOR AND YOUR CONSTRUCTION LENDER ARE REQUIRED BY LAW TO GIVE YOU WRITTEN INFORMATION ABOUT LIEN CLAIMS IF YOU HAVE NOT RECEIVED IT ASK THEM FOR IT

(5) Every potential lien claimant providing professional services where no improvement as defined in RCW 6004011(5) (a) or (b) has been commenced and the professional services provided are not visible from an inspection of the real property may record in the real property records of the county where the property is located a notice which shall contain the professional service providers name address telephone number legal description of the property the owner or reputed owners name and the general nature of the professional services provided If such notice is not recorded the lien claimed shall be subordinate to the interest of any subsequent mortgagee and invalid as to the interest of any subsequent purchaser if the mortgagee or purchaser acts in good faith and for a valuable consideration acquires an interest in the property prior to the commencement of an improvement as defined in RCW 6004011(5) (a) or (b) without notice of the professional services being provided The notice described in this subsection shall be substantially in the following form

NOTICE OF FURNISHING

PROFESSIONAL SERVICES That on the (day) day of (month and year) (name of provider) began providing professional services upon or for the improvement of real property legally described as follows

[Legal Description is mandatory]

CCBA Nuts amp Bolts on Construction Law - 38 of 49

The general nature of the professional services provided is The owner or reputed owner of the real property is

(Signature)

(Name of Claimant)

(Street Address)

(City State Zip Code)

(Phone Number)

(6) A lien authorized by this chapter shall not be enforced unless the lien claimant has complied with the applicable provisions of this section

6004041 Contractor registration

A contractor or subcontractor required to be registered under chapter 1827 RCW or licensed under chapter 1928 RCW or otherwise required to be registered or licensed by law shall be deemed the construction agent of the owner for the purposes of establishing the lien created by this chapter only if so registered or licensed Persons dealing with contractors or subcontractors may rely for the purposes of this section upon a certificate of registration issued pursuant to chapter 1827 RCW or license issued pursuant to chapter 1928 RCW or other certificate or license issued pursuant to law covering the period when the labor professional services material or equipment shall be furnished and the lien rights shall not be lost by suspension or revocation of registration or license without their knowledge No lien rights described in this

CCBA Nuts amp Bolts on Construction Law - 39 of 49

chapter shall be lost or denied by virtue of the absence suspension or revocation of such registration or license with respect to any contractor or subcontractor not in immediate contractual privity with the lien claimant

6004081 Frivolous claim mdash Procedure

(1) Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who believes the claim of lien to be frivolous and made without reasonable cause or clearly excessive may apply by motion to the superior court for the county where the property or some part thereof is located for an order directing the lien claimant to appear before the court at a time no earlier than six nor later than fifteen days following the date of service of the application and order on the lien claimant and show cause if any he or she has why the relief requested should not be granted The motion shall state the grounds upon which relief is asked and shall be supported by the affidavit of the applicant or his or her attorney setting forth a concise statement of the facts upon which the motion is based (2) The order shall clearly state that if the lien claimant fails to appear at the time and place noted the lien shall be released with prejudice and that the lien claimant shall be ordered to pay the costs requested by the applicant including reasonable attorneys fees (3) If no action to foreclose the lien claim has been filed the clerk of the court shall assign a cause number to the application and obtain from the applicant a filing fee pursuant to RCW 3618016 If an action has been filed to foreclose the lien claim the application shall be made a part of that action (4) If following a hearing on the matter the court determines that the lien is frivolous and made without reasonable cause or clearly excessive the court shall issue an order releasing the lien if frivolous and made without reasonable cause or reducing the lien if clearly excessive and awarding costs and reasonable attorneys fees to the applicant to be paid by the lien claimant If the court determines that the lien is not frivolous and was made with reasonable cause and is not clearly excessive the court shall issue an order so stating and awarding costs and reasonable attorneys fees to the lien claimant to be paid by the applicant (5) Proceedings under this section shall not affect other rights and remedies available to the parties under this chapter or otherwise

6004091 Recording mdash Time mdash Contents of lien

Every person claiming a lien under RCW 6004021 shall file for recording in the county where the subject property is located a notice of claim of lien not later than ninety days after the person

CCBA Nuts amp Bolts on Construction Law - 40 of 49

has ceased to furnish labor professional services materials or equipment or the last date on which employee benefit contributions were due The notice of claim of lien (1) Shall state in substance and effect (a) The name phone number and address of the claimant (b) The first and last date on which the labor professional services materials or equipment was furnished or employee benefit contributions were due (c) The name of the person indebted to the claimant (d) The street address legal description or other description reasonably calculated to identify for a person familiar with the area the location of the real property to be charged with the lien (e) The name of the owner or reputed owner of the property if known and if not known that fact shall be stated and (f) The principal amount for which the lien is claimed (2) Shall be signed by the claimant or some person authorized to act on his or her behalf who shall affirmatively state they have read the notice of claim of lien and believe the notice of claim of lien to be true and correct under penalty of perjury and shall be acknowledged pursuant to chapter 6408 RCW If the lien has been assigned the name of the assignee shall be stated Where an action to foreclose the lien has been commenced such notice of claim of lien may be amended as pleadings may be by order of the court insofar as the interests of third parties are not adversely affected by such amendment A claim of lien substantially in the following form shall be sufficient

CLAIM OF LIEN

claimant vs name of person indebted to claimant

Notice is hereby given that the person named below claims a lien pursuant to chapter 6404 RCW In support of this lien the following information is submitted

1 NAME OF LIEN CLAIMANT

TELEPHONE NUMBER

CCBA Nuts amp Bolts on Construction Law - 41 of 49

ADDRESS

2 DATE ON WHICH THE CLAIMANT BEGAN TO PERFORM LABOR PROVIDE PROFESSIONAL SERVICES SUPPLY MATERIAL OR EQUIPMENT OR THE DATE ON WHICH EMPLOYEE BENEFIT CONTRIBUTIONS BECAME DUE

3 NAME OF PERSON INDEBTED TO THE CLAIMANT

4 DESCRIPTION OF THE PROPERTY AGAINST WHICH A LIEN IS CLAIMED (Street address legal description or other information that will reasonably describe the property)

5 NAME OF THE OWNER OR REPUTED OWNER (If not known state unknown)

6 THE LAST DATE ON WHICH LABOR WAS PERFORMED PROFESSIONAL SERVICES WERE FURNISHED CONTRIBUTIONS TO AN EMPLOYEE BENEFIT PLAN WERE DUE OR MATERIAL OR EQUIPMENT WAS FURNISHED

7 PRINCIPAL AMOUNT FOR WHICH THE LIEN IS CLAIMED IS

8 IF THE CLAIMANT IS THE ASSIGNEE OF THIS CLAIM SO STATE HERE

Claimant

(Phone number address city

CCBA Nuts amp Bolts on Construction Law - 42 of 49

and

state of claimant)

STATE OF WASHINGTON COUNTY OF ss being sworn says I am the claimant (or attorney of the claimant or administrator representative or agent of the trustees of an employee benefit plan) above named I have read or heard the foregoing claim read and know the contents thereof and believe the same to be true and correct and that the claim of lien is not frivolous and is made with reasonable cause and is not clearly excessive under penalty of perjury Subscribed and sworn to before me this day of The period provided for recording the claim of lien is a period of limitation and no action to foreclose a lien shall be maintained unless the claim of lien is filed for recording within the ninety-day period stated The lien claimant shall give a copy of the claim of lien to the owner or reputed owner by mailing it by certified or registered mail or by personal service within fourteen days of the time the claim of lien is filed for recording Failure to do so results in a forfeiture of any right the claimant may have to attorneys fees and costs against the owner under RCW 6004181

6004161 Bond in lieu of claim

Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who disputes the correctness or validity of the claim of lien may record either before or after the commencement of an action to enforce the lien in the office of the county recorder or auditor in the county where the claim of lien was recorded a bond issued by a surety company authorized to issue surety bonds in the state The surety shall be listed in the latest federal department of the treasury list of surety companies acceptable on federal bonds published in the Federal Register as authorized to issue bonds on United States government projects with an underwriting limitation including applicable reinsurance equal to or greater than the amount of the bond to be recorded The bond shall contain a description of the claim of lien and real property involved and be in an amount equal to the greater of five thousand dollars or two times the amount of the lien claimed if it is ten thousand dollars or less and in an amount equal to or greater than one and one-half times the amount of the lien if it is in

CCBA Nuts amp Bolts on Construction Law - 43 of 49

excess of ten thousand dollars If the claim of lien affects more than one parcel of real property and is segregated to each parcel the bond may be segregated the same as in the claim of lien A separate bond shall be required for each claim of lien made by separate claimants However a single bond may be used to guarantee payment of amounts claimed by more than one claim of lien by a single claimant so long as the amount of the bond meets the requirements of this section as applied to the aggregate sum of all claims by such claimant The condition of the bond shall be to guarantee payment of any judgment upon the lien in favor of the lien claimant entered in any action to recover the amount claimed in a claim of lien or on the claim asserted in the claim of lien The effect of recording a bond shall be to release the real property described in the notice of claim of lien from the lien and any action brought to recover the amount claimed Unless otherwise prohibited by law if no action is commenced to recover on a lien within the time specified in RCW 6004141 the surety shall be discharged from liability under the bond If an action is timely commenced then on payment of any judgment entered in the action or on payment of the full amount of the bond to the holder of the judgment whichever is less the surety shall be discharged from liability under the bond Nothing in this section shall in any way prohibit or limit the use of other methods devised by the affected parties to secure the obligation underlying a claim of lien and to obtain a release of real property from a claim of lien

6004181 Rank of lien mdash Application of proceeds mdash Attorneys fees

(1) In every case in which different construction liens are claimed against the same property the court shall declare the rank of such lien or class of liens which liens shall be in the following order (a) Liens for the performance of labor (b) Liens for contributions owed to employee benefit plans (c) Liens for furnishing material supplies or equipment (d) Liens for subcontractors including but not limited to their labor and materials and (e) Liens for prime contractors or for professional services (2) The proceeds of the sale of property must be applied to each lien or class of liens in order of its rank and in an action brought to foreclose a lien pro rata among each claimant in each separate priority class A personal judgment may be rendered against any party personally liable for any debt for which the lien is claimed If the lien is established the judgment shall provide

CCBA Nuts amp Bolts on Construction Law - 44 of 49

for the enforcement thereof upon the property liable as in the case of foreclosure of judgment liens The amount realized by such enforcement of the lien shall be credited upon the proper personal judgment The deficiency if any remaining unsatisfied shall stand as a personal judgment and may be collected by execution against any party liable therefor (3) The court may allow the prevailing party in the action whether plaintiff or defendant as part of the costs of the action the moneys paid for recording the claim of lien costs of title report bond costs and attorneys fees and necessary expenses incurred by the attorney in the superior court court of appeals supreme court or arbitration as the court or arbitrator deems reasonable Such costs shall have the priority of the class of lien to which they are related as established by subsection (1) of this section (4) Real property against which a lien under this chapter is enforced may be ordered sold by the court and the proceeds deposited into the registry of the clerk of the court pending further determination respecting distribution of the proceeds of the sale

6004900 Liberal construction mdash 1991 c 281

RCW 1927095 6004230 and 6004011 through 6004226 and 6004261 are to be liberally construed to provide security for all parties intended to be protected by their provisions

RCW 6028011

Retained percentage mdash Public transportation projects mdash Labor and material lien created mdash Bond in lieu of retained funds mdash Termination before completion mdash Chapter deemed exclusive mdash Release of ferry contract payments mdash Projects of farmers home administration mdash General contractorconstruction manager procedure mdash Definitions

(1)(a) Except as provided in (b) of this subsection public improvement contracts must provide and public bodies must reserve a contract retainage not to exceed five percent of the moneys earned by the contractor as a trust fund for the protection and payment of (i) The claims of any person arising under the contract and (ii) the state with respect to taxes increases and penalties imposed pursuant to Titles 50 51 and 82 RCW which may be due from such contractor (b) Public improvement contracts funded in whole or in part by federal transportation funds must rely upon the contract bond as referred to in chapter 3908 RCW for the protection and payment of (i) The claims of any person or persons arising under the contract to the extent such claims are provided for in RCW 3908010 and (ii) the state with respect to taxes increases and penalties incurred on the public improvement project under Titles 50 51 and 82 RCW which may be due The contract bond must remain in full force and effect until at a minimum all claims filed in compliance with chapter 3908 RCW are resolved

CCBA Nuts amp Bolts on Construction Law - 45 of 49

(2) Every person performing labor or furnishing supplies toward the completion of a public improvement contract has a lien upon moneys reserved by a public body under the provisions of a public improvement contract However the notice of the lien of the claimant must be given within forty-five days of completion of the contract work and in the manner provided in RCW 3908030 (3) The contractor at any time may request the contract retainage be reduced to one hundred percent of the value of the work remaining on the project (a) After completion of all contract work other than landscaping the contractor may request that the public body release and pay in full the amounts retained during the performance of the contract and sixty days thereafter the public body must release and pay in full the amounts retained (other than continuing retention of five percent of the moneys earned for landscaping) subject to the provisions of chapters 3912 and 6028 RCW (b) Sixty days after completion of all contract work the public body must release and pay in full the amounts retained during the performance of the contract subject to the provisions of chapters 3912 and 6028 RCW (4) The moneys reserved by a public body under the provisions of a public improvement contract at the option of the contractor must be (a) Retained in a fund by the public body (b) Deposited by the public body in an interest bearing account in a bank mutual savings bank or savings and loan association Interest on moneys reserved by a public body under the provision of a public improvement contract must be paid to the contractor (c) Placed in escrow with a bank or trust company by the public body When the moneys reserved are placed in escrow the public body must issue a check representing the sum of the moneys reserved payable to the bank or trust company and the contractor jointly This check must be converted into bonds and securities chosen by the contractor and approved by the public body and the bonds and securities must be held in escrow Interest on the bonds and securities must be paid to the contractor as the interest accrues (5) The contractor or subcontractor may withhold payment of not more than five percent from the moneys earned by any subcontractor or sub-subcontractor or supplier contracted with by the contractor to provide labor materials or equipment to the public project Whenever the contractor or subcontractor reserves funds earned by a subcontractor or sub-subcontractor or

CCBA Nuts amp Bolts on Construction Law - 46 of 49

supplier the contractor or subcontractor must pay interest to the subcontractor or sub-subcontractor or supplier at a rate equal to that received by the contractor or subcontractor from reserved funds (6) A contractor may submit a bond for all or any portion of the contract retainage in a form acceptable to the public body and from a bonding company meeting standards established by the public body The public body must accept a bond meeting these requirements unless the public body can demonstrate good cause for refusing to accept it This bond and any proceeds therefrom are subject to all claims and liens and in the same manner and priority as set forth for retained percentages in this chapter The public body must release the bonded portion of the retained funds to the contractor within thirty days of accepting the bond from the contractor Whenever a public body accepts a bond in lieu of retained funds from a contractor the contractor must accept like bonds from any subcontractors or suppliers from which the contractor has retained funds The contractor must then release the funds retained from the subcontractor or supplier to the subcontractor or supplier within thirty days of accepting the bond from the subcontractor or supplier (7) If the public body administering a contract after a substantial portion of the work has been completed finds that an unreasonable delay will occur in the completion of the remaining portion of the contract for any reason not the result of a breach thereof it may if the contractor agrees delete from the contract the remaining work and accept as final the improvement at the stage of completion then attained and make payment in proportion to the amount of the work accomplished and in this case any amounts retained and accumulated under this section must be held for a period of sixty days following the completion In the event that the work is terminated before final completion as provided in this section the public body may thereafter enter into a new contract with the same contractor to perform the remaining work or improvement for an amount equal to or less than the cost of the remaining work as was provided for in the original contract without advertisement or bid The provisions of this chapter are exclusive and supersede all provisions and regulations in conflict herewith (8) Whenever the department of transportation has contracted for the construction of two or more ferry vessels sixty days after completion of all contract work on each ferry vessel the department must release and pay in full the amounts retained in connection with the construction of the vessel subject to the provisions of RCW 6028021 and chapter 3912 RCW However the department of transportation may at its discretion condition the release of funds retained in connection with the completed ferry upon the contractor delivering a good and sufficient bond with two or more sureties or with a surety company in the amount of the retained funds to be released to the contractor conditioned that no taxes may be certified or claims filed for work on the ferry after a period of sixty days following completion of the ferry and if taxes are certified or claims filed recovery may be had on the bond by the department of revenue the employment

CCBA Nuts amp Bolts on Construction Law - 47 of 49

security department the department of labor and industries and the material suppliers and laborers filing claims (9) Except as provided in subsection (1) of this section reservation by a public body for any purpose from the moneys earned by a contractor by fulfilling its responsibilities under public improvement contracts is prohibited (10) Contracts on projects funded in whole or in part by farmers home administration and subject to farmers home administration regulations are not subject to subsections (1) through (9) of this section (11) This subsection applies only to a public body that has contracted for the construction of a facility using the general contractorconstruction manager procedure as defined under RCW 3910210 If the work performed by a subcontractor on the project has been completed within the first half of the time provided in the general contractorconstruction manager contract for completing the work the public body may accept the completion of the subcontract The public body must give public notice of this acceptance After a forty-five day period for giving notice of liens and compliance with the retainage release procedures in RCW 6028021 the public body may release that portion of the retained funds associated with the subcontract Claims against the retained funds after the forty-five day period are not valid (12) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise (a) Contract retainage means an amount reserved by a public body from the moneys earned by a person under a public improvement contract (b) Person means a person or persons mechanic subcontractor or materialperson who performs labor or provides materials for a public improvement contract and any other person who supplies the person with provisions or supplies for the carrying on of a public improvement contract (c) Public body means the state or a county city town district board or other public body (d) Public improvement contract means a contract for public improvements or work other than for professional services or a work order as defined in RCW 3910210

CCBA Nuts amp Bolts on Construction Law - 48 of 49

RCW 6432070 Liens or encumbrances mdash Enforcement mdash Satisfaction

(1) Subsequent to recording the declaration as provided in this chapter and while the property remains subject to this chapter no lien shall thereafter arise or be effective against the property During such period liens or encumbrances shall arise or be created only against each apartment and the percentage of undivided interest in the common areas and facilities and appurtenant to such apartment in the same manner and under the same conditions in every respect as liens or encumbrances may arise or be created upon or against any other separate parcel of real property subject to individual ownership PROVIDED That no labor performed or materials furnished with the consent of or at the request of the owner of any apartment or such owners agent contractor or subcontractor shall be the basis for the filing of a lien against any other apartment or any other property of any other apartment owner not expressly consenting to or requesting the same except that such express consent shall be deemed to be given by any apartment owner in the case of emergency repairs Labor performed or materials furnished for the common areas and facilities if authorized by the association of apartment owners the manager or board of directors shall be deemed to be performed or furnished with the express consent of each apartment owner and shall be the basis for the filing of a lien against each of the apartments and shall be subject to the provisions of subsection (2) of this section (2) In the event a lien against two or more apartments becomes effective the apartment owners of the separate apartments may remove their apartment and the percentage of undivided interest in the common areas and facilities appurtenant to such apartment from the lien by payment of the fractional or proportional amounts attributable to each of the apartments affected Such individual payments shall be computed by reference to the percentages appearing on the declaration Subsequent to any such payment discharge or satisfaction the apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto shall thereafter be free and clear of the liens so paid satisfied or discharged Such partial payment satisfaction or discharge shall not prevent the lienor from proceeding to enforce his or her rights against any apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto not so paid satisfied or discharged

CCBA Nuts amp Bolts on Construction Law - 49 of 49

  • Cover Sheet
  • 20141110 - Washington Lien and Bond CLE
  • LampI Lien Summary
  • Claim of Lien
  • Form Notice to Owner
  • Model Disclosure Statement (Notice to Customer)
  • LampI Facts about Construction Liens
    • What you should know about contracts
    • How to protect your investment
    • For more information
      • Notice of Claim Against Bond and Retained Percentage
      • Preclaim Notice Bond amp Retained Percentage
      • Statute Handout
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ColorImageAutoFilterStrategy JPEG ColorACSImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt ColorImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000ColorACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000ColorImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasGrayImages false CropGrayImages true GrayImageMinResolution 300 GrayImageMinResolutionPolicy OK DownsampleGrayImages true GrayImageDownsampleType Bicubic GrayImageResolution 300 GrayImageDepth -1 GrayImageMinDownsampleDepth 2 GrayImageDownsampleThreshold 150000 EncodeGrayImages false GrayImageFilter DCTEncode AutoFilterGrayImages true GrayImageAutoFilterStrategy JPEG GrayACSImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt GrayImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000GrayACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000GrayImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasMonoImages false CropMonoImages true MonoImageMinResolution 1200 MonoImageMinResolutionPolicy OK DownsampleMonoImages true MonoImageDownsampleType Bicubic MonoImageResolution 1200 MonoImageDepth -1 MonoImageDownsampleThreshold 150000 EncodeMonoImages false MonoImageFilter CCITTFaxEncode MonoImageDict ltlt K -1 gtgt AllowPSXObjects false CheckCompliance [ None ] PDFX1aCheck false PDFX3Check false PDFXCompliantPDFOnly false PDFXNoTrimBoxError true PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile (None) PDFXOutputConditionIdentifier () PDFXOutputCondition () PDFXRegistryName () PDFXTrapped False Description ltlt CHS ltFEFF4f7f75288fd94e9b8bbe5b9a521b5efa7684002000410064006f006200650020005000440046002065876863900275284e8e9ad88d2891cf76845370524d53705237300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200035002e003000204ee553ca66f49ad87248672c676562535f00521b5efa768400200050004400460020658768633002gt CHT ltFEFF4f7f752890194e9b8a2d7f6e5efa7acb7684002000410064006f006200650020005000440046002065874ef69069752865bc9ad854c18cea76845370524d5370523786557406300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200035002e003000204ee553ca66f49ad87248672c4f86958b555f5df25efa7acb76840020005000440046002065874ef63002gt DAN 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 DEU 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 ESP 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 FRA ltFEFF005500740069006c006900730065007a00200063006500730020006f007000740069006f006e00730020006100660069006e00200064006500200063007200e900650072002000640065007300200064006f00630075006d0065006e00740073002000410064006f00620065002000500044004600200070006f0075007200200075006e00650020007100750061006c0069007400e90020006400270069006d007000720065007300730069006f006e00200070007200e9007000720065007300730065002e0020004c0065007300200064006f00630075006d0065006e00740073002000500044004600200063007200e900e90073002000700065007500760065006e0074002000ea0074007200650020006f007500760065007200740073002000640061006e00730020004100630072006f006200610074002c002000610069006e00730069002000710075002700410064006f00620065002000520065006100640065007200200035002e0030002000650074002000760065007200730069006f006e007300200075006c007400e90072006900650075007200650073002egt ITA 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 JPN ltFEFF9ad854c18cea306a30d730ea30d730ec30b951fa529b7528002000410064006f0062006500200050004400460020658766f8306e4f5c6210306b4f7f75283057307e305930023053306e8a2d5b9a30674f5c62103055308c305f0020005000440046002030d530a130a430eb306f3001004100630072006f0062006100740020304a30883073002000410064006f00620065002000520065006100640065007200200035002e003000204ee5964d3067958b304f30533068304c3067304d307e305930023053306e8a2d5b9a306b306f30d530a930f330c8306e57cb30818fbc307f304c5fc59808306730593002gt KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020ace0d488c9c80020c2dcd5d80020c778c1c4c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200035002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor prepress-afdrukken van hoge kwaliteit De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 50 en hoger) NOR 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 PTB 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 SUO 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 SVE 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 ENU (Use these settings to create Adobe PDF documents best suited for high-quality prepress printing Created PDF documents can be opened with Acrobat and Adobe Reader 50 and later) gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false ConvertColors ConvertToCMYK DestinationProfileName () DestinationProfileSelector DocumentCMYK Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles false MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector DocumentCMYK PreserveEditing true UntaggedCMYKHandling LeaveUntagged UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ]gtgt setdistillerparamsltlt HWResolution [2400 2400] PageSize [612000 792000]gtgt setpagedevice

          ltlt ASCII85EncodePages false AllowTransparency false AutoPositionEPSFiles true AutoRotatePages None Binding Left CalGrayProfile (Dot Gain 20) CalRGBProfile (sRGB IEC61966-21) CalCMYKProfile (US Web Coated 050SWOP051 v2) sRGBProfile (sRGB IEC61966-21) CannotEmbedFontPolicy Warning CompatibilityLevel 14 CompressObjects Tags CompressPages true ConvertImagesToIndexed true PassThroughJPEGImages true CreateJDFFile false CreateJobTicket false DefaultRenderingIntent Default DetectBlends true DetectCurves 00000 ColorConversionStrategy LeaveColorUnchanged DoThumbnails false EmbedAllFonts true EmbedOpenType false ParseICCProfilesInComments true EmbedJobOptions true DSCReportingLevel 0 EmitDSCWarnings false EndPage -1 ImageMemory 1048576 LockDistillerParams true MaxSubsetPct 100 Optimize true OPM 1 ParseDSCComments true ParseDSCCommentsForDocInfo true PreserveCopyPage true PreserveDICMYKValues true PreserveEPSInfo true PreserveFlatness true PreserveHalftoneInfo false PreserveOPIComments true PreserveOverprintSettings true StartPage 1 SubsetFonts true TransferFunctionInfo Apply UCRandBGInfo Preserve UsePrologue false ColorSettingsFile () AlwaysEmbed [ true Algerian Arial-Black Arial-BoldItalicMT Arial-BoldMT Arial-ItalicMT ArialMT ArialNarrow ArialNarrow-Bold ArialNarrow-BoldItalic ArialNarrow-Italic BaskOldFace Bauhaus93 BellMT BellMTBold BellMTItalic BerlinSansFB-Bold BerlinSansFBDemi-Bold BerlinSansFB-Reg BernardMT-Condensed BodoniMTPosterCompressed BookAntiqua BookAntiqua-Bold BookAntiqua-BoldItalic BookAntiqua-Italic BookmanOldStyle BookmanOldStyle-Bold BookmanOldStyle-BoldItalic BookmanOldStyle-Italic BookshelfSymbolSeven BritannicBold Broadway BrushScriptMT CalifornianFB-Bold CalifornianFB-Italic CalifornianFB-Reg Centaur CenturyGothic CenturyGothic-Bold CenturyGothic-BoldItalic CenturyGothic-Italic Chiller-Regular ColonnaMT ComicSansMS ComicSansMS-Bold CooperBlack CourierNewPS-BoldItalicMT CourierNewPS-BoldMT CourierNewPS-ItalicMT CourierNewPSMT EstrangeloEdessa EXTRAAPLNew-Regular EXTRAOIANew-Regular FootlightMTLight FranklinGothic-Medium FranklinGothic-MediumItalic FreestyleScript-Regular Garamond Garamond-Bold Garamond-Italic Gautami Georgia Georgia-Bold Georgia-BoldItalic Georgia-Italic HarlowSolid Harrington HighTowerText-Italic HighTowerText-Reg Impact InformalRoman-Regular Jokerman-Regular JuiceITC-Regular Kartika KristenITC-Regular KunstlerScript Latha LatinWide LucidaATTMSpecial LucidaBright LucidaBright-Demi LucidaBright-DemiItalic LucidaBright-Italic LucidaCalligraphy-Italic LucidaConsole LucidaFax LucidaFax-Demi LucidaFax-DemiItalic LucidaFax-Italic LucidaforAttachmate LucidaHandwriting-Italic LucidaSans LucidaSans-Demi LucidaSans-DemiItalic LucidaSans-Italic LucidaSansUnicode Magneto-Bold Mangal-Regular MaturaMTScriptCapitals MicrosoftSansSerif Mistral Modern-Regular Monospace821BT-Roman MonotypeCorsiva MSOutlook MSReferenceSansSerif MSReferenceSpecialty MVBoli NiagaraEngraved-Reg NiagaraSolid-Reg OldEnglishTextMT Onyx PalatinoLinotype-Bold PalatinoLinotype-BoldItalic PalatinoLinotype-Italic PalatinoLinotype-Roman Parchment-Regular Playbill PoorRichard-Regular Raavi Ravie ShowcardGothic-Reg Shruti SnapITC-Regular Stencil Sylfaen SymbolMT Tahoma Tahoma-Bold TempusSansITC TimesNewRomanPS-BoldItalicMT TimesNewRomanPS-BoldMT TimesNewRomanPS-ItalicMT TimesNewRomanPSMT Trebuchet-BoldItalic TrebuchetMS TrebuchetMS-Bold TrebuchetMS-Italic Tunga-Regular Verdana Verdana-Bold Verdana-BoldItalic Verdana-Italic VinerHandITC Vivaldii VladimirScript Vrinda Webdings Wingdings2 Wingdings3 Wingdings-Regular ZWAdobeF ] NeverEmbed [ true ] AntiAliasColorImages false CropColorImages true ColorImageMinResolution 300 ColorImageMinResolutionPolicy OK DownsampleColorImages true ColorImageDownsampleType Bicubic ColorImageResolution 300 ColorImageDepth -1 ColorImageMinDownsampleDepth 1 ColorImageDownsampleThreshold 150000 EncodeColorImages false ColorImageFilter DCTEncode AutoFilterColorImages true ColorImageAutoFilterStrategy JPEG ColorACSImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt ColorImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000ColorACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000ColorImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasGrayImages false CropGrayImages true GrayImageMinResolution 300 GrayImageMinResolutionPolicy OK DownsampleGrayImages true GrayImageDownsampleType Bicubic GrayImageResolution 300 GrayImageDepth -1 GrayImageMinDownsampleDepth 2 GrayImageDownsampleThreshold 150000 EncodeGrayImages false GrayImageFilter DCTEncode AutoFilterGrayImages true GrayImageAutoFilterStrategy JPEG GrayACSImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt GrayImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000GrayACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000GrayImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasMonoImages false CropMonoImages true MonoImageMinResolution 1200 MonoImageMinResolutionPolicy OK DownsampleMonoImages true MonoImageDownsampleType Bicubic MonoImageResolution 1200 MonoImageDepth -1 MonoImageDownsampleThreshold 150000 EncodeMonoImages false MonoImageFilter CCITTFaxEncode MonoImageDict ltlt K -1 gtgt AllowPSXObjects false CheckCompliance [ None ] PDFX1aCheck false PDFX3Check false PDFXCompliantPDFOnly false PDFXNoTrimBoxError true PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile (None) PDFXOutputConditionIdentifier () PDFXOutputCondition () PDFXRegistryName () PDFXTrapped False Description ltlt CHS ltFEFF4f7f75288fd94e9b8bbe5b9a521b5efa7684002000410064006f006200650020005000440046002065876863900275284e8e9ad88d2891cf76845370524d53705237300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200035002e003000204ee553ca66f49ad87248672c676562535f00521b5efa768400200050004400460020658768633002gt CHT ltFEFF4f7f752890194e9b8a2d7f6e5efa7acb7684002000410064006f006200650020005000440046002065874ef69069752865bc9ad854c18cea76845370524d5370523786557406300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200035002e003000204ee553ca66f49ad87248672c4f86958b555f5df25efa7acb76840020005000440046002065874ef63002gt DAN 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 DEU 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 ESP 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          1. To
          2. Date
          3. Re
          4. From
          5. AT THE REQUEST OF
          6. Sender
          7. Address
          8. Telephone
          9. Brief description of professional services materials or equipment provided or to be provided
          10. 1
          11. 2
          12. 3
          13. reg no
          14. deposit $
          15. expiration date
          16. claims up to $
          17. Reset

(Signature of customer) (2) The contractor must retain a signed copy of the disclosure statement in his or her files for a minimum of three years and produce a signed or electronic signature copy of the disclosure statement to the department upon request (3) A contractor subject to this section shall notify any consumer to whom notice is required under subsection (1) of this section if the contractors registration has expired or is revoked or suspended by the department prior to completion or other termination of the contract with the consumer (4) No contractor subject to this section may bring or maintain any lien claim under chapter 6004 RCW based on any contract to which this section applies without alleging and proving that the contractor has provided the customer with a copy of the disclosure statement as required in subsection (1) of this section (5) This section does not apply to contracts authorized under chapter 3904 RCW or to contractors contracting with other contractors (6) Failure to comply with this section shall constitute an infraction under the provisions of this chapter (7) The department shall produce model disclosure statements and public service announcements detailing the information needed to assist contractors and contractors customers to comply under this section As necessary the department shall periodically update these education materials RCW 3908010 Bond required mdash Conditions mdash Retention of contract amount in lieu of bond (1)(a) Whenever any board council commission trustees or body acting for the state or any county or municipality or any public body must contract with any person or corporation to do any work for the state county or municipality or other public body city town or district such board council commission trustees or body must require the person or persons with whom such contract is made to make execute and deliver to such board council commission trustees or body a good and sufficient bond with a surety company as surety conditioned that such person or persons must (i) Faithfully perform all the provisions of such contract (ii) Pay all laborers mechanics and subcontractors and material suppliers and all persons who supply such person or persons or subcontractors with provisions and supplies for the carrying on of such work and

CCBA Nuts amp Bolts on Construction Law - 31 of 49

(iii) Pay the taxes increases and penalties incurred on the project under Titles 50 51 and 82 RCW on (A) Projects referred to in RCW 6028011(1)(b) andor (B) projects for which the bond is conditioned on the payment of such taxes increases and penalties (b) The bond in cases of cities and towns must be filed with the clerk or comptroller thereof and any person or persons performing such services or furnishing material to any subcontractor has the same right under the provisions of such bond as if such work services or material was furnished to the original contractor (2) The provisions of RCW 3908010 through 3908030 do not apply to any money loaned or advanced to any such contractor subcontractor or other person in the performance of any such work (3) On contracts of thirty-five thousand dollars or less at the option of the contractor the respective public entity may in lieu of the bond retain fifty percent of the contract amount for a period of thirty days after date of final acceptance or until receipt of all necessary releases from the department of revenue the employment security department and the department of labor and industries and settlement of any liens filed under chapter 6028 RCW whichever is later (4) For contracts of one hundred thousand dollars or less the public entity may accept a full payment and performance bond from an individual surety or sureties (5) The surety must agree to be bound by the laws of the state of Washington and subjected to the jurisdiction of the state of Washington RCW 6004011 Definitions

Unless the context requires otherwise the definitions in this section apply throughout this chapter (1) Construction agent means any registered or licensed contractor registered or licensed subcontractor architect engineer or other person having charge of any improvement to real property who shall be deemed the agent of the owner for the limited purpose of establishing the lien created by this chapter (2) Contract price means the amount agreed upon by the contracting parties or if no amount is agreed upon then the customary and reasonable charge therefor (3) Draws means periodic disbursements of interim or construction financing by a lender (4) Furnishing labor professional services materials or equipment means the performance of any labor or professional services the contribution owed to any employee benefit plan on account of any labor the provision of any supplies or materials and the renting leasing or

CCBA Nuts amp Bolts on Construction Law - 32 of 49

otherwise supplying of equipment for the improvement of real property (5) Improvement means (a) Constructing altering repairing remodeling demolishing clearing grading or filling in of to or upon any real property or street or road in front of or adjoining the same (b) planting of trees vines shrubs plants hedges or lawns or providing other landscaping materials on any real property and (c) providing professional services upon real property or in preparation for or in conjunction with the intended activities in (a) or (b) of this subsection (6) Interim or construction financing means that portion of money secured by a mortgage deed of trust or other encumbrance to finance improvement of or to real property but does not include (a) Funds to acquire real property (b) Funds to pay interest insurance premiums lease deposits taxes assessments or prior encumbrances (c) Funds to pay loan commitment title legal closing recording or appraisal fees (d) Funds to pay other customary fees which pursuant to agreement with the owner or borrower are to be paid by the lender from time to time (e) Funds to acquire personal property for which the potential lien claimant may not claim a lien pursuant to this chapter (7) Labor means exertion of the powers of body or mind performed at the site for compensation Labor includes amounts due and owed to any employee benefit plan on account of such labor performed (8) Mortgagee means a person who has a valid mortgage of record or deed of trust of record securing a loan (9) Owner-occupied means a single-family residence occupied by the owner as his or her principal residence (10) Payment bond means a surety bond issued by a surety licensed to issue surety bonds in the state of Washington that confers upon potential claimants the rights of third party beneficiaries (11) Potential lien claimant means any person or entity entitled to assert lien rights under this chapter who has otherwise complied with the provisions of this chapter and is registered or licensed if required to be licensed or registered by the provisions of the laws of the state of Washington (12) Prime contractor includes all contractors general contractors and specialty

CCBA Nuts amp Bolts on Construction Law - 33 of 49

contractors as defined by chapter 1827 or 1928 RCW or who are otherwise required to be registered or licensed by law who contract directly with a property owner or their common law agent to assume primary responsibility for the creation of an improvement to real property and includes property owners or their common law agents who are contractors general contractors or specialty contractors as defined in chapter 1827 or 1928 RCW or who are otherwise required to be registered or licensed by law who offer to sell their property without occupying or using the structures projects developments or improvements for more than one year (13) Professional services means surveying establishing or marking the boundaries of preparing maps plans or specifications for or inspecting testing or otherwise performing any other architectural or engineering services for the improvement of real property (14) Real property lender means a bank savings bank savings and loan association credit union mortgage company or other corporation association partnership trust or individual that makes loans secured by real property located in the state of Washington (15) Site means the real property which is or is to be improved (16) Subcontractor means a general contractor or specialty contractor as defined by chapter 1827 or 1928 RCW or who is otherwise required to be registered or licensed by law who contracts for the improvement of real property with someone other than the owner of the property or their common law agent

6004021 Lien authorized

Except as provided in RCW 6004031 any person furnishing labor professional services materials or equipment for the improvement of real property shall have a lien upon the improvement for the contract price of labor professional services materials or equipment furnished at the instance of the owner or the agent or construction agent of the owner

6004031 Notices mdash Exceptions

(1) Except as otherwise provided in this section every person furnishing professional services materials or equipment for the improvement of real property shall give the owner or reputed owner notice in writing of the right to claim a lien If the prime contractor is in compliance with the requirements of RCW 1927095 6004230 and 6004261 this notice shall also be given to the prime contractor as described in this subsection unless the potential lien claimant has contracted directly with the prime contractor The notice may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after the date which is sixty days before (a) Mailing the notice by certified or registered mail to the owner or reputed owner or

CCBA Nuts amp Bolts on Construction Law - 34 of 49

(b) Delivering or serving the notice personally upon the owner or reputed owner and obtaining evidence of delivery in the form of a receipt or other acknowledgment signed by the owner or reputed owner or an affidavit of service In the case of new construction of a single-family residence the notice of a right to claim a lien may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after a date which is ten days before the notice is given as described in this subsection (2) Notices of a right to claim a lien shall not be required of (a) Persons who contract directly with the owner or the owners common law agent (b) Laborers whose claim of lien is based solely on performing labor or (c) Subcontractors who contract for the improvement of real property directly with the prime contractor except as provided in subsection (3)(b) of this section (3) Persons who furnish professional services materials or equipment in connection with the repair alteration or remodel of an existing owner-occupied single-family residence or appurtenant garage (a) Who contract directly with the owner-occupier or their common law agent shall not be required to send a written notice of the right to claim a lien and shall have a lien for the full amount due under their contract as provided in RCW 6004021 or (b) Who do not contract directly with the owner-occupier or their common law agent shall give notice of the right to claim a lien to the owner-occupier Liens of persons furnishing professional services materials or equipment who do not contract directly with the owner-occupier or their common law agent may only be satisfied from amounts not yet paid to the prime contractor by the owner at the time the notice described in this section is received regardless of whether amounts not yet paid to the prime contractor are due For the purposes of this subsection received means actual receipt of notice by personal service or registered or certified mail or three days after mailing by registered or certified mail excluding Saturdays Sundays or legal holidays (4) The notice of right to claim a lien described in subsection (1) of this section shall include but not be limited to the following information and shall substantially be in the following form using lower-case and upper-case ten-point type where appropriate

CCBA Nuts amp Bolts on Construction Law - 35 of 49

NOTICE TO OWNER

IMPORTANT READ BOTH SIDES OF THIS NOTICE CAREFULLY

PROTECT YOURSELF FROM PAYING TWICE

To Date

Re (description of property Street address or general location) From AT THE REQUEST OF (Name of person ordering the professional services materials or equipment) THIS IS NOT A LIEN This notice is sent to you to tell you who is providing professional services materials or equipment for the improvement of your property and to advise you of the rights of these persons and your responsibilities Also take note that laborers on your project may claim a lien without sending you a notice

OWNEROCCUPIER OF EXISTING

RESIDENTIAL PROPERTY

Under Washington law those who furnish labor professional services materials or equipment for the repair remodel or alteration of your owner-occupied principal residence and who are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien The law limits the amount that a lien claimant can claim against your property Claims may only be made against that portion of the contract price you have not yet paid to your prime contractor as of the time this notice was given to you or three days after this notice was mailed to you Review the back of this notice for more information and ways to avoid lien claims

COMMERCIAL ANDOR NEW

RESIDENTIAL PROPERTY

CCBA Nuts amp Bolts on Construction Law - 36 of 49

We have or will be providing professional services materials or equipment for the improvement of your commercial or new residential project In the event you or your contractor fail to pay us we may file a lien against your property A lien may be claimed for all professional services materials or equipment furnished after a date that is sixty days before this notice was given to you or mailed to you unless the improvement to your property is the construction of a new single-family residence then ten days before this notice was given to you or mailed to you Sender Address Telephone Brief description of professional services materials or equipment provided or to be provided

IMPORTANT INFORMATION

ON REVERSE SIDE

IMPORTANT INFORMATION

FOR YOUR PROTECTION This notice is sent to inform you that we have or will provide professional services materials or equipment for the improvement of your property We expect to be paid by the person who ordered our services but if we are not paid we have the right to enforce our claim by filing a construction lien against your property LEARN more about the lien laws and the meaning of this notice by discussing them with your contractor suppliers Department of Labor and Industries the firm sending you this notice your lender or your attorney

COMMON METHODS TO AVOID CONSTRUCTION LIENS There are several methods available to protect your property from construction liens The following are two of the more commonly used methods

DUAL PAYCHECKS (Joint Checks) When paying your contractor for services or materials you may make checks payable jointly to the contractor and the firms furnishing you this notice

CCBA Nuts amp Bolts on Construction Law - 37 of 49

LIEN RELEASES You may require your contractor to provide lien releases signed by all the suppliers and subcontractors from whom you have received this notice If they cannot obtain lien releases because you have not paid them you may use the dual payee check method to protect yourself

YOU SHOULD TAKE APPROPRIATE STEPS TO PROTECT YOUR PROPERTY FROM LIENS YOUR PRIME CONTRACTOR AND YOUR CONSTRUCTION LENDER ARE REQUIRED BY LAW TO GIVE YOU WRITTEN INFORMATION ABOUT LIEN CLAIMS IF YOU HAVE NOT RECEIVED IT ASK THEM FOR IT

(5) Every potential lien claimant providing professional services where no improvement as defined in RCW 6004011(5) (a) or (b) has been commenced and the professional services provided are not visible from an inspection of the real property may record in the real property records of the county where the property is located a notice which shall contain the professional service providers name address telephone number legal description of the property the owner or reputed owners name and the general nature of the professional services provided If such notice is not recorded the lien claimed shall be subordinate to the interest of any subsequent mortgagee and invalid as to the interest of any subsequent purchaser if the mortgagee or purchaser acts in good faith and for a valuable consideration acquires an interest in the property prior to the commencement of an improvement as defined in RCW 6004011(5) (a) or (b) without notice of the professional services being provided The notice described in this subsection shall be substantially in the following form

NOTICE OF FURNISHING

PROFESSIONAL SERVICES That on the (day) day of (month and year) (name of provider) began providing professional services upon or for the improvement of real property legally described as follows

[Legal Description is mandatory]

CCBA Nuts amp Bolts on Construction Law - 38 of 49

The general nature of the professional services provided is The owner or reputed owner of the real property is

(Signature)

(Name of Claimant)

(Street Address)

(City State Zip Code)

(Phone Number)

(6) A lien authorized by this chapter shall not be enforced unless the lien claimant has complied with the applicable provisions of this section

6004041 Contractor registration

A contractor or subcontractor required to be registered under chapter 1827 RCW or licensed under chapter 1928 RCW or otherwise required to be registered or licensed by law shall be deemed the construction agent of the owner for the purposes of establishing the lien created by this chapter only if so registered or licensed Persons dealing with contractors or subcontractors may rely for the purposes of this section upon a certificate of registration issued pursuant to chapter 1827 RCW or license issued pursuant to chapter 1928 RCW or other certificate or license issued pursuant to law covering the period when the labor professional services material or equipment shall be furnished and the lien rights shall not be lost by suspension or revocation of registration or license without their knowledge No lien rights described in this

CCBA Nuts amp Bolts on Construction Law - 39 of 49

chapter shall be lost or denied by virtue of the absence suspension or revocation of such registration or license with respect to any contractor or subcontractor not in immediate contractual privity with the lien claimant

6004081 Frivolous claim mdash Procedure

(1) Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who believes the claim of lien to be frivolous and made without reasonable cause or clearly excessive may apply by motion to the superior court for the county where the property or some part thereof is located for an order directing the lien claimant to appear before the court at a time no earlier than six nor later than fifteen days following the date of service of the application and order on the lien claimant and show cause if any he or she has why the relief requested should not be granted The motion shall state the grounds upon which relief is asked and shall be supported by the affidavit of the applicant or his or her attorney setting forth a concise statement of the facts upon which the motion is based (2) The order shall clearly state that if the lien claimant fails to appear at the time and place noted the lien shall be released with prejudice and that the lien claimant shall be ordered to pay the costs requested by the applicant including reasonable attorneys fees (3) If no action to foreclose the lien claim has been filed the clerk of the court shall assign a cause number to the application and obtain from the applicant a filing fee pursuant to RCW 3618016 If an action has been filed to foreclose the lien claim the application shall be made a part of that action (4) If following a hearing on the matter the court determines that the lien is frivolous and made without reasonable cause or clearly excessive the court shall issue an order releasing the lien if frivolous and made without reasonable cause or reducing the lien if clearly excessive and awarding costs and reasonable attorneys fees to the applicant to be paid by the lien claimant If the court determines that the lien is not frivolous and was made with reasonable cause and is not clearly excessive the court shall issue an order so stating and awarding costs and reasonable attorneys fees to the lien claimant to be paid by the applicant (5) Proceedings under this section shall not affect other rights and remedies available to the parties under this chapter or otherwise

6004091 Recording mdash Time mdash Contents of lien

Every person claiming a lien under RCW 6004021 shall file for recording in the county where the subject property is located a notice of claim of lien not later than ninety days after the person

CCBA Nuts amp Bolts on Construction Law - 40 of 49

has ceased to furnish labor professional services materials or equipment or the last date on which employee benefit contributions were due The notice of claim of lien (1) Shall state in substance and effect (a) The name phone number and address of the claimant (b) The first and last date on which the labor professional services materials or equipment was furnished or employee benefit contributions were due (c) The name of the person indebted to the claimant (d) The street address legal description or other description reasonably calculated to identify for a person familiar with the area the location of the real property to be charged with the lien (e) The name of the owner or reputed owner of the property if known and if not known that fact shall be stated and (f) The principal amount for which the lien is claimed (2) Shall be signed by the claimant or some person authorized to act on his or her behalf who shall affirmatively state they have read the notice of claim of lien and believe the notice of claim of lien to be true and correct under penalty of perjury and shall be acknowledged pursuant to chapter 6408 RCW If the lien has been assigned the name of the assignee shall be stated Where an action to foreclose the lien has been commenced such notice of claim of lien may be amended as pleadings may be by order of the court insofar as the interests of third parties are not adversely affected by such amendment A claim of lien substantially in the following form shall be sufficient

CLAIM OF LIEN

claimant vs name of person indebted to claimant

Notice is hereby given that the person named below claims a lien pursuant to chapter 6404 RCW In support of this lien the following information is submitted

1 NAME OF LIEN CLAIMANT

TELEPHONE NUMBER

CCBA Nuts amp Bolts on Construction Law - 41 of 49

ADDRESS

2 DATE ON WHICH THE CLAIMANT BEGAN TO PERFORM LABOR PROVIDE PROFESSIONAL SERVICES SUPPLY MATERIAL OR EQUIPMENT OR THE DATE ON WHICH EMPLOYEE BENEFIT CONTRIBUTIONS BECAME DUE

3 NAME OF PERSON INDEBTED TO THE CLAIMANT

4 DESCRIPTION OF THE PROPERTY AGAINST WHICH A LIEN IS CLAIMED (Street address legal description or other information that will reasonably describe the property)

5 NAME OF THE OWNER OR REPUTED OWNER (If not known state unknown)

6 THE LAST DATE ON WHICH LABOR WAS PERFORMED PROFESSIONAL SERVICES WERE FURNISHED CONTRIBUTIONS TO AN EMPLOYEE BENEFIT PLAN WERE DUE OR MATERIAL OR EQUIPMENT WAS FURNISHED

7 PRINCIPAL AMOUNT FOR WHICH THE LIEN IS CLAIMED IS

8 IF THE CLAIMANT IS THE ASSIGNEE OF THIS CLAIM SO STATE HERE

Claimant

(Phone number address city

CCBA Nuts amp Bolts on Construction Law - 42 of 49

and

state of claimant)

STATE OF WASHINGTON COUNTY OF ss being sworn says I am the claimant (or attorney of the claimant or administrator representative or agent of the trustees of an employee benefit plan) above named I have read or heard the foregoing claim read and know the contents thereof and believe the same to be true and correct and that the claim of lien is not frivolous and is made with reasonable cause and is not clearly excessive under penalty of perjury Subscribed and sworn to before me this day of The period provided for recording the claim of lien is a period of limitation and no action to foreclose a lien shall be maintained unless the claim of lien is filed for recording within the ninety-day period stated The lien claimant shall give a copy of the claim of lien to the owner or reputed owner by mailing it by certified or registered mail or by personal service within fourteen days of the time the claim of lien is filed for recording Failure to do so results in a forfeiture of any right the claimant may have to attorneys fees and costs against the owner under RCW 6004181

6004161 Bond in lieu of claim

Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who disputes the correctness or validity of the claim of lien may record either before or after the commencement of an action to enforce the lien in the office of the county recorder or auditor in the county where the claim of lien was recorded a bond issued by a surety company authorized to issue surety bonds in the state The surety shall be listed in the latest federal department of the treasury list of surety companies acceptable on federal bonds published in the Federal Register as authorized to issue bonds on United States government projects with an underwriting limitation including applicable reinsurance equal to or greater than the amount of the bond to be recorded The bond shall contain a description of the claim of lien and real property involved and be in an amount equal to the greater of five thousand dollars or two times the amount of the lien claimed if it is ten thousand dollars or less and in an amount equal to or greater than one and one-half times the amount of the lien if it is in

CCBA Nuts amp Bolts on Construction Law - 43 of 49

excess of ten thousand dollars If the claim of lien affects more than one parcel of real property and is segregated to each parcel the bond may be segregated the same as in the claim of lien A separate bond shall be required for each claim of lien made by separate claimants However a single bond may be used to guarantee payment of amounts claimed by more than one claim of lien by a single claimant so long as the amount of the bond meets the requirements of this section as applied to the aggregate sum of all claims by such claimant The condition of the bond shall be to guarantee payment of any judgment upon the lien in favor of the lien claimant entered in any action to recover the amount claimed in a claim of lien or on the claim asserted in the claim of lien The effect of recording a bond shall be to release the real property described in the notice of claim of lien from the lien and any action brought to recover the amount claimed Unless otherwise prohibited by law if no action is commenced to recover on a lien within the time specified in RCW 6004141 the surety shall be discharged from liability under the bond If an action is timely commenced then on payment of any judgment entered in the action or on payment of the full amount of the bond to the holder of the judgment whichever is less the surety shall be discharged from liability under the bond Nothing in this section shall in any way prohibit or limit the use of other methods devised by the affected parties to secure the obligation underlying a claim of lien and to obtain a release of real property from a claim of lien

6004181 Rank of lien mdash Application of proceeds mdash Attorneys fees

(1) In every case in which different construction liens are claimed against the same property the court shall declare the rank of such lien or class of liens which liens shall be in the following order (a) Liens for the performance of labor (b) Liens for contributions owed to employee benefit plans (c) Liens for furnishing material supplies or equipment (d) Liens for subcontractors including but not limited to their labor and materials and (e) Liens for prime contractors or for professional services (2) The proceeds of the sale of property must be applied to each lien or class of liens in order of its rank and in an action brought to foreclose a lien pro rata among each claimant in each separate priority class A personal judgment may be rendered against any party personally liable for any debt for which the lien is claimed If the lien is established the judgment shall provide

CCBA Nuts amp Bolts on Construction Law - 44 of 49

for the enforcement thereof upon the property liable as in the case of foreclosure of judgment liens The amount realized by such enforcement of the lien shall be credited upon the proper personal judgment The deficiency if any remaining unsatisfied shall stand as a personal judgment and may be collected by execution against any party liable therefor (3) The court may allow the prevailing party in the action whether plaintiff or defendant as part of the costs of the action the moneys paid for recording the claim of lien costs of title report bond costs and attorneys fees and necessary expenses incurred by the attorney in the superior court court of appeals supreme court or arbitration as the court or arbitrator deems reasonable Such costs shall have the priority of the class of lien to which they are related as established by subsection (1) of this section (4) Real property against which a lien under this chapter is enforced may be ordered sold by the court and the proceeds deposited into the registry of the clerk of the court pending further determination respecting distribution of the proceeds of the sale

6004900 Liberal construction mdash 1991 c 281

RCW 1927095 6004230 and 6004011 through 6004226 and 6004261 are to be liberally construed to provide security for all parties intended to be protected by their provisions

RCW 6028011

Retained percentage mdash Public transportation projects mdash Labor and material lien created mdash Bond in lieu of retained funds mdash Termination before completion mdash Chapter deemed exclusive mdash Release of ferry contract payments mdash Projects of farmers home administration mdash General contractorconstruction manager procedure mdash Definitions

(1)(a) Except as provided in (b) of this subsection public improvement contracts must provide and public bodies must reserve a contract retainage not to exceed five percent of the moneys earned by the contractor as a trust fund for the protection and payment of (i) The claims of any person arising under the contract and (ii) the state with respect to taxes increases and penalties imposed pursuant to Titles 50 51 and 82 RCW which may be due from such contractor (b) Public improvement contracts funded in whole or in part by federal transportation funds must rely upon the contract bond as referred to in chapter 3908 RCW for the protection and payment of (i) The claims of any person or persons arising under the contract to the extent such claims are provided for in RCW 3908010 and (ii) the state with respect to taxes increases and penalties incurred on the public improvement project under Titles 50 51 and 82 RCW which may be due The contract bond must remain in full force and effect until at a minimum all claims filed in compliance with chapter 3908 RCW are resolved

CCBA Nuts amp Bolts on Construction Law - 45 of 49

(2) Every person performing labor or furnishing supplies toward the completion of a public improvement contract has a lien upon moneys reserved by a public body under the provisions of a public improvement contract However the notice of the lien of the claimant must be given within forty-five days of completion of the contract work and in the manner provided in RCW 3908030 (3) The contractor at any time may request the contract retainage be reduced to one hundred percent of the value of the work remaining on the project (a) After completion of all contract work other than landscaping the contractor may request that the public body release and pay in full the amounts retained during the performance of the contract and sixty days thereafter the public body must release and pay in full the amounts retained (other than continuing retention of five percent of the moneys earned for landscaping) subject to the provisions of chapters 3912 and 6028 RCW (b) Sixty days after completion of all contract work the public body must release and pay in full the amounts retained during the performance of the contract subject to the provisions of chapters 3912 and 6028 RCW (4) The moneys reserved by a public body under the provisions of a public improvement contract at the option of the contractor must be (a) Retained in a fund by the public body (b) Deposited by the public body in an interest bearing account in a bank mutual savings bank or savings and loan association Interest on moneys reserved by a public body under the provision of a public improvement contract must be paid to the contractor (c) Placed in escrow with a bank or trust company by the public body When the moneys reserved are placed in escrow the public body must issue a check representing the sum of the moneys reserved payable to the bank or trust company and the contractor jointly This check must be converted into bonds and securities chosen by the contractor and approved by the public body and the bonds and securities must be held in escrow Interest on the bonds and securities must be paid to the contractor as the interest accrues (5) The contractor or subcontractor may withhold payment of not more than five percent from the moneys earned by any subcontractor or sub-subcontractor or supplier contracted with by the contractor to provide labor materials or equipment to the public project Whenever the contractor or subcontractor reserves funds earned by a subcontractor or sub-subcontractor or

CCBA Nuts amp Bolts on Construction Law - 46 of 49

supplier the contractor or subcontractor must pay interest to the subcontractor or sub-subcontractor or supplier at a rate equal to that received by the contractor or subcontractor from reserved funds (6) A contractor may submit a bond for all or any portion of the contract retainage in a form acceptable to the public body and from a bonding company meeting standards established by the public body The public body must accept a bond meeting these requirements unless the public body can demonstrate good cause for refusing to accept it This bond and any proceeds therefrom are subject to all claims and liens and in the same manner and priority as set forth for retained percentages in this chapter The public body must release the bonded portion of the retained funds to the contractor within thirty days of accepting the bond from the contractor Whenever a public body accepts a bond in lieu of retained funds from a contractor the contractor must accept like bonds from any subcontractors or suppliers from which the contractor has retained funds The contractor must then release the funds retained from the subcontractor or supplier to the subcontractor or supplier within thirty days of accepting the bond from the subcontractor or supplier (7) If the public body administering a contract after a substantial portion of the work has been completed finds that an unreasonable delay will occur in the completion of the remaining portion of the contract for any reason not the result of a breach thereof it may if the contractor agrees delete from the contract the remaining work and accept as final the improvement at the stage of completion then attained and make payment in proportion to the amount of the work accomplished and in this case any amounts retained and accumulated under this section must be held for a period of sixty days following the completion In the event that the work is terminated before final completion as provided in this section the public body may thereafter enter into a new contract with the same contractor to perform the remaining work or improvement for an amount equal to or less than the cost of the remaining work as was provided for in the original contract without advertisement or bid The provisions of this chapter are exclusive and supersede all provisions and regulations in conflict herewith (8) Whenever the department of transportation has contracted for the construction of two or more ferry vessels sixty days after completion of all contract work on each ferry vessel the department must release and pay in full the amounts retained in connection with the construction of the vessel subject to the provisions of RCW 6028021 and chapter 3912 RCW However the department of transportation may at its discretion condition the release of funds retained in connection with the completed ferry upon the contractor delivering a good and sufficient bond with two or more sureties or with a surety company in the amount of the retained funds to be released to the contractor conditioned that no taxes may be certified or claims filed for work on the ferry after a period of sixty days following completion of the ferry and if taxes are certified or claims filed recovery may be had on the bond by the department of revenue the employment

CCBA Nuts amp Bolts on Construction Law - 47 of 49

security department the department of labor and industries and the material suppliers and laborers filing claims (9) Except as provided in subsection (1) of this section reservation by a public body for any purpose from the moneys earned by a contractor by fulfilling its responsibilities under public improvement contracts is prohibited (10) Contracts on projects funded in whole or in part by farmers home administration and subject to farmers home administration regulations are not subject to subsections (1) through (9) of this section (11) This subsection applies only to a public body that has contracted for the construction of a facility using the general contractorconstruction manager procedure as defined under RCW 3910210 If the work performed by a subcontractor on the project has been completed within the first half of the time provided in the general contractorconstruction manager contract for completing the work the public body may accept the completion of the subcontract The public body must give public notice of this acceptance After a forty-five day period for giving notice of liens and compliance with the retainage release procedures in RCW 6028021 the public body may release that portion of the retained funds associated with the subcontract Claims against the retained funds after the forty-five day period are not valid (12) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise (a) Contract retainage means an amount reserved by a public body from the moneys earned by a person under a public improvement contract (b) Person means a person or persons mechanic subcontractor or materialperson who performs labor or provides materials for a public improvement contract and any other person who supplies the person with provisions or supplies for the carrying on of a public improvement contract (c) Public body means the state or a county city town district board or other public body (d) Public improvement contract means a contract for public improvements or work other than for professional services or a work order as defined in RCW 3910210

CCBA Nuts amp Bolts on Construction Law - 48 of 49

RCW 6432070 Liens or encumbrances mdash Enforcement mdash Satisfaction

(1) Subsequent to recording the declaration as provided in this chapter and while the property remains subject to this chapter no lien shall thereafter arise or be effective against the property During such period liens or encumbrances shall arise or be created only against each apartment and the percentage of undivided interest in the common areas and facilities and appurtenant to such apartment in the same manner and under the same conditions in every respect as liens or encumbrances may arise or be created upon or against any other separate parcel of real property subject to individual ownership PROVIDED That no labor performed or materials furnished with the consent of or at the request of the owner of any apartment or such owners agent contractor or subcontractor shall be the basis for the filing of a lien against any other apartment or any other property of any other apartment owner not expressly consenting to or requesting the same except that such express consent shall be deemed to be given by any apartment owner in the case of emergency repairs Labor performed or materials furnished for the common areas and facilities if authorized by the association of apartment owners the manager or board of directors shall be deemed to be performed or furnished with the express consent of each apartment owner and shall be the basis for the filing of a lien against each of the apartments and shall be subject to the provisions of subsection (2) of this section (2) In the event a lien against two or more apartments becomes effective the apartment owners of the separate apartments may remove their apartment and the percentage of undivided interest in the common areas and facilities appurtenant to such apartment from the lien by payment of the fractional or proportional amounts attributable to each of the apartments affected Such individual payments shall be computed by reference to the percentages appearing on the declaration Subsequent to any such payment discharge or satisfaction the apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto shall thereafter be free and clear of the liens so paid satisfied or discharged Such partial payment satisfaction or discharge shall not prevent the lienor from proceeding to enforce his or her rights against any apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto not so paid satisfied or discharged

CCBA Nuts amp Bolts on Construction Law - 49 of 49

  • Cover Sheet
  • 20141110 - Washington Lien and Bond CLE
  • LampI Lien Summary
  • Claim of Lien
  • Form Notice to Owner
  • Model Disclosure Statement (Notice to Customer)
  • LampI Facts about Construction Liens
    • What you should know about contracts
    • How to protect your investment
    • For more information
      • Notice of Claim Against Bond and Retained Percentage
      • Preclaim Notice Bond amp Retained Percentage
      • Statute Handout
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 JPN ltFEFF9ad854c18cea306a30d730ea30d730ec30b951fa529b7528002000410064006f0062006500200050004400460020658766f8306e4f5c6210306b4f7f75283057307e305930023053306e8a2d5b9a30674f5c62103055308c305f0020005000440046002030d530a130a430eb306f3001004100630072006f0062006100740020304a30883073002000410064006f00620065002000520065006100640065007200200035002e003000204ee5964d3067958b304f30533068304c3067304d307e305930023053306e8a2d5b9a306b306f30d530a930f330c8306e57cb30818fbc307f304c5fc59808306730593002gt KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020ace0d488c9c80020c2dcd5d80020c778c1c4c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200035002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor prepress-afdrukken van hoge kwaliteit De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 50 en hoger) NOR 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 PTB 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 SUO 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 SVE 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 ENU (Use these settings to create Adobe PDF documents best suited for high-quality prepress printing Created PDF documents can be opened with Acrobat and Adobe Reader 50 and later) gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false ConvertColors ConvertToCMYK DestinationProfileName () DestinationProfileSelector DocumentCMYK Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles false MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector DocumentCMYK PreserveEditing true UntaggedCMYKHandling LeaveUntagged UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ]gtgt setdistillerparamsltlt HWResolution [2400 2400] PageSize [612000 792000]gtgt setpagedevice

          ltlt ASCII85EncodePages false AllowTransparency false AutoPositionEPSFiles true AutoRotatePages None Binding Left CalGrayProfile (Dot Gain 20) CalRGBProfile (sRGB IEC61966-21) CalCMYKProfile (US Web Coated 050SWOP051 v2) sRGBProfile (sRGB IEC61966-21) CannotEmbedFontPolicy Warning CompatibilityLevel 14 CompressObjects Tags CompressPages true ConvertImagesToIndexed true PassThroughJPEGImages true CreateJDFFile false CreateJobTicket false DefaultRenderingIntent Default DetectBlends true DetectCurves 00000 ColorConversionStrategy LeaveColorUnchanged DoThumbnails false EmbedAllFonts true EmbedOpenType false ParseICCProfilesInComments true EmbedJobOptions true DSCReportingLevel 0 EmitDSCWarnings false EndPage -1 ImageMemory 1048576 LockDistillerParams true MaxSubsetPct 100 Optimize true OPM 1 ParseDSCComments true ParseDSCCommentsForDocInfo true PreserveCopyPage true PreserveDICMYKValues true PreserveEPSInfo true PreserveFlatness true PreserveHalftoneInfo false PreserveOPIComments true PreserveOverprintSettings true StartPage 1 SubsetFonts true TransferFunctionInfo Apply UCRandBGInfo Preserve UsePrologue false ColorSettingsFile () AlwaysEmbed [ true Algerian Arial-Black Arial-BoldItalicMT Arial-BoldMT Arial-ItalicMT ArialMT ArialNarrow ArialNarrow-Bold ArialNarrow-BoldItalic ArialNarrow-Italic BaskOldFace Bauhaus93 BellMT BellMTBold BellMTItalic BerlinSansFB-Bold BerlinSansFBDemi-Bold BerlinSansFB-Reg BernardMT-Condensed BodoniMTPosterCompressed BookAntiqua BookAntiqua-Bold BookAntiqua-BoldItalic BookAntiqua-Italic BookmanOldStyle BookmanOldStyle-Bold BookmanOldStyle-BoldItalic BookmanOldStyle-Italic BookshelfSymbolSeven BritannicBold Broadway BrushScriptMT CalifornianFB-Bold CalifornianFB-Italic CalifornianFB-Reg Centaur CenturyGothic CenturyGothic-Bold CenturyGothic-BoldItalic CenturyGothic-Italic Chiller-Regular ColonnaMT ComicSansMS ComicSansMS-Bold CooperBlack CourierNewPS-BoldItalicMT CourierNewPS-BoldMT CourierNewPS-ItalicMT CourierNewPSMT EstrangeloEdessa EXTRAAPLNew-Regular EXTRAOIANew-Regular FootlightMTLight FranklinGothic-Medium FranklinGothic-MediumItalic FreestyleScript-Regular Garamond Garamond-Bold Garamond-Italic Gautami Georgia Georgia-Bold Georgia-BoldItalic Georgia-Italic HarlowSolid Harrington HighTowerText-Italic HighTowerText-Reg Impact InformalRoman-Regular Jokerman-Regular JuiceITC-Regular Kartika KristenITC-Regular KunstlerScript Latha LatinWide LucidaATTMSpecial LucidaBright LucidaBright-Demi LucidaBright-DemiItalic LucidaBright-Italic LucidaCalligraphy-Italic LucidaConsole LucidaFax LucidaFax-Demi LucidaFax-DemiItalic LucidaFax-Italic LucidaforAttachmate LucidaHandwriting-Italic LucidaSans LucidaSans-Demi LucidaSans-DemiItalic LucidaSans-Italic LucidaSansUnicode Magneto-Bold Mangal-Regular MaturaMTScriptCapitals MicrosoftSansSerif Mistral Modern-Regular Monospace821BT-Roman MonotypeCorsiva MSOutlook MSReferenceSansSerif MSReferenceSpecialty MVBoli NiagaraEngraved-Reg NiagaraSolid-Reg OldEnglishTextMT Onyx PalatinoLinotype-Bold PalatinoLinotype-BoldItalic PalatinoLinotype-Italic PalatinoLinotype-Roman Parchment-Regular Playbill PoorRichard-Regular Raavi Ravie ShowcardGothic-Reg Shruti SnapITC-Regular Stencil Sylfaen SymbolMT Tahoma Tahoma-Bold TempusSansITC TimesNewRomanPS-BoldItalicMT TimesNewRomanPS-BoldMT TimesNewRomanPS-ItalicMT TimesNewRomanPSMT Trebuchet-BoldItalic TrebuchetMS TrebuchetMS-Bold TrebuchetMS-Italic Tunga-Regular Verdana Verdana-Bold Verdana-BoldItalic Verdana-Italic VinerHandITC Vivaldii VladimirScript Vrinda Webdings Wingdings2 Wingdings3 Wingdings-Regular ZWAdobeF ] NeverEmbed [ true ] AntiAliasColorImages false CropColorImages true ColorImageMinResolution 300 ColorImageMinResolutionPolicy OK DownsampleColorImages true ColorImageDownsampleType Bicubic ColorImageResolution 300 ColorImageDepth -1 ColorImageMinDownsampleDepth 1 ColorImageDownsampleThreshold 150000 EncodeColorImages false ColorImageFilter DCTEncode AutoFilterColorImages true ColorImageAutoFilterStrategy JPEG ColorACSImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt ColorImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000ColorACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000ColorImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasGrayImages false CropGrayImages true GrayImageMinResolution 300 GrayImageMinResolutionPolicy OK DownsampleGrayImages true GrayImageDownsampleType Bicubic GrayImageResolution 300 GrayImageDepth -1 GrayImageMinDownsampleDepth 2 GrayImageDownsampleThreshold 150000 EncodeGrayImages false GrayImageFilter DCTEncode AutoFilterGrayImages true GrayImageAutoFilterStrategy JPEG GrayACSImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt GrayImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000GrayACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000GrayImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasMonoImages false CropMonoImages true MonoImageMinResolution 1200 MonoImageMinResolutionPolicy OK DownsampleMonoImages true MonoImageDownsampleType Bicubic MonoImageResolution 1200 MonoImageDepth -1 MonoImageDownsampleThreshold 150000 EncodeMonoImages false MonoImageFilter CCITTFaxEncode MonoImageDict ltlt K -1 gtgt AllowPSXObjects false CheckCompliance [ None ] PDFX1aCheck false PDFX3Check false PDFXCompliantPDFOnly false PDFXNoTrimBoxError true PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile (None) PDFXOutputConditionIdentifier () PDFXOutputCondition () PDFXRegistryName () PDFXTrapped False Description ltlt CHS ltFEFF4f7f75288fd94e9b8bbe5b9a521b5efa7684002000410064006f006200650020005000440046002065876863900275284e8e9ad88d2891cf76845370524d53705237300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200035002e003000204ee553ca66f49ad87248672c676562535f00521b5efa768400200050004400460020658768633002gt CHT ltFEFF4f7f752890194e9b8a2d7f6e5efa7acb7684002000410064006f006200650020005000440046002065874ef69069752865bc9ad854c18cea76845370524d5370523786557406300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200035002e003000204ee553ca66f49ad87248672c4f86958b555f5df25efa7acb76840020005000440046002065874ef63002gt DAN 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 DEU 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 ESP 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 FRA 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 ITA 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 JPN ltFEFF9ad854c18cea306a30d730ea30d730ec30b951fa529b7528002000410064006f0062006500200050004400460020658766f8306e4f5c6210306b4f7f75283057307e305930023053306e8a2d5b9a30674f5c62103055308c305f0020005000440046002030d530a130a430eb306f3001004100630072006f0062006100740020304a30883073002000410064006f00620065002000520065006100640065007200200035002e003000204ee5964d3067958b304f30533068304c3067304d307e305930023053306e8a2d5b9a306b306f30d530a930f330c8306e57cb30818fbc307f304c5fc59808306730593002gt KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020ace0d488c9c80020c2dcd5d80020c778c1c4c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200035002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor prepress-afdrukken van hoge kwaliteit De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 50 en hoger) NOR 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 PTB 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 SUO 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 SVE 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          1. To
          2. Date
          3. Re
          4. From
          5. AT THE REQUEST OF
          6. Sender
          7. Address
          8. Telephone
          9. Brief description of professional services materials or equipment provided or to be provided
          10. 1
          11. 2
          12. 3
          13. reg no
          14. deposit $
          15. expiration date
          16. claims up to $
          17. Reset

(iii) Pay the taxes increases and penalties incurred on the project under Titles 50 51 and 82 RCW on (A) Projects referred to in RCW 6028011(1)(b) andor (B) projects for which the bond is conditioned on the payment of such taxes increases and penalties (b) The bond in cases of cities and towns must be filed with the clerk or comptroller thereof and any person or persons performing such services or furnishing material to any subcontractor has the same right under the provisions of such bond as if such work services or material was furnished to the original contractor (2) The provisions of RCW 3908010 through 3908030 do not apply to any money loaned or advanced to any such contractor subcontractor or other person in the performance of any such work (3) On contracts of thirty-five thousand dollars or less at the option of the contractor the respective public entity may in lieu of the bond retain fifty percent of the contract amount for a period of thirty days after date of final acceptance or until receipt of all necessary releases from the department of revenue the employment security department and the department of labor and industries and settlement of any liens filed under chapter 6028 RCW whichever is later (4) For contracts of one hundred thousand dollars or less the public entity may accept a full payment and performance bond from an individual surety or sureties (5) The surety must agree to be bound by the laws of the state of Washington and subjected to the jurisdiction of the state of Washington RCW 6004011 Definitions

Unless the context requires otherwise the definitions in this section apply throughout this chapter (1) Construction agent means any registered or licensed contractor registered or licensed subcontractor architect engineer or other person having charge of any improvement to real property who shall be deemed the agent of the owner for the limited purpose of establishing the lien created by this chapter (2) Contract price means the amount agreed upon by the contracting parties or if no amount is agreed upon then the customary and reasonable charge therefor (3) Draws means periodic disbursements of interim or construction financing by a lender (4) Furnishing labor professional services materials or equipment means the performance of any labor or professional services the contribution owed to any employee benefit plan on account of any labor the provision of any supplies or materials and the renting leasing or

CCBA Nuts amp Bolts on Construction Law - 32 of 49

otherwise supplying of equipment for the improvement of real property (5) Improvement means (a) Constructing altering repairing remodeling demolishing clearing grading or filling in of to or upon any real property or street or road in front of or adjoining the same (b) planting of trees vines shrubs plants hedges or lawns or providing other landscaping materials on any real property and (c) providing professional services upon real property or in preparation for or in conjunction with the intended activities in (a) or (b) of this subsection (6) Interim or construction financing means that portion of money secured by a mortgage deed of trust or other encumbrance to finance improvement of or to real property but does not include (a) Funds to acquire real property (b) Funds to pay interest insurance premiums lease deposits taxes assessments or prior encumbrances (c) Funds to pay loan commitment title legal closing recording or appraisal fees (d) Funds to pay other customary fees which pursuant to agreement with the owner or borrower are to be paid by the lender from time to time (e) Funds to acquire personal property for which the potential lien claimant may not claim a lien pursuant to this chapter (7) Labor means exertion of the powers of body or mind performed at the site for compensation Labor includes amounts due and owed to any employee benefit plan on account of such labor performed (8) Mortgagee means a person who has a valid mortgage of record or deed of trust of record securing a loan (9) Owner-occupied means a single-family residence occupied by the owner as his or her principal residence (10) Payment bond means a surety bond issued by a surety licensed to issue surety bonds in the state of Washington that confers upon potential claimants the rights of third party beneficiaries (11) Potential lien claimant means any person or entity entitled to assert lien rights under this chapter who has otherwise complied with the provisions of this chapter and is registered or licensed if required to be licensed or registered by the provisions of the laws of the state of Washington (12) Prime contractor includes all contractors general contractors and specialty

CCBA Nuts amp Bolts on Construction Law - 33 of 49

contractors as defined by chapter 1827 or 1928 RCW or who are otherwise required to be registered or licensed by law who contract directly with a property owner or their common law agent to assume primary responsibility for the creation of an improvement to real property and includes property owners or their common law agents who are contractors general contractors or specialty contractors as defined in chapter 1827 or 1928 RCW or who are otherwise required to be registered or licensed by law who offer to sell their property without occupying or using the structures projects developments or improvements for more than one year (13) Professional services means surveying establishing or marking the boundaries of preparing maps plans or specifications for or inspecting testing or otherwise performing any other architectural or engineering services for the improvement of real property (14) Real property lender means a bank savings bank savings and loan association credit union mortgage company or other corporation association partnership trust or individual that makes loans secured by real property located in the state of Washington (15) Site means the real property which is or is to be improved (16) Subcontractor means a general contractor or specialty contractor as defined by chapter 1827 or 1928 RCW or who is otherwise required to be registered or licensed by law who contracts for the improvement of real property with someone other than the owner of the property or their common law agent

6004021 Lien authorized

Except as provided in RCW 6004031 any person furnishing labor professional services materials or equipment for the improvement of real property shall have a lien upon the improvement for the contract price of labor professional services materials or equipment furnished at the instance of the owner or the agent or construction agent of the owner

6004031 Notices mdash Exceptions

(1) Except as otherwise provided in this section every person furnishing professional services materials or equipment for the improvement of real property shall give the owner or reputed owner notice in writing of the right to claim a lien If the prime contractor is in compliance with the requirements of RCW 1927095 6004230 and 6004261 this notice shall also be given to the prime contractor as described in this subsection unless the potential lien claimant has contracted directly with the prime contractor The notice may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after the date which is sixty days before (a) Mailing the notice by certified or registered mail to the owner or reputed owner or

CCBA Nuts amp Bolts on Construction Law - 34 of 49

(b) Delivering or serving the notice personally upon the owner or reputed owner and obtaining evidence of delivery in the form of a receipt or other acknowledgment signed by the owner or reputed owner or an affidavit of service In the case of new construction of a single-family residence the notice of a right to claim a lien may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after a date which is ten days before the notice is given as described in this subsection (2) Notices of a right to claim a lien shall not be required of (a) Persons who contract directly with the owner or the owners common law agent (b) Laborers whose claim of lien is based solely on performing labor or (c) Subcontractors who contract for the improvement of real property directly with the prime contractor except as provided in subsection (3)(b) of this section (3) Persons who furnish professional services materials or equipment in connection with the repair alteration or remodel of an existing owner-occupied single-family residence or appurtenant garage (a) Who contract directly with the owner-occupier or their common law agent shall not be required to send a written notice of the right to claim a lien and shall have a lien for the full amount due under their contract as provided in RCW 6004021 or (b) Who do not contract directly with the owner-occupier or their common law agent shall give notice of the right to claim a lien to the owner-occupier Liens of persons furnishing professional services materials or equipment who do not contract directly with the owner-occupier or their common law agent may only be satisfied from amounts not yet paid to the prime contractor by the owner at the time the notice described in this section is received regardless of whether amounts not yet paid to the prime contractor are due For the purposes of this subsection received means actual receipt of notice by personal service or registered or certified mail or three days after mailing by registered or certified mail excluding Saturdays Sundays or legal holidays (4) The notice of right to claim a lien described in subsection (1) of this section shall include but not be limited to the following information and shall substantially be in the following form using lower-case and upper-case ten-point type where appropriate

CCBA Nuts amp Bolts on Construction Law - 35 of 49

NOTICE TO OWNER

IMPORTANT READ BOTH SIDES OF THIS NOTICE CAREFULLY

PROTECT YOURSELF FROM PAYING TWICE

To Date

Re (description of property Street address or general location) From AT THE REQUEST OF (Name of person ordering the professional services materials or equipment) THIS IS NOT A LIEN This notice is sent to you to tell you who is providing professional services materials or equipment for the improvement of your property and to advise you of the rights of these persons and your responsibilities Also take note that laborers on your project may claim a lien without sending you a notice

OWNEROCCUPIER OF EXISTING

RESIDENTIAL PROPERTY

Under Washington law those who furnish labor professional services materials or equipment for the repair remodel or alteration of your owner-occupied principal residence and who are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien The law limits the amount that a lien claimant can claim against your property Claims may only be made against that portion of the contract price you have not yet paid to your prime contractor as of the time this notice was given to you or three days after this notice was mailed to you Review the back of this notice for more information and ways to avoid lien claims

COMMERCIAL ANDOR NEW

RESIDENTIAL PROPERTY

CCBA Nuts amp Bolts on Construction Law - 36 of 49

We have or will be providing professional services materials or equipment for the improvement of your commercial or new residential project In the event you or your contractor fail to pay us we may file a lien against your property A lien may be claimed for all professional services materials or equipment furnished after a date that is sixty days before this notice was given to you or mailed to you unless the improvement to your property is the construction of a new single-family residence then ten days before this notice was given to you or mailed to you Sender Address Telephone Brief description of professional services materials or equipment provided or to be provided

IMPORTANT INFORMATION

ON REVERSE SIDE

IMPORTANT INFORMATION

FOR YOUR PROTECTION This notice is sent to inform you that we have or will provide professional services materials or equipment for the improvement of your property We expect to be paid by the person who ordered our services but if we are not paid we have the right to enforce our claim by filing a construction lien against your property LEARN more about the lien laws and the meaning of this notice by discussing them with your contractor suppliers Department of Labor and Industries the firm sending you this notice your lender or your attorney

COMMON METHODS TO AVOID CONSTRUCTION LIENS There are several methods available to protect your property from construction liens The following are two of the more commonly used methods

DUAL PAYCHECKS (Joint Checks) When paying your contractor for services or materials you may make checks payable jointly to the contractor and the firms furnishing you this notice

CCBA Nuts amp Bolts on Construction Law - 37 of 49

LIEN RELEASES You may require your contractor to provide lien releases signed by all the suppliers and subcontractors from whom you have received this notice If they cannot obtain lien releases because you have not paid them you may use the dual payee check method to protect yourself

YOU SHOULD TAKE APPROPRIATE STEPS TO PROTECT YOUR PROPERTY FROM LIENS YOUR PRIME CONTRACTOR AND YOUR CONSTRUCTION LENDER ARE REQUIRED BY LAW TO GIVE YOU WRITTEN INFORMATION ABOUT LIEN CLAIMS IF YOU HAVE NOT RECEIVED IT ASK THEM FOR IT

(5) Every potential lien claimant providing professional services where no improvement as defined in RCW 6004011(5) (a) or (b) has been commenced and the professional services provided are not visible from an inspection of the real property may record in the real property records of the county where the property is located a notice which shall contain the professional service providers name address telephone number legal description of the property the owner or reputed owners name and the general nature of the professional services provided If such notice is not recorded the lien claimed shall be subordinate to the interest of any subsequent mortgagee and invalid as to the interest of any subsequent purchaser if the mortgagee or purchaser acts in good faith and for a valuable consideration acquires an interest in the property prior to the commencement of an improvement as defined in RCW 6004011(5) (a) or (b) without notice of the professional services being provided The notice described in this subsection shall be substantially in the following form

NOTICE OF FURNISHING

PROFESSIONAL SERVICES That on the (day) day of (month and year) (name of provider) began providing professional services upon or for the improvement of real property legally described as follows

[Legal Description is mandatory]

CCBA Nuts amp Bolts on Construction Law - 38 of 49

The general nature of the professional services provided is The owner or reputed owner of the real property is

(Signature)

(Name of Claimant)

(Street Address)

(City State Zip Code)

(Phone Number)

(6) A lien authorized by this chapter shall not be enforced unless the lien claimant has complied with the applicable provisions of this section

6004041 Contractor registration

A contractor or subcontractor required to be registered under chapter 1827 RCW or licensed under chapter 1928 RCW or otherwise required to be registered or licensed by law shall be deemed the construction agent of the owner for the purposes of establishing the lien created by this chapter only if so registered or licensed Persons dealing with contractors or subcontractors may rely for the purposes of this section upon a certificate of registration issued pursuant to chapter 1827 RCW or license issued pursuant to chapter 1928 RCW or other certificate or license issued pursuant to law covering the period when the labor professional services material or equipment shall be furnished and the lien rights shall not be lost by suspension or revocation of registration or license without their knowledge No lien rights described in this

CCBA Nuts amp Bolts on Construction Law - 39 of 49

chapter shall be lost or denied by virtue of the absence suspension or revocation of such registration or license with respect to any contractor or subcontractor not in immediate contractual privity with the lien claimant

6004081 Frivolous claim mdash Procedure

(1) Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who believes the claim of lien to be frivolous and made without reasonable cause or clearly excessive may apply by motion to the superior court for the county where the property or some part thereof is located for an order directing the lien claimant to appear before the court at a time no earlier than six nor later than fifteen days following the date of service of the application and order on the lien claimant and show cause if any he or she has why the relief requested should not be granted The motion shall state the grounds upon which relief is asked and shall be supported by the affidavit of the applicant or his or her attorney setting forth a concise statement of the facts upon which the motion is based (2) The order shall clearly state that if the lien claimant fails to appear at the time and place noted the lien shall be released with prejudice and that the lien claimant shall be ordered to pay the costs requested by the applicant including reasonable attorneys fees (3) If no action to foreclose the lien claim has been filed the clerk of the court shall assign a cause number to the application and obtain from the applicant a filing fee pursuant to RCW 3618016 If an action has been filed to foreclose the lien claim the application shall be made a part of that action (4) If following a hearing on the matter the court determines that the lien is frivolous and made without reasonable cause or clearly excessive the court shall issue an order releasing the lien if frivolous and made without reasonable cause or reducing the lien if clearly excessive and awarding costs and reasonable attorneys fees to the applicant to be paid by the lien claimant If the court determines that the lien is not frivolous and was made with reasonable cause and is not clearly excessive the court shall issue an order so stating and awarding costs and reasonable attorneys fees to the lien claimant to be paid by the applicant (5) Proceedings under this section shall not affect other rights and remedies available to the parties under this chapter or otherwise

6004091 Recording mdash Time mdash Contents of lien

Every person claiming a lien under RCW 6004021 shall file for recording in the county where the subject property is located a notice of claim of lien not later than ninety days after the person

CCBA Nuts amp Bolts on Construction Law - 40 of 49

has ceased to furnish labor professional services materials or equipment or the last date on which employee benefit contributions were due The notice of claim of lien (1) Shall state in substance and effect (a) The name phone number and address of the claimant (b) The first and last date on which the labor professional services materials or equipment was furnished or employee benefit contributions were due (c) The name of the person indebted to the claimant (d) The street address legal description or other description reasonably calculated to identify for a person familiar with the area the location of the real property to be charged with the lien (e) The name of the owner or reputed owner of the property if known and if not known that fact shall be stated and (f) The principal amount for which the lien is claimed (2) Shall be signed by the claimant or some person authorized to act on his or her behalf who shall affirmatively state they have read the notice of claim of lien and believe the notice of claim of lien to be true and correct under penalty of perjury and shall be acknowledged pursuant to chapter 6408 RCW If the lien has been assigned the name of the assignee shall be stated Where an action to foreclose the lien has been commenced such notice of claim of lien may be amended as pleadings may be by order of the court insofar as the interests of third parties are not adversely affected by such amendment A claim of lien substantially in the following form shall be sufficient

CLAIM OF LIEN

claimant vs name of person indebted to claimant

Notice is hereby given that the person named below claims a lien pursuant to chapter 6404 RCW In support of this lien the following information is submitted

1 NAME OF LIEN CLAIMANT

TELEPHONE NUMBER

CCBA Nuts amp Bolts on Construction Law - 41 of 49

ADDRESS

2 DATE ON WHICH THE CLAIMANT BEGAN TO PERFORM LABOR PROVIDE PROFESSIONAL SERVICES SUPPLY MATERIAL OR EQUIPMENT OR THE DATE ON WHICH EMPLOYEE BENEFIT CONTRIBUTIONS BECAME DUE

3 NAME OF PERSON INDEBTED TO THE CLAIMANT

4 DESCRIPTION OF THE PROPERTY AGAINST WHICH A LIEN IS CLAIMED (Street address legal description or other information that will reasonably describe the property)

5 NAME OF THE OWNER OR REPUTED OWNER (If not known state unknown)

6 THE LAST DATE ON WHICH LABOR WAS PERFORMED PROFESSIONAL SERVICES WERE FURNISHED CONTRIBUTIONS TO AN EMPLOYEE BENEFIT PLAN WERE DUE OR MATERIAL OR EQUIPMENT WAS FURNISHED

7 PRINCIPAL AMOUNT FOR WHICH THE LIEN IS CLAIMED IS

8 IF THE CLAIMANT IS THE ASSIGNEE OF THIS CLAIM SO STATE HERE

Claimant

(Phone number address city

CCBA Nuts amp Bolts on Construction Law - 42 of 49

and

state of claimant)

STATE OF WASHINGTON COUNTY OF ss being sworn says I am the claimant (or attorney of the claimant or administrator representative or agent of the trustees of an employee benefit plan) above named I have read or heard the foregoing claim read and know the contents thereof and believe the same to be true and correct and that the claim of lien is not frivolous and is made with reasonable cause and is not clearly excessive under penalty of perjury Subscribed and sworn to before me this day of The period provided for recording the claim of lien is a period of limitation and no action to foreclose a lien shall be maintained unless the claim of lien is filed for recording within the ninety-day period stated The lien claimant shall give a copy of the claim of lien to the owner or reputed owner by mailing it by certified or registered mail or by personal service within fourteen days of the time the claim of lien is filed for recording Failure to do so results in a forfeiture of any right the claimant may have to attorneys fees and costs against the owner under RCW 6004181

6004161 Bond in lieu of claim

Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who disputes the correctness or validity of the claim of lien may record either before or after the commencement of an action to enforce the lien in the office of the county recorder or auditor in the county where the claim of lien was recorded a bond issued by a surety company authorized to issue surety bonds in the state The surety shall be listed in the latest federal department of the treasury list of surety companies acceptable on federal bonds published in the Federal Register as authorized to issue bonds on United States government projects with an underwriting limitation including applicable reinsurance equal to or greater than the amount of the bond to be recorded The bond shall contain a description of the claim of lien and real property involved and be in an amount equal to the greater of five thousand dollars or two times the amount of the lien claimed if it is ten thousand dollars or less and in an amount equal to or greater than one and one-half times the amount of the lien if it is in

CCBA Nuts amp Bolts on Construction Law - 43 of 49

excess of ten thousand dollars If the claim of lien affects more than one parcel of real property and is segregated to each parcel the bond may be segregated the same as in the claim of lien A separate bond shall be required for each claim of lien made by separate claimants However a single bond may be used to guarantee payment of amounts claimed by more than one claim of lien by a single claimant so long as the amount of the bond meets the requirements of this section as applied to the aggregate sum of all claims by such claimant The condition of the bond shall be to guarantee payment of any judgment upon the lien in favor of the lien claimant entered in any action to recover the amount claimed in a claim of lien or on the claim asserted in the claim of lien The effect of recording a bond shall be to release the real property described in the notice of claim of lien from the lien and any action brought to recover the amount claimed Unless otherwise prohibited by law if no action is commenced to recover on a lien within the time specified in RCW 6004141 the surety shall be discharged from liability under the bond If an action is timely commenced then on payment of any judgment entered in the action or on payment of the full amount of the bond to the holder of the judgment whichever is less the surety shall be discharged from liability under the bond Nothing in this section shall in any way prohibit or limit the use of other methods devised by the affected parties to secure the obligation underlying a claim of lien and to obtain a release of real property from a claim of lien

6004181 Rank of lien mdash Application of proceeds mdash Attorneys fees

(1) In every case in which different construction liens are claimed against the same property the court shall declare the rank of such lien or class of liens which liens shall be in the following order (a) Liens for the performance of labor (b) Liens for contributions owed to employee benefit plans (c) Liens for furnishing material supplies or equipment (d) Liens for subcontractors including but not limited to their labor and materials and (e) Liens for prime contractors or for professional services (2) The proceeds of the sale of property must be applied to each lien or class of liens in order of its rank and in an action brought to foreclose a lien pro rata among each claimant in each separate priority class A personal judgment may be rendered against any party personally liable for any debt for which the lien is claimed If the lien is established the judgment shall provide

CCBA Nuts amp Bolts on Construction Law - 44 of 49

for the enforcement thereof upon the property liable as in the case of foreclosure of judgment liens The amount realized by such enforcement of the lien shall be credited upon the proper personal judgment The deficiency if any remaining unsatisfied shall stand as a personal judgment and may be collected by execution against any party liable therefor (3) The court may allow the prevailing party in the action whether plaintiff or defendant as part of the costs of the action the moneys paid for recording the claim of lien costs of title report bond costs and attorneys fees and necessary expenses incurred by the attorney in the superior court court of appeals supreme court or arbitration as the court or arbitrator deems reasonable Such costs shall have the priority of the class of lien to which they are related as established by subsection (1) of this section (4) Real property against which a lien under this chapter is enforced may be ordered sold by the court and the proceeds deposited into the registry of the clerk of the court pending further determination respecting distribution of the proceeds of the sale

6004900 Liberal construction mdash 1991 c 281

RCW 1927095 6004230 and 6004011 through 6004226 and 6004261 are to be liberally construed to provide security for all parties intended to be protected by their provisions

RCW 6028011

Retained percentage mdash Public transportation projects mdash Labor and material lien created mdash Bond in lieu of retained funds mdash Termination before completion mdash Chapter deemed exclusive mdash Release of ferry contract payments mdash Projects of farmers home administration mdash General contractorconstruction manager procedure mdash Definitions

(1)(a) Except as provided in (b) of this subsection public improvement contracts must provide and public bodies must reserve a contract retainage not to exceed five percent of the moneys earned by the contractor as a trust fund for the protection and payment of (i) The claims of any person arising under the contract and (ii) the state with respect to taxes increases and penalties imposed pursuant to Titles 50 51 and 82 RCW which may be due from such contractor (b) Public improvement contracts funded in whole or in part by federal transportation funds must rely upon the contract bond as referred to in chapter 3908 RCW for the protection and payment of (i) The claims of any person or persons arising under the contract to the extent such claims are provided for in RCW 3908010 and (ii) the state with respect to taxes increases and penalties incurred on the public improvement project under Titles 50 51 and 82 RCW which may be due The contract bond must remain in full force and effect until at a minimum all claims filed in compliance with chapter 3908 RCW are resolved

CCBA Nuts amp Bolts on Construction Law - 45 of 49

(2) Every person performing labor or furnishing supplies toward the completion of a public improvement contract has a lien upon moneys reserved by a public body under the provisions of a public improvement contract However the notice of the lien of the claimant must be given within forty-five days of completion of the contract work and in the manner provided in RCW 3908030 (3) The contractor at any time may request the contract retainage be reduced to one hundred percent of the value of the work remaining on the project (a) After completion of all contract work other than landscaping the contractor may request that the public body release and pay in full the amounts retained during the performance of the contract and sixty days thereafter the public body must release and pay in full the amounts retained (other than continuing retention of five percent of the moneys earned for landscaping) subject to the provisions of chapters 3912 and 6028 RCW (b) Sixty days after completion of all contract work the public body must release and pay in full the amounts retained during the performance of the contract subject to the provisions of chapters 3912 and 6028 RCW (4) The moneys reserved by a public body under the provisions of a public improvement contract at the option of the contractor must be (a) Retained in a fund by the public body (b) Deposited by the public body in an interest bearing account in a bank mutual savings bank or savings and loan association Interest on moneys reserved by a public body under the provision of a public improvement contract must be paid to the contractor (c) Placed in escrow with a bank or trust company by the public body When the moneys reserved are placed in escrow the public body must issue a check representing the sum of the moneys reserved payable to the bank or trust company and the contractor jointly This check must be converted into bonds and securities chosen by the contractor and approved by the public body and the bonds and securities must be held in escrow Interest on the bonds and securities must be paid to the contractor as the interest accrues (5) The contractor or subcontractor may withhold payment of not more than five percent from the moneys earned by any subcontractor or sub-subcontractor or supplier contracted with by the contractor to provide labor materials or equipment to the public project Whenever the contractor or subcontractor reserves funds earned by a subcontractor or sub-subcontractor or

CCBA Nuts amp Bolts on Construction Law - 46 of 49

supplier the contractor or subcontractor must pay interest to the subcontractor or sub-subcontractor or supplier at a rate equal to that received by the contractor or subcontractor from reserved funds (6) A contractor may submit a bond for all or any portion of the contract retainage in a form acceptable to the public body and from a bonding company meeting standards established by the public body The public body must accept a bond meeting these requirements unless the public body can demonstrate good cause for refusing to accept it This bond and any proceeds therefrom are subject to all claims and liens and in the same manner and priority as set forth for retained percentages in this chapter The public body must release the bonded portion of the retained funds to the contractor within thirty days of accepting the bond from the contractor Whenever a public body accepts a bond in lieu of retained funds from a contractor the contractor must accept like bonds from any subcontractors or suppliers from which the contractor has retained funds The contractor must then release the funds retained from the subcontractor or supplier to the subcontractor or supplier within thirty days of accepting the bond from the subcontractor or supplier (7) If the public body administering a contract after a substantial portion of the work has been completed finds that an unreasonable delay will occur in the completion of the remaining portion of the contract for any reason not the result of a breach thereof it may if the contractor agrees delete from the contract the remaining work and accept as final the improvement at the stage of completion then attained and make payment in proportion to the amount of the work accomplished and in this case any amounts retained and accumulated under this section must be held for a period of sixty days following the completion In the event that the work is terminated before final completion as provided in this section the public body may thereafter enter into a new contract with the same contractor to perform the remaining work or improvement for an amount equal to or less than the cost of the remaining work as was provided for in the original contract without advertisement or bid The provisions of this chapter are exclusive and supersede all provisions and regulations in conflict herewith (8) Whenever the department of transportation has contracted for the construction of two or more ferry vessels sixty days after completion of all contract work on each ferry vessel the department must release and pay in full the amounts retained in connection with the construction of the vessel subject to the provisions of RCW 6028021 and chapter 3912 RCW However the department of transportation may at its discretion condition the release of funds retained in connection with the completed ferry upon the contractor delivering a good and sufficient bond with two or more sureties or with a surety company in the amount of the retained funds to be released to the contractor conditioned that no taxes may be certified or claims filed for work on the ferry after a period of sixty days following completion of the ferry and if taxes are certified or claims filed recovery may be had on the bond by the department of revenue the employment

CCBA Nuts amp Bolts on Construction Law - 47 of 49

security department the department of labor and industries and the material suppliers and laborers filing claims (9) Except as provided in subsection (1) of this section reservation by a public body for any purpose from the moneys earned by a contractor by fulfilling its responsibilities under public improvement contracts is prohibited (10) Contracts on projects funded in whole or in part by farmers home administration and subject to farmers home administration regulations are not subject to subsections (1) through (9) of this section (11) This subsection applies only to a public body that has contracted for the construction of a facility using the general contractorconstruction manager procedure as defined under RCW 3910210 If the work performed by a subcontractor on the project has been completed within the first half of the time provided in the general contractorconstruction manager contract for completing the work the public body may accept the completion of the subcontract The public body must give public notice of this acceptance After a forty-five day period for giving notice of liens and compliance with the retainage release procedures in RCW 6028021 the public body may release that portion of the retained funds associated with the subcontract Claims against the retained funds after the forty-five day period are not valid (12) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise (a) Contract retainage means an amount reserved by a public body from the moneys earned by a person under a public improvement contract (b) Person means a person or persons mechanic subcontractor or materialperson who performs labor or provides materials for a public improvement contract and any other person who supplies the person with provisions or supplies for the carrying on of a public improvement contract (c) Public body means the state or a county city town district board or other public body (d) Public improvement contract means a contract for public improvements or work other than for professional services or a work order as defined in RCW 3910210

CCBA Nuts amp Bolts on Construction Law - 48 of 49

RCW 6432070 Liens or encumbrances mdash Enforcement mdash Satisfaction

(1) Subsequent to recording the declaration as provided in this chapter and while the property remains subject to this chapter no lien shall thereafter arise or be effective against the property During such period liens or encumbrances shall arise or be created only against each apartment and the percentage of undivided interest in the common areas and facilities and appurtenant to such apartment in the same manner and under the same conditions in every respect as liens or encumbrances may arise or be created upon or against any other separate parcel of real property subject to individual ownership PROVIDED That no labor performed or materials furnished with the consent of or at the request of the owner of any apartment or such owners agent contractor or subcontractor shall be the basis for the filing of a lien against any other apartment or any other property of any other apartment owner not expressly consenting to or requesting the same except that such express consent shall be deemed to be given by any apartment owner in the case of emergency repairs Labor performed or materials furnished for the common areas and facilities if authorized by the association of apartment owners the manager or board of directors shall be deemed to be performed or furnished with the express consent of each apartment owner and shall be the basis for the filing of a lien against each of the apartments and shall be subject to the provisions of subsection (2) of this section (2) In the event a lien against two or more apartments becomes effective the apartment owners of the separate apartments may remove their apartment and the percentage of undivided interest in the common areas and facilities appurtenant to such apartment from the lien by payment of the fractional or proportional amounts attributable to each of the apartments affected Such individual payments shall be computed by reference to the percentages appearing on the declaration Subsequent to any such payment discharge or satisfaction the apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto shall thereafter be free and clear of the liens so paid satisfied or discharged Such partial payment satisfaction or discharge shall not prevent the lienor from proceeding to enforce his or her rights against any apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto not so paid satisfied or discharged

CCBA Nuts amp Bolts on Construction Law - 49 of 49

  • Cover Sheet
  • 20141110 - Washington Lien and Bond CLE
  • LampI Lien Summary
  • Claim of Lien
  • Form Notice to Owner
  • Model Disclosure Statement (Notice to Customer)
  • LampI Facts about Construction Liens
    • What you should know about contracts
    • How to protect your investment
    • For more information
      • Notice of Claim Against Bond and Retained Percentage
      • Preclaim Notice Bond amp Retained Percentage
      • Statute Handout
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geoptimaliseerd voor prepress-afdrukken van hoge kwaliteit De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 50 en hoger) NOR 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 PTB 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 SVE 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          1. To
          2. Date
          3. Re
          4. From
          5. AT THE REQUEST OF
          6. Sender
          7. Address
          8. Telephone
          9. Brief description of professional services materials or equipment provided or to be provided
          10. 1
          11. 2
          12. 3
          13. reg no
          14. deposit $
          15. expiration date
          16. claims up to $
          17. Reset

otherwise supplying of equipment for the improvement of real property (5) Improvement means (a) Constructing altering repairing remodeling demolishing clearing grading or filling in of to or upon any real property or street or road in front of or adjoining the same (b) planting of trees vines shrubs plants hedges or lawns or providing other landscaping materials on any real property and (c) providing professional services upon real property or in preparation for or in conjunction with the intended activities in (a) or (b) of this subsection (6) Interim or construction financing means that portion of money secured by a mortgage deed of trust or other encumbrance to finance improvement of or to real property but does not include (a) Funds to acquire real property (b) Funds to pay interest insurance premiums lease deposits taxes assessments or prior encumbrances (c) Funds to pay loan commitment title legal closing recording or appraisal fees (d) Funds to pay other customary fees which pursuant to agreement with the owner or borrower are to be paid by the lender from time to time (e) Funds to acquire personal property for which the potential lien claimant may not claim a lien pursuant to this chapter (7) Labor means exertion of the powers of body or mind performed at the site for compensation Labor includes amounts due and owed to any employee benefit plan on account of such labor performed (8) Mortgagee means a person who has a valid mortgage of record or deed of trust of record securing a loan (9) Owner-occupied means a single-family residence occupied by the owner as his or her principal residence (10) Payment bond means a surety bond issued by a surety licensed to issue surety bonds in the state of Washington that confers upon potential claimants the rights of third party beneficiaries (11) Potential lien claimant means any person or entity entitled to assert lien rights under this chapter who has otherwise complied with the provisions of this chapter and is registered or licensed if required to be licensed or registered by the provisions of the laws of the state of Washington (12) Prime contractor includes all contractors general contractors and specialty

CCBA Nuts amp Bolts on Construction Law - 33 of 49

contractors as defined by chapter 1827 or 1928 RCW or who are otherwise required to be registered or licensed by law who contract directly with a property owner or their common law agent to assume primary responsibility for the creation of an improvement to real property and includes property owners or their common law agents who are contractors general contractors or specialty contractors as defined in chapter 1827 or 1928 RCW or who are otherwise required to be registered or licensed by law who offer to sell their property without occupying or using the structures projects developments or improvements for more than one year (13) Professional services means surveying establishing or marking the boundaries of preparing maps plans or specifications for or inspecting testing or otherwise performing any other architectural or engineering services for the improvement of real property (14) Real property lender means a bank savings bank savings and loan association credit union mortgage company or other corporation association partnership trust or individual that makes loans secured by real property located in the state of Washington (15) Site means the real property which is or is to be improved (16) Subcontractor means a general contractor or specialty contractor as defined by chapter 1827 or 1928 RCW or who is otherwise required to be registered or licensed by law who contracts for the improvement of real property with someone other than the owner of the property or their common law agent

6004021 Lien authorized

Except as provided in RCW 6004031 any person furnishing labor professional services materials or equipment for the improvement of real property shall have a lien upon the improvement for the contract price of labor professional services materials or equipment furnished at the instance of the owner or the agent or construction agent of the owner

6004031 Notices mdash Exceptions

(1) Except as otherwise provided in this section every person furnishing professional services materials or equipment for the improvement of real property shall give the owner or reputed owner notice in writing of the right to claim a lien If the prime contractor is in compliance with the requirements of RCW 1927095 6004230 and 6004261 this notice shall also be given to the prime contractor as described in this subsection unless the potential lien claimant has contracted directly with the prime contractor The notice may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after the date which is sixty days before (a) Mailing the notice by certified or registered mail to the owner or reputed owner or

CCBA Nuts amp Bolts on Construction Law - 34 of 49

(b) Delivering or serving the notice personally upon the owner or reputed owner and obtaining evidence of delivery in the form of a receipt or other acknowledgment signed by the owner or reputed owner or an affidavit of service In the case of new construction of a single-family residence the notice of a right to claim a lien may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after a date which is ten days before the notice is given as described in this subsection (2) Notices of a right to claim a lien shall not be required of (a) Persons who contract directly with the owner or the owners common law agent (b) Laborers whose claim of lien is based solely on performing labor or (c) Subcontractors who contract for the improvement of real property directly with the prime contractor except as provided in subsection (3)(b) of this section (3) Persons who furnish professional services materials or equipment in connection with the repair alteration or remodel of an existing owner-occupied single-family residence or appurtenant garage (a) Who contract directly with the owner-occupier or their common law agent shall not be required to send a written notice of the right to claim a lien and shall have a lien for the full amount due under their contract as provided in RCW 6004021 or (b) Who do not contract directly with the owner-occupier or their common law agent shall give notice of the right to claim a lien to the owner-occupier Liens of persons furnishing professional services materials or equipment who do not contract directly with the owner-occupier or their common law agent may only be satisfied from amounts not yet paid to the prime contractor by the owner at the time the notice described in this section is received regardless of whether amounts not yet paid to the prime contractor are due For the purposes of this subsection received means actual receipt of notice by personal service or registered or certified mail or three days after mailing by registered or certified mail excluding Saturdays Sundays or legal holidays (4) The notice of right to claim a lien described in subsection (1) of this section shall include but not be limited to the following information and shall substantially be in the following form using lower-case and upper-case ten-point type where appropriate

CCBA Nuts amp Bolts on Construction Law - 35 of 49

NOTICE TO OWNER

IMPORTANT READ BOTH SIDES OF THIS NOTICE CAREFULLY

PROTECT YOURSELF FROM PAYING TWICE

To Date

Re (description of property Street address or general location) From AT THE REQUEST OF (Name of person ordering the professional services materials or equipment) THIS IS NOT A LIEN This notice is sent to you to tell you who is providing professional services materials or equipment for the improvement of your property and to advise you of the rights of these persons and your responsibilities Also take note that laborers on your project may claim a lien without sending you a notice

OWNEROCCUPIER OF EXISTING

RESIDENTIAL PROPERTY

Under Washington law those who furnish labor professional services materials or equipment for the repair remodel or alteration of your owner-occupied principal residence and who are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien The law limits the amount that a lien claimant can claim against your property Claims may only be made against that portion of the contract price you have not yet paid to your prime contractor as of the time this notice was given to you or three days after this notice was mailed to you Review the back of this notice for more information and ways to avoid lien claims

COMMERCIAL ANDOR NEW

RESIDENTIAL PROPERTY

CCBA Nuts amp Bolts on Construction Law - 36 of 49

We have or will be providing professional services materials or equipment for the improvement of your commercial or new residential project In the event you or your contractor fail to pay us we may file a lien against your property A lien may be claimed for all professional services materials or equipment furnished after a date that is sixty days before this notice was given to you or mailed to you unless the improvement to your property is the construction of a new single-family residence then ten days before this notice was given to you or mailed to you Sender Address Telephone Brief description of professional services materials or equipment provided or to be provided

IMPORTANT INFORMATION

ON REVERSE SIDE

IMPORTANT INFORMATION

FOR YOUR PROTECTION This notice is sent to inform you that we have or will provide professional services materials or equipment for the improvement of your property We expect to be paid by the person who ordered our services but if we are not paid we have the right to enforce our claim by filing a construction lien against your property LEARN more about the lien laws and the meaning of this notice by discussing them with your contractor suppliers Department of Labor and Industries the firm sending you this notice your lender or your attorney

COMMON METHODS TO AVOID CONSTRUCTION LIENS There are several methods available to protect your property from construction liens The following are two of the more commonly used methods

DUAL PAYCHECKS (Joint Checks) When paying your contractor for services or materials you may make checks payable jointly to the contractor and the firms furnishing you this notice

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LIEN RELEASES You may require your contractor to provide lien releases signed by all the suppliers and subcontractors from whom you have received this notice If they cannot obtain lien releases because you have not paid them you may use the dual payee check method to protect yourself

YOU SHOULD TAKE APPROPRIATE STEPS TO PROTECT YOUR PROPERTY FROM LIENS YOUR PRIME CONTRACTOR AND YOUR CONSTRUCTION LENDER ARE REQUIRED BY LAW TO GIVE YOU WRITTEN INFORMATION ABOUT LIEN CLAIMS IF YOU HAVE NOT RECEIVED IT ASK THEM FOR IT

(5) Every potential lien claimant providing professional services where no improvement as defined in RCW 6004011(5) (a) or (b) has been commenced and the professional services provided are not visible from an inspection of the real property may record in the real property records of the county where the property is located a notice which shall contain the professional service providers name address telephone number legal description of the property the owner or reputed owners name and the general nature of the professional services provided If such notice is not recorded the lien claimed shall be subordinate to the interest of any subsequent mortgagee and invalid as to the interest of any subsequent purchaser if the mortgagee or purchaser acts in good faith and for a valuable consideration acquires an interest in the property prior to the commencement of an improvement as defined in RCW 6004011(5) (a) or (b) without notice of the professional services being provided The notice described in this subsection shall be substantially in the following form

NOTICE OF FURNISHING

PROFESSIONAL SERVICES That on the (day) day of (month and year) (name of provider) began providing professional services upon or for the improvement of real property legally described as follows

[Legal Description is mandatory]

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The general nature of the professional services provided is The owner or reputed owner of the real property is

(Signature)

(Name of Claimant)

(Street Address)

(City State Zip Code)

(Phone Number)

(6) A lien authorized by this chapter shall not be enforced unless the lien claimant has complied with the applicable provisions of this section

6004041 Contractor registration

A contractor or subcontractor required to be registered under chapter 1827 RCW or licensed under chapter 1928 RCW or otherwise required to be registered or licensed by law shall be deemed the construction agent of the owner for the purposes of establishing the lien created by this chapter only if so registered or licensed Persons dealing with contractors or subcontractors may rely for the purposes of this section upon a certificate of registration issued pursuant to chapter 1827 RCW or license issued pursuant to chapter 1928 RCW or other certificate or license issued pursuant to law covering the period when the labor professional services material or equipment shall be furnished and the lien rights shall not be lost by suspension or revocation of registration or license without their knowledge No lien rights described in this

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chapter shall be lost or denied by virtue of the absence suspension or revocation of such registration or license with respect to any contractor or subcontractor not in immediate contractual privity with the lien claimant

6004081 Frivolous claim mdash Procedure

(1) Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who believes the claim of lien to be frivolous and made without reasonable cause or clearly excessive may apply by motion to the superior court for the county where the property or some part thereof is located for an order directing the lien claimant to appear before the court at a time no earlier than six nor later than fifteen days following the date of service of the application and order on the lien claimant and show cause if any he or she has why the relief requested should not be granted The motion shall state the grounds upon which relief is asked and shall be supported by the affidavit of the applicant or his or her attorney setting forth a concise statement of the facts upon which the motion is based (2) The order shall clearly state that if the lien claimant fails to appear at the time and place noted the lien shall be released with prejudice and that the lien claimant shall be ordered to pay the costs requested by the applicant including reasonable attorneys fees (3) If no action to foreclose the lien claim has been filed the clerk of the court shall assign a cause number to the application and obtain from the applicant a filing fee pursuant to RCW 3618016 If an action has been filed to foreclose the lien claim the application shall be made a part of that action (4) If following a hearing on the matter the court determines that the lien is frivolous and made without reasonable cause or clearly excessive the court shall issue an order releasing the lien if frivolous and made without reasonable cause or reducing the lien if clearly excessive and awarding costs and reasonable attorneys fees to the applicant to be paid by the lien claimant If the court determines that the lien is not frivolous and was made with reasonable cause and is not clearly excessive the court shall issue an order so stating and awarding costs and reasonable attorneys fees to the lien claimant to be paid by the applicant (5) Proceedings under this section shall not affect other rights and remedies available to the parties under this chapter or otherwise

6004091 Recording mdash Time mdash Contents of lien

Every person claiming a lien under RCW 6004021 shall file for recording in the county where the subject property is located a notice of claim of lien not later than ninety days after the person

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has ceased to furnish labor professional services materials or equipment or the last date on which employee benefit contributions were due The notice of claim of lien (1) Shall state in substance and effect (a) The name phone number and address of the claimant (b) The first and last date on which the labor professional services materials or equipment was furnished or employee benefit contributions were due (c) The name of the person indebted to the claimant (d) The street address legal description or other description reasonably calculated to identify for a person familiar with the area the location of the real property to be charged with the lien (e) The name of the owner or reputed owner of the property if known and if not known that fact shall be stated and (f) The principal amount for which the lien is claimed (2) Shall be signed by the claimant or some person authorized to act on his or her behalf who shall affirmatively state they have read the notice of claim of lien and believe the notice of claim of lien to be true and correct under penalty of perjury and shall be acknowledged pursuant to chapter 6408 RCW If the lien has been assigned the name of the assignee shall be stated Where an action to foreclose the lien has been commenced such notice of claim of lien may be amended as pleadings may be by order of the court insofar as the interests of third parties are not adversely affected by such amendment A claim of lien substantially in the following form shall be sufficient

CLAIM OF LIEN

claimant vs name of person indebted to claimant

Notice is hereby given that the person named below claims a lien pursuant to chapter 6404 RCW In support of this lien the following information is submitted

1 NAME OF LIEN CLAIMANT

TELEPHONE NUMBER

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ADDRESS

2 DATE ON WHICH THE CLAIMANT BEGAN TO PERFORM LABOR PROVIDE PROFESSIONAL SERVICES SUPPLY MATERIAL OR EQUIPMENT OR THE DATE ON WHICH EMPLOYEE BENEFIT CONTRIBUTIONS BECAME DUE

3 NAME OF PERSON INDEBTED TO THE CLAIMANT

4 DESCRIPTION OF THE PROPERTY AGAINST WHICH A LIEN IS CLAIMED (Street address legal description or other information that will reasonably describe the property)

5 NAME OF THE OWNER OR REPUTED OWNER (If not known state unknown)

6 THE LAST DATE ON WHICH LABOR WAS PERFORMED PROFESSIONAL SERVICES WERE FURNISHED CONTRIBUTIONS TO AN EMPLOYEE BENEFIT PLAN WERE DUE OR MATERIAL OR EQUIPMENT WAS FURNISHED

7 PRINCIPAL AMOUNT FOR WHICH THE LIEN IS CLAIMED IS

8 IF THE CLAIMANT IS THE ASSIGNEE OF THIS CLAIM SO STATE HERE

Claimant

(Phone number address city

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and

state of claimant)

STATE OF WASHINGTON COUNTY OF ss being sworn says I am the claimant (or attorney of the claimant or administrator representative or agent of the trustees of an employee benefit plan) above named I have read or heard the foregoing claim read and know the contents thereof and believe the same to be true and correct and that the claim of lien is not frivolous and is made with reasonable cause and is not clearly excessive under penalty of perjury Subscribed and sworn to before me this day of The period provided for recording the claim of lien is a period of limitation and no action to foreclose a lien shall be maintained unless the claim of lien is filed for recording within the ninety-day period stated The lien claimant shall give a copy of the claim of lien to the owner or reputed owner by mailing it by certified or registered mail or by personal service within fourteen days of the time the claim of lien is filed for recording Failure to do so results in a forfeiture of any right the claimant may have to attorneys fees and costs against the owner under RCW 6004181

6004161 Bond in lieu of claim

Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who disputes the correctness or validity of the claim of lien may record either before or after the commencement of an action to enforce the lien in the office of the county recorder or auditor in the county where the claim of lien was recorded a bond issued by a surety company authorized to issue surety bonds in the state The surety shall be listed in the latest federal department of the treasury list of surety companies acceptable on federal bonds published in the Federal Register as authorized to issue bonds on United States government projects with an underwriting limitation including applicable reinsurance equal to or greater than the amount of the bond to be recorded The bond shall contain a description of the claim of lien and real property involved and be in an amount equal to the greater of five thousand dollars or two times the amount of the lien claimed if it is ten thousand dollars or less and in an amount equal to or greater than one and one-half times the amount of the lien if it is in

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excess of ten thousand dollars If the claim of lien affects more than one parcel of real property and is segregated to each parcel the bond may be segregated the same as in the claim of lien A separate bond shall be required for each claim of lien made by separate claimants However a single bond may be used to guarantee payment of amounts claimed by more than one claim of lien by a single claimant so long as the amount of the bond meets the requirements of this section as applied to the aggregate sum of all claims by such claimant The condition of the bond shall be to guarantee payment of any judgment upon the lien in favor of the lien claimant entered in any action to recover the amount claimed in a claim of lien or on the claim asserted in the claim of lien The effect of recording a bond shall be to release the real property described in the notice of claim of lien from the lien and any action brought to recover the amount claimed Unless otherwise prohibited by law if no action is commenced to recover on a lien within the time specified in RCW 6004141 the surety shall be discharged from liability under the bond If an action is timely commenced then on payment of any judgment entered in the action or on payment of the full amount of the bond to the holder of the judgment whichever is less the surety shall be discharged from liability under the bond Nothing in this section shall in any way prohibit or limit the use of other methods devised by the affected parties to secure the obligation underlying a claim of lien and to obtain a release of real property from a claim of lien

6004181 Rank of lien mdash Application of proceeds mdash Attorneys fees

(1) In every case in which different construction liens are claimed against the same property the court shall declare the rank of such lien or class of liens which liens shall be in the following order (a) Liens for the performance of labor (b) Liens for contributions owed to employee benefit plans (c) Liens for furnishing material supplies or equipment (d) Liens for subcontractors including but not limited to their labor and materials and (e) Liens for prime contractors or for professional services (2) The proceeds of the sale of property must be applied to each lien or class of liens in order of its rank and in an action brought to foreclose a lien pro rata among each claimant in each separate priority class A personal judgment may be rendered against any party personally liable for any debt for which the lien is claimed If the lien is established the judgment shall provide

CCBA Nuts amp Bolts on Construction Law - 44 of 49

for the enforcement thereof upon the property liable as in the case of foreclosure of judgment liens The amount realized by such enforcement of the lien shall be credited upon the proper personal judgment The deficiency if any remaining unsatisfied shall stand as a personal judgment and may be collected by execution against any party liable therefor (3) The court may allow the prevailing party in the action whether plaintiff or defendant as part of the costs of the action the moneys paid for recording the claim of lien costs of title report bond costs and attorneys fees and necessary expenses incurred by the attorney in the superior court court of appeals supreme court or arbitration as the court or arbitrator deems reasonable Such costs shall have the priority of the class of lien to which they are related as established by subsection (1) of this section (4) Real property against which a lien under this chapter is enforced may be ordered sold by the court and the proceeds deposited into the registry of the clerk of the court pending further determination respecting distribution of the proceeds of the sale

6004900 Liberal construction mdash 1991 c 281

RCW 1927095 6004230 and 6004011 through 6004226 and 6004261 are to be liberally construed to provide security for all parties intended to be protected by their provisions

RCW 6028011

Retained percentage mdash Public transportation projects mdash Labor and material lien created mdash Bond in lieu of retained funds mdash Termination before completion mdash Chapter deemed exclusive mdash Release of ferry contract payments mdash Projects of farmers home administration mdash General contractorconstruction manager procedure mdash Definitions

(1)(a) Except as provided in (b) of this subsection public improvement contracts must provide and public bodies must reserve a contract retainage not to exceed five percent of the moneys earned by the contractor as a trust fund for the protection and payment of (i) The claims of any person arising under the contract and (ii) the state with respect to taxes increases and penalties imposed pursuant to Titles 50 51 and 82 RCW which may be due from such contractor (b) Public improvement contracts funded in whole or in part by federal transportation funds must rely upon the contract bond as referred to in chapter 3908 RCW for the protection and payment of (i) The claims of any person or persons arising under the contract to the extent such claims are provided for in RCW 3908010 and (ii) the state with respect to taxes increases and penalties incurred on the public improvement project under Titles 50 51 and 82 RCW which may be due The contract bond must remain in full force and effect until at a minimum all claims filed in compliance with chapter 3908 RCW are resolved

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(2) Every person performing labor or furnishing supplies toward the completion of a public improvement contract has a lien upon moneys reserved by a public body under the provisions of a public improvement contract However the notice of the lien of the claimant must be given within forty-five days of completion of the contract work and in the manner provided in RCW 3908030 (3) The contractor at any time may request the contract retainage be reduced to one hundred percent of the value of the work remaining on the project (a) After completion of all contract work other than landscaping the contractor may request that the public body release and pay in full the amounts retained during the performance of the contract and sixty days thereafter the public body must release and pay in full the amounts retained (other than continuing retention of five percent of the moneys earned for landscaping) subject to the provisions of chapters 3912 and 6028 RCW (b) Sixty days after completion of all contract work the public body must release and pay in full the amounts retained during the performance of the contract subject to the provisions of chapters 3912 and 6028 RCW (4) The moneys reserved by a public body under the provisions of a public improvement contract at the option of the contractor must be (a) Retained in a fund by the public body (b) Deposited by the public body in an interest bearing account in a bank mutual savings bank or savings and loan association Interest on moneys reserved by a public body under the provision of a public improvement contract must be paid to the contractor (c) Placed in escrow with a bank or trust company by the public body When the moneys reserved are placed in escrow the public body must issue a check representing the sum of the moneys reserved payable to the bank or trust company and the contractor jointly This check must be converted into bonds and securities chosen by the contractor and approved by the public body and the bonds and securities must be held in escrow Interest on the bonds and securities must be paid to the contractor as the interest accrues (5) The contractor or subcontractor may withhold payment of not more than five percent from the moneys earned by any subcontractor or sub-subcontractor or supplier contracted with by the contractor to provide labor materials or equipment to the public project Whenever the contractor or subcontractor reserves funds earned by a subcontractor or sub-subcontractor or

CCBA Nuts amp Bolts on Construction Law - 46 of 49

supplier the contractor or subcontractor must pay interest to the subcontractor or sub-subcontractor or supplier at a rate equal to that received by the contractor or subcontractor from reserved funds (6) A contractor may submit a bond for all or any portion of the contract retainage in a form acceptable to the public body and from a bonding company meeting standards established by the public body The public body must accept a bond meeting these requirements unless the public body can demonstrate good cause for refusing to accept it This bond and any proceeds therefrom are subject to all claims and liens and in the same manner and priority as set forth for retained percentages in this chapter The public body must release the bonded portion of the retained funds to the contractor within thirty days of accepting the bond from the contractor Whenever a public body accepts a bond in lieu of retained funds from a contractor the contractor must accept like bonds from any subcontractors or suppliers from which the contractor has retained funds The contractor must then release the funds retained from the subcontractor or supplier to the subcontractor or supplier within thirty days of accepting the bond from the subcontractor or supplier (7) If the public body administering a contract after a substantial portion of the work has been completed finds that an unreasonable delay will occur in the completion of the remaining portion of the contract for any reason not the result of a breach thereof it may if the contractor agrees delete from the contract the remaining work and accept as final the improvement at the stage of completion then attained and make payment in proportion to the amount of the work accomplished and in this case any amounts retained and accumulated under this section must be held for a period of sixty days following the completion In the event that the work is terminated before final completion as provided in this section the public body may thereafter enter into a new contract with the same contractor to perform the remaining work or improvement for an amount equal to or less than the cost of the remaining work as was provided for in the original contract without advertisement or bid The provisions of this chapter are exclusive and supersede all provisions and regulations in conflict herewith (8) Whenever the department of transportation has contracted for the construction of two or more ferry vessels sixty days after completion of all contract work on each ferry vessel the department must release and pay in full the amounts retained in connection with the construction of the vessel subject to the provisions of RCW 6028021 and chapter 3912 RCW However the department of transportation may at its discretion condition the release of funds retained in connection with the completed ferry upon the contractor delivering a good and sufficient bond with two or more sureties or with a surety company in the amount of the retained funds to be released to the contractor conditioned that no taxes may be certified or claims filed for work on the ferry after a period of sixty days following completion of the ferry and if taxes are certified or claims filed recovery may be had on the bond by the department of revenue the employment

CCBA Nuts amp Bolts on Construction Law - 47 of 49

security department the department of labor and industries and the material suppliers and laborers filing claims (9) Except as provided in subsection (1) of this section reservation by a public body for any purpose from the moneys earned by a contractor by fulfilling its responsibilities under public improvement contracts is prohibited (10) Contracts on projects funded in whole or in part by farmers home administration and subject to farmers home administration regulations are not subject to subsections (1) through (9) of this section (11) This subsection applies only to a public body that has contracted for the construction of a facility using the general contractorconstruction manager procedure as defined under RCW 3910210 If the work performed by a subcontractor on the project has been completed within the first half of the time provided in the general contractorconstruction manager contract for completing the work the public body may accept the completion of the subcontract The public body must give public notice of this acceptance After a forty-five day period for giving notice of liens and compliance with the retainage release procedures in RCW 6028021 the public body may release that portion of the retained funds associated with the subcontract Claims against the retained funds after the forty-five day period are not valid (12) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise (a) Contract retainage means an amount reserved by a public body from the moneys earned by a person under a public improvement contract (b) Person means a person or persons mechanic subcontractor or materialperson who performs labor or provides materials for a public improvement contract and any other person who supplies the person with provisions or supplies for the carrying on of a public improvement contract (c) Public body means the state or a county city town district board or other public body (d) Public improvement contract means a contract for public improvements or work other than for professional services or a work order as defined in RCW 3910210

CCBA Nuts amp Bolts on Construction Law - 48 of 49

RCW 6432070 Liens or encumbrances mdash Enforcement mdash Satisfaction

(1) Subsequent to recording the declaration as provided in this chapter and while the property remains subject to this chapter no lien shall thereafter arise or be effective against the property During such period liens or encumbrances shall arise or be created only against each apartment and the percentage of undivided interest in the common areas and facilities and appurtenant to such apartment in the same manner and under the same conditions in every respect as liens or encumbrances may arise or be created upon or against any other separate parcel of real property subject to individual ownership PROVIDED That no labor performed or materials furnished with the consent of or at the request of the owner of any apartment or such owners agent contractor or subcontractor shall be the basis for the filing of a lien against any other apartment or any other property of any other apartment owner not expressly consenting to or requesting the same except that such express consent shall be deemed to be given by any apartment owner in the case of emergency repairs Labor performed or materials furnished for the common areas and facilities if authorized by the association of apartment owners the manager or board of directors shall be deemed to be performed or furnished with the express consent of each apartment owner and shall be the basis for the filing of a lien against each of the apartments and shall be subject to the provisions of subsection (2) of this section (2) In the event a lien against two or more apartments becomes effective the apartment owners of the separate apartments may remove their apartment and the percentage of undivided interest in the common areas and facilities appurtenant to such apartment from the lien by payment of the fractional or proportional amounts attributable to each of the apartments affected Such individual payments shall be computed by reference to the percentages appearing on the declaration Subsequent to any such payment discharge or satisfaction the apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto shall thereafter be free and clear of the liens so paid satisfied or discharged Such partial payment satisfaction or discharge shall not prevent the lienor from proceeding to enforce his or her rights against any apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto not so paid satisfied or discharged

CCBA Nuts amp Bolts on Construction Law - 49 of 49

  • Cover Sheet
  • 20141110 - Washington Lien and Bond CLE
  • LampI Lien Summary
  • Claim of Lien
  • Form Notice to Owner
  • Model Disclosure Statement (Notice to Customer)
  • LampI Facts about Construction Liens
    • What you should know about contracts
    • How to protect your investment
    • For more information
      • Notice of Claim Against Bond and Retained Percentage
      • Preclaim Notice Bond amp Retained Percentage
      • Statute Handout
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 DEU 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 ESP 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 FRA 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 ITA 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 JPN ltFEFF9ad854c18cea306a30d730ea30d730ec30b951fa529b7528002000410064006f0062006500200050004400460020658766f8306e4f5c6210306b4f7f75283057307e305930023053306e8a2d5b9a30674f5c62103055308c305f0020005000440046002030d530a130a430eb306f3001004100630072006f0062006100740020304a30883073002000410064006f00620065002000520065006100640065007200200035002e003000204ee5964d3067958b304f30533068304c3067304d307e305930023053306e8a2d5b9a306b306f30d530a930f330c8306e57cb30818fbc307f304c5fc59808306730593002gt KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020ace0d488c9c80020c2dcd5d80020c778c1c4c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200035002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor prepress-afdrukken van hoge kwaliteit De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 50 en hoger) NOR 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 PTB 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 SUO ltFEFF004b00e40079007400e40020006e00e40069007400e4002000610073006500740075006b007300690061002c0020006b0075006e0020006c0075006f00740020006c00e400680069006e006e00e4002000760061006100740069007600610061006e0020007000610069006e006100740075006b00730065006e002000760061006c006d0069007300740065006c00750074007900f6006800f6006e00200073006f00700069007600690061002000410064006f0062006500200050004400460020002d0064006f006b0075006d0065006e007400740065006a0061002e0020004c0075006f0064007500740020005000440046002d0064006f006b0075006d0065006e00740069007400200076006f0069006400610061006e0020006100760061007400610020004100630072006f0062006100740069006c006c00610020006a0061002000410064006f00620065002000520065006100640065007200200035002e0030003a006c006c00610020006a006100200075007500640065006d006d0069006c006c0061002egt SVE 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 ENU (Use these settings to create Adobe PDF documents best suited for high-quality prepress printing Created PDF documents can be opened with Acrobat and Adobe Reader 50 and later) gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false ConvertColors ConvertToCMYK DestinationProfileName () DestinationProfileSelector DocumentCMYK Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles false MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector DocumentCMYK PreserveEditing true UntaggedCMYKHandling LeaveUntagged UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ]gtgt setdistillerparamsltlt HWResolution [2400 2400] PageSize [612000 792000]gtgt setpagedevice

          ltlt ASCII85EncodePages false AllowTransparency false AutoPositionEPSFiles true AutoRotatePages None Binding Left CalGrayProfile (Dot Gain 20) CalRGBProfile (sRGB IEC61966-21) CalCMYKProfile (US Web Coated 050SWOP051 v2) sRGBProfile (sRGB IEC61966-21) CannotEmbedFontPolicy Warning CompatibilityLevel 14 CompressObjects Tags CompressPages true ConvertImagesToIndexed true PassThroughJPEGImages true CreateJDFFile false CreateJobTicket false DefaultRenderingIntent Default DetectBlends true DetectCurves 00000 ColorConversionStrategy LeaveColorUnchanged DoThumbnails false EmbedAllFonts true EmbedOpenType false ParseICCProfilesInComments true EmbedJobOptions true DSCReportingLevel 0 EmitDSCWarnings false EndPage -1 ImageMemory 1048576 LockDistillerParams true MaxSubsetPct 100 Optimize true OPM 1 ParseDSCComments true ParseDSCCommentsForDocInfo true PreserveCopyPage true PreserveDICMYKValues true PreserveEPSInfo true PreserveFlatness true PreserveHalftoneInfo false PreserveOPIComments true PreserveOverprintSettings true StartPage 1 SubsetFonts true TransferFunctionInfo Apply UCRandBGInfo Preserve UsePrologue false ColorSettingsFile () AlwaysEmbed [ true Algerian Arial-Black Arial-BoldItalicMT Arial-BoldMT Arial-ItalicMT ArialMT ArialNarrow ArialNarrow-Bold ArialNarrow-BoldItalic ArialNarrow-Italic BaskOldFace Bauhaus93 BellMT BellMTBold BellMTItalic BerlinSansFB-Bold BerlinSansFBDemi-Bold BerlinSansFB-Reg BernardMT-Condensed BodoniMTPosterCompressed BookAntiqua BookAntiqua-Bold BookAntiqua-BoldItalic BookAntiqua-Italic BookmanOldStyle BookmanOldStyle-Bold BookmanOldStyle-BoldItalic BookmanOldStyle-Italic BookshelfSymbolSeven BritannicBold Broadway BrushScriptMT CalifornianFB-Bold CalifornianFB-Italic CalifornianFB-Reg Centaur CenturyGothic CenturyGothic-Bold CenturyGothic-BoldItalic CenturyGothic-Italic Chiller-Regular ColonnaMT ComicSansMS ComicSansMS-Bold CooperBlack CourierNewPS-BoldItalicMT CourierNewPS-BoldMT CourierNewPS-ItalicMT CourierNewPSMT EstrangeloEdessa EXTRAAPLNew-Regular EXTRAOIANew-Regular FootlightMTLight FranklinGothic-Medium FranklinGothic-MediumItalic FreestyleScript-Regular Garamond Garamond-Bold Garamond-Italic Gautami Georgia Georgia-Bold Georgia-BoldItalic Georgia-Italic HarlowSolid Harrington HighTowerText-Italic HighTowerText-Reg Impact InformalRoman-Regular Jokerman-Regular JuiceITC-Regular Kartika KristenITC-Regular KunstlerScript Latha LatinWide LucidaATTMSpecial LucidaBright LucidaBright-Demi LucidaBright-DemiItalic LucidaBright-Italic LucidaCalligraphy-Italic LucidaConsole LucidaFax LucidaFax-Demi LucidaFax-DemiItalic LucidaFax-Italic LucidaforAttachmate LucidaHandwriting-Italic LucidaSans LucidaSans-Demi LucidaSans-DemiItalic LucidaSans-Italic LucidaSansUnicode Magneto-Bold Mangal-Regular MaturaMTScriptCapitals MicrosoftSansSerif Mistral Modern-Regular Monospace821BT-Roman MonotypeCorsiva MSOutlook MSReferenceSansSerif MSReferenceSpecialty MVBoli NiagaraEngraved-Reg NiagaraSolid-Reg OldEnglishTextMT Onyx PalatinoLinotype-Bold PalatinoLinotype-BoldItalic PalatinoLinotype-Italic PalatinoLinotype-Roman Parchment-Regular Playbill PoorRichard-Regular Raavi Ravie ShowcardGothic-Reg Shruti SnapITC-Regular Stencil Sylfaen SymbolMT Tahoma Tahoma-Bold TempusSansITC TimesNewRomanPS-BoldItalicMT TimesNewRomanPS-BoldMT TimesNewRomanPS-ItalicMT TimesNewRomanPSMT Trebuchet-BoldItalic TrebuchetMS TrebuchetMS-Bold TrebuchetMS-Italic Tunga-Regular Verdana Verdana-Bold Verdana-BoldItalic Verdana-Italic VinerHandITC Vivaldii VladimirScript Vrinda Webdings Wingdings2 Wingdings3 Wingdings-Regular ZWAdobeF ] NeverEmbed [ true ] AntiAliasColorImages false CropColorImages true ColorImageMinResolution 300 ColorImageMinResolutionPolicy OK DownsampleColorImages true ColorImageDownsampleType Bicubic ColorImageResolution 300 ColorImageDepth -1 ColorImageMinDownsampleDepth 1 ColorImageDownsampleThreshold 150000 EncodeColorImages false ColorImageFilter DCTEncode AutoFilterColorImages true ColorImageAutoFilterStrategy JPEG ColorACSImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt ColorImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000ColorACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000ColorImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasGrayImages false CropGrayImages true GrayImageMinResolution 300 GrayImageMinResolutionPolicy OK DownsampleGrayImages true GrayImageDownsampleType Bicubic GrayImageResolution 300 GrayImageDepth -1 GrayImageMinDownsampleDepth 2 GrayImageDownsampleThreshold 150000 EncodeGrayImages false GrayImageFilter DCTEncode AutoFilterGrayImages true GrayImageAutoFilterStrategy JPEG GrayACSImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt GrayImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000GrayACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000GrayImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasMonoImages false CropMonoImages true MonoImageMinResolution 1200 MonoImageMinResolutionPolicy OK DownsampleMonoImages true MonoImageDownsampleType Bicubic MonoImageResolution 1200 MonoImageDepth -1 MonoImageDownsampleThreshold 150000 EncodeMonoImages false MonoImageFilter CCITTFaxEncode MonoImageDict ltlt K -1 gtgt AllowPSXObjects false CheckCompliance [ None ] PDFX1aCheck false PDFX3Check false PDFXCompliantPDFOnly false PDFXNoTrimBoxError true PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile (None) PDFXOutputConditionIdentifier () PDFXOutputCondition () PDFXRegistryName () PDFXTrapped False Description ltlt CHS ltFEFF4f7f75288fd94e9b8bbe5b9a521b5efa7684002000410064006f006200650020005000440046002065876863900275284e8e9ad88d2891cf76845370524d53705237300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200035002e003000204ee553ca66f49ad87248672c676562535f00521b5efa768400200050004400460020658768633002gt CHT ltFEFF4f7f752890194e9b8a2d7f6e5efa7acb7684002000410064006f006200650020005000440046002065874ef69069752865bc9ad854c18cea76845370524d5370523786557406300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200035002e003000204ee553ca66f49ad87248672c4f86958b555f5df25efa7acb76840020005000440046002065874ef63002gt DAN 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 DEU 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 ESP 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 FRA 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 ITA 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 JPN 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          1. To
          2. Date
          3. Re
          4. From
          5. AT THE REQUEST OF
          6. Sender
          7. Address
          8. Telephone
          9. Brief description of professional services materials or equipment provided or to be provided
          10. 1
          11. 2
          12. 3
          13. reg no
          14. deposit $
          15. expiration date
          16. claims up to $
          17. Reset

contractors as defined by chapter 1827 or 1928 RCW or who are otherwise required to be registered or licensed by law who contract directly with a property owner or their common law agent to assume primary responsibility for the creation of an improvement to real property and includes property owners or their common law agents who are contractors general contractors or specialty contractors as defined in chapter 1827 or 1928 RCW or who are otherwise required to be registered or licensed by law who offer to sell their property without occupying or using the structures projects developments or improvements for more than one year (13) Professional services means surveying establishing or marking the boundaries of preparing maps plans or specifications for or inspecting testing or otherwise performing any other architectural or engineering services for the improvement of real property (14) Real property lender means a bank savings bank savings and loan association credit union mortgage company or other corporation association partnership trust or individual that makes loans secured by real property located in the state of Washington (15) Site means the real property which is or is to be improved (16) Subcontractor means a general contractor or specialty contractor as defined by chapter 1827 or 1928 RCW or who is otherwise required to be registered or licensed by law who contracts for the improvement of real property with someone other than the owner of the property or their common law agent

6004021 Lien authorized

Except as provided in RCW 6004031 any person furnishing labor professional services materials or equipment for the improvement of real property shall have a lien upon the improvement for the contract price of labor professional services materials or equipment furnished at the instance of the owner or the agent or construction agent of the owner

6004031 Notices mdash Exceptions

(1) Except as otherwise provided in this section every person furnishing professional services materials or equipment for the improvement of real property shall give the owner or reputed owner notice in writing of the right to claim a lien If the prime contractor is in compliance with the requirements of RCW 1927095 6004230 and 6004261 this notice shall also be given to the prime contractor as described in this subsection unless the potential lien claimant has contracted directly with the prime contractor The notice may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after the date which is sixty days before (a) Mailing the notice by certified or registered mail to the owner or reputed owner or

CCBA Nuts amp Bolts on Construction Law - 34 of 49

(b) Delivering or serving the notice personally upon the owner or reputed owner and obtaining evidence of delivery in the form of a receipt or other acknowledgment signed by the owner or reputed owner or an affidavit of service In the case of new construction of a single-family residence the notice of a right to claim a lien may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after a date which is ten days before the notice is given as described in this subsection (2) Notices of a right to claim a lien shall not be required of (a) Persons who contract directly with the owner or the owners common law agent (b) Laborers whose claim of lien is based solely on performing labor or (c) Subcontractors who contract for the improvement of real property directly with the prime contractor except as provided in subsection (3)(b) of this section (3) Persons who furnish professional services materials or equipment in connection with the repair alteration or remodel of an existing owner-occupied single-family residence or appurtenant garage (a) Who contract directly with the owner-occupier or their common law agent shall not be required to send a written notice of the right to claim a lien and shall have a lien for the full amount due under their contract as provided in RCW 6004021 or (b) Who do not contract directly with the owner-occupier or their common law agent shall give notice of the right to claim a lien to the owner-occupier Liens of persons furnishing professional services materials or equipment who do not contract directly with the owner-occupier or their common law agent may only be satisfied from amounts not yet paid to the prime contractor by the owner at the time the notice described in this section is received regardless of whether amounts not yet paid to the prime contractor are due For the purposes of this subsection received means actual receipt of notice by personal service or registered or certified mail or three days after mailing by registered or certified mail excluding Saturdays Sundays or legal holidays (4) The notice of right to claim a lien described in subsection (1) of this section shall include but not be limited to the following information and shall substantially be in the following form using lower-case and upper-case ten-point type where appropriate

CCBA Nuts amp Bolts on Construction Law - 35 of 49

NOTICE TO OWNER

IMPORTANT READ BOTH SIDES OF THIS NOTICE CAREFULLY

PROTECT YOURSELF FROM PAYING TWICE

To Date

Re (description of property Street address or general location) From AT THE REQUEST OF (Name of person ordering the professional services materials or equipment) THIS IS NOT A LIEN This notice is sent to you to tell you who is providing professional services materials or equipment for the improvement of your property and to advise you of the rights of these persons and your responsibilities Also take note that laborers on your project may claim a lien without sending you a notice

OWNEROCCUPIER OF EXISTING

RESIDENTIAL PROPERTY

Under Washington law those who furnish labor professional services materials or equipment for the repair remodel or alteration of your owner-occupied principal residence and who are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien The law limits the amount that a lien claimant can claim against your property Claims may only be made against that portion of the contract price you have not yet paid to your prime contractor as of the time this notice was given to you or three days after this notice was mailed to you Review the back of this notice for more information and ways to avoid lien claims

COMMERCIAL ANDOR NEW

RESIDENTIAL PROPERTY

CCBA Nuts amp Bolts on Construction Law - 36 of 49

We have or will be providing professional services materials or equipment for the improvement of your commercial or new residential project In the event you or your contractor fail to pay us we may file a lien against your property A lien may be claimed for all professional services materials or equipment furnished after a date that is sixty days before this notice was given to you or mailed to you unless the improvement to your property is the construction of a new single-family residence then ten days before this notice was given to you or mailed to you Sender Address Telephone Brief description of professional services materials or equipment provided or to be provided

IMPORTANT INFORMATION

ON REVERSE SIDE

IMPORTANT INFORMATION

FOR YOUR PROTECTION This notice is sent to inform you that we have or will provide professional services materials or equipment for the improvement of your property We expect to be paid by the person who ordered our services but if we are not paid we have the right to enforce our claim by filing a construction lien against your property LEARN more about the lien laws and the meaning of this notice by discussing them with your contractor suppliers Department of Labor and Industries the firm sending you this notice your lender or your attorney

COMMON METHODS TO AVOID CONSTRUCTION LIENS There are several methods available to protect your property from construction liens The following are two of the more commonly used methods

DUAL PAYCHECKS (Joint Checks) When paying your contractor for services or materials you may make checks payable jointly to the contractor and the firms furnishing you this notice

CCBA Nuts amp Bolts on Construction Law - 37 of 49

LIEN RELEASES You may require your contractor to provide lien releases signed by all the suppliers and subcontractors from whom you have received this notice If they cannot obtain lien releases because you have not paid them you may use the dual payee check method to protect yourself

YOU SHOULD TAKE APPROPRIATE STEPS TO PROTECT YOUR PROPERTY FROM LIENS YOUR PRIME CONTRACTOR AND YOUR CONSTRUCTION LENDER ARE REQUIRED BY LAW TO GIVE YOU WRITTEN INFORMATION ABOUT LIEN CLAIMS IF YOU HAVE NOT RECEIVED IT ASK THEM FOR IT

(5) Every potential lien claimant providing professional services where no improvement as defined in RCW 6004011(5) (a) or (b) has been commenced and the professional services provided are not visible from an inspection of the real property may record in the real property records of the county where the property is located a notice which shall contain the professional service providers name address telephone number legal description of the property the owner or reputed owners name and the general nature of the professional services provided If such notice is not recorded the lien claimed shall be subordinate to the interest of any subsequent mortgagee and invalid as to the interest of any subsequent purchaser if the mortgagee or purchaser acts in good faith and for a valuable consideration acquires an interest in the property prior to the commencement of an improvement as defined in RCW 6004011(5) (a) or (b) without notice of the professional services being provided The notice described in this subsection shall be substantially in the following form

NOTICE OF FURNISHING

PROFESSIONAL SERVICES That on the (day) day of (month and year) (name of provider) began providing professional services upon or for the improvement of real property legally described as follows

[Legal Description is mandatory]

CCBA Nuts amp Bolts on Construction Law - 38 of 49

The general nature of the professional services provided is The owner or reputed owner of the real property is

(Signature)

(Name of Claimant)

(Street Address)

(City State Zip Code)

(Phone Number)

(6) A lien authorized by this chapter shall not be enforced unless the lien claimant has complied with the applicable provisions of this section

6004041 Contractor registration

A contractor or subcontractor required to be registered under chapter 1827 RCW or licensed under chapter 1928 RCW or otherwise required to be registered or licensed by law shall be deemed the construction agent of the owner for the purposes of establishing the lien created by this chapter only if so registered or licensed Persons dealing with contractors or subcontractors may rely for the purposes of this section upon a certificate of registration issued pursuant to chapter 1827 RCW or license issued pursuant to chapter 1928 RCW or other certificate or license issued pursuant to law covering the period when the labor professional services material or equipment shall be furnished and the lien rights shall not be lost by suspension or revocation of registration or license without their knowledge No lien rights described in this

CCBA Nuts amp Bolts on Construction Law - 39 of 49

chapter shall be lost or denied by virtue of the absence suspension or revocation of such registration or license with respect to any contractor or subcontractor not in immediate contractual privity with the lien claimant

6004081 Frivolous claim mdash Procedure

(1) Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who believes the claim of lien to be frivolous and made without reasonable cause or clearly excessive may apply by motion to the superior court for the county where the property or some part thereof is located for an order directing the lien claimant to appear before the court at a time no earlier than six nor later than fifteen days following the date of service of the application and order on the lien claimant and show cause if any he or she has why the relief requested should not be granted The motion shall state the grounds upon which relief is asked and shall be supported by the affidavit of the applicant or his or her attorney setting forth a concise statement of the facts upon which the motion is based (2) The order shall clearly state that if the lien claimant fails to appear at the time and place noted the lien shall be released with prejudice and that the lien claimant shall be ordered to pay the costs requested by the applicant including reasonable attorneys fees (3) If no action to foreclose the lien claim has been filed the clerk of the court shall assign a cause number to the application and obtain from the applicant a filing fee pursuant to RCW 3618016 If an action has been filed to foreclose the lien claim the application shall be made a part of that action (4) If following a hearing on the matter the court determines that the lien is frivolous and made without reasonable cause or clearly excessive the court shall issue an order releasing the lien if frivolous and made without reasonable cause or reducing the lien if clearly excessive and awarding costs and reasonable attorneys fees to the applicant to be paid by the lien claimant If the court determines that the lien is not frivolous and was made with reasonable cause and is not clearly excessive the court shall issue an order so stating and awarding costs and reasonable attorneys fees to the lien claimant to be paid by the applicant (5) Proceedings under this section shall not affect other rights and remedies available to the parties under this chapter or otherwise

6004091 Recording mdash Time mdash Contents of lien

Every person claiming a lien under RCW 6004021 shall file for recording in the county where the subject property is located a notice of claim of lien not later than ninety days after the person

CCBA Nuts amp Bolts on Construction Law - 40 of 49

has ceased to furnish labor professional services materials or equipment or the last date on which employee benefit contributions were due The notice of claim of lien (1) Shall state in substance and effect (a) The name phone number and address of the claimant (b) The first and last date on which the labor professional services materials or equipment was furnished or employee benefit contributions were due (c) The name of the person indebted to the claimant (d) The street address legal description or other description reasonably calculated to identify for a person familiar with the area the location of the real property to be charged with the lien (e) The name of the owner or reputed owner of the property if known and if not known that fact shall be stated and (f) The principal amount for which the lien is claimed (2) Shall be signed by the claimant or some person authorized to act on his or her behalf who shall affirmatively state they have read the notice of claim of lien and believe the notice of claim of lien to be true and correct under penalty of perjury and shall be acknowledged pursuant to chapter 6408 RCW If the lien has been assigned the name of the assignee shall be stated Where an action to foreclose the lien has been commenced such notice of claim of lien may be amended as pleadings may be by order of the court insofar as the interests of third parties are not adversely affected by such amendment A claim of lien substantially in the following form shall be sufficient

CLAIM OF LIEN

claimant vs name of person indebted to claimant

Notice is hereby given that the person named below claims a lien pursuant to chapter 6404 RCW In support of this lien the following information is submitted

1 NAME OF LIEN CLAIMANT

TELEPHONE NUMBER

CCBA Nuts amp Bolts on Construction Law - 41 of 49

ADDRESS

2 DATE ON WHICH THE CLAIMANT BEGAN TO PERFORM LABOR PROVIDE PROFESSIONAL SERVICES SUPPLY MATERIAL OR EQUIPMENT OR THE DATE ON WHICH EMPLOYEE BENEFIT CONTRIBUTIONS BECAME DUE

3 NAME OF PERSON INDEBTED TO THE CLAIMANT

4 DESCRIPTION OF THE PROPERTY AGAINST WHICH A LIEN IS CLAIMED (Street address legal description or other information that will reasonably describe the property)

5 NAME OF THE OWNER OR REPUTED OWNER (If not known state unknown)

6 THE LAST DATE ON WHICH LABOR WAS PERFORMED PROFESSIONAL SERVICES WERE FURNISHED CONTRIBUTIONS TO AN EMPLOYEE BENEFIT PLAN WERE DUE OR MATERIAL OR EQUIPMENT WAS FURNISHED

7 PRINCIPAL AMOUNT FOR WHICH THE LIEN IS CLAIMED IS

8 IF THE CLAIMANT IS THE ASSIGNEE OF THIS CLAIM SO STATE HERE

Claimant

(Phone number address city

CCBA Nuts amp Bolts on Construction Law - 42 of 49

and

state of claimant)

STATE OF WASHINGTON COUNTY OF ss being sworn says I am the claimant (or attorney of the claimant or administrator representative or agent of the trustees of an employee benefit plan) above named I have read or heard the foregoing claim read and know the contents thereof and believe the same to be true and correct and that the claim of lien is not frivolous and is made with reasonable cause and is not clearly excessive under penalty of perjury Subscribed and sworn to before me this day of The period provided for recording the claim of lien is a period of limitation and no action to foreclose a lien shall be maintained unless the claim of lien is filed for recording within the ninety-day period stated The lien claimant shall give a copy of the claim of lien to the owner or reputed owner by mailing it by certified or registered mail or by personal service within fourteen days of the time the claim of lien is filed for recording Failure to do so results in a forfeiture of any right the claimant may have to attorneys fees and costs against the owner under RCW 6004181

6004161 Bond in lieu of claim

Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who disputes the correctness or validity of the claim of lien may record either before or after the commencement of an action to enforce the lien in the office of the county recorder or auditor in the county where the claim of lien was recorded a bond issued by a surety company authorized to issue surety bonds in the state The surety shall be listed in the latest federal department of the treasury list of surety companies acceptable on federal bonds published in the Federal Register as authorized to issue bonds on United States government projects with an underwriting limitation including applicable reinsurance equal to or greater than the amount of the bond to be recorded The bond shall contain a description of the claim of lien and real property involved and be in an amount equal to the greater of five thousand dollars or two times the amount of the lien claimed if it is ten thousand dollars or less and in an amount equal to or greater than one and one-half times the amount of the lien if it is in

CCBA Nuts amp Bolts on Construction Law - 43 of 49

excess of ten thousand dollars If the claim of lien affects more than one parcel of real property and is segregated to each parcel the bond may be segregated the same as in the claim of lien A separate bond shall be required for each claim of lien made by separate claimants However a single bond may be used to guarantee payment of amounts claimed by more than one claim of lien by a single claimant so long as the amount of the bond meets the requirements of this section as applied to the aggregate sum of all claims by such claimant The condition of the bond shall be to guarantee payment of any judgment upon the lien in favor of the lien claimant entered in any action to recover the amount claimed in a claim of lien or on the claim asserted in the claim of lien The effect of recording a bond shall be to release the real property described in the notice of claim of lien from the lien and any action brought to recover the amount claimed Unless otherwise prohibited by law if no action is commenced to recover on a lien within the time specified in RCW 6004141 the surety shall be discharged from liability under the bond If an action is timely commenced then on payment of any judgment entered in the action or on payment of the full amount of the bond to the holder of the judgment whichever is less the surety shall be discharged from liability under the bond Nothing in this section shall in any way prohibit or limit the use of other methods devised by the affected parties to secure the obligation underlying a claim of lien and to obtain a release of real property from a claim of lien

6004181 Rank of lien mdash Application of proceeds mdash Attorneys fees

(1) In every case in which different construction liens are claimed against the same property the court shall declare the rank of such lien or class of liens which liens shall be in the following order (a) Liens for the performance of labor (b) Liens for contributions owed to employee benefit plans (c) Liens for furnishing material supplies or equipment (d) Liens for subcontractors including but not limited to their labor and materials and (e) Liens for prime contractors or for professional services (2) The proceeds of the sale of property must be applied to each lien or class of liens in order of its rank and in an action brought to foreclose a lien pro rata among each claimant in each separate priority class A personal judgment may be rendered against any party personally liable for any debt for which the lien is claimed If the lien is established the judgment shall provide

CCBA Nuts amp Bolts on Construction Law - 44 of 49

for the enforcement thereof upon the property liable as in the case of foreclosure of judgment liens The amount realized by such enforcement of the lien shall be credited upon the proper personal judgment The deficiency if any remaining unsatisfied shall stand as a personal judgment and may be collected by execution against any party liable therefor (3) The court may allow the prevailing party in the action whether plaintiff or defendant as part of the costs of the action the moneys paid for recording the claim of lien costs of title report bond costs and attorneys fees and necessary expenses incurred by the attorney in the superior court court of appeals supreme court or arbitration as the court or arbitrator deems reasonable Such costs shall have the priority of the class of lien to which they are related as established by subsection (1) of this section (4) Real property against which a lien under this chapter is enforced may be ordered sold by the court and the proceeds deposited into the registry of the clerk of the court pending further determination respecting distribution of the proceeds of the sale

6004900 Liberal construction mdash 1991 c 281

RCW 1927095 6004230 and 6004011 through 6004226 and 6004261 are to be liberally construed to provide security for all parties intended to be protected by their provisions

RCW 6028011

Retained percentage mdash Public transportation projects mdash Labor and material lien created mdash Bond in lieu of retained funds mdash Termination before completion mdash Chapter deemed exclusive mdash Release of ferry contract payments mdash Projects of farmers home administration mdash General contractorconstruction manager procedure mdash Definitions

(1)(a) Except as provided in (b) of this subsection public improvement contracts must provide and public bodies must reserve a contract retainage not to exceed five percent of the moneys earned by the contractor as a trust fund for the protection and payment of (i) The claims of any person arising under the contract and (ii) the state with respect to taxes increases and penalties imposed pursuant to Titles 50 51 and 82 RCW which may be due from such contractor (b) Public improvement contracts funded in whole or in part by federal transportation funds must rely upon the contract bond as referred to in chapter 3908 RCW for the protection and payment of (i) The claims of any person or persons arising under the contract to the extent such claims are provided for in RCW 3908010 and (ii) the state with respect to taxes increases and penalties incurred on the public improvement project under Titles 50 51 and 82 RCW which may be due The contract bond must remain in full force and effect until at a minimum all claims filed in compliance with chapter 3908 RCW are resolved

CCBA Nuts amp Bolts on Construction Law - 45 of 49

(2) Every person performing labor or furnishing supplies toward the completion of a public improvement contract has a lien upon moneys reserved by a public body under the provisions of a public improvement contract However the notice of the lien of the claimant must be given within forty-five days of completion of the contract work and in the manner provided in RCW 3908030 (3) The contractor at any time may request the contract retainage be reduced to one hundred percent of the value of the work remaining on the project (a) After completion of all contract work other than landscaping the contractor may request that the public body release and pay in full the amounts retained during the performance of the contract and sixty days thereafter the public body must release and pay in full the amounts retained (other than continuing retention of five percent of the moneys earned for landscaping) subject to the provisions of chapters 3912 and 6028 RCW (b) Sixty days after completion of all contract work the public body must release and pay in full the amounts retained during the performance of the contract subject to the provisions of chapters 3912 and 6028 RCW (4) The moneys reserved by a public body under the provisions of a public improvement contract at the option of the contractor must be (a) Retained in a fund by the public body (b) Deposited by the public body in an interest bearing account in a bank mutual savings bank or savings and loan association Interest on moneys reserved by a public body under the provision of a public improvement contract must be paid to the contractor (c) Placed in escrow with a bank or trust company by the public body When the moneys reserved are placed in escrow the public body must issue a check representing the sum of the moneys reserved payable to the bank or trust company and the contractor jointly This check must be converted into bonds and securities chosen by the contractor and approved by the public body and the bonds and securities must be held in escrow Interest on the bonds and securities must be paid to the contractor as the interest accrues (5) The contractor or subcontractor may withhold payment of not more than five percent from the moneys earned by any subcontractor or sub-subcontractor or supplier contracted with by the contractor to provide labor materials or equipment to the public project Whenever the contractor or subcontractor reserves funds earned by a subcontractor or sub-subcontractor or

CCBA Nuts amp Bolts on Construction Law - 46 of 49

supplier the contractor or subcontractor must pay interest to the subcontractor or sub-subcontractor or supplier at a rate equal to that received by the contractor or subcontractor from reserved funds (6) A contractor may submit a bond for all or any portion of the contract retainage in a form acceptable to the public body and from a bonding company meeting standards established by the public body The public body must accept a bond meeting these requirements unless the public body can demonstrate good cause for refusing to accept it This bond and any proceeds therefrom are subject to all claims and liens and in the same manner and priority as set forth for retained percentages in this chapter The public body must release the bonded portion of the retained funds to the contractor within thirty days of accepting the bond from the contractor Whenever a public body accepts a bond in lieu of retained funds from a contractor the contractor must accept like bonds from any subcontractors or suppliers from which the contractor has retained funds The contractor must then release the funds retained from the subcontractor or supplier to the subcontractor or supplier within thirty days of accepting the bond from the subcontractor or supplier (7) If the public body administering a contract after a substantial portion of the work has been completed finds that an unreasonable delay will occur in the completion of the remaining portion of the contract for any reason not the result of a breach thereof it may if the contractor agrees delete from the contract the remaining work and accept as final the improvement at the stage of completion then attained and make payment in proportion to the amount of the work accomplished and in this case any amounts retained and accumulated under this section must be held for a period of sixty days following the completion In the event that the work is terminated before final completion as provided in this section the public body may thereafter enter into a new contract with the same contractor to perform the remaining work or improvement for an amount equal to or less than the cost of the remaining work as was provided for in the original contract without advertisement or bid The provisions of this chapter are exclusive and supersede all provisions and regulations in conflict herewith (8) Whenever the department of transportation has contracted for the construction of two or more ferry vessels sixty days after completion of all contract work on each ferry vessel the department must release and pay in full the amounts retained in connection with the construction of the vessel subject to the provisions of RCW 6028021 and chapter 3912 RCW However the department of transportation may at its discretion condition the release of funds retained in connection with the completed ferry upon the contractor delivering a good and sufficient bond with two or more sureties or with a surety company in the amount of the retained funds to be released to the contractor conditioned that no taxes may be certified or claims filed for work on the ferry after a period of sixty days following completion of the ferry and if taxes are certified or claims filed recovery may be had on the bond by the department of revenue the employment

CCBA Nuts amp Bolts on Construction Law - 47 of 49

security department the department of labor and industries and the material suppliers and laborers filing claims (9) Except as provided in subsection (1) of this section reservation by a public body for any purpose from the moneys earned by a contractor by fulfilling its responsibilities under public improvement contracts is prohibited (10) Contracts on projects funded in whole or in part by farmers home administration and subject to farmers home administration regulations are not subject to subsections (1) through (9) of this section (11) This subsection applies only to a public body that has contracted for the construction of a facility using the general contractorconstruction manager procedure as defined under RCW 3910210 If the work performed by a subcontractor on the project has been completed within the first half of the time provided in the general contractorconstruction manager contract for completing the work the public body may accept the completion of the subcontract The public body must give public notice of this acceptance After a forty-five day period for giving notice of liens and compliance with the retainage release procedures in RCW 6028021 the public body may release that portion of the retained funds associated with the subcontract Claims against the retained funds after the forty-five day period are not valid (12) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise (a) Contract retainage means an amount reserved by a public body from the moneys earned by a person under a public improvement contract (b) Person means a person or persons mechanic subcontractor or materialperson who performs labor or provides materials for a public improvement contract and any other person who supplies the person with provisions or supplies for the carrying on of a public improvement contract (c) Public body means the state or a county city town district board or other public body (d) Public improvement contract means a contract for public improvements or work other than for professional services or a work order as defined in RCW 3910210

CCBA Nuts amp Bolts on Construction Law - 48 of 49

RCW 6432070 Liens or encumbrances mdash Enforcement mdash Satisfaction

(1) Subsequent to recording the declaration as provided in this chapter and while the property remains subject to this chapter no lien shall thereafter arise or be effective against the property During such period liens or encumbrances shall arise or be created only against each apartment and the percentage of undivided interest in the common areas and facilities and appurtenant to such apartment in the same manner and under the same conditions in every respect as liens or encumbrances may arise or be created upon or against any other separate parcel of real property subject to individual ownership PROVIDED That no labor performed or materials furnished with the consent of or at the request of the owner of any apartment or such owners agent contractor or subcontractor shall be the basis for the filing of a lien against any other apartment or any other property of any other apartment owner not expressly consenting to or requesting the same except that such express consent shall be deemed to be given by any apartment owner in the case of emergency repairs Labor performed or materials furnished for the common areas and facilities if authorized by the association of apartment owners the manager or board of directors shall be deemed to be performed or furnished with the express consent of each apartment owner and shall be the basis for the filing of a lien against each of the apartments and shall be subject to the provisions of subsection (2) of this section (2) In the event a lien against two or more apartments becomes effective the apartment owners of the separate apartments may remove their apartment and the percentage of undivided interest in the common areas and facilities appurtenant to such apartment from the lien by payment of the fractional or proportional amounts attributable to each of the apartments affected Such individual payments shall be computed by reference to the percentages appearing on the declaration Subsequent to any such payment discharge or satisfaction the apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto shall thereafter be free and clear of the liens so paid satisfied or discharged Such partial payment satisfaction or discharge shall not prevent the lienor from proceeding to enforce his or her rights against any apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto not so paid satisfied or discharged

CCBA Nuts amp Bolts on Construction Law - 49 of 49

  • Cover Sheet
  • 20141110 - Washington Lien and Bond CLE
  • LampI Lien Summary
  • Claim of Lien
  • Form Notice to Owner
  • Model Disclosure Statement (Notice to Customer)
  • LampI Facts about Construction Liens
    • What you should know about contracts
    • How to protect your investment
    • For more information
      • Notice of Claim Against Bond and Retained Percentage
      • Preclaim Notice Bond amp Retained Percentage
      • Statute Handout
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geoptimaliseerd voor prepress-afdrukken van hoge kwaliteit De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 50 en hoger) NOR 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 PTB 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          1. To
          2. Date
          3. Re
          4. From
          5. AT THE REQUEST OF
          6. Sender
          7. Address
          8. Telephone
          9. Brief description of professional services materials or equipment provided or to be provided
          10. 1
          11. 2
          12. 3
          13. reg no
          14. deposit $
          15. expiration date
          16. claims up to $
          17. Reset

(b) Delivering or serving the notice personally upon the owner or reputed owner and obtaining evidence of delivery in the form of a receipt or other acknowledgment signed by the owner or reputed owner or an affidavit of service In the case of new construction of a single-family residence the notice of a right to claim a lien may be given at any time but only protects the right to claim a lien for professional services materials or equipment supplied after a date which is ten days before the notice is given as described in this subsection (2) Notices of a right to claim a lien shall not be required of (a) Persons who contract directly with the owner or the owners common law agent (b) Laborers whose claim of lien is based solely on performing labor or (c) Subcontractors who contract for the improvement of real property directly with the prime contractor except as provided in subsection (3)(b) of this section (3) Persons who furnish professional services materials or equipment in connection with the repair alteration or remodel of an existing owner-occupied single-family residence or appurtenant garage (a) Who contract directly with the owner-occupier or their common law agent shall not be required to send a written notice of the right to claim a lien and shall have a lien for the full amount due under their contract as provided in RCW 6004021 or (b) Who do not contract directly with the owner-occupier or their common law agent shall give notice of the right to claim a lien to the owner-occupier Liens of persons furnishing professional services materials or equipment who do not contract directly with the owner-occupier or their common law agent may only be satisfied from amounts not yet paid to the prime contractor by the owner at the time the notice described in this section is received regardless of whether amounts not yet paid to the prime contractor are due For the purposes of this subsection received means actual receipt of notice by personal service or registered or certified mail or three days after mailing by registered or certified mail excluding Saturdays Sundays or legal holidays (4) The notice of right to claim a lien described in subsection (1) of this section shall include but not be limited to the following information and shall substantially be in the following form using lower-case and upper-case ten-point type where appropriate

CCBA Nuts amp Bolts on Construction Law - 35 of 49

NOTICE TO OWNER

IMPORTANT READ BOTH SIDES OF THIS NOTICE CAREFULLY

PROTECT YOURSELF FROM PAYING TWICE

To Date

Re (description of property Street address or general location) From AT THE REQUEST OF (Name of person ordering the professional services materials or equipment) THIS IS NOT A LIEN This notice is sent to you to tell you who is providing professional services materials or equipment for the improvement of your property and to advise you of the rights of these persons and your responsibilities Also take note that laborers on your project may claim a lien without sending you a notice

OWNEROCCUPIER OF EXISTING

RESIDENTIAL PROPERTY

Under Washington law those who furnish labor professional services materials or equipment for the repair remodel or alteration of your owner-occupied principal residence and who are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien The law limits the amount that a lien claimant can claim against your property Claims may only be made against that portion of the contract price you have not yet paid to your prime contractor as of the time this notice was given to you or three days after this notice was mailed to you Review the back of this notice for more information and ways to avoid lien claims

COMMERCIAL ANDOR NEW

RESIDENTIAL PROPERTY

CCBA Nuts amp Bolts on Construction Law - 36 of 49

We have or will be providing professional services materials or equipment for the improvement of your commercial or new residential project In the event you or your contractor fail to pay us we may file a lien against your property A lien may be claimed for all professional services materials or equipment furnished after a date that is sixty days before this notice was given to you or mailed to you unless the improvement to your property is the construction of a new single-family residence then ten days before this notice was given to you or mailed to you Sender Address Telephone Brief description of professional services materials or equipment provided or to be provided

IMPORTANT INFORMATION

ON REVERSE SIDE

IMPORTANT INFORMATION

FOR YOUR PROTECTION This notice is sent to inform you that we have or will provide professional services materials or equipment for the improvement of your property We expect to be paid by the person who ordered our services but if we are not paid we have the right to enforce our claim by filing a construction lien against your property LEARN more about the lien laws and the meaning of this notice by discussing them with your contractor suppliers Department of Labor and Industries the firm sending you this notice your lender or your attorney

COMMON METHODS TO AVOID CONSTRUCTION LIENS There are several methods available to protect your property from construction liens The following are two of the more commonly used methods

DUAL PAYCHECKS (Joint Checks) When paying your contractor for services or materials you may make checks payable jointly to the contractor and the firms furnishing you this notice

CCBA Nuts amp Bolts on Construction Law - 37 of 49

LIEN RELEASES You may require your contractor to provide lien releases signed by all the suppliers and subcontractors from whom you have received this notice If they cannot obtain lien releases because you have not paid them you may use the dual payee check method to protect yourself

YOU SHOULD TAKE APPROPRIATE STEPS TO PROTECT YOUR PROPERTY FROM LIENS YOUR PRIME CONTRACTOR AND YOUR CONSTRUCTION LENDER ARE REQUIRED BY LAW TO GIVE YOU WRITTEN INFORMATION ABOUT LIEN CLAIMS IF YOU HAVE NOT RECEIVED IT ASK THEM FOR IT

(5) Every potential lien claimant providing professional services where no improvement as defined in RCW 6004011(5) (a) or (b) has been commenced and the professional services provided are not visible from an inspection of the real property may record in the real property records of the county where the property is located a notice which shall contain the professional service providers name address telephone number legal description of the property the owner or reputed owners name and the general nature of the professional services provided If such notice is not recorded the lien claimed shall be subordinate to the interest of any subsequent mortgagee and invalid as to the interest of any subsequent purchaser if the mortgagee or purchaser acts in good faith and for a valuable consideration acquires an interest in the property prior to the commencement of an improvement as defined in RCW 6004011(5) (a) or (b) without notice of the professional services being provided The notice described in this subsection shall be substantially in the following form

NOTICE OF FURNISHING

PROFESSIONAL SERVICES That on the (day) day of (month and year) (name of provider) began providing professional services upon or for the improvement of real property legally described as follows

[Legal Description is mandatory]

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The general nature of the professional services provided is The owner or reputed owner of the real property is

(Signature)

(Name of Claimant)

(Street Address)

(City State Zip Code)

(Phone Number)

(6) A lien authorized by this chapter shall not be enforced unless the lien claimant has complied with the applicable provisions of this section

6004041 Contractor registration

A contractor or subcontractor required to be registered under chapter 1827 RCW or licensed under chapter 1928 RCW or otherwise required to be registered or licensed by law shall be deemed the construction agent of the owner for the purposes of establishing the lien created by this chapter only if so registered or licensed Persons dealing with contractors or subcontractors may rely for the purposes of this section upon a certificate of registration issued pursuant to chapter 1827 RCW or license issued pursuant to chapter 1928 RCW or other certificate or license issued pursuant to law covering the period when the labor professional services material or equipment shall be furnished and the lien rights shall not be lost by suspension or revocation of registration or license without their knowledge No lien rights described in this

CCBA Nuts amp Bolts on Construction Law - 39 of 49

chapter shall be lost or denied by virtue of the absence suspension or revocation of such registration or license with respect to any contractor or subcontractor not in immediate contractual privity with the lien claimant

6004081 Frivolous claim mdash Procedure

(1) Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who believes the claim of lien to be frivolous and made without reasonable cause or clearly excessive may apply by motion to the superior court for the county where the property or some part thereof is located for an order directing the lien claimant to appear before the court at a time no earlier than six nor later than fifteen days following the date of service of the application and order on the lien claimant and show cause if any he or she has why the relief requested should not be granted The motion shall state the grounds upon which relief is asked and shall be supported by the affidavit of the applicant or his or her attorney setting forth a concise statement of the facts upon which the motion is based (2) The order shall clearly state that if the lien claimant fails to appear at the time and place noted the lien shall be released with prejudice and that the lien claimant shall be ordered to pay the costs requested by the applicant including reasonable attorneys fees (3) If no action to foreclose the lien claim has been filed the clerk of the court shall assign a cause number to the application and obtain from the applicant a filing fee pursuant to RCW 3618016 If an action has been filed to foreclose the lien claim the application shall be made a part of that action (4) If following a hearing on the matter the court determines that the lien is frivolous and made without reasonable cause or clearly excessive the court shall issue an order releasing the lien if frivolous and made without reasonable cause or reducing the lien if clearly excessive and awarding costs and reasonable attorneys fees to the applicant to be paid by the lien claimant If the court determines that the lien is not frivolous and was made with reasonable cause and is not clearly excessive the court shall issue an order so stating and awarding costs and reasonable attorneys fees to the lien claimant to be paid by the applicant (5) Proceedings under this section shall not affect other rights and remedies available to the parties under this chapter or otherwise

6004091 Recording mdash Time mdash Contents of lien

Every person claiming a lien under RCW 6004021 shall file for recording in the county where the subject property is located a notice of claim of lien not later than ninety days after the person

CCBA Nuts amp Bolts on Construction Law - 40 of 49

has ceased to furnish labor professional services materials or equipment or the last date on which employee benefit contributions were due The notice of claim of lien (1) Shall state in substance and effect (a) The name phone number and address of the claimant (b) The first and last date on which the labor professional services materials or equipment was furnished or employee benefit contributions were due (c) The name of the person indebted to the claimant (d) The street address legal description or other description reasonably calculated to identify for a person familiar with the area the location of the real property to be charged with the lien (e) The name of the owner or reputed owner of the property if known and if not known that fact shall be stated and (f) The principal amount for which the lien is claimed (2) Shall be signed by the claimant or some person authorized to act on his or her behalf who shall affirmatively state they have read the notice of claim of lien and believe the notice of claim of lien to be true and correct under penalty of perjury and shall be acknowledged pursuant to chapter 6408 RCW If the lien has been assigned the name of the assignee shall be stated Where an action to foreclose the lien has been commenced such notice of claim of lien may be amended as pleadings may be by order of the court insofar as the interests of third parties are not adversely affected by such amendment A claim of lien substantially in the following form shall be sufficient

CLAIM OF LIEN

claimant vs name of person indebted to claimant

Notice is hereby given that the person named below claims a lien pursuant to chapter 6404 RCW In support of this lien the following information is submitted

1 NAME OF LIEN CLAIMANT

TELEPHONE NUMBER

CCBA Nuts amp Bolts on Construction Law - 41 of 49

ADDRESS

2 DATE ON WHICH THE CLAIMANT BEGAN TO PERFORM LABOR PROVIDE PROFESSIONAL SERVICES SUPPLY MATERIAL OR EQUIPMENT OR THE DATE ON WHICH EMPLOYEE BENEFIT CONTRIBUTIONS BECAME DUE

3 NAME OF PERSON INDEBTED TO THE CLAIMANT

4 DESCRIPTION OF THE PROPERTY AGAINST WHICH A LIEN IS CLAIMED (Street address legal description or other information that will reasonably describe the property)

5 NAME OF THE OWNER OR REPUTED OWNER (If not known state unknown)

6 THE LAST DATE ON WHICH LABOR WAS PERFORMED PROFESSIONAL SERVICES WERE FURNISHED CONTRIBUTIONS TO AN EMPLOYEE BENEFIT PLAN WERE DUE OR MATERIAL OR EQUIPMENT WAS FURNISHED

7 PRINCIPAL AMOUNT FOR WHICH THE LIEN IS CLAIMED IS

8 IF THE CLAIMANT IS THE ASSIGNEE OF THIS CLAIM SO STATE HERE

Claimant

(Phone number address city

CCBA Nuts amp Bolts on Construction Law - 42 of 49

and

state of claimant)

STATE OF WASHINGTON COUNTY OF ss being sworn says I am the claimant (or attorney of the claimant or administrator representative or agent of the trustees of an employee benefit plan) above named I have read or heard the foregoing claim read and know the contents thereof and believe the same to be true and correct and that the claim of lien is not frivolous and is made with reasonable cause and is not clearly excessive under penalty of perjury Subscribed and sworn to before me this day of The period provided for recording the claim of lien is a period of limitation and no action to foreclose a lien shall be maintained unless the claim of lien is filed for recording within the ninety-day period stated The lien claimant shall give a copy of the claim of lien to the owner or reputed owner by mailing it by certified or registered mail or by personal service within fourteen days of the time the claim of lien is filed for recording Failure to do so results in a forfeiture of any right the claimant may have to attorneys fees and costs against the owner under RCW 6004181

6004161 Bond in lieu of claim

Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who disputes the correctness or validity of the claim of lien may record either before or after the commencement of an action to enforce the lien in the office of the county recorder or auditor in the county where the claim of lien was recorded a bond issued by a surety company authorized to issue surety bonds in the state The surety shall be listed in the latest federal department of the treasury list of surety companies acceptable on federal bonds published in the Federal Register as authorized to issue bonds on United States government projects with an underwriting limitation including applicable reinsurance equal to or greater than the amount of the bond to be recorded The bond shall contain a description of the claim of lien and real property involved and be in an amount equal to the greater of five thousand dollars or two times the amount of the lien claimed if it is ten thousand dollars or less and in an amount equal to or greater than one and one-half times the amount of the lien if it is in

CCBA Nuts amp Bolts on Construction Law - 43 of 49

excess of ten thousand dollars If the claim of lien affects more than one parcel of real property and is segregated to each parcel the bond may be segregated the same as in the claim of lien A separate bond shall be required for each claim of lien made by separate claimants However a single bond may be used to guarantee payment of amounts claimed by more than one claim of lien by a single claimant so long as the amount of the bond meets the requirements of this section as applied to the aggregate sum of all claims by such claimant The condition of the bond shall be to guarantee payment of any judgment upon the lien in favor of the lien claimant entered in any action to recover the amount claimed in a claim of lien or on the claim asserted in the claim of lien The effect of recording a bond shall be to release the real property described in the notice of claim of lien from the lien and any action brought to recover the amount claimed Unless otherwise prohibited by law if no action is commenced to recover on a lien within the time specified in RCW 6004141 the surety shall be discharged from liability under the bond If an action is timely commenced then on payment of any judgment entered in the action or on payment of the full amount of the bond to the holder of the judgment whichever is less the surety shall be discharged from liability under the bond Nothing in this section shall in any way prohibit or limit the use of other methods devised by the affected parties to secure the obligation underlying a claim of lien and to obtain a release of real property from a claim of lien

6004181 Rank of lien mdash Application of proceeds mdash Attorneys fees

(1) In every case in which different construction liens are claimed against the same property the court shall declare the rank of such lien or class of liens which liens shall be in the following order (a) Liens for the performance of labor (b) Liens for contributions owed to employee benefit plans (c) Liens for furnishing material supplies or equipment (d) Liens for subcontractors including but not limited to their labor and materials and (e) Liens for prime contractors or for professional services (2) The proceeds of the sale of property must be applied to each lien or class of liens in order of its rank and in an action brought to foreclose a lien pro rata among each claimant in each separate priority class A personal judgment may be rendered against any party personally liable for any debt for which the lien is claimed If the lien is established the judgment shall provide

CCBA Nuts amp Bolts on Construction Law - 44 of 49

for the enforcement thereof upon the property liable as in the case of foreclosure of judgment liens The amount realized by such enforcement of the lien shall be credited upon the proper personal judgment The deficiency if any remaining unsatisfied shall stand as a personal judgment and may be collected by execution against any party liable therefor (3) The court may allow the prevailing party in the action whether plaintiff or defendant as part of the costs of the action the moneys paid for recording the claim of lien costs of title report bond costs and attorneys fees and necessary expenses incurred by the attorney in the superior court court of appeals supreme court or arbitration as the court or arbitrator deems reasonable Such costs shall have the priority of the class of lien to which they are related as established by subsection (1) of this section (4) Real property against which a lien under this chapter is enforced may be ordered sold by the court and the proceeds deposited into the registry of the clerk of the court pending further determination respecting distribution of the proceeds of the sale

6004900 Liberal construction mdash 1991 c 281

RCW 1927095 6004230 and 6004011 through 6004226 and 6004261 are to be liberally construed to provide security for all parties intended to be protected by their provisions

RCW 6028011

Retained percentage mdash Public transportation projects mdash Labor and material lien created mdash Bond in lieu of retained funds mdash Termination before completion mdash Chapter deemed exclusive mdash Release of ferry contract payments mdash Projects of farmers home administration mdash General contractorconstruction manager procedure mdash Definitions

(1)(a) Except as provided in (b) of this subsection public improvement contracts must provide and public bodies must reserve a contract retainage not to exceed five percent of the moneys earned by the contractor as a trust fund for the protection and payment of (i) The claims of any person arising under the contract and (ii) the state with respect to taxes increases and penalties imposed pursuant to Titles 50 51 and 82 RCW which may be due from such contractor (b) Public improvement contracts funded in whole or in part by federal transportation funds must rely upon the contract bond as referred to in chapter 3908 RCW for the protection and payment of (i) The claims of any person or persons arising under the contract to the extent such claims are provided for in RCW 3908010 and (ii) the state with respect to taxes increases and penalties incurred on the public improvement project under Titles 50 51 and 82 RCW which may be due The contract bond must remain in full force and effect until at a minimum all claims filed in compliance with chapter 3908 RCW are resolved

CCBA Nuts amp Bolts on Construction Law - 45 of 49

(2) Every person performing labor or furnishing supplies toward the completion of a public improvement contract has a lien upon moneys reserved by a public body under the provisions of a public improvement contract However the notice of the lien of the claimant must be given within forty-five days of completion of the contract work and in the manner provided in RCW 3908030 (3) The contractor at any time may request the contract retainage be reduced to one hundred percent of the value of the work remaining on the project (a) After completion of all contract work other than landscaping the contractor may request that the public body release and pay in full the amounts retained during the performance of the contract and sixty days thereafter the public body must release and pay in full the amounts retained (other than continuing retention of five percent of the moneys earned for landscaping) subject to the provisions of chapters 3912 and 6028 RCW (b) Sixty days after completion of all contract work the public body must release and pay in full the amounts retained during the performance of the contract subject to the provisions of chapters 3912 and 6028 RCW (4) The moneys reserved by a public body under the provisions of a public improvement contract at the option of the contractor must be (a) Retained in a fund by the public body (b) Deposited by the public body in an interest bearing account in a bank mutual savings bank or savings and loan association Interest on moneys reserved by a public body under the provision of a public improvement contract must be paid to the contractor (c) Placed in escrow with a bank or trust company by the public body When the moneys reserved are placed in escrow the public body must issue a check representing the sum of the moneys reserved payable to the bank or trust company and the contractor jointly This check must be converted into bonds and securities chosen by the contractor and approved by the public body and the bonds and securities must be held in escrow Interest on the bonds and securities must be paid to the contractor as the interest accrues (5) The contractor or subcontractor may withhold payment of not more than five percent from the moneys earned by any subcontractor or sub-subcontractor or supplier contracted with by the contractor to provide labor materials or equipment to the public project Whenever the contractor or subcontractor reserves funds earned by a subcontractor or sub-subcontractor or

CCBA Nuts amp Bolts on Construction Law - 46 of 49

supplier the contractor or subcontractor must pay interest to the subcontractor or sub-subcontractor or supplier at a rate equal to that received by the contractor or subcontractor from reserved funds (6) A contractor may submit a bond for all or any portion of the contract retainage in a form acceptable to the public body and from a bonding company meeting standards established by the public body The public body must accept a bond meeting these requirements unless the public body can demonstrate good cause for refusing to accept it This bond and any proceeds therefrom are subject to all claims and liens and in the same manner and priority as set forth for retained percentages in this chapter The public body must release the bonded portion of the retained funds to the contractor within thirty days of accepting the bond from the contractor Whenever a public body accepts a bond in lieu of retained funds from a contractor the contractor must accept like bonds from any subcontractors or suppliers from which the contractor has retained funds The contractor must then release the funds retained from the subcontractor or supplier to the subcontractor or supplier within thirty days of accepting the bond from the subcontractor or supplier (7) If the public body administering a contract after a substantial portion of the work has been completed finds that an unreasonable delay will occur in the completion of the remaining portion of the contract for any reason not the result of a breach thereof it may if the contractor agrees delete from the contract the remaining work and accept as final the improvement at the stage of completion then attained and make payment in proportion to the amount of the work accomplished and in this case any amounts retained and accumulated under this section must be held for a period of sixty days following the completion In the event that the work is terminated before final completion as provided in this section the public body may thereafter enter into a new contract with the same contractor to perform the remaining work or improvement for an amount equal to or less than the cost of the remaining work as was provided for in the original contract without advertisement or bid The provisions of this chapter are exclusive and supersede all provisions and regulations in conflict herewith (8) Whenever the department of transportation has contracted for the construction of two or more ferry vessels sixty days after completion of all contract work on each ferry vessel the department must release and pay in full the amounts retained in connection with the construction of the vessel subject to the provisions of RCW 6028021 and chapter 3912 RCW However the department of transportation may at its discretion condition the release of funds retained in connection with the completed ferry upon the contractor delivering a good and sufficient bond with two or more sureties or with a surety company in the amount of the retained funds to be released to the contractor conditioned that no taxes may be certified or claims filed for work on the ferry after a period of sixty days following completion of the ferry and if taxes are certified or claims filed recovery may be had on the bond by the department of revenue the employment

CCBA Nuts amp Bolts on Construction Law - 47 of 49

security department the department of labor and industries and the material suppliers and laborers filing claims (9) Except as provided in subsection (1) of this section reservation by a public body for any purpose from the moneys earned by a contractor by fulfilling its responsibilities under public improvement contracts is prohibited (10) Contracts on projects funded in whole or in part by farmers home administration and subject to farmers home administration regulations are not subject to subsections (1) through (9) of this section (11) This subsection applies only to a public body that has contracted for the construction of a facility using the general contractorconstruction manager procedure as defined under RCW 3910210 If the work performed by a subcontractor on the project has been completed within the first half of the time provided in the general contractorconstruction manager contract for completing the work the public body may accept the completion of the subcontract The public body must give public notice of this acceptance After a forty-five day period for giving notice of liens and compliance with the retainage release procedures in RCW 6028021 the public body may release that portion of the retained funds associated with the subcontract Claims against the retained funds after the forty-five day period are not valid (12) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise (a) Contract retainage means an amount reserved by a public body from the moneys earned by a person under a public improvement contract (b) Person means a person or persons mechanic subcontractor or materialperson who performs labor or provides materials for a public improvement contract and any other person who supplies the person with provisions or supplies for the carrying on of a public improvement contract (c) Public body means the state or a county city town district board or other public body (d) Public improvement contract means a contract for public improvements or work other than for professional services or a work order as defined in RCW 3910210

CCBA Nuts amp Bolts on Construction Law - 48 of 49

RCW 6432070 Liens or encumbrances mdash Enforcement mdash Satisfaction

(1) Subsequent to recording the declaration as provided in this chapter and while the property remains subject to this chapter no lien shall thereafter arise or be effective against the property During such period liens or encumbrances shall arise or be created only against each apartment and the percentage of undivided interest in the common areas and facilities and appurtenant to such apartment in the same manner and under the same conditions in every respect as liens or encumbrances may arise or be created upon or against any other separate parcel of real property subject to individual ownership PROVIDED That no labor performed or materials furnished with the consent of or at the request of the owner of any apartment or such owners agent contractor or subcontractor shall be the basis for the filing of a lien against any other apartment or any other property of any other apartment owner not expressly consenting to or requesting the same except that such express consent shall be deemed to be given by any apartment owner in the case of emergency repairs Labor performed or materials furnished for the common areas and facilities if authorized by the association of apartment owners the manager or board of directors shall be deemed to be performed or furnished with the express consent of each apartment owner and shall be the basis for the filing of a lien against each of the apartments and shall be subject to the provisions of subsection (2) of this section (2) In the event a lien against two or more apartments becomes effective the apartment owners of the separate apartments may remove their apartment and the percentage of undivided interest in the common areas and facilities appurtenant to such apartment from the lien by payment of the fractional or proportional amounts attributable to each of the apartments affected Such individual payments shall be computed by reference to the percentages appearing on the declaration Subsequent to any such payment discharge or satisfaction the apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto shall thereafter be free and clear of the liens so paid satisfied or discharged Such partial payment satisfaction or discharge shall not prevent the lienor from proceeding to enforce his or her rights against any apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto not so paid satisfied or discharged

CCBA Nuts amp Bolts on Construction Law - 49 of 49

  • Cover Sheet
  • 20141110 - Washington Lien and Bond CLE
  • LampI Lien Summary
  • Claim of Lien
  • Form Notice to Owner
  • Model Disclosure Statement (Notice to Customer)
  • LampI Facts about Construction Liens
    • What you should know about contracts
    • How to protect your investment
    • For more information
      • Notice of Claim Against Bond and Retained Percentage
      • Preclaim Notice Bond amp Retained Percentage
      • Statute Handout
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 ESP 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 FRA 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 ITA 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 JPN ltFEFF9ad854c18cea306a30d730ea30d730ec30b951fa529b7528002000410064006f0062006500200050004400460020658766f8306e4f5c6210306b4f7f75283057307e305930023053306e8a2d5b9a30674f5c62103055308c305f0020005000440046002030d530a130a430eb306f3001004100630072006f0062006100740020304a30883073002000410064006f00620065002000520065006100640065007200200035002e003000204ee5964d3067958b304f30533068304c3067304d307e305930023053306e8a2d5b9a306b306f30d530a930f330c8306e57cb30818fbc307f304c5fc59808306730593002gt KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020ace0d488c9c80020c2dcd5d80020c778c1c4c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200035002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor prepress-afdrukken van hoge kwaliteit De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 50 en hoger) NOR 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 PTB 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 SUO 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 SVE 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 ENU (Use these settings to create Adobe PDF documents best suited for high-quality prepress printing Created PDF documents can be opened with Acrobat and Adobe Reader 50 and later) gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false ConvertColors ConvertToCMYK DestinationProfileName () DestinationProfileSelector DocumentCMYK Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles false MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector DocumentCMYK PreserveEditing true UntaggedCMYKHandling LeaveUntagged UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ]gtgt setdistillerparamsltlt HWResolution [2400 2400] PageSize [612000 792000]gtgt setpagedevice

          ltlt ASCII85EncodePages false AllowTransparency false AutoPositionEPSFiles true AutoRotatePages None Binding Left CalGrayProfile (Dot Gain 20) CalRGBProfile (sRGB IEC61966-21) CalCMYKProfile (US Web Coated 050SWOP051 v2) sRGBProfile (sRGB IEC61966-21) CannotEmbedFontPolicy Warning CompatibilityLevel 14 CompressObjects Tags CompressPages true ConvertImagesToIndexed true PassThroughJPEGImages true CreateJDFFile false CreateJobTicket false DefaultRenderingIntent Default DetectBlends true DetectCurves 00000 ColorConversionStrategy LeaveColorUnchanged DoThumbnails false EmbedAllFonts true EmbedOpenType false ParseICCProfilesInComments true EmbedJobOptions true DSCReportingLevel 0 EmitDSCWarnings false EndPage -1 ImageMemory 1048576 LockDistillerParams true MaxSubsetPct 100 Optimize true OPM 1 ParseDSCComments true ParseDSCCommentsForDocInfo true PreserveCopyPage true PreserveDICMYKValues true PreserveEPSInfo true PreserveFlatness true PreserveHalftoneInfo false PreserveOPIComments true PreserveOverprintSettings true StartPage 1 SubsetFonts true TransferFunctionInfo Apply UCRandBGInfo Preserve UsePrologue false ColorSettingsFile () AlwaysEmbed [ true Algerian Arial-Black Arial-BoldItalicMT Arial-BoldMT Arial-ItalicMT ArialMT ArialNarrow ArialNarrow-Bold ArialNarrow-BoldItalic ArialNarrow-Italic BaskOldFace Bauhaus93 BellMT BellMTBold BellMTItalic BerlinSansFB-Bold BerlinSansFBDemi-Bold BerlinSansFB-Reg BernardMT-Condensed BodoniMTPosterCompressed BookAntiqua BookAntiqua-Bold BookAntiqua-BoldItalic BookAntiqua-Italic BookmanOldStyle BookmanOldStyle-Bold BookmanOldStyle-BoldItalic BookmanOldStyle-Italic BookshelfSymbolSeven BritannicBold Broadway BrushScriptMT CalifornianFB-Bold CalifornianFB-Italic CalifornianFB-Reg Centaur CenturyGothic CenturyGothic-Bold CenturyGothic-BoldItalic CenturyGothic-Italic Chiller-Regular ColonnaMT ComicSansMS ComicSansMS-Bold CooperBlack CourierNewPS-BoldItalicMT CourierNewPS-BoldMT CourierNewPS-ItalicMT CourierNewPSMT EstrangeloEdessa EXTRAAPLNew-Regular EXTRAOIANew-Regular FootlightMTLight FranklinGothic-Medium FranklinGothic-MediumItalic FreestyleScript-Regular Garamond Garamond-Bold Garamond-Italic Gautami Georgia Georgia-Bold Georgia-BoldItalic Georgia-Italic HarlowSolid Harrington HighTowerText-Italic HighTowerText-Reg Impact InformalRoman-Regular Jokerman-Regular JuiceITC-Regular Kartika KristenITC-Regular KunstlerScript Latha LatinWide LucidaATTMSpecial LucidaBright LucidaBright-Demi LucidaBright-DemiItalic LucidaBright-Italic LucidaCalligraphy-Italic LucidaConsole LucidaFax LucidaFax-Demi LucidaFax-DemiItalic LucidaFax-Italic LucidaforAttachmate LucidaHandwriting-Italic LucidaSans LucidaSans-Demi LucidaSans-DemiItalic LucidaSans-Italic LucidaSansUnicode Magneto-Bold Mangal-Regular MaturaMTScriptCapitals MicrosoftSansSerif Mistral Modern-Regular Monospace821BT-Roman MonotypeCorsiva MSOutlook MSReferenceSansSerif MSReferenceSpecialty MVBoli NiagaraEngraved-Reg NiagaraSolid-Reg OldEnglishTextMT Onyx PalatinoLinotype-Bold PalatinoLinotype-BoldItalic PalatinoLinotype-Italic PalatinoLinotype-Roman Parchment-Regular Playbill PoorRichard-Regular Raavi Ravie ShowcardGothic-Reg Shruti SnapITC-Regular Stencil Sylfaen SymbolMT Tahoma Tahoma-Bold TempusSansITC TimesNewRomanPS-BoldItalicMT TimesNewRomanPS-BoldMT TimesNewRomanPS-ItalicMT TimesNewRomanPSMT Trebuchet-BoldItalic TrebuchetMS TrebuchetMS-Bold TrebuchetMS-Italic Tunga-Regular Verdana Verdana-Bold Verdana-BoldItalic Verdana-Italic VinerHandITC Vivaldii VladimirScript Vrinda Webdings Wingdings2 Wingdings3 Wingdings-Regular ZWAdobeF ] NeverEmbed [ true ] AntiAliasColorImages false CropColorImages true ColorImageMinResolution 300 ColorImageMinResolutionPolicy OK DownsampleColorImages true ColorImageDownsampleType Bicubic ColorImageResolution 300 ColorImageDepth -1 ColorImageMinDownsampleDepth 1 ColorImageDownsampleThreshold 150000 EncodeColorImages false ColorImageFilter DCTEncode AutoFilterColorImages true ColorImageAutoFilterStrategy JPEG ColorACSImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt ColorImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000ColorACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000ColorImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasGrayImages false CropGrayImages true GrayImageMinResolution 300 GrayImageMinResolutionPolicy OK DownsampleGrayImages true GrayImageDownsampleType Bicubic GrayImageResolution 300 GrayImageDepth -1 GrayImageMinDownsampleDepth 2 GrayImageDownsampleThreshold 150000 EncodeGrayImages false GrayImageFilter DCTEncode AutoFilterGrayImages true GrayImageAutoFilterStrategy JPEG GrayACSImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt GrayImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000GrayACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000GrayImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasMonoImages false CropMonoImages true MonoImageMinResolution 1200 MonoImageMinResolutionPolicy OK DownsampleMonoImages true MonoImageDownsampleType Bicubic MonoImageResolution 1200 MonoImageDepth -1 MonoImageDownsampleThreshold 150000 EncodeMonoImages false MonoImageFilter CCITTFaxEncode MonoImageDict ltlt K -1 gtgt AllowPSXObjects false CheckCompliance [ None ] PDFX1aCheck false PDFX3Check false PDFXCompliantPDFOnly false PDFXNoTrimBoxError true PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile (None) PDFXOutputConditionIdentifier () PDFXOutputCondition () PDFXRegistryName () PDFXTrapped False Description ltlt CHS ltFEFF4f7f75288fd94e9b8bbe5b9a521b5efa7684002000410064006f006200650020005000440046002065876863900275284e8e9ad88d2891cf76845370524d53705237300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200035002e003000204ee553ca66f49ad87248672c676562535f00521b5efa768400200050004400460020658768633002gt CHT ltFEFF4f7f752890194e9b8a2d7f6e5efa7acb7684002000410064006f006200650020005000440046002065874ef69069752865bc9ad854c18cea76845370524d5370523786557406300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200035002e003000204ee553ca66f49ad87248672c4f86958b555f5df25efa7acb76840020005000440046002065874ef63002gt DAN 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 DEU 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 ESP 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 FRA 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 ITA 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          1. To
          2. Date
          3. Re
          4. From
          5. AT THE REQUEST OF
          6. Sender
          7. Address
          8. Telephone
          9. Brief description of professional services materials or equipment provided or to be provided
          10. 1
          11. 2
          12. 3
          13. reg no
          14. deposit $
          15. expiration date
          16. claims up to $
          17. Reset

NOTICE TO OWNER

IMPORTANT READ BOTH SIDES OF THIS NOTICE CAREFULLY

PROTECT YOURSELF FROM PAYING TWICE

To Date

Re (description of property Street address or general location) From AT THE REQUEST OF (Name of person ordering the professional services materials or equipment) THIS IS NOT A LIEN This notice is sent to you to tell you who is providing professional services materials or equipment for the improvement of your property and to advise you of the rights of these persons and your responsibilities Also take note that laborers on your project may claim a lien without sending you a notice

OWNEROCCUPIER OF EXISTING

RESIDENTIAL PROPERTY

Under Washington law those who furnish labor professional services materials or equipment for the repair remodel or alteration of your owner-occupied principal residence and who are not paid have a right to enforce their claim for payment against your property This claim is known as a construction lien The law limits the amount that a lien claimant can claim against your property Claims may only be made against that portion of the contract price you have not yet paid to your prime contractor as of the time this notice was given to you or three days after this notice was mailed to you Review the back of this notice for more information and ways to avoid lien claims

COMMERCIAL ANDOR NEW

RESIDENTIAL PROPERTY

CCBA Nuts amp Bolts on Construction Law - 36 of 49

We have or will be providing professional services materials or equipment for the improvement of your commercial or new residential project In the event you or your contractor fail to pay us we may file a lien against your property A lien may be claimed for all professional services materials or equipment furnished after a date that is sixty days before this notice was given to you or mailed to you unless the improvement to your property is the construction of a new single-family residence then ten days before this notice was given to you or mailed to you Sender Address Telephone Brief description of professional services materials or equipment provided or to be provided

IMPORTANT INFORMATION

ON REVERSE SIDE

IMPORTANT INFORMATION

FOR YOUR PROTECTION This notice is sent to inform you that we have or will provide professional services materials or equipment for the improvement of your property We expect to be paid by the person who ordered our services but if we are not paid we have the right to enforce our claim by filing a construction lien against your property LEARN more about the lien laws and the meaning of this notice by discussing them with your contractor suppliers Department of Labor and Industries the firm sending you this notice your lender or your attorney

COMMON METHODS TO AVOID CONSTRUCTION LIENS There are several methods available to protect your property from construction liens The following are two of the more commonly used methods

DUAL PAYCHECKS (Joint Checks) When paying your contractor for services or materials you may make checks payable jointly to the contractor and the firms furnishing you this notice

CCBA Nuts amp Bolts on Construction Law - 37 of 49

LIEN RELEASES You may require your contractor to provide lien releases signed by all the suppliers and subcontractors from whom you have received this notice If they cannot obtain lien releases because you have not paid them you may use the dual payee check method to protect yourself

YOU SHOULD TAKE APPROPRIATE STEPS TO PROTECT YOUR PROPERTY FROM LIENS YOUR PRIME CONTRACTOR AND YOUR CONSTRUCTION LENDER ARE REQUIRED BY LAW TO GIVE YOU WRITTEN INFORMATION ABOUT LIEN CLAIMS IF YOU HAVE NOT RECEIVED IT ASK THEM FOR IT

(5) Every potential lien claimant providing professional services where no improvement as defined in RCW 6004011(5) (a) or (b) has been commenced and the professional services provided are not visible from an inspection of the real property may record in the real property records of the county where the property is located a notice which shall contain the professional service providers name address telephone number legal description of the property the owner or reputed owners name and the general nature of the professional services provided If such notice is not recorded the lien claimed shall be subordinate to the interest of any subsequent mortgagee and invalid as to the interest of any subsequent purchaser if the mortgagee or purchaser acts in good faith and for a valuable consideration acquires an interest in the property prior to the commencement of an improvement as defined in RCW 6004011(5) (a) or (b) without notice of the professional services being provided The notice described in this subsection shall be substantially in the following form

NOTICE OF FURNISHING

PROFESSIONAL SERVICES That on the (day) day of (month and year) (name of provider) began providing professional services upon or for the improvement of real property legally described as follows

[Legal Description is mandatory]

CCBA Nuts amp Bolts on Construction Law - 38 of 49

The general nature of the professional services provided is The owner or reputed owner of the real property is

(Signature)

(Name of Claimant)

(Street Address)

(City State Zip Code)

(Phone Number)

(6) A lien authorized by this chapter shall not be enforced unless the lien claimant has complied with the applicable provisions of this section

6004041 Contractor registration

A contractor or subcontractor required to be registered under chapter 1827 RCW or licensed under chapter 1928 RCW or otherwise required to be registered or licensed by law shall be deemed the construction agent of the owner for the purposes of establishing the lien created by this chapter only if so registered or licensed Persons dealing with contractors or subcontractors may rely for the purposes of this section upon a certificate of registration issued pursuant to chapter 1827 RCW or license issued pursuant to chapter 1928 RCW or other certificate or license issued pursuant to law covering the period when the labor professional services material or equipment shall be furnished and the lien rights shall not be lost by suspension or revocation of registration or license without their knowledge No lien rights described in this

CCBA Nuts amp Bolts on Construction Law - 39 of 49

chapter shall be lost or denied by virtue of the absence suspension or revocation of such registration or license with respect to any contractor or subcontractor not in immediate contractual privity with the lien claimant

6004081 Frivolous claim mdash Procedure

(1) Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who believes the claim of lien to be frivolous and made without reasonable cause or clearly excessive may apply by motion to the superior court for the county where the property or some part thereof is located for an order directing the lien claimant to appear before the court at a time no earlier than six nor later than fifteen days following the date of service of the application and order on the lien claimant and show cause if any he or she has why the relief requested should not be granted The motion shall state the grounds upon which relief is asked and shall be supported by the affidavit of the applicant or his or her attorney setting forth a concise statement of the facts upon which the motion is based (2) The order shall clearly state that if the lien claimant fails to appear at the time and place noted the lien shall be released with prejudice and that the lien claimant shall be ordered to pay the costs requested by the applicant including reasonable attorneys fees (3) If no action to foreclose the lien claim has been filed the clerk of the court shall assign a cause number to the application and obtain from the applicant a filing fee pursuant to RCW 3618016 If an action has been filed to foreclose the lien claim the application shall be made a part of that action (4) If following a hearing on the matter the court determines that the lien is frivolous and made without reasonable cause or clearly excessive the court shall issue an order releasing the lien if frivolous and made without reasonable cause or reducing the lien if clearly excessive and awarding costs and reasonable attorneys fees to the applicant to be paid by the lien claimant If the court determines that the lien is not frivolous and was made with reasonable cause and is not clearly excessive the court shall issue an order so stating and awarding costs and reasonable attorneys fees to the lien claimant to be paid by the applicant (5) Proceedings under this section shall not affect other rights and remedies available to the parties under this chapter or otherwise

6004091 Recording mdash Time mdash Contents of lien

Every person claiming a lien under RCW 6004021 shall file for recording in the county where the subject property is located a notice of claim of lien not later than ninety days after the person

CCBA Nuts amp Bolts on Construction Law - 40 of 49

has ceased to furnish labor professional services materials or equipment or the last date on which employee benefit contributions were due The notice of claim of lien (1) Shall state in substance and effect (a) The name phone number and address of the claimant (b) The first and last date on which the labor professional services materials or equipment was furnished or employee benefit contributions were due (c) The name of the person indebted to the claimant (d) The street address legal description or other description reasonably calculated to identify for a person familiar with the area the location of the real property to be charged with the lien (e) The name of the owner or reputed owner of the property if known and if not known that fact shall be stated and (f) The principal amount for which the lien is claimed (2) Shall be signed by the claimant or some person authorized to act on his or her behalf who shall affirmatively state they have read the notice of claim of lien and believe the notice of claim of lien to be true and correct under penalty of perjury and shall be acknowledged pursuant to chapter 6408 RCW If the lien has been assigned the name of the assignee shall be stated Where an action to foreclose the lien has been commenced such notice of claim of lien may be amended as pleadings may be by order of the court insofar as the interests of third parties are not adversely affected by such amendment A claim of lien substantially in the following form shall be sufficient

CLAIM OF LIEN

claimant vs name of person indebted to claimant

Notice is hereby given that the person named below claims a lien pursuant to chapter 6404 RCW In support of this lien the following information is submitted

1 NAME OF LIEN CLAIMANT

TELEPHONE NUMBER

CCBA Nuts amp Bolts on Construction Law - 41 of 49

ADDRESS

2 DATE ON WHICH THE CLAIMANT BEGAN TO PERFORM LABOR PROVIDE PROFESSIONAL SERVICES SUPPLY MATERIAL OR EQUIPMENT OR THE DATE ON WHICH EMPLOYEE BENEFIT CONTRIBUTIONS BECAME DUE

3 NAME OF PERSON INDEBTED TO THE CLAIMANT

4 DESCRIPTION OF THE PROPERTY AGAINST WHICH A LIEN IS CLAIMED (Street address legal description or other information that will reasonably describe the property)

5 NAME OF THE OWNER OR REPUTED OWNER (If not known state unknown)

6 THE LAST DATE ON WHICH LABOR WAS PERFORMED PROFESSIONAL SERVICES WERE FURNISHED CONTRIBUTIONS TO AN EMPLOYEE BENEFIT PLAN WERE DUE OR MATERIAL OR EQUIPMENT WAS FURNISHED

7 PRINCIPAL AMOUNT FOR WHICH THE LIEN IS CLAIMED IS

8 IF THE CLAIMANT IS THE ASSIGNEE OF THIS CLAIM SO STATE HERE

Claimant

(Phone number address city

CCBA Nuts amp Bolts on Construction Law - 42 of 49

and

state of claimant)

STATE OF WASHINGTON COUNTY OF ss being sworn says I am the claimant (or attorney of the claimant or administrator representative or agent of the trustees of an employee benefit plan) above named I have read or heard the foregoing claim read and know the contents thereof and believe the same to be true and correct and that the claim of lien is not frivolous and is made with reasonable cause and is not clearly excessive under penalty of perjury Subscribed and sworn to before me this day of The period provided for recording the claim of lien is a period of limitation and no action to foreclose a lien shall be maintained unless the claim of lien is filed for recording within the ninety-day period stated The lien claimant shall give a copy of the claim of lien to the owner or reputed owner by mailing it by certified or registered mail or by personal service within fourteen days of the time the claim of lien is filed for recording Failure to do so results in a forfeiture of any right the claimant may have to attorneys fees and costs against the owner under RCW 6004181

6004161 Bond in lieu of claim

Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who disputes the correctness or validity of the claim of lien may record either before or after the commencement of an action to enforce the lien in the office of the county recorder or auditor in the county where the claim of lien was recorded a bond issued by a surety company authorized to issue surety bonds in the state The surety shall be listed in the latest federal department of the treasury list of surety companies acceptable on federal bonds published in the Federal Register as authorized to issue bonds on United States government projects with an underwriting limitation including applicable reinsurance equal to or greater than the amount of the bond to be recorded The bond shall contain a description of the claim of lien and real property involved and be in an amount equal to the greater of five thousand dollars or two times the amount of the lien claimed if it is ten thousand dollars or less and in an amount equal to or greater than one and one-half times the amount of the lien if it is in

CCBA Nuts amp Bolts on Construction Law - 43 of 49

excess of ten thousand dollars If the claim of lien affects more than one parcel of real property and is segregated to each parcel the bond may be segregated the same as in the claim of lien A separate bond shall be required for each claim of lien made by separate claimants However a single bond may be used to guarantee payment of amounts claimed by more than one claim of lien by a single claimant so long as the amount of the bond meets the requirements of this section as applied to the aggregate sum of all claims by such claimant The condition of the bond shall be to guarantee payment of any judgment upon the lien in favor of the lien claimant entered in any action to recover the amount claimed in a claim of lien or on the claim asserted in the claim of lien The effect of recording a bond shall be to release the real property described in the notice of claim of lien from the lien and any action brought to recover the amount claimed Unless otherwise prohibited by law if no action is commenced to recover on a lien within the time specified in RCW 6004141 the surety shall be discharged from liability under the bond If an action is timely commenced then on payment of any judgment entered in the action or on payment of the full amount of the bond to the holder of the judgment whichever is less the surety shall be discharged from liability under the bond Nothing in this section shall in any way prohibit or limit the use of other methods devised by the affected parties to secure the obligation underlying a claim of lien and to obtain a release of real property from a claim of lien

6004181 Rank of lien mdash Application of proceeds mdash Attorneys fees

(1) In every case in which different construction liens are claimed against the same property the court shall declare the rank of such lien or class of liens which liens shall be in the following order (a) Liens for the performance of labor (b) Liens for contributions owed to employee benefit plans (c) Liens for furnishing material supplies or equipment (d) Liens for subcontractors including but not limited to their labor and materials and (e) Liens for prime contractors or for professional services (2) The proceeds of the sale of property must be applied to each lien or class of liens in order of its rank and in an action brought to foreclose a lien pro rata among each claimant in each separate priority class A personal judgment may be rendered against any party personally liable for any debt for which the lien is claimed If the lien is established the judgment shall provide

CCBA Nuts amp Bolts on Construction Law - 44 of 49

for the enforcement thereof upon the property liable as in the case of foreclosure of judgment liens The amount realized by such enforcement of the lien shall be credited upon the proper personal judgment The deficiency if any remaining unsatisfied shall stand as a personal judgment and may be collected by execution against any party liable therefor (3) The court may allow the prevailing party in the action whether plaintiff or defendant as part of the costs of the action the moneys paid for recording the claim of lien costs of title report bond costs and attorneys fees and necessary expenses incurred by the attorney in the superior court court of appeals supreme court or arbitration as the court or arbitrator deems reasonable Such costs shall have the priority of the class of lien to which they are related as established by subsection (1) of this section (4) Real property against which a lien under this chapter is enforced may be ordered sold by the court and the proceeds deposited into the registry of the clerk of the court pending further determination respecting distribution of the proceeds of the sale

6004900 Liberal construction mdash 1991 c 281

RCW 1927095 6004230 and 6004011 through 6004226 and 6004261 are to be liberally construed to provide security for all parties intended to be protected by their provisions

RCW 6028011

Retained percentage mdash Public transportation projects mdash Labor and material lien created mdash Bond in lieu of retained funds mdash Termination before completion mdash Chapter deemed exclusive mdash Release of ferry contract payments mdash Projects of farmers home administration mdash General contractorconstruction manager procedure mdash Definitions

(1)(a) Except as provided in (b) of this subsection public improvement contracts must provide and public bodies must reserve a contract retainage not to exceed five percent of the moneys earned by the contractor as a trust fund for the protection and payment of (i) The claims of any person arising under the contract and (ii) the state with respect to taxes increases and penalties imposed pursuant to Titles 50 51 and 82 RCW which may be due from such contractor (b) Public improvement contracts funded in whole or in part by federal transportation funds must rely upon the contract bond as referred to in chapter 3908 RCW for the protection and payment of (i) The claims of any person or persons arising under the contract to the extent such claims are provided for in RCW 3908010 and (ii) the state with respect to taxes increases and penalties incurred on the public improvement project under Titles 50 51 and 82 RCW which may be due The contract bond must remain in full force and effect until at a minimum all claims filed in compliance with chapter 3908 RCW are resolved

CCBA Nuts amp Bolts on Construction Law - 45 of 49

(2) Every person performing labor or furnishing supplies toward the completion of a public improvement contract has a lien upon moneys reserved by a public body under the provisions of a public improvement contract However the notice of the lien of the claimant must be given within forty-five days of completion of the contract work and in the manner provided in RCW 3908030 (3) The contractor at any time may request the contract retainage be reduced to one hundred percent of the value of the work remaining on the project (a) After completion of all contract work other than landscaping the contractor may request that the public body release and pay in full the amounts retained during the performance of the contract and sixty days thereafter the public body must release and pay in full the amounts retained (other than continuing retention of five percent of the moneys earned for landscaping) subject to the provisions of chapters 3912 and 6028 RCW (b) Sixty days after completion of all contract work the public body must release and pay in full the amounts retained during the performance of the contract subject to the provisions of chapters 3912 and 6028 RCW (4) The moneys reserved by a public body under the provisions of a public improvement contract at the option of the contractor must be (a) Retained in a fund by the public body (b) Deposited by the public body in an interest bearing account in a bank mutual savings bank or savings and loan association Interest on moneys reserved by a public body under the provision of a public improvement contract must be paid to the contractor (c) Placed in escrow with a bank or trust company by the public body When the moneys reserved are placed in escrow the public body must issue a check representing the sum of the moneys reserved payable to the bank or trust company and the contractor jointly This check must be converted into bonds and securities chosen by the contractor and approved by the public body and the bonds and securities must be held in escrow Interest on the bonds and securities must be paid to the contractor as the interest accrues (5) The contractor or subcontractor may withhold payment of not more than five percent from the moneys earned by any subcontractor or sub-subcontractor or supplier contracted with by the contractor to provide labor materials or equipment to the public project Whenever the contractor or subcontractor reserves funds earned by a subcontractor or sub-subcontractor or

CCBA Nuts amp Bolts on Construction Law - 46 of 49

supplier the contractor or subcontractor must pay interest to the subcontractor or sub-subcontractor or supplier at a rate equal to that received by the contractor or subcontractor from reserved funds (6) A contractor may submit a bond for all or any portion of the contract retainage in a form acceptable to the public body and from a bonding company meeting standards established by the public body The public body must accept a bond meeting these requirements unless the public body can demonstrate good cause for refusing to accept it This bond and any proceeds therefrom are subject to all claims and liens and in the same manner and priority as set forth for retained percentages in this chapter The public body must release the bonded portion of the retained funds to the contractor within thirty days of accepting the bond from the contractor Whenever a public body accepts a bond in lieu of retained funds from a contractor the contractor must accept like bonds from any subcontractors or suppliers from which the contractor has retained funds The contractor must then release the funds retained from the subcontractor or supplier to the subcontractor or supplier within thirty days of accepting the bond from the subcontractor or supplier (7) If the public body administering a contract after a substantial portion of the work has been completed finds that an unreasonable delay will occur in the completion of the remaining portion of the contract for any reason not the result of a breach thereof it may if the contractor agrees delete from the contract the remaining work and accept as final the improvement at the stage of completion then attained and make payment in proportion to the amount of the work accomplished and in this case any amounts retained and accumulated under this section must be held for a period of sixty days following the completion In the event that the work is terminated before final completion as provided in this section the public body may thereafter enter into a new contract with the same contractor to perform the remaining work or improvement for an amount equal to or less than the cost of the remaining work as was provided for in the original contract without advertisement or bid The provisions of this chapter are exclusive and supersede all provisions and regulations in conflict herewith (8) Whenever the department of transportation has contracted for the construction of two or more ferry vessels sixty days after completion of all contract work on each ferry vessel the department must release and pay in full the amounts retained in connection with the construction of the vessel subject to the provisions of RCW 6028021 and chapter 3912 RCW However the department of transportation may at its discretion condition the release of funds retained in connection with the completed ferry upon the contractor delivering a good and sufficient bond with two or more sureties or with a surety company in the amount of the retained funds to be released to the contractor conditioned that no taxes may be certified or claims filed for work on the ferry after a period of sixty days following completion of the ferry and if taxes are certified or claims filed recovery may be had on the bond by the department of revenue the employment

CCBA Nuts amp Bolts on Construction Law - 47 of 49

security department the department of labor and industries and the material suppliers and laborers filing claims (9) Except as provided in subsection (1) of this section reservation by a public body for any purpose from the moneys earned by a contractor by fulfilling its responsibilities under public improvement contracts is prohibited (10) Contracts on projects funded in whole or in part by farmers home administration and subject to farmers home administration regulations are not subject to subsections (1) through (9) of this section (11) This subsection applies only to a public body that has contracted for the construction of a facility using the general contractorconstruction manager procedure as defined under RCW 3910210 If the work performed by a subcontractor on the project has been completed within the first half of the time provided in the general contractorconstruction manager contract for completing the work the public body may accept the completion of the subcontract The public body must give public notice of this acceptance After a forty-five day period for giving notice of liens and compliance with the retainage release procedures in RCW 6028021 the public body may release that portion of the retained funds associated with the subcontract Claims against the retained funds after the forty-five day period are not valid (12) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise (a) Contract retainage means an amount reserved by a public body from the moneys earned by a person under a public improvement contract (b) Person means a person or persons mechanic subcontractor or materialperson who performs labor or provides materials for a public improvement contract and any other person who supplies the person with provisions or supplies for the carrying on of a public improvement contract (c) Public body means the state or a county city town district board or other public body (d) Public improvement contract means a contract for public improvements or work other than for professional services or a work order as defined in RCW 3910210

CCBA Nuts amp Bolts on Construction Law - 48 of 49

RCW 6432070 Liens or encumbrances mdash Enforcement mdash Satisfaction

(1) Subsequent to recording the declaration as provided in this chapter and while the property remains subject to this chapter no lien shall thereafter arise or be effective against the property During such period liens or encumbrances shall arise or be created only against each apartment and the percentage of undivided interest in the common areas and facilities and appurtenant to such apartment in the same manner and under the same conditions in every respect as liens or encumbrances may arise or be created upon or against any other separate parcel of real property subject to individual ownership PROVIDED That no labor performed or materials furnished with the consent of or at the request of the owner of any apartment or such owners agent contractor or subcontractor shall be the basis for the filing of a lien against any other apartment or any other property of any other apartment owner not expressly consenting to or requesting the same except that such express consent shall be deemed to be given by any apartment owner in the case of emergency repairs Labor performed or materials furnished for the common areas and facilities if authorized by the association of apartment owners the manager or board of directors shall be deemed to be performed or furnished with the express consent of each apartment owner and shall be the basis for the filing of a lien against each of the apartments and shall be subject to the provisions of subsection (2) of this section (2) In the event a lien against two or more apartments becomes effective the apartment owners of the separate apartments may remove their apartment and the percentage of undivided interest in the common areas and facilities appurtenant to such apartment from the lien by payment of the fractional or proportional amounts attributable to each of the apartments affected Such individual payments shall be computed by reference to the percentages appearing on the declaration Subsequent to any such payment discharge or satisfaction the apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto shall thereafter be free and clear of the liens so paid satisfied or discharged Such partial payment satisfaction or discharge shall not prevent the lienor from proceeding to enforce his or her rights against any apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto not so paid satisfied or discharged

CCBA Nuts amp Bolts on Construction Law - 49 of 49

  • Cover Sheet
  • 20141110 - Washington Lien and Bond CLE
  • LampI Lien Summary
  • Claim of Lien
  • Form Notice to Owner
  • Model Disclosure Statement (Notice to Customer)
  • LampI Facts about Construction Liens
    • What you should know about contracts
    • How to protect your investment
    • For more information
      • Notice of Claim Against Bond and Retained Percentage
      • Preclaim Notice Bond amp Retained Percentage
      • Statute Handout
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          1. To
          2. Date
          3. Re
          4. From
          5. AT THE REQUEST OF
          6. Sender
          7. Address
          8. Telephone
          9. Brief description of professional services materials or equipment provided or to be provided
          10. 1
          11. 2
          12. 3
          13. reg no
          14. deposit $
          15. expiration date
          16. claims up to $
          17. Reset

We have or will be providing professional services materials or equipment for the improvement of your commercial or new residential project In the event you or your contractor fail to pay us we may file a lien against your property A lien may be claimed for all professional services materials or equipment furnished after a date that is sixty days before this notice was given to you or mailed to you unless the improvement to your property is the construction of a new single-family residence then ten days before this notice was given to you or mailed to you Sender Address Telephone Brief description of professional services materials or equipment provided or to be provided

IMPORTANT INFORMATION

ON REVERSE SIDE

IMPORTANT INFORMATION

FOR YOUR PROTECTION This notice is sent to inform you that we have or will provide professional services materials or equipment for the improvement of your property We expect to be paid by the person who ordered our services but if we are not paid we have the right to enforce our claim by filing a construction lien against your property LEARN more about the lien laws and the meaning of this notice by discussing them with your contractor suppliers Department of Labor and Industries the firm sending you this notice your lender or your attorney

COMMON METHODS TO AVOID CONSTRUCTION LIENS There are several methods available to protect your property from construction liens The following are two of the more commonly used methods

DUAL PAYCHECKS (Joint Checks) When paying your contractor for services or materials you may make checks payable jointly to the contractor and the firms furnishing you this notice

CCBA Nuts amp Bolts on Construction Law - 37 of 49

LIEN RELEASES You may require your contractor to provide lien releases signed by all the suppliers and subcontractors from whom you have received this notice If they cannot obtain lien releases because you have not paid them you may use the dual payee check method to protect yourself

YOU SHOULD TAKE APPROPRIATE STEPS TO PROTECT YOUR PROPERTY FROM LIENS YOUR PRIME CONTRACTOR AND YOUR CONSTRUCTION LENDER ARE REQUIRED BY LAW TO GIVE YOU WRITTEN INFORMATION ABOUT LIEN CLAIMS IF YOU HAVE NOT RECEIVED IT ASK THEM FOR IT

(5) Every potential lien claimant providing professional services where no improvement as defined in RCW 6004011(5) (a) or (b) has been commenced and the professional services provided are not visible from an inspection of the real property may record in the real property records of the county where the property is located a notice which shall contain the professional service providers name address telephone number legal description of the property the owner or reputed owners name and the general nature of the professional services provided If such notice is not recorded the lien claimed shall be subordinate to the interest of any subsequent mortgagee and invalid as to the interest of any subsequent purchaser if the mortgagee or purchaser acts in good faith and for a valuable consideration acquires an interest in the property prior to the commencement of an improvement as defined in RCW 6004011(5) (a) or (b) without notice of the professional services being provided The notice described in this subsection shall be substantially in the following form

NOTICE OF FURNISHING

PROFESSIONAL SERVICES That on the (day) day of (month and year) (name of provider) began providing professional services upon or for the improvement of real property legally described as follows

[Legal Description is mandatory]

CCBA Nuts amp Bolts on Construction Law - 38 of 49

The general nature of the professional services provided is The owner or reputed owner of the real property is

(Signature)

(Name of Claimant)

(Street Address)

(City State Zip Code)

(Phone Number)

(6) A lien authorized by this chapter shall not be enforced unless the lien claimant has complied with the applicable provisions of this section

6004041 Contractor registration

A contractor or subcontractor required to be registered under chapter 1827 RCW or licensed under chapter 1928 RCW or otherwise required to be registered or licensed by law shall be deemed the construction agent of the owner for the purposes of establishing the lien created by this chapter only if so registered or licensed Persons dealing with contractors or subcontractors may rely for the purposes of this section upon a certificate of registration issued pursuant to chapter 1827 RCW or license issued pursuant to chapter 1928 RCW or other certificate or license issued pursuant to law covering the period when the labor professional services material or equipment shall be furnished and the lien rights shall not be lost by suspension or revocation of registration or license without their knowledge No lien rights described in this

CCBA Nuts amp Bolts on Construction Law - 39 of 49

chapter shall be lost or denied by virtue of the absence suspension or revocation of such registration or license with respect to any contractor or subcontractor not in immediate contractual privity with the lien claimant

6004081 Frivolous claim mdash Procedure

(1) Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who believes the claim of lien to be frivolous and made without reasonable cause or clearly excessive may apply by motion to the superior court for the county where the property or some part thereof is located for an order directing the lien claimant to appear before the court at a time no earlier than six nor later than fifteen days following the date of service of the application and order on the lien claimant and show cause if any he or she has why the relief requested should not be granted The motion shall state the grounds upon which relief is asked and shall be supported by the affidavit of the applicant or his or her attorney setting forth a concise statement of the facts upon which the motion is based (2) The order shall clearly state that if the lien claimant fails to appear at the time and place noted the lien shall be released with prejudice and that the lien claimant shall be ordered to pay the costs requested by the applicant including reasonable attorneys fees (3) If no action to foreclose the lien claim has been filed the clerk of the court shall assign a cause number to the application and obtain from the applicant a filing fee pursuant to RCW 3618016 If an action has been filed to foreclose the lien claim the application shall be made a part of that action (4) If following a hearing on the matter the court determines that the lien is frivolous and made without reasonable cause or clearly excessive the court shall issue an order releasing the lien if frivolous and made without reasonable cause or reducing the lien if clearly excessive and awarding costs and reasonable attorneys fees to the applicant to be paid by the lien claimant If the court determines that the lien is not frivolous and was made with reasonable cause and is not clearly excessive the court shall issue an order so stating and awarding costs and reasonable attorneys fees to the lien claimant to be paid by the applicant (5) Proceedings under this section shall not affect other rights and remedies available to the parties under this chapter or otherwise

6004091 Recording mdash Time mdash Contents of lien

Every person claiming a lien under RCW 6004021 shall file for recording in the county where the subject property is located a notice of claim of lien not later than ninety days after the person

CCBA Nuts amp Bolts on Construction Law - 40 of 49

has ceased to furnish labor professional services materials or equipment or the last date on which employee benefit contributions were due The notice of claim of lien (1) Shall state in substance and effect (a) The name phone number and address of the claimant (b) The first and last date on which the labor professional services materials or equipment was furnished or employee benefit contributions were due (c) The name of the person indebted to the claimant (d) The street address legal description or other description reasonably calculated to identify for a person familiar with the area the location of the real property to be charged with the lien (e) The name of the owner or reputed owner of the property if known and if not known that fact shall be stated and (f) The principal amount for which the lien is claimed (2) Shall be signed by the claimant or some person authorized to act on his or her behalf who shall affirmatively state they have read the notice of claim of lien and believe the notice of claim of lien to be true and correct under penalty of perjury and shall be acknowledged pursuant to chapter 6408 RCW If the lien has been assigned the name of the assignee shall be stated Where an action to foreclose the lien has been commenced such notice of claim of lien may be amended as pleadings may be by order of the court insofar as the interests of third parties are not adversely affected by such amendment A claim of lien substantially in the following form shall be sufficient

CLAIM OF LIEN

claimant vs name of person indebted to claimant

Notice is hereby given that the person named below claims a lien pursuant to chapter 6404 RCW In support of this lien the following information is submitted

1 NAME OF LIEN CLAIMANT

TELEPHONE NUMBER

CCBA Nuts amp Bolts on Construction Law - 41 of 49

ADDRESS

2 DATE ON WHICH THE CLAIMANT BEGAN TO PERFORM LABOR PROVIDE PROFESSIONAL SERVICES SUPPLY MATERIAL OR EQUIPMENT OR THE DATE ON WHICH EMPLOYEE BENEFIT CONTRIBUTIONS BECAME DUE

3 NAME OF PERSON INDEBTED TO THE CLAIMANT

4 DESCRIPTION OF THE PROPERTY AGAINST WHICH A LIEN IS CLAIMED (Street address legal description or other information that will reasonably describe the property)

5 NAME OF THE OWNER OR REPUTED OWNER (If not known state unknown)

6 THE LAST DATE ON WHICH LABOR WAS PERFORMED PROFESSIONAL SERVICES WERE FURNISHED CONTRIBUTIONS TO AN EMPLOYEE BENEFIT PLAN WERE DUE OR MATERIAL OR EQUIPMENT WAS FURNISHED

7 PRINCIPAL AMOUNT FOR WHICH THE LIEN IS CLAIMED IS

8 IF THE CLAIMANT IS THE ASSIGNEE OF THIS CLAIM SO STATE HERE

Claimant

(Phone number address city

CCBA Nuts amp Bolts on Construction Law - 42 of 49

and

state of claimant)

STATE OF WASHINGTON COUNTY OF ss being sworn says I am the claimant (or attorney of the claimant or administrator representative or agent of the trustees of an employee benefit plan) above named I have read or heard the foregoing claim read and know the contents thereof and believe the same to be true and correct and that the claim of lien is not frivolous and is made with reasonable cause and is not clearly excessive under penalty of perjury Subscribed and sworn to before me this day of The period provided for recording the claim of lien is a period of limitation and no action to foreclose a lien shall be maintained unless the claim of lien is filed for recording within the ninety-day period stated The lien claimant shall give a copy of the claim of lien to the owner or reputed owner by mailing it by certified or registered mail or by personal service within fourteen days of the time the claim of lien is filed for recording Failure to do so results in a forfeiture of any right the claimant may have to attorneys fees and costs against the owner under RCW 6004181

6004161 Bond in lieu of claim

Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who disputes the correctness or validity of the claim of lien may record either before or after the commencement of an action to enforce the lien in the office of the county recorder or auditor in the county where the claim of lien was recorded a bond issued by a surety company authorized to issue surety bonds in the state The surety shall be listed in the latest federal department of the treasury list of surety companies acceptable on federal bonds published in the Federal Register as authorized to issue bonds on United States government projects with an underwriting limitation including applicable reinsurance equal to or greater than the amount of the bond to be recorded The bond shall contain a description of the claim of lien and real property involved and be in an amount equal to the greater of five thousand dollars or two times the amount of the lien claimed if it is ten thousand dollars or less and in an amount equal to or greater than one and one-half times the amount of the lien if it is in

CCBA Nuts amp Bolts on Construction Law - 43 of 49

excess of ten thousand dollars If the claim of lien affects more than one parcel of real property and is segregated to each parcel the bond may be segregated the same as in the claim of lien A separate bond shall be required for each claim of lien made by separate claimants However a single bond may be used to guarantee payment of amounts claimed by more than one claim of lien by a single claimant so long as the amount of the bond meets the requirements of this section as applied to the aggregate sum of all claims by such claimant The condition of the bond shall be to guarantee payment of any judgment upon the lien in favor of the lien claimant entered in any action to recover the amount claimed in a claim of lien or on the claim asserted in the claim of lien The effect of recording a bond shall be to release the real property described in the notice of claim of lien from the lien and any action brought to recover the amount claimed Unless otherwise prohibited by law if no action is commenced to recover on a lien within the time specified in RCW 6004141 the surety shall be discharged from liability under the bond If an action is timely commenced then on payment of any judgment entered in the action or on payment of the full amount of the bond to the holder of the judgment whichever is less the surety shall be discharged from liability under the bond Nothing in this section shall in any way prohibit or limit the use of other methods devised by the affected parties to secure the obligation underlying a claim of lien and to obtain a release of real property from a claim of lien

6004181 Rank of lien mdash Application of proceeds mdash Attorneys fees

(1) In every case in which different construction liens are claimed against the same property the court shall declare the rank of such lien or class of liens which liens shall be in the following order (a) Liens for the performance of labor (b) Liens for contributions owed to employee benefit plans (c) Liens for furnishing material supplies or equipment (d) Liens for subcontractors including but not limited to their labor and materials and (e) Liens for prime contractors or for professional services (2) The proceeds of the sale of property must be applied to each lien or class of liens in order of its rank and in an action brought to foreclose a lien pro rata among each claimant in each separate priority class A personal judgment may be rendered against any party personally liable for any debt for which the lien is claimed If the lien is established the judgment shall provide

CCBA Nuts amp Bolts on Construction Law - 44 of 49

for the enforcement thereof upon the property liable as in the case of foreclosure of judgment liens The amount realized by such enforcement of the lien shall be credited upon the proper personal judgment The deficiency if any remaining unsatisfied shall stand as a personal judgment and may be collected by execution against any party liable therefor (3) The court may allow the prevailing party in the action whether plaintiff or defendant as part of the costs of the action the moneys paid for recording the claim of lien costs of title report bond costs and attorneys fees and necessary expenses incurred by the attorney in the superior court court of appeals supreme court or arbitration as the court or arbitrator deems reasonable Such costs shall have the priority of the class of lien to which they are related as established by subsection (1) of this section (4) Real property against which a lien under this chapter is enforced may be ordered sold by the court and the proceeds deposited into the registry of the clerk of the court pending further determination respecting distribution of the proceeds of the sale

6004900 Liberal construction mdash 1991 c 281

RCW 1927095 6004230 and 6004011 through 6004226 and 6004261 are to be liberally construed to provide security for all parties intended to be protected by their provisions

RCW 6028011

Retained percentage mdash Public transportation projects mdash Labor and material lien created mdash Bond in lieu of retained funds mdash Termination before completion mdash Chapter deemed exclusive mdash Release of ferry contract payments mdash Projects of farmers home administration mdash General contractorconstruction manager procedure mdash Definitions

(1)(a) Except as provided in (b) of this subsection public improvement contracts must provide and public bodies must reserve a contract retainage not to exceed five percent of the moneys earned by the contractor as a trust fund for the protection and payment of (i) The claims of any person arising under the contract and (ii) the state with respect to taxes increases and penalties imposed pursuant to Titles 50 51 and 82 RCW which may be due from such contractor (b) Public improvement contracts funded in whole or in part by federal transportation funds must rely upon the contract bond as referred to in chapter 3908 RCW for the protection and payment of (i) The claims of any person or persons arising under the contract to the extent such claims are provided for in RCW 3908010 and (ii) the state with respect to taxes increases and penalties incurred on the public improvement project under Titles 50 51 and 82 RCW which may be due The contract bond must remain in full force and effect until at a minimum all claims filed in compliance with chapter 3908 RCW are resolved

CCBA Nuts amp Bolts on Construction Law - 45 of 49

(2) Every person performing labor or furnishing supplies toward the completion of a public improvement contract has a lien upon moneys reserved by a public body under the provisions of a public improvement contract However the notice of the lien of the claimant must be given within forty-five days of completion of the contract work and in the manner provided in RCW 3908030 (3) The contractor at any time may request the contract retainage be reduced to one hundred percent of the value of the work remaining on the project (a) After completion of all contract work other than landscaping the contractor may request that the public body release and pay in full the amounts retained during the performance of the contract and sixty days thereafter the public body must release and pay in full the amounts retained (other than continuing retention of five percent of the moneys earned for landscaping) subject to the provisions of chapters 3912 and 6028 RCW (b) Sixty days after completion of all contract work the public body must release and pay in full the amounts retained during the performance of the contract subject to the provisions of chapters 3912 and 6028 RCW (4) The moneys reserved by a public body under the provisions of a public improvement contract at the option of the contractor must be (a) Retained in a fund by the public body (b) Deposited by the public body in an interest bearing account in a bank mutual savings bank or savings and loan association Interest on moneys reserved by a public body under the provision of a public improvement contract must be paid to the contractor (c) Placed in escrow with a bank or trust company by the public body When the moneys reserved are placed in escrow the public body must issue a check representing the sum of the moneys reserved payable to the bank or trust company and the contractor jointly This check must be converted into bonds and securities chosen by the contractor and approved by the public body and the bonds and securities must be held in escrow Interest on the bonds and securities must be paid to the contractor as the interest accrues (5) The contractor or subcontractor may withhold payment of not more than five percent from the moneys earned by any subcontractor or sub-subcontractor or supplier contracted with by the contractor to provide labor materials or equipment to the public project Whenever the contractor or subcontractor reserves funds earned by a subcontractor or sub-subcontractor or

CCBA Nuts amp Bolts on Construction Law - 46 of 49

supplier the contractor or subcontractor must pay interest to the subcontractor or sub-subcontractor or supplier at a rate equal to that received by the contractor or subcontractor from reserved funds (6) A contractor may submit a bond for all or any portion of the contract retainage in a form acceptable to the public body and from a bonding company meeting standards established by the public body The public body must accept a bond meeting these requirements unless the public body can demonstrate good cause for refusing to accept it This bond and any proceeds therefrom are subject to all claims and liens and in the same manner and priority as set forth for retained percentages in this chapter The public body must release the bonded portion of the retained funds to the contractor within thirty days of accepting the bond from the contractor Whenever a public body accepts a bond in lieu of retained funds from a contractor the contractor must accept like bonds from any subcontractors or suppliers from which the contractor has retained funds The contractor must then release the funds retained from the subcontractor or supplier to the subcontractor or supplier within thirty days of accepting the bond from the subcontractor or supplier (7) If the public body administering a contract after a substantial portion of the work has been completed finds that an unreasonable delay will occur in the completion of the remaining portion of the contract for any reason not the result of a breach thereof it may if the contractor agrees delete from the contract the remaining work and accept as final the improvement at the stage of completion then attained and make payment in proportion to the amount of the work accomplished and in this case any amounts retained and accumulated under this section must be held for a period of sixty days following the completion In the event that the work is terminated before final completion as provided in this section the public body may thereafter enter into a new contract with the same contractor to perform the remaining work or improvement for an amount equal to or less than the cost of the remaining work as was provided for in the original contract without advertisement or bid The provisions of this chapter are exclusive and supersede all provisions and regulations in conflict herewith (8) Whenever the department of transportation has contracted for the construction of two or more ferry vessels sixty days after completion of all contract work on each ferry vessel the department must release and pay in full the amounts retained in connection with the construction of the vessel subject to the provisions of RCW 6028021 and chapter 3912 RCW However the department of transportation may at its discretion condition the release of funds retained in connection with the completed ferry upon the contractor delivering a good and sufficient bond with two or more sureties or with a surety company in the amount of the retained funds to be released to the contractor conditioned that no taxes may be certified or claims filed for work on the ferry after a period of sixty days following completion of the ferry and if taxes are certified or claims filed recovery may be had on the bond by the department of revenue the employment

CCBA Nuts amp Bolts on Construction Law - 47 of 49

security department the department of labor and industries and the material suppliers and laborers filing claims (9) Except as provided in subsection (1) of this section reservation by a public body for any purpose from the moneys earned by a contractor by fulfilling its responsibilities under public improvement contracts is prohibited (10) Contracts on projects funded in whole or in part by farmers home administration and subject to farmers home administration regulations are not subject to subsections (1) through (9) of this section (11) This subsection applies only to a public body that has contracted for the construction of a facility using the general contractorconstruction manager procedure as defined under RCW 3910210 If the work performed by a subcontractor on the project has been completed within the first half of the time provided in the general contractorconstruction manager contract for completing the work the public body may accept the completion of the subcontract The public body must give public notice of this acceptance After a forty-five day period for giving notice of liens and compliance with the retainage release procedures in RCW 6028021 the public body may release that portion of the retained funds associated with the subcontract Claims against the retained funds after the forty-five day period are not valid (12) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise (a) Contract retainage means an amount reserved by a public body from the moneys earned by a person under a public improvement contract (b) Person means a person or persons mechanic subcontractor or materialperson who performs labor or provides materials for a public improvement contract and any other person who supplies the person with provisions or supplies for the carrying on of a public improvement contract (c) Public body means the state or a county city town district board or other public body (d) Public improvement contract means a contract for public improvements or work other than for professional services or a work order as defined in RCW 3910210

CCBA Nuts amp Bolts on Construction Law - 48 of 49

RCW 6432070 Liens or encumbrances mdash Enforcement mdash Satisfaction

(1) Subsequent to recording the declaration as provided in this chapter and while the property remains subject to this chapter no lien shall thereafter arise or be effective against the property During such period liens or encumbrances shall arise or be created only against each apartment and the percentage of undivided interest in the common areas and facilities and appurtenant to such apartment in the same manner and under the same conditions in every respect as liens or encumbrances may arise or be created upon or against any other separate parcel of real property subject to individual ownership PROVIDED That no labor performed or materials furnished with the consent of or at the request of the owner of any apartment or such owners agent contractor or subcontractor shall be the basis for the filing of a lien against any other apartment or any other property of any other apartment owner not expressly consenting to or requesting the same except that such express consent shall be deemed to be given by any apartment owner in the case of emergency repairs Labor performed or materials furnished for the common areas and facilities if authorized by the association of apartment owners the manager or board of directors shall be deemed to be performed or furnished with the express consent of each apartment owner and shall be the basis for the filing of a lien against each of the apartments and shall be subject to the provisions of subsection (2) of this section (2) In the event a lien against two or more apartments becomes effective the apartment owners of the separate apartments may remove their apartment and the percentage of undivided interest in the common areas and facilities appurtenant to such apartment from the lien by payment of the fractional or proportional amounts attributable to each of the apartments affected Such individual payments shall be computed by reference to the percentages appearing on the declaration Subsequent to any such payment discharge or satisfaction the apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto shall thereafter be free and clear of the liens so paid satisfied or discharged Such partial payment satisfaction or discharge shall not prevent the lienor from proceeding to enforce his or her rights against any apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto not so paid satisfied or discharged

CCBA Nuts amp Bolts on Construction Law - 49 of 49

  • Cover Sheet
  • 20141110 - Washington Lien and Bond CLE
  • LampI Lien Summary
  • Claim of Lien
  • Form Notice to Owner
  • Model Disclosure Statement (Notice to Customer)
  • LampI Facts about Construction Liens
    • What you should know about contracts
    • How to protect your investment
    • For more information
      • Notice of Claim Against Bond and Retained Percentage
      • Preclaim Notice Bond amp Retained Percentage
      • Statute Handout
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 SUO 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 ENU (Use these settings to create Adobe PDF documents best suited for high-quality prepress printing Created PDF documents can be opened with Acrobat and Adobe Reader 50 and later) gtgt Namespace [ 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 DEU 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 ESP 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 FRA ltFEFF005500740069006c006900730065007a00200063006500730020006f007000740069006f006e00730020006100660069006e00200064006500200063007200e900650072002000640065007300200064006f00630075006d0065006e00740073002000410064006f00620065002000500044004600200070006f0075007200200075006e00650020007100750061006c0069007400e90020006400270069006d007000720065007300730069006f006e00200070007200e9007000720065007300730065002e0020004c0065007300200064006f00630075006d0065006e00740073002000500044004600200063007200e900e90073002000700065007500760065006e0074002000ea0074007200650020006f007500760065007200740073002000640061006e00730020004100630072006f006200610074002c002000610069006e00730069002000710075002700410064006f00620065002000520065006100640065007200200035002e0030002000650074002000760065007200730069006f006e007300200075006c007400e90072006900650075007200650073002egt ITA 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 JPN ltFEFF9ad854c18cea306a30d730ea30d730ec30b951fa529b7528002000410064006f0062006500200050004400460020658766f8306e4f5c6210306b4f7f75283057307e305930023053306e8a2d5b9a30674f5c62103055308c305f0020005000440046002030d530a130a430eb306f3001004100630072006f0062006100740020304a30883073002000410064006f00620065002000520065006100640065007200200035002e003000204ee5964d3067958b304f30533068304c3067304d307e305930023053306e8a2d5b9a306b306f30d530a930f330c8306e57cb30818fbc307f304c5fc59808306730593002gt KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020ace0d488c9c80020c2dcd5d80020c778c1c4c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200035002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor prepress-afdrukken van hoge kwaliteit De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 50 en hoger) NOR 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 PTB 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 SUO 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          1. To
          2. Date
          3. Re
          4. From
          5. AT THE REQUEST OF
          6. Sender
          7. Address
          8. Telephone
          9. Brief description of professional services materials or equipment provided or to be provided
          10. 1
          11. 2
          12. 3
          13. reg no
          14. deposit $
          15. expiration date
          16. claims up to $
          17. Reset

LIEN RELEASES You may require your contractor to provide lien releases signed by all the suppliers and subcontractors from whom you have received this notice If they cannot obtain lien releases because you have not paid them you may use the dual payee check method to protect yourself

YOU SHOULD TAKE APPROPRIATE STEPS TO PROTECT YOUR PROPERTY FROM LIENS YOUR PRIME CONTRACTOR AND YOUR CONSTRUCTION LENDER ARE REQUIRED BY LAW TO GIVE YOU WRITTEN INFORMATION ABOUT LIEN CLAIMS IF YOU HAVE NOT RECEIVED IT ASK THEM FOR IT

(5) Every potential lien claimant providing professional services where no improvement as defined in RCW 6004011(5) (a) or (b) has been commenced and the professional services provided are not visible from an inspection of the real property may record in the real property records of the county where the property is located a notice which shall contain the professional service providers name address telephone number legal description of the property the owner or reputed owners name and the general nature of the professional services provided If such notice is not recorded the lien claimed shall be subordinate to the interest of any subsequent mortgagee and invalid as to the interest of any subsequent purchaser if the mortgagee or purchaser acts in good faith and for a valuable consideration acquires an interest in the property prior to the commencement of an improvement as defined in RCW 6004011(5) (a) or (b) without notice of the professional services being provided The notice described in this subsection shall be substantially in the following form

NOTICE OF FURNISHING

PROFESSIONAL SERVICES That on the (day) day of (month and year) (name of provider) began providing professional services upon or for the improvement of real property legally described as follows

[Legal Description is mandatory]

CCBA Nuts amp Bolts on Construction Law - 38 of 49

The general nature of the professional services provided is The owner or reputed owner of the real property is

(Signature)

(Name of Claimant)

(Street Address)

(City State Zip Code)

(Phone Number)

(6) A lien authorized by this chapter shall not be enforced unless the lien claimant has complied with the applicable provisions of this section

6004041 Contractor registration

A contractor or subcontractor required to be registered under chapter 1827 RCW or licensed under chapter 1928 RCW or otherwise required to be registered or licensed by law shall be deemed the construction agent of the owner for the purposes of establishing the lien created by this chapter only if so registered or licensed Persons dealing with contractors or subcontractors may rely for the purposes of this section upon a certificate of registration issued pursuant to chapter 1827 RCW or license issued pursuant to chapter 1928 RCW or other certificate or license issued pursuant to law covering the period when the labor professional services material or equipment shall be furnished and the lien rights shall not be lost by suspension or revocation of registration or license without their knowledge No lien rights described in this

CCBA Nuts amp Bolts on Construction Law - 39 of 49

chapter shall be lost or denied by virtue of the absence suspension or revocation of such registration or license with respect to any contractor or subcontractor not in immediate contractual privity with the lien claimant

6004081 Frivolous claim mdash Procedure

(1) Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who believes the claim of lien to be frivolous and made without reasonable cause or clearly excessive may apply by motion to the superior court for the county where the property or some part thereof is located for an order directing the lien claimant to appear before the court at a time no earlier than six nor later than fifteen days following the date of service of the application and order on the lien claimant and show cause if any he or she has why the relief requested should not be granted The motion shall state the grounds upon which relief is asked and shall be supported by the affidavit of the applicant or his or her attorney setting forth a concise statement of the facts upon which the motion is based (2) The order shall clearly state that if the lien claimant fails to appear at the time and place noted the lien shall be released with prejudice and that the lien claimant shall be ordered to pay the costs requested by the applicant including reasonable attorneys fees (3) If no action to foreclose the lien claim has been filed the clerk of the court shall assign a cause number to the application and obtain from the applicant a filing fee pursuant to RCW 3618016 If an action has been filed to foreclose the lien claim the application shall be made a part of that action (4) If following a hearing on the matter the court determines that the lien is frivolous and made without reasonable cause or clearly excessive the court shall issue an order releasing the lien if frivolous and made without reasonable cause or reducing the lien if clearly excessive and awarding costs and reasonable attorneys fees to the applicant to be paid by the lien claimant If the court determines that the lien is not frivolous and was made with reasonable cause and is not clearly excessive the court shall issue an order so stating and awarding costs and reasonable attorneys fees to the lien claimant to be paid by the applicant (5) Proceedings under this section shall not affect other rights and remedies available to the parties under this chapter or otherwise

6004091 Recording mdash Time mdash Contents of lien

Every person claiming a lien under RCW 6004021 shall file for recording in the county where the subject property is located a notice of claim of lien not later than ninety days after the person

CCBA Nuts amp Bolts on Construction Law - 40 of 49

has ceased to furnish labor professional services materials or equipment or the last date on which employee benefit contributions were due The notice of claim of lien (1) Shall state in substance and effect (a) The name phone number and address of the claimant (b) The first and last date on which the labor professional services materials or equipment was furnished or employee benefit contributions were due (c) The name of the person indebted to the claimant (d) The street address legal description or other description reasonably calculated to identify for a person familiar with the area the location of the real property to be charged with the lien (e) The name of the owner or reputed owner of the property if known and if not known that fact shall be stated and (f) The principal amount for which the lien is claimed (2) Shall be signed by the claimant or some person authorized to act on his or her behalf who shall affirmatively state they have read the notice of claim of lien and believe the notice of claim of lien to be true and correct under penalty of perjury and shall be acknowledged pursuant to chapter 6408 RCW If the lien has been assigned the name of the assignee shall be stated Where an action to foreclose the lien has been commenced such notice of claim of lien may be amended as pleadings may be by order of the court insofar as the interests of third parties are not adversely affected by such amendment A claim of lien substantially in the following form shall be sufficient

CLAIM OF LIEN

claimant vs name of person indebted to claimant

Notice is hereby given that the person named below claims a lien pursuant to chapter 6404 RCW In support of this lien the following information is submitted

1 NAME OF LIEN CLAIMANT

TELEPHONE NUMBER

CCBA Nuts amp Bolts on Construction Law - 41 of 49

ADDRESS

2 DATE ON WHICH THE CLAIMANT BEGAN TO PERFORM LABOR PROVIDE PROFESSIONAL SERVICES SUPPLY MATERIAL OR EQUIPMENT OR THE DATE ON WHICH EMPLOYEE BENEFIT CONTRIBUTIONS BECAME DUE

3 NAME OF PERSON INDEBTED TO THE CLAIMANT

4 DESCRIPTION OF THE PROPERTY AGAINST WHICH A LIEN IS CLAIMED (Street address legal description or other information that will reasonably describe the property)

5 NAME OF THE OWNER OR REPUTED OWNER (If not known state unknown)

6 THE LAST DATE ON WHICH LABOR WAS PERFORMED PROFESSIONAL SERVICES WERE FURNISHED CONTRIBUTIONS TO AN EMPLOYEE BENEFIT PLAN WERE DUE OR MATERIAL OR EQUIPMENT WAS FURNISHED

7 PRINCIPAL AMOUNT FOR WHICH THE LIEN IS CLAIMED IS

8 IF THE CLAIMANT IS THE ASSIGNEE OF THIS CLAIM SO STATE HERE

Claimant

(Phone number address city

CCBA Nuts amp Bolts on Construction Law - 42 of 49

and

state of claimant)

STATE OF WASHINGTON COUNTY OF ss being sworn says I am the claimant (or attorney of the claimant or administrator representative or agent of the trustees of an employee benefit plan) above named I have read or heard the foregoing claim read and know the contents thereof and believe the same to be true and correct and that the claim of lien is not frivolous and is made with reasonable cause and is not clearly excessive under penalty of perjury Subscribed and sworn to before me this day of The period provided for recording the claim of lien is a period of limitation and no action to foreclose a lien shall be maintained unless the claim of lien is filed for recording within the ninety-day period stated The lien claimant shall give a copy of the claim of lien to the owner or reputed owner by mailing it by certified or registered mail or by personal service within fourteen days of the time the claim of lien is filed for recording Failure to do so results in a forfeiture of any right the claimant may have to attorneys fees and costs against the owner under RCW 6004181

6004161 Bond in lieu of claim

Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who disputes the correctness or validity of the claim of lien may record either before or after the commencement of an action to enforce the lien in the office of the county recorder or auditor in the county where the claim of lien was recorded a bond issued by a surety company authorized to issue surety bonds in the state The surety shall be listed in the latest federal department of the treasury list of surety companies acceptable on federal bonds published in the Federal Register as authorized to issue bonds on United States government projects with an underwriting limitation including applicable reinsurance equal to or greater than the amount of the bond to be recorded The bond shall contain a description of the claim of lien and real property involved and be in an amount equal to the greater of five thousand dollars or two times the amount of the lien claimed if it is ten thousand dollars or less and in an amount equal to or greater than one and one-half times the amount of the lien if it is in

CCBA Nuts amp Bolts on Construction Law - 43 of 49

excess of ten thousand dollars If the claim of lien affects more than one parcel of real property and is segregated to each parcel the bond may be segregated the same as in the claim of lien A separate bond shall be required for each claim of lien made by separate claimants However a single bond may be used to guarantee payment of amounts claimed by more than one claim of lien by a single claimant so long as the amount of the bond meets the requirements of this section as applied to the aggregate sum of all claims by such claimant The condition of the bond shall be to guarantee payment of any judgment upon the lien in favor of the lien claimant entered in any action to recover the amount claimed in a claim of lien or on the claim asserted in the claim of lien The effect of recording a bond shall be to release the real property described in the notice of claim of lien from the lien and any action brought to recover the amount claimed Unless otherwise prohibited by law if no action is commenced to recover on a lien within the time specified in RCW 6004141 the surety shall be discharged from liability under the bond If an action is timely commenced then on payment of any judgment entered in the action or on payment of the full amount of the bond to the holder of the judgment whichever is less the surety shall be discharged from liability under the bond Nothing in this section shall in any way prohibit or limit the use of other methods devised by the affected parties to secure the obligation underlying a claim of lien and to obtain a release of real property from a claim of lien

6004181 Rank of lien mdash Application of proceeds mdash Attorneys fees

(1) In every case in which different construction liens are claimed against the same property the court shall declare the rank of such lien or class of liens which liens shall be in the following order (a) Liens for the performance of labor (b) Liens for contributions owed to employee benefit plans (c) Liens for furnishing material supplies or equipment (d) Liens for subcontractors including but not limited to their labor and materials and (e) Liens for prime contractors or for professional services (2) The proceeds of the sale of property must be applied to each lien or class of liens in order of its rank and in an action brought to foreclose a lien pro rata among each claimant in each separate priority class A personal judgment may be rendered against any party personally liable for any debt for which the lien is claimed If the lien is established the judgment shall provide

CCBA Nuts amp Bolts on Construction Law - 44 of 49

for the enforcement thereof upon the property liable as in the case of foreclosure of judgment liens The amount realized by such enforcement of the lien shall be credited upon the proper personal judgment The deficiency if any remaining unsatisfied shall stand as a personal judgment and may be collected by execution against any party liable therefor (3) The court may allow the prevailing party in the action whether plaintiff or defendant as part of the costs of the action the moneys paid for recording the claim of lien costs of title report bond costs and attorneys fees and necessary expenses incurred by the attorney in the superior court court of appeals supreme court or arbitration as the court or arbitrator deems reasonable Such costs shall have the priority of the class of lien to which they are related as established by subsection (1) of this section (4) Real property against which a lien under this chapter is enforced may be ordered sold by the court and the proceeds deposited into the registry of the clerk of the court pending further determination respecting distribution of the proceeds of the sale

6004900 Liberal construction mdash 1991 c 281

RCW 1927095 6004230 and 6004011 through 6004226 and 6004261 are to be liberally construed to provide security for all parties intended to be protected by their provisions

RCW 6028011

Retained percentage mdash Public transportation projects mdash Labor and material lien created mdash Bond in lieu of retained funds mdash Termination before completion mdash Chapter deemed exclusive mdash Release of ferry contract payments mdash Projects of farmers home administration mdash General contractorconstruction manager procedure mdash Definitions

(1)(a) Except as provided in (b) of this subsection public improvement contracts must provide and public bodies must reserve a contract retainage not to exceed five percent of the moneys earned by the contractor as a trust fund for the protection and payment of (i) The claims of any person arising under the contract and (ii) the state with respect to taxes increases and penalties imposed pursuant to Titles 50 51 and 82 RCW which may be due from such contractor (b) Public improvement contracts funded in whole or in part by federal transportation funds must rely upon the contract bond as referred to in chapter 3908 RCW for the protection and payment of (i) The claims of any person or persons arising under the contract to the extent such claims are provided for in RCW 3908010 and (ii) the state with respect to taxes increases and penalties incurred on the public improvement project under Titles 50 51 and 82 RCW which may be due The contract bond must remain in full force and effect until at a minimum all claims filed in compliance with chapter 3908 RCW are resolved

CCBA Nuts amp Bolts on Construction Law - 45 of 49

(2) Every person performing labor or furnishing supplies toward the completion of a public improvement contract has a lien upon moneys reserved by a public body under the provisions of a public improvement contract However the notice of the lien of the claimant must be given within forty-five days of completion of the contract work and in the manner provided in RCW 3908030 (3) The contractor at any time may request the contract retainage be reduced to one hundred percent of the value of the work remaining on the project (a) After completion of all contract work other than landscaping the contractor may request that the public body release and pay in full the amounts retained during the performance of the contract and sixty days thereafter the public body must release and pay in full the amounts retained (other than continuing retention of five percent of the moneys earned for landscaping) subject to the provisions of chapters 3912 and 6028 RCW (b) Sixty days after completion of all contract work the public body must release and pay in full the amounts retained during the performance of the contract subject to the provisions of chapters 3912 and 6028 RCW (4) The moneys reserved by a public body under the provisions of a public improvement contract at the option of the contractor must be (a) Retained in a fund by the public body (b) Deposited by the public body in an interest bearing account in a bank mutual savings bank or savings and loan association Interest on moneys reserved by a public body under the provision of a public improvement contract must be paid to the contractor (c) Placed in escrow with a bank or trust company by the public body When the moneys reserved are placed in escrow the public body must issue a check representing the sum of the moneys reserved payable to the bank or trust company and the contractor jointly This check must be converted into bonds and securities chosen by the contractor and approved by the public body and the bonds and securities must be held in escrow Interest on the bonds and securities must be paid to the contractor as the interest accrues (5) The contractor or subcontractor may withhold payment of not more than five percent from the moneys earned by any subcontractor or sub-subcontractor or supplier contracted with by the contractor to provide labor materials or equipment to the public project Whenever the contractor or subcontractor reserves funds earned by a subcontractor or sub-subcontractor or

CCBA Nuts amp Bolts on Construction Law - 46 of 49

supplier the contractor or subcontractor must pay interest to the subcontractor or sub-subcontractor or supplier at a rate equal to that received by the contractor or subcontractor from reserved funds (6) A contractor may submit a bond for all or any portion of the contract retainage in a form acceptable to the public body and from a bonding company meeting standards established by the public body The public body must accept a bond meeting these requirements unless the public body can demonstrate good cause for refusing to accept it This bond and any proceeds therefrom are subject to all claims and liens and in the same manner and priority as set forth for retained percentages in this chapter The public body must release the bonded portion of the retained funds to the contractor within thirty days of accepting the bond from the contractor Whenever a public body accepts a bond in lieu of retained funds from a contractor the contractor must accept like bonds from any subcontractors or suppliers from which the contractor has retained funds The contractor must then release the funds retained from the subcontractor or supplier to the subcontractor or supplier within thirty days of accepting the bond from the subcontractor or supplier (7) If the public body administering a contract after a substantial portion of the work has been completed finds that an unreasonable delay will occur in the completion of the remaining portion of the contract for any reason not the result of a breach thereof it may if the contractor agrees delete from the contract the remaining work and accept as final the improvement at the stage of completion then attained and make payment in proportion to the amount of the work accomplished and in this case any amounts retained and accumulated under this section must be held for a period of sixty days following the completion In the event that the work is terminated before final completion as provided in this section the public body may thereafter enter into a new contract with the same contractor to perform the remaining work or improvement for an amount equal to or less than the cost of the remaining work as was provided for in the original contract without advertisement or bid The provisions of this chapter are exclusive and supersede all provisions and regulations in conflict herewith (8) Whenever the department of transportation has contracted for the construction of two or more ferry vessels sixty days after completion of all contract work on each ferry vessel the department must release and pay in full the amounts retained in connection with the construction of the vessel subject to the provisions of RCW 6028021 and chapter 3912 RCW However the department of transportation may at its discretion condition the release of funds retained in connection with the completed ferry upon the contractor delivering a good and sufficient bond with two or more sureties or with a surety company in the amount of the retained funds to be released to the contractor conditioned that no taxes may be certified or claims filed for work on the ferry after a period of sixty days following completion of the ferry and if taxes are certified or claims filed recovery may be had on the bond by the department of revenue the employment

CCBA Nuts amp Bolts on Construction Law - 47 of 49

security department the department of labor and industries and the material suppliers and laborers filing claims (9) Except as provided in subsection (1) of this section reservation by a public body for any purpose from the moneys earned by a contractor by fulfilling its responsibilities under public improvement contracts is prohibited (10) Contracts on projects funded in whole or in part by farmers home administration and subject to farmers home administration regulations are not subject to subsections (1) through (9) of this section (11) This subsection applies only to a public body that has contracted for the construction of a facility using the general contractorconstruction manager procedure as defined under RCW 3910210 If the work performed by a subcontractor on the project has been completed within the first half of the time provided in the general contractorconstruction manager contract for completing the work the public body may accept the completion of the subcontract The public body must give public notice of this acceptance After a forty-five day period for giving notice of liens and compliance with the retainage release procedures in RCW 6028021 the public body may release that portion of the retained funds associated with the subcontract Claims against the retained funds after the forty-five day period are not valid (12) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise (a) Contract retainage means an amount reserved by a public body from the moneys earned by a person under a public improvement contract (b) Person means a person or persons mechanic subcontractor or materialperson who performs labor or provides materials for a public improvement contract and any other person who supplies the person with provisions or supplies for the carrying on of a public improvement contract (c) Public body means the state or a county city town district board or other public body (d) Public improvement contract means a contract for public improvements or work other than for professional services or a work order as defined in RCW 3910210

CCBA Nuts amp Bolts on Construction Law - 48 of 49

RCW 6432070 Liens or encumbrances mdash Enforcement mdash Satisfaction

(1) Subsequent to recording the declaration as provided in this chapter and while the property remains subject to this chapter no lien shall thereafter arise or be effective against the property During such period liens or encumbrances shall arise or be created only against each apartment and the percentage of undivided interest in the common areas and facilities and appurtenant to such apartment in the same manner and under the same conditions in every respect as liens or encumbrances may arise or be created upon or against any other separate parcel of real property subject to individual ownership PROVIDED That no labor performed or materials furnished with the consent of or at the request of the owner of any apartment or such owners agent contractor or subcontractor shall be the basis for the filing of a lien against any other apartment or any other property of any other apartment owner not expressly consenting to or requesting the same except that such express consent shall be deemed to be given by any apartment owner in the case of emergency repairs Labor performed or materials furnished for the common areas and facilities if authorized by the association of apartment owners the manager or board of directors shall be deemed to be performed or furnished with the express consent of each apartment owner and shall be the basis for the filing of a lien against each of the apartments and shall be subject to the provisions of subsection (2) of this section (2) In the event a lien against two or more apartments becomes effective the apartment owners of the separate apartments may remove their apartment and the percentage of undivided interest in the common areas and facilities appurtenant to such apartment from the lien by payment of the fractional or proportional amounts attributable to each of the apartments affected Such individual payments shall be computed by reference to the percentages appearing on the declaration Subsequent to any such payment discharge or satisfaction the apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto shall thereafter be free and clear of the liens so paid satisfied or discharged Such partial payment satisfaction or discharge shall not prevent the lienor from proceeding to enforce his or her rights against any apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto not so paid satisfied or discharged

CCBA Nuts amp Bolts on Construction Law - 49 of 49

  • Cover Sheet
  • 20141110 - Washington Lien and Bond CLE
  • LampI Lien Summary
  • Claim of Lien
  • Form Notice to Owner
  • Model Disclosure Statement (Notice to Customer)
  • LampI Facts about Construction Liens
    • What you should know about contracts
    • How to protect your investment
    • For more information
      • Notice of Claim Against Bond and Retained Percentage
      • Preclaim Notice Bond amp Retained Percentage
      • Statute Handout
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Quality 30 gtgt AntiAliasMonoImages false CropMonoImages true MonoImageMinResolution 1200 MonoImageMinResolutionPolicy OK DownsampleMonoImages true MonoImageDownsampleType Bicubic MonoImageResolution 1200 MonoImageDepth -1 MonoImageDownsampleThreshold 150000 EncodeMonoImages false MonoImageFilter CCITTFaxEncode MonoImageDict ltlt K -1 gtgt AllowPSXObjects false CheckCompliance [ None ] PDFX1aCheck false PDFX3Check false PDFXCompliantPDFOnly false PDFXNoTrimBoxError true PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile (None) PDFXOutputConditionIdentifier () PDFXOutputCondition () PDFXRegistryName () PDFXTrapped False Description ltlt CHS ltFEFF4f7f75288fd94e9b8bbe5b9a521b5efa7684002000410064006f006200650020005000440046002065876863900275284e8e9ad88d2891cf76845370524d53705237300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200035002e003000204ee553ca66f49ad87248672c676562535f00521b5efa768400200050004400460020658768633002gt CHT ltFEFF4f7f752890194e9b8a2d7f6e5efa7acb7684002000410064006f006200650020005000440046002065874ef69069752865bc9ad854c18cea76845370524d5370523786557406300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200035002e003000204ee553ca66f49ad87248672c4f86958b555f5df25efa7acb76840020005000440046002065874ef63002gt DAN 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 DEU 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 ESP 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 FRA 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 ITA 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 JPN ltFEFF9ad854c18cea306a30d730ea30d730ec30b951fa529b7528002000410064006f0062006500200050004400460020658766f8306e4f5c6210306b4f7f75283057307e305930023053306e8a2d5b9a30674f5c62103055308c305f0020005000440046002030d530a130a430eb306f3001004100630072006f0062006100740020304a30883073002000410064006f00620065002000520065006100640065007200200035002e003000204ee5964d3067958b304f30533068304c3067304d307e305930023053306e8a2d5b9a306b306f30d530a930f330c8306e57cb30818fbc307f304c5fc59808306730593002gt KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020ace0d488c9c80020c2dcd5d80020c778c1c4c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200035002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor prepress-afdrukken van hoge kwaliteit De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 50 en hoger) NOR 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 PTB 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 SUO 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 SVE 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 ENU (Use these settings to create Adobe PDF documents best suited for high-quality prepress printing Created PDF documents can be opened with Acrobat and Adobe Reader 50 and later) gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false ConvertColors ConvertToCMYK DestinationProfileName () DestinationProfileSelector DocumentCMYK Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles false MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector DocumentCMYK PreserveEditing true UntaggedCMYKHandling LeaveUntagged UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ]gtgt setdistillerparamsltlt HWResolution [2400 2400] PageSize [612000 792000]gtgt setpagedevice

          ltlt ASCII85EncodePages false AllowTransparency false AutoPositionEPSFiles true AutoRotatePages None Binding Left CalGrayProfile (Dot Gain 20) CalRGBProfile (sRGB IEC61966-21) CalCMYKProfile (US Web Coated 050SWOP051 v2) sRGBProfile (sRGB IEC61966-21) CannotEmbedFontPolicy Warning CompatibilityLevel 14 CompressObjects Tags CompressPages true ConvertImagesToIndexed true PassThroughJPEGImages true CreateJDFFile false CreateJobTicket false DefaultRenderingIntent Default DetectBlends true DetectCurves 00000 ColorConversionStrategy LeaveColorUnchanged DoThumbnails false EmbedAllFonts true EmbedOpenType false ParseICCProfilesInComments true EmbedJobOptions true DSCReportingLevel 0 EmitDSCWarnings false EndPage -1 ImageMemory 1048576 LockDistillerParams true MaxSubsetPct 100 Optimize true OPM 1 ParseDSCComments true ParseDSCCommentsForDocInfo true PreserveCopyPage true PreserveDICMYKValues true PreserveEPSInfo true PreserveFlatness true PreserveHalftoneInfo false PreserveOPIComments true PreserveOverprintSettings true StartPage 1 SubsetFonts true TransferFunctionInfo Apply UCRandBGInfo Preserve UsePrologue false ColorSettingsFile () AlwaysEmbed [ true Algerian Arial-Black Arial-BoldItalicMT Arial-BoldMT Arial-ItalicMT ArialMT ArialNarrow ArialNarrow-Bold ArialNarrow-BoldItalic ArialNarrow-Italic BaskOldFace Bauhaus93 BellMT BellMTBold BellMTItalic BerlinSansFB-Bold BerlinSansFBDemi-Bold BerlinSansFB-Reg BernardMT-Condensed BodoniMTPosterCompressed BookAntiqua BookAntiqua-Bold BookAntiqua-BoldItalic BookAntiqua-Italic BookmanOldStyle BookmanOldStyle-Bold BookmanOldStyle-BoldItalic BookmanOldStyle-Italic BookshelfSymbolSeven BritannicBold Broadway BrushScriptMT CalifornianFB-Bold CalifornianFB-Italic CalifornianFB-Reg Centaur CenturyGothic CenturyGothic-Bold CenturyGothic-BoldItalic CenturyGothic-Italic Chiller-Regular ColonnaMT ComicSansMS ComicSansMS-Bold CooperBlack CourierNewPS-BoldItalicMT CourierNewPS-BoldMT CourierNewPS-ItalicMT CourierNewPSMT EstrangeloEdessa EXTRAAPLNew-Regular EXTRAOIANew-Regular FootlightMTLight FranklinGothic-Medium FranklinGothic-MediumItalic FreestyleScript-Regular Garamond Garamond-Bold Garamond-Italic Gautami Georgia Georgia-Bold Georgia-BoldItalic Georgia-Italic HarlowSolid Harrington HighTowerText-Italic HighTowerText-Reg Impact InformalRoman-Regular Jokerman-Regular JuiceITC-Regular Kartika KristenITC-Regular KunstlerScript Latha LatinWide LucidaATTMSpecial LucidaBright LucidaBright-Demi LucidaBright-DemiItalic LucidaBright-Italic LucidaCalligraphy-Italic LucidaConsole LucidaFax LucidaFax-Demi LucidaFax-DemiItalic LucidaFax-Italic LucidaforAttachmate LucidaHandwriting-Italic LucidaSans LucidaSans-Demi LucidaSans-DemiItalic LucidaSans-Italic LucidaSansUnicode Magneto-Bold Mangal-Regular MaturaMTScriptCapitals MicrosoftSansSerif Mistral Modern-Regular Monospace821BT-Roman MonotypeCorsiva MSOutlook MSReferenceSansSerif MSReferenceSpecialty MVBoli NiagaraEngraved-Reg NiagaraSolid-Reg OldEnglishTextMT Onyx PalatinoLinotype-Bold PalatinoLinotype-BoldItalic PalatinoLinotype-Italic PalatinoLinotype-Roman Parchment-Regular Playbill PoorRichard-Regular Raavi Ravie ShowcardGothic-Reg Shruti SnapITC-Regular Stencil Sylfaen SymbolMT Tahoma Tahoma-Bold TempusSansITC TimesNewRomanPS-BoldItalicMT TimesNewRomanPS-BoldMT TimesNewRomanPS-ItalicMT TimesNewRomanPSMT Trebuchet-BoldItalic TrebuchetMS TrebuchetMS-Bold TrebuchetMS-Italic Tunga-Regular Verdana Verdana-Bold Verdana-BoldItalic Verdana-Italic VinerHandITC Vivaldii VladimirScript Vrinda Webdings Wingdings2 Wingdings3 Wingdings-Regular ZWAdobeF ] NeverEmbed [ true ] AntiAliasColorImages false CropColorImages true ColorImageMinResolution 300 ColorImageMinResolutionPolicy OK DownsampleColorImages true ColorImageDownsampleType Bicubic ColorImageResolution 300 ColorImageDepth -1 ColorImageMinDownsampleDepth 1 ColorImageDownsampleThreshold 150000 EncodeColorImages false ColorImageFilter DCTEncode AutoFilterColorImages true ColorImageAutoFilterStrategy JPEG ColorACSImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt ColorImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000ColorACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000ColorImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasGrayImages false CropGrayImages true GrayImageMinResolution 300 GrayImageMinResolutionPolicy OK DownsampleGrayImages true GrayImageDownsampleType Bicubic GrayImageResolution 300 GrayImageDepth -1 GrayImageMinDownsampleDepth 2 GrayImageDownsampleThreshold 150000 EncodeGrayImages false GrayImageFilter DCTEncode AutoFilterGrayImages true GrayImageAutoFilterStrategy JPEG GrayACSImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt GrayImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000GrayACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000GrayImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasMonoImages false CropMonoImages true MonoImageMinResolution 1200 MonoImageMinResolutionPolicy OK DownsampleMonoImages true MonoImageDownsampleType Bicubic MonoImageResolution 1200 MonoImageDepth -1 MonoImageDownsampleThreshold 150000 EncodeMonoImages false MonoImageFilter CCITTFaxEncode MonoImageDict ltlt K -1 gtgt AllowPSXObjects false CheckCompliance [ None ] PDFX1aCheck false PDFX3Check false PDFXCompliantPDFOnly false PDFXNoTrimBoxError true PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile (None) PDFXOutputConditionIdentifier () PDFXOutputCondition () PDFXRegistryName () PDFXTrapped False Description ltlt CHS 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 DEU 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 ESP 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 FRA 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 ITA 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ltFEFF9ad854c18cea306a30d730ea30d730ec30b951fa529b7528002000410064006f0062006500200050004400460020658766f8306e4f5c6210306b4f7f75283057307e305930023053306e8a2d5b9a30674f5c62103055308c305f0020005000440046002030d530a130a430eb306f3001004100630072006f0062006100740020304a30883073002000410064006f00620065002000520065006100640065007200200035002e003000204ee5964d3067958b304f30533068304c3067304d307e305930023053306e8a2d5b9a306b306f30d530a930f330c8306e57cb30818fbc307f304c5fc59808306730593002gt KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020ace0d488c9c80020c2dcd5d80020c778c1c4c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200035002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor prepress-afdrukken van hoge kwaliteit De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 50 en hoger) NOR ltFEFF004200720075006b00200064006900730073006500200069006e006e007300740069006c006c0069006e00670065006e0065002000740069006c002000e50020006f0070007000720065007400740065002000410064006f006200650020005000440046002d0064006f006b0075006d0065006e00740065007200200073006f006d00200065007200200062006500730074002000650067006e0065007400200066006f00720020006600f80072007400720079006b006b0073007500740073006b00720069006600740020006100760020006800f800790020006b00760061006c0069007400650074002e0020005000440046002d0064006f006b0075006d0065006e00740065006e00650020006b0061006e002000e50070006e00650073002000690020004100630072006f00620061007400200065006c006c00650072002000410064006f00620065002000520065006100640065007200200035002e003000200065006c006c00650072002000730065006e006500720065002egt PTB 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 SUO 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 SVE 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 ENU (Use these settings to create Adobe PDF documents best suited for high-quality prepress printing Created PDF documents can be opened with Acrobat and Adobe Reader 50 and later) gtgt Namespace [ 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          1. To
          2. Date
          3. Re
          4. From
          5. AT THE REQUEST OF
          6. Sender
          7. Address
          8. Telephone
          9. Brief description of professional services materials or equipment provided or to be provided
          10. 1
          11. 2
          12. 3
          13. reg no
          14. deposit $
          15. expiration date
          16. claims up to $
          17. Reset

The general nature of the professional services provided is The owner or reputed owner of the real property is

(Signature)

(Name of Claimant)

(Street Address)

(City State Zip Code)

(Phone Number)

(6) A lien authorized by this chapter shall not be enforced unless the lien claimant has complied with the applicable provisions of this section

6004041 Contractor registration

A contractor or subcontractor required to be registered under chapter 1827 RCW or licensed under chapter 1928 RCW or otherwise required to be registered or licensed by law shall be deemed the construction agent of the owner for the purposes of establishing the lien created by this chapter only if so registered or licensed Persons dealing with contractors or subcontractors may rely for the purposes of this section upon a certificate of registration issued pursuant to chapter 1827 RCW or license issued pursuant to chapter 1928 RCW or other certificate or license issued pursuant to law covering the period when the labor professional services material or equipment shall be furnished and the lien rights shall not be lost by suspension or revocation of registration or license without their knowledge No lien rights described in this

CCBA Nuts amp Bolts on Construction Law - 39 of 49

chapter shall be lost or denied by virtue of the absence suspension or revocation of such registration or license with respect to any contractor or subcontractor not in immediate contractual privity with the lien claimant

6004081 Frivolous claim mdash Procedure

(1) Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who believes the claim of lien to be frivolous and made without reasonable cause or clearly excessive may apply by motion to the superior court for the county where the property or some part thereof is located for an order directing the lien claimant to appear before the court at a time no earlier than six nor later than fifteen days following the date of service of the application and order on the lien claimant and show cause if any he or she has why the relief requested should not be granted The motion shall state the grounds upon which relief is asked and shall be supported by the affidavit of the applicant or his or her attorney setting forth a concise statement of the facts upon which the motion is based (2) The order shall clearly state that if the lien claimant fails to appear at the time and place noted the lien shall be released with prejudice and that the lien claimant shall be ordered to pay the costs requested by the applicant including reasonable attorneys fees (3) If no action to foreclose the lien claim has been filed the clerk of the court shall assign a cause number to the application and obtain from the applicant a filing fee pursuant to RCW 3618016 If an action has been filed to foreclose the lien claim the application shall be made a part of that action (4) If following a hearing on the matter the court determines that the lien is frivolous and made without reasonable cause or clearly excessive the court shall issue an order releasing the lien if frivolous and made without reasonable cause or reducing the lien if clearly excessive and awarding costs and reasonable attorneys fees to the applicant to be paid by the lien claimant If the court determines that the lien is not frivolous and was made with reasonable cause and is not clearly excessive the court shall issue an order so stating and awarding costs and reasonable attorneys fees to the lien claimant to be paid by the applicant (5) Proceedings under this section shall not affect other rights and remedies available to the parties under this chapter or otherwise

6004091 Recording mdash Time mdash Contents of lien

Every person claiming a lien under RCW 6004021 shall file for recording in the county where the subject property is located a notice of claim of lien not later than ninety days after the person

CCBA Nuts amp Bolts on Construction Law - 40 of 49

has ceased to furnish labor professional services materials or equipment or the last date on which employee benefit contributions were due The notice of claim of lien (1) Shall state in substance and effect (a) The name phone number and address of the claimant (b) The first and last date on which the labor professional services materials or equipment was furnished or employee benefit contributions were due (c) The name of the person indebted to the claimant (d) The street address legal description or other description reasonably calculated to identify for a person familiar with the area the location of the real property to be charged with the lien (e) The name of the owner or reputed owner of the property if known and if not known that fact shall be stated and (f) The principal amount for which the lien is claimed (2) Shall be signed by the claimant or some person authorized to act on his or her behalf who shall affirmatively state they have read the notice of claim of lien and believe the notice of claim of lien to be true and correct under penalty of perjury and shall be acknowledged pursuant to chapter 6408 RCW If the lien has been assigned the name of the assignee shall be stated Where an action to foreclose the lien has been commenced such notice of claim of lien may be amended as pleadings may be by order of the court insofar as the interests of third parties are not adversely affected by such amendment A claim of lien substantially in the following form shall be sufficient

CLAIM OF LIEN

claimant vs name of person indebted to claimant

Notice is hereby given that the person named below claims a lien pursuant to chapter 6404 RCW In support of this lien the following information is submitted

1 NAME OF LIEN CLAIMANT

TELEPHONE NUMBER

CCBA Nuts amp Bolts on Construction Law - 41 of 49

ADDRESS

2 DATE ON WHICH THE CLAIMANT BEGAN TO PERFORM LABOR PROVIDE PROFESSIONAL SERVICES SUPPLY MATERIAL OR EQUIPMENT OR THE DATE ON WHICH EMPLOYEE BENEFIT CONTRIBUTIONS BECAME DUE

3 NAME OF PERSON INDEBTED TO THE CLAIMANT

4 DESCRIPTION OF THE PROPERTY AGAINST WHICH A LIEN IS CLAIMED (Street address legal description or other information that will reasonably describe the property)

5 NAME OF THE OWNER OR REPUTED OWNER (If not known state unknown)

6 THE LAST DATE ON WHICH LABOR WAS PERFORMED PROFESSIONAL SERVICES WERE FURNISHED CONTRIBUTIONS TO AN EMPLOYEE BENEFIT PLAN WERE DUE OR MATERIAL OR EQUIPMENT WAS FURNISHED

7 PRINCIPAL AMOUNT FOR WHICH THE LIEN IS CLAIMED IS

8 IF THE CLAIMANT IS THE ASSIGNEE OF THIS CLAIM SO STATE HERE

Claimant

(Phone number address city

CCBA Nuts amp Bolts on Construction Law - 42 of 49

and

state of claimant)

STATE OF WASHINGTON COUNTY OF ss being sworn says I am the claimant (or attorney of the claimant or administrator representative or agent of the trustees of an employee benefit plan) above named I have read or heard the foregoing claim read and know the contents thereof and believe the same to be true and correct and that the claim of lien is not frivolous and is made with reasonable cause and is not clearly excessive under penalty of perjury Subscribed and sworn to before me this day of The period provided for recording the claim of lien is a period of limitation and no action to foreclose a lien shall be maintained unless the claim of lien is filed for recording within the ninety-day period stated The lien claimant shall give a copy of the claim of lien to the owner or reputed owner by mailing it by certified or registered mail or by personal service within fourteen days of the time the claim of lien is filed for recording Failure to do so results in a forfeiture of any right the claimant may have to attorneys fees and costs against the owner under RCW 6004181

6004161 Bond in lieu of claim

Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who disputes the correctness or validity of the claim of lien may record either before or after the commencement of an action to enforce the lien in the office of the county recorder or auditor in the county where the claim of lien was recorded a bond issued by a surety company authorized to issue surety bonds in the state The surety shall be listed in the latest federal department of the treasury list of surety companies acceptable on federal bonds published in the Federal Register as authorized to issue bonds on United States government projects with an underwriting limitation including applicable reinsurance equal to or greater than the amount of the bond to be recorded The bond shall contain a description of the claim of lien and real property involved and be in an amount equal to the greater of five thousand dollars or two times the amount of the lien claimed if it is ten thousand dollars or less and in an amount equal to or greater than one and one-half times the amount of the lien if it is in

CCBA Nuts amp Bolts on Construction Law - 43 of 49

excess of ten thousand dollars If the claim of lien affects more than one parcel of real property and is segregated to each parcel the bond may be segregated the same as in the claim of lien A separate bond shall be required for each claim of lien made by separate claimants However a single bond may be used to guarantee payment of amounts claimed by more than one claim of lien by a single claimant so long as the amount of the bond meets the requirements of this section as applied to the aggregate sum of all claims by such claimant The condition of the bond shall be to guarantee payment of any judgment upon the lien in favor of the lien claimant entered in any action to recover the amount claimed in a claim of lien or on the claim asserted in the claim of lien The effect of recording a bond shall be to release the real property described in the notice of claim of lien from the lien and any action brought to recover the amount claimed Unless otherwise prohibited by law if no action is commenced to recover on a lien within the time specified in RCW 6004141 the surety shall be discharged from liability under the bond If an action is timely commenced then on payment of any judgment entered in the action or on payment of the full amount of the bond to the holder of the judgment whichever is less the surety shall be discharged from liability under the bond Nothing in this section shall in any way prohibit or limit the use of other methods devised by the affected parties to secure the obligation underlying a claim of lien and to obtain a release of real property from a claim of lien

6004181 Rank of lien mdash Application of proceeds mdash Attorneys fees

(1) In every case in which different construction liens are claimed against the same property the court shall declare the rank of such lien or class of liens which liens shall be in the following order (a) Liens for the performance of labor (b) Liens for contributions owed to employee benefit plans (c) Liens for furnishing material supplies or equipment (d) Liens for subcontractors including but not limited to their labor and materials and (e) Liens for prime contractors or for professional services (2) The proceeds of the sale of property must be applied to each lien or class of liens in order of its rank and in an action brought to foreclose a lien pro rata among each claimant in each separate priority class A personal judgment may be rendered against any party personally liable for any debt for which the lien is claimed If the lien is established the judgment shall provide

CCBA Nuts amp Bolts on Construction Law - 44 of 49

for the enforcement thereof upon the property liable as in the case of foreclosure of judgment liens The amount realized by such enforcement of the lien shall be credited upon the proper personal judgment The deficiency if any remaining unsatisfied shall stand as a personal judgment and may be collected by execution against any party liable therefor (3) The court may allow the prevailing party in the action whether plaintiff or defendant as part of the costs of the action the moneys paid for recording the claim of lien costs of title report bond costs and attorneys fees and necessary expenses incurred by the attorney in the superior court court of appeals supreme court or arbitration as the court or arbitrator deems reasonable Such costs shall have the priority of the class of lien to which they are related as established by subsection (1) of this section (4) Real property against which a lien under this chapter is enforced may be ordered sold by the court and the proceeds deposited into the registry of the clerk of the court pending further determination respecting distribution of the proceeds of the sale

6004900 Liberal construction mdash 1991 c 281

RCW 1927095 6004230 and 6004011 through 6004226 and 6004261 are to be liberally construed to provide security for all parties intended to be protected by their provisions

RCW 6028011

Retained percentage mdash Public transportation projects mdash Labor and material lien created mdash Bond in lieu of retained funds mdash Termination before completion mdash Chapter deemed exclusive mdash Release of ferry contract payments mdash Projects of farmers home administration mdash General contractorconstruction manager procedure mdash Definitions

(1)(a) Except as provided in (b) of this subsection public improvement contracts must provide and public bodies must reserve a contract retainage not to exceed five percent of the moneys earned by the contractor as a trust fund for the protection and payment of (i) The claims of any person arising under the contract and (ii) the state with respect to taxes increases and penalties imposed pursuant to Titles 50 51 and 82 RCW which may be due from such contractor (b) Public improvement contracts funded in whole or in part by federal transportation funds must rely upon the contract bond as referred to in chapter 3908 RCW for the protection and payment of (i) The claims of any person or persons arising under the contract to the extent such claims are provided for in RCW 3908010 and (ii) the state with respect to taxes increases and penalties incurred on the public improvement project under Titles 50 51 and 82 RCW which may be due The contract bond must remain in full force and effect until at a minimum all claims filed in compliance with chapter 3908 RCW are resolved

CCBA Nuts amp Bolts on Construction Law - 45 of 49

(2) Every person performing labor or furnishing supplies toward the completion of a public improvement contract has a lien upon moneys reserved by a public body under the provisions of a public improvement contract However the notice of the lien of the claimant must be given within forty-five days of completion of the contract work and in the manner provided in RCW 3908030 (3) The contractor at any time may request the contract retainage be reduced to one hundred percent of the value of the work remaining on the project (a) After completion of all contract work other than landscaping the contractor may request that the public body release and pay in full the amounts retained during the performance of the contract and sixty days thereafter the public body must release and pay in full the amounts retained (other than continuing retention of five percent of the moneys earned for landscaping) subject to the provisions of chapters 3912 and 6028 RCW (b) Sixty days after completion of all contract work the public body must release and pay in full the amounts retained during the performance of the contract subject to the provisions of chapters 3912 and 6028 RCW (4) The moneys reserved by a public body under the provisions of a public improvement contract at the option of the contractor must be (a) Retained in a fund by the public body (b) Deposited by the public body in an interest bearing account in a bank mutual savings bank or savings and loan association Interest on moneys reserved by a public body under the provision of a public improvement contract must be paid to the contractor (c) Placed in escrow with a bank or trust company by the public body When the moneys reserved are placed in escrow the public body must issue a check representing the sum of the moneys reserved payable to the bank or trust company and the contractor jointly This check must be converted into bonds and securities chosen by the contractor and approved by the public body and the bonds and securities must be held in escrow Interest on the bonds and securities must be paid to the contractor as the interest accrues (5) The contractor or subcontractor may withhold payment of not more than five percent from the moneys earned by any subcontractor or sub-subcontractor or supplier contracted with by the contractor to provide labor materials or equipment to the public project Whenever the contractor or subcontractor reserves funds earned by a subcontractor or sub-subcontractor or

CCBA Nuts amp Bolts on Construction Law - 46 of 49

supplier the contractor or subcontractor must pay interest to the subcontractor or sub-subcontractor or supplier at a rate equal to that received by the contractor or subcontractor from reserved funds (6) A contractor may submit a bond for all or any portion of the contract retainage in a form acceptable to the public body and from a bonding company meeting standards established by the public body The public body must accept a bond meeting these requirements unless the public body can demonstrate good cause for refusing to accept it This bond and any proceeds therefrom are subject to all claims and liens and in the same manner and priority as set forth for retained percentages in this chapter The public body must release the bonded portion of the retained funds to the contractor within thirty days of accepting the bond from the contractor Whenever a public body accepts a bond in lieu of retained funds from a contractor the contractor must accept like bonds from any subcontractors or suppliers from which the contractor has retained funds The contractor must then release the funds retained from the subcontractor or supplier to the subcontractor or supplier within thirty days of accepting the bond from the subcontractor or supplier (7) If the public body administering a contract after a substantial portion of the work has been completed finds that an unreasonable delay will occur in the completion of the remaining portion of the contract for any reason not the result of a breach thereof it may if the contractor agrees delete from the contract the remaining work and accept as final the improvement at the stage of completion then attained and make payment in proportion to the amount of the work accomplished and in this case any amounts retained and accumulated under this section must be held for a period of sixty days following the completion In the event that the work is terminated before final completion as provided in this section the public body may thereafter enter into a new contract with the same contractor to perform the remaining work or improvement for an amount equal to or less than the cost of the remaining work as was provided for in the original contract without advertisement or bid The provisions of this chapter are exclusive and supersede all provisions and regulations in conflict herewith (8) Whenever the department of transportation has contracted for the construction of two or more ferry vessels sixty days after completion of all contract work on each ferry vessel the department must release and pay in full the amounts retained in connection with the construction of the vessel subject to the provisions of RCW 6028021 and chapter 3912 RCW However the department of transportation may at its discretion condition the release of funds retained in connection with the completed ferry upon the contractor delivering a good and sufficient bond with two or more sureties or with a surety company in the amount of the retained funds to be released to the contractor conditioned that no taxes may be certified or claims filed for work on the ferry after a period of sixty days following completion of the ferry and if taxes are certified or claims filed recovery may be had on the bond by the department of revenue the employment

CCBA Nuts amp Bolts on Construction Law - 47 of 49

security department the department of labor and industries and the material suppliers and laborers filing claims (9) Except as provided in subsection (1) of this section reservation by a public body for any purpose from the moneys earned by a contractor by fulfilling its responsibilities under public improvement contracts is prohibited (10) Contracts on projects funded in whole or in part by farmers home administration and subject to farmers home administration regulations are not subject to subsections (1) through (9) of this section (11) This subsection applies only to a public body that has contracted for the construction of a facility using the general contractorconstruction manager procedure as defined under RCW 3910210 If the work performed by a subcontractor on the project has been completed within the first half of the time provided in the general contractorconstruction manager contract for completing the work the public body may accept the completion of the subcontract The public body must give public notice of this acceptance After a forty-five day period for giving notice of liens and compliance with the retainage release procedures in RCW 6028021 the public body may release that portion of the retained funds associated with the subcontract Claims against the retained funds after the forty-five day period are not valid (12) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise (a) Contract retainage means an amount reserved by a public body from the moneys earned by a person under a public improvement contract (b) Person means a person or persons mechanic subcontractor or materialperson who performs labor or provides materials for a public improvement contract and any other person who supplies the person with provisions or supplies for the carrying on of a public improvement contract (c) Public body means the state or a county city town district board or other public body (d) Public improvement contract means a contract for public improvements or work other than for professional services or a work order as defined in RCW 3910210

CCBA Nuts amp Bolts on Construction Law - 48 of 49

RCW 6432070 Liens or encumbrances mdash Enforcement mdash Satisfaction

(1) Subsequent to recording the declaration as provided in this chapter and while the property remains subject to this chapter no lien shall thereafter arise or be effective against the property During such period liens or encumbrances shall arise or be created only against each apartment and the percentage of undivided interest in the common areas and facilities and appurtenant to such apartment in the same manner and under the same conditions in every respect as liens or encumbrances may arise or be created upon or against any other separate parcel of real property subject to individual ownership PROVIDED That no labor performed or materials furnished with the consent of or at the request of the owner of any apartment or such owners agent contractor or subcontractor shall be the basis for the filing of a lien against any other apartment or any other property of any other apartment owner not expressly consenting to or requesting the same except that such express consent shall be deemed to be given by any apartment owner in the case of emergency repairs Labor performed or materials furnished for the common areas and facilities if authorized by the association of apartment owners the manager or board of directors shall be deemed to be performed or furnished with the express consent of each apartment owner and shall be the basis for the filing of a lien against each of the apartments and shall be subject to the provisions of subsection (2) of this section (2) In the event a lien against two or more apartments becomes effective the apartment owners of the separate apartments may remove their apartment and the percentage of undivided interest in the common areas and facilities appurtenant to such apartment from the lien by payment of the fractional or proportional amounts attributable to each of the apartments affected Such individual payments shall be computed by reference to the percentages appearing on the declaration Subsequent to any such payment discharge or satisfaction the apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto shall thereafter be free and clear of the liens so paid satisfied or discharged Such partial payment satisfaction or discharge shall not prevent the lienor from proceeding to enforce his or her rights against any apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto not so paid satisfied or discharged

CCBA Nuts amp Bolts on Construction Law - 49 of 49

  • Cover Sheet
  • 20141110 - Washington Lien and Bond CLE
  • LampI Lien Summary
  • Claim of Lien
  • Form Notice to Owner
  • Model Disclosure Statement (Notice to Customer)
  • LampI Facts about Construction Liens
    • What you should know about contracts
    • How to protect your investment
    • For more information
      • Notice of Claim Against Bond and Retained Percentage
      • Preclaim Notice Bond amp Retained Percentage
      • Statute Handout
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geoptimaliseerd voor prepress-afdrukken van hoge kwaliteit De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 50 en hoger) NOR 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 PTB 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          1. To
          2. Date
          3. Re
          4. From
          5. AT THE REQUEST OF
          6. Sender
          7. Address
          8. Telephone
          9. Brief description of professional services materials or equipment provided or to be provided
          10. 1
          11. 2
          12. 3
          13. reg no
          14. deposit $
          15. expiration date
          16. claims up to $
          17. Reset

chapter shall be lost or denied by virtue of the absence suspension or revocation of such registration or license with respect to any contractor or subcontractor not in immediate contractual privity with the lien claimant

6004081 Frivolous claim mdash Procedure

(1) Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who believes the claim of lien to be frivolous and made without reasonable cause or clearly excessive may apply by motion to the superior court for the county where the property or some part thereof is located for an order directing the lien claimant to appear before the court at a time no earlier than six nor later than fifteen days following the date of service of the application and order on the lien claimant and show cause if any he or she has why the relief requested should not be granted The motion shall state the grounds upon which relief is asked and shall be supported by the affidavit of the applicant or his or her attorney setting forth a concise statement of the facts upon which the motion is based (2) The order shall clearly state that if the lien claimant fails to appear at the time and place noted the lien shall be released with prejudice and that the lien claimant shall be ordered to pay the costs requested by the applicant including reasonable attorneys fees (3) If no action to foreclose the lien claim has been filed the clerk of the court shall assign a cause number to the application and obtain from the applicant a filing fee pursuant to RCW 3618016 If an action has been filed to foreclose the lien claim the application shall be made a part of that action (4) If following a hearing on the matter the court determines that the lien is frivolous and made without reasonable cause or clearly excessive the court shall issue an order releasing the lien if frivolous and made without reasonable cause or reducing the lien if clearly excessive and awarding costs and reasonable attorneys fees to the applicant to be paid by the lien claimant If the court determines that the lien is not frivolous and was made with reasonable cause and is not clearly excessive the court shall issue an order so stating and awarding costs and reasonable attorneys fees to the lien claimant to be paid by the applicant (5) Proceedings under this section shall not affect other rights and remedies available to the parties under this chapter or otherwise

6004091 Recording mdash Time mdash Contents of lien

Every person claiming a lien under RCW 6004021 shall file for recording in the county where the subject property is located a notice of claim of lien not later than ninety days after the person

CCBA Nuts amp Bolts on Construction Law - 40 of 49

has ceased to furnish labor professional services materials or equipment or the last date on which employee benefit contributions were due The notice of claim of lien (1) Shall state in substance and effect (a) The name phone number and address of the claimant (b) The first and last date on which the labor professional services materials or equipment was furnished or employee benefit contributions were due (c) The name of the person indebted to the claimant (d) The street address legal description or other description reasonably calculated to identify for a person familiar with the area the location of the real property to be charged with the lien (e) The name of the owner or reputed owner of the property if known and if not known that fact shall be stated and (f) The principal amount for which the lien is claimed (2) Shall be signed by the claimant or some person authorized to act on his or her behalf who shall affirmatively state they have read the notice of claim of lien and believe the notice of claim of lien to be true and correct under penalty of perjury and shall be acknowledged pursuant to chapter 6408 RCW If the lien has been assigned the name of the assignee shall be stated Where an action to foreclose the lien has been commenced such notice of claim of lien may be amended as pleadings may be by order of the court insofar as the interests of third parties are not adversely affected by such amendment A claim of lien substantially in the following form shall be sufficient

CLAIM OF LIEN

claimant vs name of person indebted to claimant

Notice is hereby given that the person named below claims a lien pursuant to chapter 6404 RCW In support of this lien the following information is submitted

1 NAME OF LIEN CLAIMANT

TELEPHONE NUMBER

CCBA Nuts amp Bolts on Construction Law - 41 of 49

ADDRESS

2 DATE ON WHICH THE CLAIMANT BEGAN TO PERFORM LABOR PROVIDE PROFESSIONAL SERVICES SUPPLY MATERIAL OR EQUIPMENT OR THE DATE ON WHICH EMPLOYEE BENEFIT CONTRIBUTIONS BECAME DUE

3 NAME OF PERSON INDEBTED TO THE CLAIMANT

4 DESCRIPTION OF THE PROPERTY AGAINST WHICH A LIEN IS CLAIMED (Street address legal description or other information that will reasonably describe the property)

5 NAME OF THE OWNER OR REPUTED OWNER (If not known state unknown)

6 THE LAST DATE ON WHICH LABOR WAS PERFORMED PROFESSIONAL SERVICES WERE FURNISHED CONTRIBUTIONS TO AN EMPLOYEE BENEFIT PLAN WERE DUE OR MATERIAL OR EQUIPMENT WAS FURNISHED

7 PRINCIPAL AMOUNT FOR WHICH THE LIEN IS CLAIMED IS

8 IF THE CLAIMANT IS THE ASSIGNEE OF THIS CLAIM SO STATE HERE

Claimant

(Phone number address city

CCBA Nuts amp Bolts on Construction Law - 42 of 49

and

state of claimant)

STATE OF WASHINGTON COUNTY OF ss being sworn says I am the claimant (or attorney of the claimant or administrator representative or agent of the trustees of an employee benefit plan) above named I have read or heard the foregoing claim read and know the contents thereof and believe the same to be true and correct and that the claim of lien is not frivolous and is made with reasonable cause and is not clearly excessive under penalty of perjury Subscribed and sworn to before me this day of The period provided for recording the claim of lien is a period of limitation and no action to foreclose a lien shall be maintained unless the claim of lien is filed for recording within the ninety-day period stated The lien claimant shall give a copy of the claim of lien to the owner or reputed owner by mailing it by certified or registered mail or by personal service within fourteen days of the time the claim of lien is filed for recording Failure to do so results in a forfeiture of any right the claimant may have to attorneys fees and costs against the owner under RCW 6004181

6004161 Bond in lieu of claim

Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who disputes the correctness or validity of the claim of lien may record either before or after the commencement of an action to enforce the lien in the office of the county recorder or auditor in the county where the claim of lien was recorded a bond issued by a surety company authorized to issue surety bonds in the state The surety shall be listed in the latest federal department of the treasury list of surety companies acceptable on federal bonds published in the Federal Register as authorized to issue bonds on United States government projects with an underwriting limitation including applicable reinsurance equal to or greater than the amount of the bond to be recorded The bond shall contain a description of the claim of lien and real property involved and be in an amount equal to the greater of five thousand dollars or two times the amount of the lien claimed if it is ten thousand dollars or less and in an amount equal to or greater than one and one-half times the amount of the lien if it is in

CCBA Nuts amp Bolts on Construction Law - 43 of 49

excess of ten thousand dollars If the claim of lien affects more than one parcel of real property and is segregated to each parcel the bond may be segregated the same as in the claim of lien A separate bond shall be required for each claim of lien made by separate claimants However a single bond may be used to guarantee payment of amounts claimed by more than one claim of lien by a single claimant so long as the amount of the bond meets the requirements of this section as applied to the aggregate sum of all claims by such claimant The condition of the bond shall be to guarantee payment of any judgment upon the lien in favor of the lien claimant entered in any action to recover the amount claimed in a claim of lien or on the claim asserted in the claim of lien The effect of recording a bond shall be to release the real property described in the notice of claim of lien from the lien and any action brought to recover the amount claimed Unless otherwise prohibited by law if no action is commenced to recover on a lien within the time specified in RCW 6004141 the surety shall be discharged from liability under the bond If an action is timely commenced then on payment of any judgment entered in the action or on payment of the full amount of the bond to the holder of the judgment whichever is less the surety shall be discharged from liability under the bond Nothing in this section shall in any way prohibit or limit the use of other methods devised by the affected parties to secure the obligation underlying a claim of lien and to obtain a release of real property from a claim of lien

6004181 Rank of lien mdash Application of proceeds mdash Attorneys fees

(1) In every case in which different construction liens are claimed against the same property the court shall declare the rank of such lien or class of liens which liens shall be in the following order (a) Liens for the performance of labor (b) Liens for contributions owed to employee benefit plans (c) Liens for furnishing material supplies or equipment (d) Liens for subcontractors including but not limited to their labor and materials and (e) Liens for prime contractors or for professional services (2) The proceeds of the sale of property must be applied to each lien or class of liens in order of its rank and in an action brought to foreclose a lien pro rata among each claimant in each separate priority class A personal judgment may be rendered against any party personally liable for any debt for which the lien is claimed If the lien is established the judgment shall provide

CCBA Nuts amp Bolts on Construction Law - 44 of 49

for the enforcement thereof upon the property liable as in the case of foreclosure of judgment liens The amount realized by such enforcement of the lien shall be credited upon the proper personal judgment The deficiency if any remaining unsatisfied shall stand as a personal judgment and may be collected by execution against any party liable therefor (3) The court may allow the prevailing party in the action whether plaintiff or defendant as part of the costs of the action the moneys paid for recording the claim of lien costs of title report bond costs and attorneys fees and necessary expenses incurred by the attorney in the superior court court of appeals supreme court or arbitration as the court or arbitrator deems reasonable Such costs shall have the priority of the class of lien to which they are related as established by subsection (1) of this section (4) Real property against which a lien under this chapter is enforced may be ordered sold by the court and the proceeds deposited into the registry of the clerk of the court pending further determination respecting distribution of the proceeds of the sale

6004900 Liberal construction mdash 1991 c 281

RCW 1927095 6004230 and 6004011 through 6004226 and 6004261 are to be liberally construed to provide security for all parties intended to be protected by their provisions

RCW 6028011

Retained percentage mdash Public transportation projects mdash Labor and material lien created mdash Bond in lieu of retained funds mdash Termination before completion mdash Chapter deemed exclusive mdash Release of ferry contract payments mdash Projects of farmers home administration mdash General contractorconstruction manager procedure mdash Definitions

(1)(a) Except as provided in (b) of this subsection public improvement contracts must provide and public bodies must reserve a contract retainage not to exceed five percent of the moneys earned by the contractor as a trust fund for the protection and payment of (i) The claims of any person arising under the contract and (ii) the state with respect to taxes increases and penalties imposed pursuant to Titles 50 51 and 82 RCW which may be due from such contractor (b) Public improvement contracts funded in whole or in part by federal transportation funds must rely upon the contract bond as referred to in chapter 3908 RCW for the protection and payment of (i) The claims of any person or persons arising under the contract to the extent such claims are provided for in RCW 3908010 and (ii) the state with respect to taxes increases and penalties incurred on the public improvement project under Titles 50 51 and 82 RCW which may be due The contract bond must remain in full force and effect until at a minimum all claims filed in compliance with chapter 3908 RCW are resolved

CCBA Nuts amp Bolts on Construction Law - 45 of 49

(2) Every person performing labor or furnishing supplies toward the completion of a public improvement contract has a lien upon moneys reserved by a public body under the provisions of a public improvement contract However the notice of the lien of the claimant must be given within forty-five days of completion of the contract work and in the manner provided in RCW 3908030 (3) The contractor at any time may request the contract retainage be reduced to one hundred percent of the value of the work remaining on the project (a) After completion of all contract work other than landscaping the contractor may request that the public body release and pay in full the amounts retained during the performance of the contract and sixty days thereafter the public body must release and pay in full the amounts retained (other than continuing retention of five percent of the moneys earned for landscaping) subject to the provisions of chapters 3912 and 6028 RCW (b) Sixty days after completion of all contract work the public body must release and pay in full the amounts retained during the performance of the contract subject to the provisions of chapters 3912 and 6028 RCW (4) The moneys reserved by a public body under the provisions of a public improvement contract at the option of the contractor must be (a) Retained in a fund by the public body (b) Deposited by the public body in an interest bearing account in a bank mutual savings bank or savings and loan association Interest on moneys reserved by a public body under the provision of a public improvement contract must be paid to the contractor (c) Placed in escrow with a bank or trust company by the public body When the moneys reserved are placed in escrow the public body must issue a check representing the sum of the moneys reserved payable to the bank or trust company and the contractor jointly This check must be converted into bonds and securities chosen by the contractor and approved by the public body and the bonds and securities must be held in escrow Interest on the bonds and securities must be paid to the contractor as the interest accrues (5) The contractor or subcontractor may withhold payment of not more than five percent from the moneys earned by any subcontractor or sub-subcontractor or supplier contracted with by the contractor to provide labor materials or equipment to the public project Whenever the contractor or subcontractor reserves funds earned by a subcontractor or sub-subcontractor or

CCBA Nuts amp Bolts on Construction Law - 46 of 49

supplier the contractor or subcontractor must pay interest to the subcontractor or sub-subcontractor or supplier at a rate equal to that received by the contractor or subcontractor from reserved funds (6) A contractor may submit a bond for all or any portion of the contract retainage in a form acceptable to the public body and from a bonding company meeting standards established by the public body The public body must accept a bond meeting these requirements unless the public body can demonstrate good cause for refusing to accept it This bond and any proceeds therefrom are subject to all claims and liens and in the same manner and priority as set forth for retained percentages in this chapter The public body must release the bonded portion of the retained funds to the contractor within thirty days of accepting the bond from the contractor Whenever a public body accepts a bond in lieu of retained funds from a contractor the contractor must accept like bonds from any subcontractors or suppliers from which the contractor has retained funds The contractor must then release the funds retained from the subcontractor or supplier to the subcontractor or supplier within thirty days of accepting the bond from the subcontractor or supplier (7) If the public body administering a contract after a substantial portion of the work has been completed finds that an unreasonable delay will occur in the completion of the remaining portion of the contract for any reason not the result of a breach thereof it may if the contractor agrees delete from the contract the remaining work and accept as final the improvement at the stage of completion then attained and make payment in proportion to the amount of the work accomplished and in this case any amounts retained and accumulated under this section must be held for a period of sixty days following the completion In the event that the work is terminated before final completion as provided in this section the public body may thereafter enter into a new contract with the same contractor to perform the remaining work or improvement for an amount equal to or less than the cost of the remaining work as was provided for in the original contract without advertisement or bid The provisions of this chapter are exclusive and supersede all provisions and regulations in conflict herewith (8) Whenever the department of transportation has contracted for the construction of two or more ferry vessels sixty days after completion of all contract work on each ferry vessel the department must release and pay in full the amounts retained in connection with the construction of the vessel subject to the provisions of RCW 6028021 and chapter 3912 RCW However the department of transportation may at its discretion condition the release of funds retained in connection with the completed ferry upon the contractor delivering a good and sufficient bond with two or more sureties or with a surety company in the amount of the retained funds to be released to the contractor conditioned that no taxes may be certified or claims filed for work on the ferry after a period of sixty days following completion of the ferry and if taxes are certified or claims filed recovery may be had on the bond by the department of revenue the employment

CCBA Nuts amp Bolts on Construction Law - 47 of 49

security department the department of labor and industries and the material suppliers and laborers filing claims (9) Except as provided in subsection (1) of this section reservation by a public body for any purpose from the moneys earned by a contractor by fulfilling its responsibilities under public improvement contracts is prohibited (10) Contracts on projects funded in whole or in part by farmers home administration and subject to farmers home administration regulations are not subject to subsections (1) through (9) of this section (11) This subsection applies only to a public body that has contracted for the construction of a facility using the general contractorconstruction manager procedure as defined under RCW 3910210 If the work performed by a subcontractor on the project has been completed within the first half of the time provided in the general contractorconstruction manager contract for completing the work the public body may accept the completion of the subcontract The public body must give public notice of this acceptance After a forty-five day period for giving notice of liens and compliance with the retainage release procedures in RCW 6028021 the public body may release that portion of the retained funds associated with the subcontract Claims against the retained funds after the forty-five day period are not valid (12) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise (a) Contract retainage means an amount reserved by a public body from the moneys earned by a person under a public improvement contract (b) Person means a person or persons mechanic subcontractor or materialperson who performs labor or provides materials for a public improvement contract and any other person who supplies the person with provisions or supplies for the carrying on of a public improvement contract (c) Public body means the state or a county city town district board or other public body (d) Public improvement contract means a contract for public improvements or work other than for professional services or a work order as defined in RCW 3910210

CCBA Nuts amp Bolts on Construction Law - 48 of 49

RCW 6432070 Liens or encumbrances mdash Enforcement mdash Satisfaction

(1) Subsequent to recording the declaration as provided in this chapter and while the property remains subject to this chapter no lien shall thereafter arise or be effective against the property During such period liens or encumbrances shall arise or be created only against each apartment and the percentage of undivided interest in the common areas and facilities and appurtenant to such apartment in the same manner and under the same conditions in every respect as liens or encumbrances may arise or be created upon or against any other separate parcel of real property subject to individual ownership PROVIDED That no labor performed or materials furnished with the consent of or at the request of the owner of any apartment or such owners agent contractor or subcontractor shall be the basis for the filing of a lien against any other apartment or any other property of any other apartment owner not expressly consenting to or requesting the same except that such express consent shall be deemed to be given by any apartment owner in the case of emergency repairs Labor performed or materials furnished for the common areas and facilities if authorized by the association of apartment owners the manager or board of directors shall be deemed to be performed or furnished with the express consent of each apartment owner and shall be the basis for the filing of a lien against each of the apartments and shall be subject to the provisions of subsection (2) of this section (2) In the event a lien against two or more apartments becomes effective the apartment owners of the separate apartments may remove their apartment and the percentage of undivided interest in the common areas and facilities appurtenant to such apartment from the lien by payment of the fractional or proportional amounts attributable to each of the apartments affected Such individual payments shall be computed by reference to the percentages appearing on the declaration Subsequent to any such payment discharge or satisfaction the apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto shall thereafter be free and clear of the liens so paid satisfied or discharged Such partial payment satisfaction or discharge shall not prevent the lienor from proceeding to enforce his or her rights against any apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto not so paid satisfied or discharged

CCBA Nuts amp Bolts on Construction Law - 49 of 49

  • Cover Sheet
  • 20141110 - Washington Lien and Bond CLE
  • LampI Lien Summary
  • Claim of Lien
  • Form Notice to Owner
  • Model Disclosure Statement (Notice to Customer)
  • LampI Facts about Construction Liens
    • What you should know about contracts
    • How to protect your investment
    • For more information
      • Notice of Claim Against Bond and Retained Percentage
      • Preclaim Notice Bond amp Retained Percentage
      • Statute Handout
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 ESP 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 ITA 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geoptimaliseerd voor prepress-afdrukken van hoge kwaliteit De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 50 en hoger) NOR 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 PTB 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 SVE 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(Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false ConvertColors ConvertToCMYK DestinationProfileName () DestinationProfileSelector DocumentCMYK Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles false MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector DocumentCMYK PreserveEditing true UntaggedCMYKHandling LeaveUntagged UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ]gtgt setdistillerparamsltlt HWResolution [2400 2400] PageSize [612000 792000]gtgt setpagedevice

          1. To
          2. Date
          3. Re
          4. From
          5. AT THE REQUEST OF
          6. Sender
          7. Address
          8. Telephone
          9. Brief description of professional services materials or equipment provided or to be provided
          10. 1
          11. 2
          12. 3
          13. reg no
          14. deposit $
          15. expiration date
          16. claims up to $
          17. Reset

has ceased to furnish labor professional services materials or equipment or the last date on which employee benefit contributions were due The notice of claim of lien (1) Shall state in substance and effect (a) The name phone number and address of the claimant (b) The first and last date on which the labor professional services materials or equipment was furnished or employee benefit contributions were due (c) The name of the person indebted to the claimant (d) The street address legal description or other description reasonably calculated to identify for a person familiar with the area the location of the real property to be charged with the lien (e) The name of the owner or reputed owner of the property if known and if not known that fact shall be stated and (f) The principal amount for which the lien is claimed (2) Shall be signed by the claimant or some person authorized to act on his or her behalf who shall affirmatively state they have read the notice of claim of lien and believe the notice of claim of lien to be true and correct under penalty of perjury and shall be acknowledged pursuant to chapter 6408 RCW If the lien has been assigned the name of the assignee shall be stated Where an action to foreclose the lien has been commenced such notice of claim of lien may be amended as pleadings may be by order of the court insofar as the interests of third parties are not adversely affected by such amendment A claim of lien substantially in the following form shall be sufficient

CLAIM OF LIEN

claimant vs name of person indebted to claimant

Notice is hereby given that the person named below claims a lien pursuant to chapter 6404 RCW In support of this lien the following information is submitted

1 NAME OF LIEN CLAIMANT

TELEPHONE NUMBER

CCBA Nuts amp Bolts on Construction Law - 41 of 49

ADDRESS

2 DATE ON WHICH THE CLAIMANT BEGAN TO PERFORM LABOR PROVIDE PROFESSIONAL SERVICES SUPPLY MATERIAL OR EQUIPMENT OR THE DATE ON WHICH EMPLOYEE BENEFIT CONTRIBUTIONS BECAME DUE

3 NAME OF PERSON INDEBTED TO THE CLAIMANT

4 DESCRIPTION OF THE PROPERTY AGAINST WHICH A LIEN IS CLAIMED (Street address legal description or other information that will reasonably describe the property)

5 NAME OF THE OWNER OR REPUTED OWNER (If not known state unknown)

6 THE LAST DATE ON WHICH LABOR WAS PERFORMED PROFESSIONAL SERVICES WERE FURNISHED CONTRIBUTIONS TO AN EMPLOYEE BENEFIT PLAN WERE DUE OR MATERIAL OR EQUIPMENT WAS FURNISHED

7 PRINCIPAL AMOUNT FOR WHICH THE LIEN IS CLAIMED IS

8 IF THE CLAIMANT IS THE ASSIGNEE OF THIS CLAIM SO STATE HERE

Claimant

(Phone number address city

CCBA Nuts amp Bolts on Construction Law - 42 of 49

and

state of claimant)

STATE OF WASHINGTON COUNTY OF ss being sworn says I am the claimant (or attorney of the claimant or administrator representative or agent of the trustees of an employee benefit plan) above named I have read or heard the foregoing claim read and know the contents thereof and believe the same to be true and correct and that the claim of lien is not frivolous and is made with reasonable cause and is not clearly excessive under penalty of perjury Subscribed and sworn to before me this day of The period provided for recording the claim of lien is a period of limitation and no action to foreclose a lien shall be maintained unless the claim of lien is filed for recording within the ninety-day period stated The lien claimant shall give a copy of the claim of lien to the owner or reputed owner by mailing it by certified or registered mail or by personal service within fourteen days of the time the claim of lien is filed for recording Failure to do so results in a forfeiture of any right the claimant may have to attorneys fees and costs against the owner under RCW 6004181

6004161 Bond in lieu of claim

Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who disputes the correctness or validity of the claim of lien may record either before or after the commencement of an action to enforce the lien in the office of the county recorder or auditor in the county where the claim of lien was recorded a bond issued by a surety company authorized to issue surety bonds in the state The surety shall be listed in the latest federal department of the treasury list of surety companies acceptable on federal bonds published in the Federal Register as authorized to issue bonds on United States government projects with an underwriting limitation including applicable reinsurance equal to or greater than the amount of the bond to be recorded The bond shall contain a description of the claim of lien and real property involved and be in an amount equal to the greater of five thousand dollars or two times the amount of the lien claimed if it is ten thousand dollars or less and in an amount equal to or greater than one and one-half times the amount of the lien if it is in

CCBA Nuts amp Bolts on Construction Law - 43 of 49

excess of ten thousand dollars If the claim of lien affects more than one parcel of real property and is segregated to each parcel the bond may be segregated the same as in the claim of lien A separate bond shall be required for each claim of lien made by separate claimants However a single bond may be used to guarantee payment of amounts claimed by more than one claim of lien by a single claimant so long as the amount of the bond meets the requirements of this section as applied to the aggregate sum of all claims by such claimant The condition of the bond shall be to guarantee payment of any judgment upon the lien in favor of the lien claimant entered in any action to recover the amount claimed in a claim of lien or on the claim asserted in the claim of lien The effect of recording a bond shall be to release the real property described in the notice of claim of lien from the lien and any action brought to recover the amount claimed Unless otherwise prohibited by law if no action is commenced to recover on a lien within the time specified in RCW 6004141 the surety shall be discharged from liability under the bond If an action is timely commenced then on payment of any judgment entered in the action or on payment of the full amount of the bond to the holder of the judgment whichever is less the surety shall be discharged from liability under the bond Nothing in this section shall in any way prohibit or limit the use of other methods devised by the affected parties to secure the obligation underlying a claim of lien and to obtain a release of real property from a claim of lien

6004181 Rank of lien mdash Application of proceeds mdash Attorneys fees

(1) In every case in which different construction liens are claimed against the same property the court shall declare the rank of such lien or class of liens which liens shall be in the following order (a) Liens for the performance of labor (b) Liens for contributions owed to employee benefit plans (c) Liens for furnishing material supplies or equipment (d) Liens for subcontractors including but not limited to their labor and materials and (e) Liens for prime contractors or for professional services (2) The proceeds of the sale of property must be applied to each lien or class of liens in order of its rank and in an action brought to foreclose a lien pro rata among each claimant in each separate priority class A personal judgment may be rendered against any party personally liable for any debt for which the lien is claimed If the lien is established the judgment shall provide

CCBA Nuts amp Bolts on Construction Law - 44 of 49

for the enforcement thereof upon the property liable as in the case of foreclosure of judgment liens The amount realized by such enforcement of the lien shall be credited upon the proper personal judgment The deficiency if any remaining unsatisfied shall stand as a personal judgment and may be collected by execution against any party liable therefor (3) The court may allow the prevailing party in the action whether plaintiff or defendant as part of the costs of the action the moneys paid for recording the claim of lien costs of title report bond costs and attorneys fees and necessary expenses incurred by the attorney in the superior court court of appeals supreme court or arbitration as the court or arbitrator deems reasonable Such costs shall have the priority of the class of lien to which they are related as established by subsection (1) of this section (4) Real property against which a lien under this chapter is enforced may be ordered sold by the court and the proceeds deposited into the registry of the clerk of the court pending further determination respecting distribution of the proceeds of the sale

6004900 Liberal construction mdash 1991 c 281

RCW 1927095 6004230 and 6004011 through 6004226 and 6004261 are to be liberally construed to provide security for all parties intended to be protected by their provisions

RCW 6028011

Retained percentage mdash Public transportation projects mdash Labor and material lien created mdash Bond in lieu of retained funds mdash Termination before completion mdash Chapter deemed exclusive mdash Release of ferry contract payments mdash Projects of farmers home administration mdash General contractorconstruction manager procedure mdash Definitions

(1)(a) Except as provided in (b) of this subsection public improvement contracts must provide and public bodies must reserve a contract retainage not to exceed five percent of the moneys earned by the contractor as a trust fund for the protection and payment of (i) The claims of any person arising under the contract and (ii) the state with respect to taxes increases and penalties imposed pursuant to Titles 50 51 and 82 RCW which may be due from such contractor (b) Public improvement contracts funded in whole or in part by federal transportation funds must rely upon the contract bond as referred to in chapter 3908 RCW for the protection and payment of (i) The claims of any person or persons arising under the contract to the extent such claims are provided for in RCW 3908010 and (ii) the state with respect to taxes increases and penalties incurred on the public improvement project under Titles 50 51 and 82 RCW which may be due The contract bond must remain in full force and effect until at a minimum all claims filed in compliance with chapter 3908 RCW are resolved

CCBA Nuts amp Bolts on Construction Law - 45 of 49

(2) Every person performing labor or furnishing supplies toward the completion of a public improvement contract has a lien upon moneys reserved by a public body under the provisions of a public improvement contract However the notice of the lien of the claimant must be given within forty-five days of completion of the contract work and in the manner provided in RCW 3908030 (3) The contractor at any time may request the contract retainage be reduced to one hundred percent of the value of the work remaining on the project (a) After completion of all contract work other than landscaping the contractor may request that the public body release and pay in full the amounts retained during the performance of the contract and sixty days thereafter the public body must release and pay in full the amounts retained (other than continuing retention of five percent of the moneys earned for landscaping) subject to the provisions of chapters 3912 and 6028 RCW (b) Sixty days after completion of all contract work the public body must release and pay in full the amounts retained during the performance of the contract subject to the provisions of chapters 3912 and 6028 RCW (4) The moneys reserved by a public body under the provisions of a public improvement contract at the option of the contractor must be (a) Retained in a fund by the public body (b) Deposited by the public body in an interest bearing account in a bank mutual savings bank or savings and loan association Interest on moneys reserved by a public body under the provision of a public improvement contract must be paid to the contractor (c) Placed in escrow with a bank or trust company by the public body When the moneys reserved are placed in escrow the public body must issue a check representing the sum of the moneys reserved payable to the bank or trust company and the contractor jointly This check must be converted into bonds and securities chosen by the contractor and approved by the public body and the bonds and securities must be held in escrow Interest on the bonds and securities must be paid to the contractor as the interest accrues (5) The contractor or subcontractor may withhold payment of not more than five percent from the moneys earned by any subcontractor or sub-subcontractor or supplier contracted with by the contractor to provide labor materials or equipment to the public project Whenever the contractor or subcontractor reserves funds earned by a subcontractor or sub-subcontractor or

CCBA Nuts amp Bolts on Construction Law - 46 of 49

supplier the contractor or subcontractor must pay interest to the subcontractor or sub-subcontractor or supplier at a rate equal to that received by the contractor or subcontractor from reserved funds (6) A contractor may submit a bond for all or any portion of the contract retainage in a form acceptable to the public body and from a bonding company meeting standards established by the public body The public body must accept a bond meeting these requirements unless the public body can demonstrate good cause for refusing to accept it This bond and any proceeds therefrom are subject to all claims and liens and in the same manner and priority as set forth for retained percentages in this chapter The public body must release the bonded portion of the retained funds to the contractor within thirty days of accepting the bond from the contractor Whenever a public body accepts a bond in lieu of retained funds from a contractor the contractor must accept like bonds from any subcontractors or suppliers from which the contractor has retained funds The contractor must then release the funds retained from the subcontractor or supplier to the subcontractor or supplier within thirty days of accepting the bond from the subcontractor or supplier (7) If the public body administering a contract after a substantial portion of the work has been completed finds that an unreasonable delay will occur in the completion of the remaining portion of the contract for any reason not the result of a breach thereof it may if the contractor agrees delete from the contract the remaining work and accept as final the improvement at the stage of completion then attained and make payment in proportion to the amount of the work accomplished and in this case any amounts retained and accumulated under this section must be held for a period of sixty days following the completion In the event that the work is terminated before final completion as provided in this section the public body may thereafter enter into a new contract with the same contractor to perform the remaining work or improvement for an amount equal to or less than the cost of the remaining work as was provided for in the original contract without advertisement or bid The provisions of this chapter are exclusive and supersede all provisions and regulations in conflict herewith (8) Whenever the department of transportation has contracted for the construction of two or more ferry vessels sixty days after completion of all contract work on each ferry vessel the department must release and pay in full the amounts retained in connection with the construction of the vessel subject to the provisions of RCW 6028021 and chapter 3912 RCW However the department of transportation may at its discretion condition the release of funds retained in connection with the completed ferry upon the contractor delivering a good and sufficient bond with two or more sureties or with a surety company in the amount of the retained funds to be released to the contractor conditioned that no taxes may be certified or claims filed for work on the ferry after a period of sixty days following completion of the ferry and if taxes are certified or claims filed recovery may be had on the bond by the department of revenue the employment

CCBA Nuts amp Bolts on Construction Law - 47 of 49

security department the department of labor and industries and the material suppliers and laborers filing claims (9) Except as provided in subsection (1) of this section reservation by a public body for any purpose from the moneys earned by a contractor by fulfilling its responsibilities under public improvement contracts is prohibited (10) Contracts on projects funded in whole or in part by farmers home administration and subject to farmers home administration regulations are not subject to subsections (1) through (9) of this section (11) This subsection applies only to a public body that has contracted for the construction of a facility using the general contractorconstruction manager procedure as defined under RCW 3910210 If the work performed by a subcontractor on the project has been completed within the first half of the time provided in the general contractorconstruction manager contract for completing the work the public body may accept the completion of the subcontract The public body must give public notice of this acceptance After a forty-five day period for giving notice of liens and compliance with the retainage release procedures in RCW 6028021 the public body may release that portion of the retained funds associated with the subcontract Claims against the retained funds after the forty-five day period are not valid (12) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise (a) Contract retainage means an amount reserved by a public body from the moneys earned by a person under a public improvement contract (b) Person means a person or persons mechanic subcontractor or materialperson who performs labor or provides materials for a public improvement contract and any other person who supplies the person with provisions or supplies for the carrying on of a public improvement contract (c) Public body means the state or a county city town district board or other public body (d) Public improvement contract means a contract for public improvements or work other than for professional services or a work order as defined in RCW 3910210

CCBA Nuts amp Bolts on Construction Law - 48 of 49

RCW 6432070 Liens or encumbrances mdash Enforcement mdash Satisfaction

(1) Subsequent to recording the declaration as provided in this chapter and while the property remains subject to this chapter no lien shall thereafter arise or be effective against the property During such period liens or encumbrances shall arise or be created only against each apartment and the percentage of undivided interest in the common areas and facilities and appurtenant to such apartment in the same manner and under the same conditions in every respect as liens or encumbrances may arise or be created upon or against any other separate parcel of real property subject to individual ownership PROVIDED That no labor performed or materials furnished with the consent of or at the request of the owner of any apartment or such owners agent contractor or subcontractor shall be the basis for the filing of a lien against any other apartment or any other property of any other apartment owner not expressly consenting to or requesting the same except that such express consent shall be deemed to be given by any apartment owner in the case of emergency repairs Labor performed or materials furnished for the common areas and facilities if authorized by the association of apartment owners the manager or board of directors shall be deemed to be performed or furnished with the express consent of each apartment owner and shall be the basis for the filing of a lien against each of the apartments and shall be subject to the provisions of subsection (2) of this section (2) In the event a lien against two or more apartments becomes effective the apartment owners of the separate apartments may remove their apartment and the percentage of undivided interest in the common areas and facilities appurtenant to such apartment from the lien by payment of the fractional or proportional amounts attributable to each of the apartments affected Such individual payments shall be computed by reference to the percentages appearing on the declaration Subsequent to any such payment discharge or satisfaction the apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto shall thereafter be free and clear of the liens so paid satisfied or discharged Such partial payment satisfaction or discharge shall not prevent the lienor from proceeding to enforce his or her rights against any apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto not so paid satisfied or discharged

CCBA Nuts amp Bolts on Construction Law - 49 of 49

  • Cover Sheet
  • 20141110 - Washington Lien and Bond CLE
  • LampI Lien Summary
  • Claim of Lien
  • Form Notice to Owner
  • Model Disclosure Statement (Notice to Customer)
  • LampI Facts about Construction Liens
    • What you should know about contracts
    • How to protect your investment
    • For more information
      • Notice of Claim Against Bond and Retained Percentage
      • Preclaim Notice Bond amp Retained Percentage
      • Statute Handout
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geoptimaliseerd voor prepress-afdrukken van hoge kwaliteit De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 50 en hoger) NOR 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 PTB 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 SUO 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 SVE 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 ENU (Use these settings to create Adobe PDF documents best suited for high-quality prepress printing Created PDF documents can be opened with Acrobat and Adobe Reader 50 and later) gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false ConvertColors ConvertToCMYK DestinationProfileName () DestinationProfileSelector DocumentCMYK Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles false MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector DocumentCMYK PreserveEditing true UntaggedCMYKHandling LeaveUntagged UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ]gtgt setdistillerparamsltlt HWResolution [2400 2400] PageSize [612000 792000]gtgt setpagedevice

          ltlt ASCII85EncodePages false AllowTransparency false AutoPositionEPSFiles true AutoRotatePages None Binding Left CalGrayProfile (Dot Gain 20) CalRGBProfile (sRGB IEC61966-21) CalCMYKProfile (US Web Coated 050SWOP051 v2) sRGBProfile (sRGB IEC61966-21) CannotEmbedFontPolicy Warning CompatibilityLevel 14 CompressObjects Tags CompressPages true ConvertImagesToIndexed true PassThroughJPEGImages true CreateJDFFile false CreateJobTicket false DefaultRenderingIntent Default DetectBlends true DetectCurves 00000 ColorConversionStrategy LeaveColorUnchanged DoThumbnails false EmbedAllFonts true EmbedOpenType false ParseICCProfilesInComments true EmbedJobOptions true DSCReportingLevel 0 EmitDSCWarnings false EndPage -1 ImageMemory 1048576 LockDistillerParams true MaxSubsetPct 100 Optimize true OPM 1 ParseDSCComments true ParseDSCCommentsForDocInfo true PreserveCopyPage true PreserveDICMYKValues true PreserveEPSInfo true PreserveFlatness true PreserveHalftoneInfo false PreserveOPIComments true PreserveOverprintSettings true StartPage 1 SubsetFonts true TransferFunctionInfo Apply UCRandBGInfo Preserve UsePrologue false ColorSettingsFile () AlwaysEmbed [ true Algerian Arial-Black Arial-BoldItalicMT Arial-BoldMT Arial-ItalicMT ArialMT ArialNarrow ArialNarrow-Bold ArialNarrow-BoldItalic ArialNarrow-Italic BaskOldFace Bauhaus93 BellMT BellMTBold BellMTItalic BerlinSansFB-Bold BerlinSansFBDemi-Bold BerlinSansFB-Reg BernardMT-Condensed BodoniMTPosterCompressed BookAntiqua BookAntiqua-Bold BookAntiqua-BoldItalic BookAntiqua-Italic BookmanOldStyle BookmanOldStyle-Bold BookmanOldStyle-BoldItalic BookmanOldStyle-Italic BookshelfSymbolSeven BritannicBold Broadway BrushScriptMT CalifornianFB-Bold CalifornianFB-Italic CalifornianFB-Reg Centaur CenturyGothic CenturyGothic-Bold CenturyGothic-BoldItalic CenturyGothic-Italic Chiller-Regular ColonnaMT ComicSansMS ComicSansMS-Bold CooperBlack CourierNewPS-BoldItalicMT CourierNewPS-BoldMT CourierNewPS-ItalicMT CourierNewPSMT EstrangeloEdessa EXTRAAPLNew-Regular EXTRAOIANew-Regular FootlightMTLight FranklinGothic-Medium FranklinGothic-MediumItalic FreestyleScript-Regular Garamond Garamond-Bold Garamond-Italic Gautami Georgia Georgia-Bold Georgia-BoldItalic Georgia-Italic HarlowSolid Harrington HighTowerText-Italic HighTowerText-Reg Impact InformalRoman-Regular Jokerman-Regular JuiceITC-Regular Kartika KristenITC-Regular KunstlerScript Latha LatinWide LucidaATTMSpecial LucidaBright LucidaBright-Demi LucidaBright-DemiItalic LucidaBright-Italic LucidaCalligraphy-Italic LucidaConsole LucidaFax LucidaFax-Demi LucidaFax-DemiItalic LucidaFax-Italic LucidaforAttachmate LucidaHandwriting-Italic LucidaSans LucidaSans-Demi LucidaSans-DemiItalic LucidaSans-Italic LucidaSansUnicode Magneto-Bold Mangal-Regular MaturaMTScriptCapitals MicrosoftSansSerif Mistral Modern-Regular Monospace821BT-Roman MonotypeCorsiva MSOutlook MSReferenceSansSerif MSReferenceSpecialty MVBoli NiagaraEngraved-Reg NiagaraSolid-Reg OldEnglishTextMT Onyx PalatinoLinotype-Bold PalatinoLinotype-BoldItalic PalatinoLinotype-Italic PalatinoLinotype-Roman Parchment-Regular Playbill PoorRichard-Regular Raavi Ravie ShowcardGothic-Reg Shruti SnapITC-Regular Stencil Sylfaen SymbolMT Tahoma Tahoma-Bold TempusSansITC TimesNewRomanPS-BoldItalicMT TimesNewRomanPS-BoldMT TimesNewRomanPS-ItalicMT TimesNewRomanPSMT Trebuchet-BoldItalic TrebuchetMS TrebuchetMS-Bold TrebuchetMS-Italic Tunga-Regular Verdana Verdana-Bold Verdana-BoldItalic Verdana-Italic VinerHandITC Vivaldii VladimirScript Vrinda Webdings Wingdings2 Wingdings3 Wingdings-Regular ZWAdobeF ] NeverEmbed [ true ] AntiAliasColorImages false CropColorImages true ColorImageMinResolution 300 ColorImageMinResolutionPolicy OK DownsampleColorImages true ColorImageDownsampleType Bicubic ColorImageResolution 300 ColorImageDepth -1 ColorImageMinDownsampleDepth 1 ColorImageDownsampleThreshold 150000 EncodeColorImages false ColorImageFilter DCTEncode AutoFilterColorImages true ColorImageAutoFilterStrategy JPEG ColorACSImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt ColorImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000ColorACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000ColorImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasGrayImages false CropGrayImages true GrayImageMinResolution 300 GrayImageMinResolutionPolicy OK DownsampleGrayImages true GrayImageDownsampleType Bicubic GrayImageResolution 300 GrayImageDepth -1 GrayImageMinDownsampleDepth 2 GrayImageDownsampleThreshold 150000 EncodeGrayImages false GrayImageFilter DCTEncode AutoFilterGrayImages true GrayImageAutoFilterStrategy JPEG GrayACSImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt GrayImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000GrayACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000GrayImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasMonoImages false CropMonoImages true MonoImageMinResolution 1200 MonoImageMinResolutionPolicy OK DownsampleMonoImages true MonoImageDownsampleType Bicubic MonoImageResolution 1200 MonoImageDepth -1 MonoImageDownsampleThreshold 150000 EncodeMonoImages false MonoImageFilter CCITTFaxEncode MonoImageDict ltlt K -1 gtgt AllowPSXObjects false CheckCompliance [ None ] PDFX1aCheck false PDFX3Check false PDFXCompliantPDFOnly false PDFXNoTrimBoxError true PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile (None) PDFXOutputConditionIdentifier () PDFXOutputCondition () PDFXRegistryName () PDFXTrapped False Description ltlt CHS ltFEFF4f7f75288fd94e9b8bbe5b9a521b5efa7684002000410064006f006200650020005000440046002065876863900275284e8e9ad88d2891cf76845370524d53705237300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200035002e003000204ee553ca66f49ad87248672c676562535f00521b5efa768400200050004400460020658768633002gt CHT ltFEFF4f7f752890194e9b8a2d7f6e5efa7acb7684002000410064006f006200650020005000440046002065874ef69069752865bc9ad854c18cea76845370524d5370523786557406300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200035002e003000204ee553ca66f49ad87248672c4f86958b555f5df25efa7acb76840020005000440046002065874ef63002gt DAN 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 DEU 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 ESP ltFEFF005500740069006c0069006300650020006500730074006100200063006f006e0066006900670075007200610063006900f3006e0020007000610072006100200063007200650061007200200064006f00630075006d0065006e0074006f00730020005000440046002000640065002000410064006f0062006500200061006400650063007500610064006f00730020007000610072006100200069006d0070007200650073006900f3006e0020007000720065002d0065006400690074006f007200690061006c00200064006500200061006c00740061002000630061006c0069006400610064002e002000530065002000700075006500640065006e00200061006200720069007200200064006f00630075006d0065006e0074006f00730020005000440046002000630072006500610064006f007300200063006f006e0020004100630072006f006200610074002c002000410064006f00620065002000520065006100640065007200200035002e003000200079002000760065007200730069006f006e0065007300200070006f00730074006500720069006f007200650073002egt FRA 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 ITA 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 JPN ltFEFF9ad854c18cea306a30d730ea30d730ec30b951fa529b7528002000410064006f0062006500200050004400460020658766f8306e4f5c6210306b4f7f75283057307e305930023053306e8a2d5b9a30674f5c62103055308c305f0020005000440046002030d530a130a430eb306f3001004100630072006f0062006100740020304a30883073002000410064006f00620065002000520065006100640065007200200035002e003000204ee5964d3067958b304f30533068304c3067304d307e305930023053306e8a2d5b9a306b306f30d530a930f330c8306e57cb30818fbc307f304c5fc59808306730593002gt KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020ace0d488c9c80020c2dcd5d80020c778c1c4c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200035002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor prepress-afdrukken van hoge kwaliteit De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 50 en hoger) NOR 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 PTB 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 SUO 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 SVE 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 ENU (Use these settings to create Adobe PDF documents best suited for high-quality prepress printing Created PDF documents can be opened with Acrobat and Adobe Reader 50 and later) gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false ConvertColors ConvertToCMYK DestinationProfileName () DestinationProfileSelector DocumentCMYK Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles false MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector DocumentCMYK PreserveEditing true UntaggedCMYKHandling LeaveUntagged UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ]gtgt setdistillerparamsltlt HWResolution [2400 2400] PageSize [612000 792000]gtgt setpagedevice

          1. To
          2. Date
          3. Re
          4. From
          5. AT THE REQUEST OF
          6. Sender
          7. Address
          8. Telephone
          9. Brief description of professional services materials or equipment provided or to be provided
          10. 1
          11. 2
          12. 3
          13. reg no
          14. deposit $
          15. expiration date
          16. claims up to $
          17. Reset

ADDRESS

2 DATE ON WHICH THE CLAIMANT BEGAN TO PERFORM LABOR PROVIDE PROFESSIONAL SERVICES SUPPLY MATERIAL OR EQUIPMENT OR THE DATE ON WHICH EMPLOYEE BENEFIT CONTRIBUTIONS BECAME DUE

3 NAME OF PERSON INDEBTED TO THE CLAIMANT

4 DESCRIPTION OF THE PROPERTY AGAINST WHICH A LIEN IS CLAIMED (Street address legal description or other information that will reasonably describe the property)

5 NAME OF THE OWNER OR REPUTED OWNER (If not known state unknown)

6 THE LAST DATE ON WHICH LABOR WAS PERFORMED PROFESSIONAL SERVICES WERE FURNISHED CONTRIBUTIONS TO AN EMPLOYEE BENEFIT PLAN WERE DUE OR MATERIAL OR EQUIPMENT WAS FURNISHED

7 PRINCIPAL AMOUNT FOR WHICH THE LIEN IS CLAIMED IS

8 IF THE CLAIMANT IS THE ASSIGNEE OF THIS CLAIM SO STATE HERE

Claimant

(Phone number address city

CCBA Nuts amp Bolts on Construction Law - 42 of 49

and

state of claimant)

STATE OF WASHINGTON COUNTY OF ss being sworn says I am the claimant (or attorney of the claimant or administrator representative or agent of the trustees of an employee benefit plan) above named I have read or heard the foregoing claim read and know the contents thereof and believe the same to be true and correct and that the claim of lien is not frivolous and is made with reasonable cause and is not clearly excessive under penalty of perjury Subscribed and sworn to before me this day of The period provided for recording the claim of lien is a period of limitation and no action to foreclose a lien shall be maintained unless the claim of lien is filed for recording within the ninety-day period stated The lien claimant shall give a copy of the claim of lien to the owner or reputed owner by mailing it by certified or registered mail or by personal service within fourteen days of the time the claim of lien is filed for recording Failure to do so results in a forfeiture of any right the claimant may have to attorneys fees and costs against the owner under RCW 6004181

6004161 Bond in lieu of claim

Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who disputes the correctness or validity of the claim of lien may record either before or after the commencement of an action to enforce the lien in the office of the county recorder or auditor in the county where the claim of lien was recorded a bond issued by a surety company authorized to issue surety bonds in the state The surety shall be listed in the latest federal department of the treasury list of surety companies acceptable on federal bonds published in the Federal Register as authorized to issue bonds on United States government projects with an underwriting limitation including applicable reinsurance equal to or greater than the amount of the bond to be recorded The bond shall contain a description of the claim of lien and real property involved and be in an amount equal to the greater of five thousand dollars or two times the amount of the lien claimed if it is ten thousand dollars or less and in an amount equal to or greater than one and one-half times the amount of the lien if it is in

CCBA Nuts amp Bolts on Construction Law - 43 of 49

excess of ten thousand dollars If the claim of lien affects more than one parcel of real property and is segregated to each parcel the bond may be segregated the same as in the claim of lien A separate bond shall be required for each claim of lien made by separate claimants However a single bond may be used to guarantee payment of amounts claimed by more than one claim of lien by a single claimant so long as the amount of the bond meets the requirements of this section as applied to the aggregate sum of all claims by such claimant The condition of the bond shall be to guarantee payment of any judgment upon the lien in favor of the lien claimant entered in any action to recover the amount claimed in a claim of lien or on the claim asserted in the claim of lien The effect of recording a bond shall be to release the real property described in the notice of claim of lien from the lien and any action brought to recover the amount claimed Unless otherwise prohibited by law if no action is commenced to recover on a lien within the time specified in RCW 6004141 the surety shall be discharged from liability under the bond If an action is timely commenced then on payment of any judgment entered in the action or on payment of the full amount of the bond to the holder of the judgment whichever is less the surety shall be discharged from liability under the bond Nothing in this section shall in any way prohibit or limit the use of other methods devised by the affected parties to secure the obligation underlying a claim of lien and to obtain a release of real property from a claim of lien

6004181 Rank of lien mdash Application of proceeds mdash Attorneys fees

(1) In every case in which different construction liens are claimed against the same property the court shall declare the rank of such lien or class of liens which liens shall be in the following order (a) Liens for the performance of labor (b) Liens for contributions owed to employee benefit plans (c) Liens for furnishing material supplies or equipment (d) Liens for subcontractors including but not limited to their labor and materials and (e) Liens for prime contractors or for professional services (2) The proceeds of the sale of property must be applied to each lien or class of liens in order of its rank and in an action brought to foreclose a lien pro rata among each claimant in each separate priority class A personal judgment may be rendered against any party personally liable for any debt for which the lien is claimed If the lien is established the judgment shall provide

CCBA Nuts amp Bolts on Construction Law - 44 of 49

for the enforcement thereof upon the property liable as in the case of foreclosure of judgment liens The amount realized by such enforcement of the lien shall be credited upon the proper personal judgment The deficiency if any remaining unsatisfied shall stand as a personal judgment and may be collected by execution against any party liable therefor (3) The court may allow the prevailing party in the action whether plaintiff or defendant as part of the costs of the action the moneys paid for recording the claim of lien costs of title report bond costs and attorneys fees and necessary expenses incurred by the attorney in the superior court court of appeals supreme court or arbitration as the court or arbitrator deems reasonable Such costs shall have the priority of the class of lien to which they are related as established by subsection (1) of this section (4) Real property against which a lien under this chapter is enforced may be ordered sold by the court and the proceeds deposited into the registry of the clerk of the court pending further determination respecting distribution of the proceeds of the sale

6004900 Liberal construction mdash 1991 c 281

RCW 1927095 6004230 and 6004011 through 6004226 and 6004261 are to be liberally construed to provide security for all parties intended to be protected by their provisions

RCW 6028011

Retained percentage mdash Public transportation projects mdash Labor and material lien created mdash Bond in lieu of retained funds mdash Termination before completion mdash Chapter deemed exclusive mdash Release of ferry contract payments mdash Projects of farmers home administration mdash General contractorconstruction manager procedure mdash Definitions

(1)(a) Except as provided in (b) of this subsection public improvement contracts must provide and public bodies must reserve a contract retainage not to exceed five percent of the moneys earned by the contractor as a trust fund for the protection and payment of (i) The claims of any person arising under the contract and (ii) the state with respect to taxes increases and penalties imposed pursuant to Titles 50 51 and 82 RCW which may be due from such contractor (b) Public improvement contracts funded in whole or in part by federal transportation funds must rely upon the contract bond as referred to in chapter 3908 RCW for the protection and payment of (i) The claims of any person or persons arising under the contract to the extent such claims are provided for in RCW 3908010 and (ii) the state with respect to taxes increases and penalties incurred on the public improvement project under Titles 50 51 and 82 RCW which may be due The contract bond must remain in full force and effect until at a minimum all claims filed in compliance with chapter 3908 RCW are resolved

CCBA Nuts amp Bolts on Construction Law - 45 of 49

(2) Every person performing labor or furnishing supplies toward the completion of a public improvement contract has a lien upon moneys reserved by a public body under the provisions of a public improvement contract However the notice of the lien of the claimant must be given within forty-five days of completion of the contract work and in the manner provided in RCW 3908030 (3) The contractor at any time may request the contract retainage be reduced to one hundred percent of the value of the work remaining on the project (a) After completion of all contract work other than landscaping the contractor may request that the public body release and pay in full the amounts retained during the performance of the contract and sixty days thereafter the public body must release and pay in full the amounts retained (other than continuing retention of five percent of the moneys earned for landscaping) subject to the provisions of chapters 3912 and 6028 RCW (b) Sixty days after completion of all contract work the public body must release and pay in full the amounts retained during the performance of the contract subject to the provisions of chapters 3912 and 6028 RCW (4) The moneys reserved by a public body under the provisions of a public improvement contract at the option of the contractor must be (a) Retained in a fund by the public body (b) Deposited by the public body in an interest bearing account in a bank mutual savings bank or savings and loan association Interest on moneys reserved by a public body under the provision of a public improvement contract must be paid to the contractor (c) Placed in escrow with a bank or trust company by the public body When the moneys reserved are placed in escrow the public body must issue a check representing the sum of the moneys reserved payable to the bank or trust company and the contractor jointly This check must be converted into bonds and securities chosen by the contractor and approved by the public body and the bonds and securities must be held in escrow Interest on the bonds and securities must be paid to the contractor as the interest accrues (5) The contractor or subcontractor may withhold payment of not more than five percent from the moneys earned by any subcontractor or sub-subcontractor or supplier contracted with by the contractor to provide labor materials or equipment to the public project Whenever the contractor or subcontractor reserves funds earned by a subcontractor or sub-subcontractor or

CCBA Nuts amp Bolts on Construction Law - 46 of 49

supplier the contractor or subcontractor must pay interest to the subcontractor or sub-subcontractor or supplier at a rate equal to that received by the contractor or subcontractor from reserved funds (6) A contractor may submit a bond for all or any portion of the contract retainage in a form acceptable to the public body and from a bonding company meeting standards established by the public body The public body must accept a bond meeting these requirements unless the public body can demonstrate good cause for refusing to accept it This bond and any proceeds therefrom are subject to all claims and liens and in the same manner and priority as set forth for retained percentages in this chapter The public body must release the bonded portion of the retained funds to the contractor within thirty days of accepting the bond from the contractor Whenever a public body accepts a bond in lieu of retained funds from a contractor the contractor must accept like bonds from any subcontractors or suppliers from which the contractor has retained funds The contractor must then release the funds retained from the subcontractor or supplier to the subcontractor or supplier within thirty days of accepting the bond from the subcontractor or supplier (7) If the public body administering a contract after a substantial portion of the work has been completed finds that an unreasonable delay will occur in the completion of the remaining portion of the contract for any reason not the result of a breach thereof it may if the contractor agrees delete from the contract the remaining work and accept as final the improvement at the stage of completion then attained and make payment in proportion to the amount of the work accomplished and in this case any amounts retained and accumulated under this section must be held for a period of sixty days following the completion In the event that the work is terminated before final completion as provided in this section the public body may thereafter enter into a new contract with the same contractor to perform the remaining work or improvement for an amount equal to or less than the cost of the remaining work as was provided for in the original contract without advertisement or bid The provisions of this chapter are exclusive and supersede all provisions and regulations in conflict herewith (8) Whenever the department of transportation has contracted for the construction of two or more ferry vessels sixty days after completion of all contract work on each ferry vessel the department must release and pay in full the amounts retained in connection with the construction of the vessel subject to the provisions of RCW 6028021 and chapter 3912 RCW However the department of transportation may at its discretion condition the release of funds retained in connection with the completed ferry upon the contractor delivering a good and sufficient bond with two or more sureties or with a surety company in the amount of the retained funds to be released to the contractor conditioned that no taxes may be certified or claims filed for work on the ferry after a period of sixty days following completion of the ferry and if taxes are certified or claims filed recovery may be had on the bond by the department of revenue the employment

CCBA Nuts amp Bolts on Construction Law - 47 of 49

security department the department of labor and industries and the material suppliers and laborers filing claims (9) Except as provided in subsection (1) of this section reservation by a public body for any purpose from the moneys earned by a contractor by fulfilling its responsibilities under public improvement contracts is prohibited (10) Contracts on projects funded in whole or in part by farmers home administration and subject to farmers home administration regulations are not subject to subsections (1) through (9) of this section (11) This subsection applies only to a public body that has contracted for the construction of a facility using the general contractorconstruction manager procedure as defined under RCW 3910210 If the work performed by a subcontractor on the project has been completed within the first half of the time provided in the general contractorconstruction manager contract for completing the work the public body may accept the completion of the subcontract The public body must give public notice of this acceptance After a forty-five day period for giving notice of liens and compliance with the retainage release procedures in RCW 6028021 the public body may release that portion of the retained funds associated with the subcontract Claims against the retained funds after the forty-five day period are not valid (12) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise (a) Contract retainage means an amount reserved by a public body from the moneys earned by a person under a public improvement contract (b) Person means a person or persons mechanic subcontractor or materialperson who performs labor or provides materials for a public improvement contract and any other person who supplies the person with provisions or supplies for the carrying on of a public improvement contract (c) Public body means the state or a county city town district board or other public body (d) Public improvement contract means a contract for public improvements or work other than for professional services or a work order as defined in RCW 3910210

CCBA Nuts amp Bolts on Construction Law - 48 of 49

RCW 6432070 Liens or encumbrances mdash Enforcement mdash Satisfaction

(1) Subsequent to recording the declaration as provided in this chapter and while the property remains subject to this chapter no lien shall thereafter arise or be effective against the property During such period liens or encumbrances shall arise or be created only against each apartment and the percentage of undivided interest in the common areas and facilities and appurtenant to such apartment in the same manner and under the same conditions in every respect as liens or encumbrances may arise or be created upon or against any other separate parcel of real property subject to individual ownership PROVIDED That no labor performed or materials furnished with the consent of or at the request of the owner of any apartment or such owners agent contractor or subcontractor shall be the basis for the filing of a lien against any other apartment or any other property of any other apartment owner not expressly consenting to or requesting the same except that such express consent shall be deemed to be given by any apartment owner in the case of emergency repairs Labor performed or materials furnished for the common areas and facilities if authorized by the association of apartment owners the manager or board of directors shall be deemed to be performed or furnished with the express consent of each apartment owner and shall be the basis for the filing of a lien against each of the apartments and shall be subject to the provisions of subsection (2) of this section (2) In the event a lien against two or more apartments becomes effective the apartment owners of the separate apartments may remove their apartment and the percentage of undivided interest in the common areas and facilities appurtenant to such apartment from the lien by payment of the fractional or proportional amounts attributable to each of the apartments affected Such individual payments shall be computed by reference to the percentages appearing on the declaration Subsequent to any such payment discharge or satisfaction the apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto shall thereafter be free and clear of the liens so paid satisfied or discharged Such partial payment satisfaction or discharge shall not prevent the lienor from proceeding to enforce his or her rights against any apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto not so paid satisfied or discharged

CCBA Nuts amp Bolts on Construction Law - 49 of 49

  • Cover Sheet
  • 20141110 - Washington Lien and Bond CLE
  • LampI Lien Summary
  • Claim of Lien
  • Form Notice to Owner
  • Model Disclosure Statement (Notice to Customer)
  • LampI Facts about Construction Liens
    • What you should know about contracts
    • How to protect your investment
    • For more information
      • Notice of Claim Against Bond and Retained Percentage
      • Preclaim Notice Bond amp Retained Percentage
      • Statute Handout
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 JPN ltFEFF9ad854c18cea306a30d730ea30d730ec30b951fa529b7528002000410064006f0062006500200050004400460020658766f8306e4f5c6210306b4f7f75283057307e305930023053306e8a2d5b9a30674f5c62103055308c305f0020005000440046002030d530a130a430eb306f3001004100630072006f0062006100740020304a30883073002000410064006f00620065002000520065006100640065007200200035002e003000204ee5964d3067958b304f30533068304c3067304d307e305930023053306e8a2d5b9a306b306f30d530a930f330c8306e57cb30818fbc307f304c5fc59808306730593002gt KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020ace0d488c9c80020c2dcd5d80020c778c1c4c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200035002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor prepress-afdrukken van hoge kwaliteit De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 50 en hoger) NOR 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 PTB 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 SUO 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 SVE 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 ENU (Use these settings to create Adobe PDF documents best suited for high-quality prepress printing Created PDF documents can be opened with Acrobat and Adobe Reader 50 and later) gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false ConvertColors ConvertToCMYK DestinationProfileName () DestinationProfileSelector DocumentCMYK Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles false MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector DocumentCMYK PreserveEditing true UntaggedCMYKHandling LeaveUntagged UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ]gtgt setdistillerparamsltlt HWResolution [2400 2400] PageSize [612000 792000]gtgt setpagedevice

          ltlt ASCII85EncodePages false AllowTransparency false AutoPositionEPSFiles true AutoRotatePages None Binding Left CalGrayProfile (Dot Gain 20) CalRGBProfile (sRGB IEC61966-21) CalCMYKProfile (US Web Coated 050SWOP051 v2) sRGBProfile (sRGB IEC61966-21) CannotEmbedFontPolicy Warning CompatibilityLevel 14 CompressObjects Tags CompressPages true ConvertImagesToIndexed true PassThroughJPEGImages true CreateJDFFile false CreateJobTicket false DefaultRenderingIntent Default DetectBlends true DetectCurves 00000 ColorConversionStrategy LeaveColorUnchanged DoThumbnails false EmbedAllFonts true EmbedOpenType false ParseICCProfilesInComments true EmbedJobOptions true DSCReportingLevel 0 EmitDSCWarnings false EndPage -1 ImageMemory 1048576 LockDistillerParams true MaxSubsetPct 100 Optimize true OPM 1 ParseDSCComments true ParseDSCCommentsForDocInfo true PreserveCopyPage true PreserveDICMYKValues true PreserveEPSInfo true PreserveFlatness true PreserveHalftoneInfo false PreserveOPIComments true PreserveOverprintSettings true StartPage 1 SubsetFonts true TransferFunctionInfo Apply UCRandBGInfo Preserve UsePrologue false ColorSettingsFile () AlwaysEmbed [ true Algerian Arial-Black Arial-BoldItalicMT Arial-BoldMT Arial-ItalicMT ArialMT ArialNarrow ArialNarrow-Bold ArialNarrow-BoldItalic ArialNarrow-Italic BaskOldFace Bauhaus93 BellMT BellMTBold BellMTItalic BerlinSansFB-Bold BerlinSansFBDemi-Bold BerlinSansFB-Reg BernardMT-Condensed BodoniMTPosterCompressed BookAntiqua BookAntiqua-Bold BookAntiqua-BoldItalic BookAntiqua-Italic BookmanOldStyle BookmanOldStyle-Bold BookmanOldStyle-BoldItalic BookmanOldStyle-Italic BookshelfSymbolSeven BritannicBold Broadway BrushScriptMT CalifornianFB-Bold CalifornianFB-Italic CalifornianFB-Reg Centaur CenturyGothic CenturyGothic-Bold CenturyGothic-BoldItalic CenturyGothic-Italic Chiller-Regular ColonnaMT ComicSansMS ComicSansMS-Bold CooperBlack CourierNewPS-BoldItalicMT CourierNewPS-BoldMT CourierNewPS-ItalicMT CourierNewPSMT EstrangeloEdessa EXTRAAPLNew-Regular EXTRAOIANew-Regular FootlightMTLight FranklinGothic-Medium FranklinGothic-MediumItalic FreestyleScript-Regular Garamond Garamond-Bold Garamond-Italic Gautami Georgia Georgia-Bold Georgia-BoldItalic Georgia-Italic HarlowSolid Harrington HighTowerText-Italic HighTowerText-Reg Impact InformalRoman-Regular Jokerman-Regular JuiceITC-Regular Kartika KristenITC-Regular KunstlerScript Latha LatinWide LucidaATTMSpecial LucidaBright LucidaBright-Demi LucidaBright-DemiItalic LucidaBright-Italic LucidaCalligraphy-Italic LucidaConsole LucidaFax LucidaFax-Demi LucidaFax-DemiItalic LucidaFax-Italic LucidaforAttachmate LucidaHandwriting-Italic LucidaSans LucidaSans-Demi LucidaSans-DemiItalic LucidaSans-Italic LucidaSansUnicode Magneto-Bold Mangal-Regular MaturaMTScriptCapitals MicrosoftSansSerif Mistral Modern-Regular Monospace821BT-Roman MonotypeCorsiva MSOutlook MSReferenceSansSerif MSReferenceSpecialty MVBoli NiagaraEngraved-Reg NiagaraSolid-Reg OldEnglishTextMT Onyx PalatinoLinotype-Bold PalatinoLinotype-BoldItalic PalatinoLinotype-Italic PalatinoLinotype-Roman Parchment-Regular Playbill PoorRichard-Regular Raavi Ravie ShowcardGothic-Reg Shruti SnapITC-Regular Stencil Sylfaen SymbolMT Tahoma Tahoma-Bold TempusSansITC TimesNewRomanPS-BoldItalicMT TimesNewRomanPS-BoldMT TimesNewRomanPS-ItalicMT TimesNewRomanPSMT Trebuchet-BoldItalic TrebuchetMS TrebuchetMS-Bold TrebuchetMS-Italic Tunga-Regular Verdana Verdana-Bold Verdana-BoldItalic Verdana-Italic VinerHandITC Vivaldii VladimirScript Vrinda Webdings Wingdings2 Wingdings3 Wingdings-Regular ZWAdobeF ] NeverEmbed [ true ] AntiAliasColorImages false CropColorImages true ColorImageMinResolution 300 ColorImageMinResolutionPolicy OK DownsampleColorImages true ColorImageDownsampleType Bicubic ColorImageResolution 300 ColorImageDepth -1 ColorImageMinDownsampleDepth 1 ColorImageDownsampleThreshold 150000 EncodeColorImages false ColorImageFilter DCTEncode AutoFilterColorImages true ColorImageAutoFilterStrategy JPEG ColorACSImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt ColorImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000ColorACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000ColorImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasGrayImages false CropGrayImages true GrayImageMinResolution 300 GrayImageMinResolutionPolicy OK DownsampleGrayImages true GrayImageDownsampleType Bicubic GrayImageResolution 300 GrayImageDepth -1 GrayImageMinDownsampleDepth 2 GrayImageDownsampleThreshold 150000 EncodeGrayImages false GrayImageFilter DCTEncode AutoFilterGrayImages true GrayImageAutoFilterStrategy JPEG GrayACSImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt GrayImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000GrayACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000GrayImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasMonoImages false CropMonoImages true MonoImageMinResolution 1200 MonoImageMinResolutionPolicy OK DownsampleMonoImages true MonoImageDownsampleType Bicubic MonoImageResolution 1200 MonoImageDepth -1 MonoImageDownsampleThreshold 150000 EncodeMonoImages false MonoImageFilter CCITTFaxEncode MonoImageDict ltlt K -1 gtgt AllowPSXObjects false CheckCompliance [ None ] PDFX1aCheck false PDFX3Check false PDFXCompliantPDFOnly false PDFXNoTrimBoxError true PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile (None) PDFXOutputConditionIdentifier () PDFXOutputCondition () PDFXRegistryName () PDFXTrapped False Description ltlt CHS ltFEFF4f7f75288fd94e9b8bbe5b9a521b5efa7684002000410064006f006200650020005000440046002065876863900275284e8e9ad88d2891cf76845370524d53705237300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200035002e003000204ee553ca66f49ad87248672c676562535f00521b5efa768400200050004400460020658768633002gt CHT ltFEFF4f7f752890194e9b8a2d7f6e5efa7acb7684002000410064006f006200650020005000440046002065874ef69069752865bc9ad854c18cea76845370524d5370523786557406300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200035002e003000204ee553ca66f49ad87248672c4f86958b555f5df25efa7acb76840020005000440046002065874ef63002gt DAN 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 DEU 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 ESP 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 FRA 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 ITA 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 JPN ltFEFF9ad854c18cea306a30d730ea30d730ec30b951fa529b7528002000410064006f0062006500200050004400460020658766f8306e4f5c6210306b4f7f75283057307e305930023053306e8a2d5b9a30674f5c62103055308c305f0020005000440046002030d530a130a430eb306f3001004100630072006f0062006100740020304a30883073002000410064006f00620065002000520065006100640065007200200035002e003000204ee5964d3067958b304f30533068304c3067304d307e305930023053306e8a2d5b9a306b306f30d530a930f330c8306e57cb30818fbc307f304c5fc59808306730593002gt KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020ace0d488c9c80020c2dcd5d80020c778c1c4c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200035002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor prepress-afdrukken van hoge kwaliteit De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 50 en hoger) NOR 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 PTB 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 SUO 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 SVE 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          1. To
          2. Date
          3. Re
          4. From
          5. AT THE REQUEST OF
          6. Sender
          7. Address
          8. Telephone
          9. Brief description of professional services materials or equipment provided or to be provided
          10. 1
          11. 2
          12. 3
          13. reg no
          14. deposit $
          15. expiration date
          16. claims up to $
          17. Reset

and

state of claimant)

STATE OF WASHINGTON COUNTY OF ss being sworn says I am the claimant (or attorney of the claimant or administrator representative or agent of the trustees of an employee benefit plan) above named I have read or heard the foregoing claim read and know the contents thereof and believe the same to be true and correct and that the claim of lien is not frivolous and is made with reasonable cause and is not clearly excessive under penalty of perjury Subscribed and sworn to before me this day of The period provided for recording the claim of lien is a period of limitation and no action to foreclose a lien shall be maintained unless the claim of lien is filed for recording within the ninety-day period stated The lien claimant shall give a copy of the claim of lien to the owner or reputed owner by mailing it by certified or registered mail or by personal service within fourteen days of the time the claim of lien is filed for recording Failure to do so results in a forfeiture of any right the claimant may have to attorneys fees and costs against the owner under RCW 6004181

6004161 Bond in lieu of claim

Any owner of real property subject to a recorded claim of lien under this chapter or contractor subcontractor lender or lien claimant who disputes the correctness or validity of the claim of lien may record either before or after the commencement of an action to enforce the lien in the office of the county recorder or auditor in the county where the claim of lien was recorded a bond issued by a surety company authorized to issue surety bonds in the state The surety shall be listed in the latest federal department of the treasury list of surety companies acceptable on federal bonds published in the Federal Register as authorized to issue bonds on United States government projects with an underwriting limitation including applicable reinsurance equal to or greater than the amount of the bond to be recorded The bond shall contain a description of the claim of lien and real property involved and be in an amount equal to the greater of five thousand dollars or two times the amount of the lien claimed if it is ten thousand dollars or less and in an amount equal to or greater than one and one-half times the amount of the lien if it is in

CCBA Nuts amp Bolts on Construction Law - 43 of 49

excess of ten thousand dollars If the claim of lien affects more than one parcel of real property and is segregated to each parcel the bond may be segregated the same as in the claim of lien A separate bond shall be required for each claim of lien made by separate claimants However a single bond may be used to guarantee payment of amounts claimed by more than one claim of lien by a single claimant so long as the amount of the bond meets the requirements of this section as applied to the aggregate sum of all claims by such claimant The condition of the bond shall be to guarantee payment of any judgment upon the lien in favor of the lien claimant entered in any action to recover the amount claimed in a claim of lien or on the claim asserted in the claim of lien The effect of recording a bond shall be to release the real property described in the notice of claim of lien from the lien and any action brought to recover the amount claimed Unless otherwise prohibited by law if no action is commenced to recover on a lien within the time specified in RCW 6004141 the surety shall be discharged from liability under the bond If an action is timely commenced then on payment of any judgment entered in the action or on payment of the full amount of the bond to the holder of the judgment whichever is less the surety shall be discharged from liability under the bond Nothing in this section shall in any way prohibit or limit the use of other methods devised by the affected parties to secure the obligation underlying a claim of lien and to obtain a release of real property from a claim of lien

6004181 Rank of lien mdash Application of proceeds mdash Attorneys fees

(1) In every case in which different construction liens are claimed against the same property the court shall declare the rank of such lien or class of liens which liens shall be in the following order (a) Liens for the performance of labor (b) Liens for contributions owed to employee benefit plans (c) Liens for furnishing material supplies or equipment (d) Liens for subcontractors including but not limited to their labor and materials and (e) Liens for prime contractors or for professional services (2) The proceeds of the sale of property must be applied to each lien or class of liens in order of its rank and in an action brought to foreclose a lien pro rata among each claimant in each separate priority class A personal judgment may be rendered against any party personally liable for any debt for which the lien is claimed If the lien is established the judgment shall provide

CCBA Nuts amp Bolts on Construction Law - 44 of 49

for the enforcement thereof upon the property liable as in the case of foreclosure of judgment liens The amount realized by such enforcement of the lien shall be credited upon the proper personal judgment The deficiency if any remaining unsatisfied shall stand as a personal judgment and may be collected by execution against any party liable therefor (3) The court may allow the prevailing party in the action whether plaintiff or defendant as part of the costs of the action the moneys paid for recording the claim of lien costs of title report bond costs and attorneys fees and necessary expenses incurred by the attorney in the superior court court of appeals supreme court or arbitration as the court or arbitrator deems reasonable Such costs shall have the priority of the class of lien to which they are related as established by subsection (1) of this section (4) Real property against which a lien under this chapter is enforced may be ordered sold by the court and the proceeds deposited into the registry of the clerk of the court pending further determination respecting distribution of the proceeds of the sale

6004900 Liberal construction mdash 1991 c 281

RCW 1927095 6004230 and 6004011 through 6004226 and 6004261 are to be liberally construed to provide security for all parties intended to be protected by their provisions

RCW 6028011

Retained percentage mdash Public transportation projects mdash Labor and material lien created mdash Bond in lieu of retained funds mdash Termination before completion mdash Chapter deemed exclusive mdash Release of ferry contract payments mdash Projects of farmers home administration mdash General contractorconstruction manager procedure mdash Definitions

(1)(a) Except as provided in (b) of this subsection public improvement contracts must provide and public bodies must reserve a contract retainage not to exceed five percent of the moneys earned by the contractor as a trust fund for the protection and payment of (i) The claims of any person arising under the contract and (ii) the state with respect to taxes increases and penalties imposed pursuant to Titles 50 51 and 82 RCW which may be due from such contractor (b) Public improvement contracts funded in whole or in part by federal transportation funds must rely upon the contract bond as referred to in chapter 3908 RCW for the protection and payment of (i) The claims of any person or persons arising under the contract to the extent such claims are provided for in RCW 3908010 and (ii) the state with respect to taxes increases and penalties incurred on the public improvement project under Titles 50 51 and 82 RCW which may be due The contract bond must remain in full force and effect until at a minimum all claims filed in compliance with chapter 3908 RCW are resolved

CCBA Nuts amp Bolts on Construction Law - 45 of 49

(2) Every person performing labor or furnishing supplies toward the completion of a public improvement contract has a lien upon moneys reserved by a public body under the provisions of a public improvement contract However the notice of the lien of the claimant must be given within forty-five days of completion of the contract work and in the manner provided in RCW 3908030 (3) The contractor at any time may request the contract retainage be reduced to one hundred percent of the value of the work remaining on the project (a) After completion of all contract work other than landscaping the contractor may request that the public body release and pay in full the amounts retained during the performance of the contract and sixty days thereafter the public body must release and pay in full the amounts retained (other than continuing retention of five percent of the moneys earned for landscaping) subject to the provisions of chapters 3912 and 6028 RCW (b) Sixty days after completion of all contract work the public body must release and pay in full the amounts retained during the performance of the contract subject to the provisions of chapters 3912 and 6028 RCW (4) The moneys reserved by a public body under the provisions of a public improvement contract at the option of the contractor must be (a) Retained in a fund by the public body (b) Deposited by the public body in an interest bearing account in a bank mutual savings bank or savings and loan association Interest on moneys reserved by a public body under the provision of a public improvement contract must be paid to the contractor (c) Placed in escrow with a bank or trust company by the public body When the moneys reserved are placed in escrow the public body must issue a check representing the sum of the moneys reserved payable to the bank or trust company and the contractor jointly This check must be converted into bonds and securities chosen by the contractor and approved by the public body and the bonds and securities must be held in escrow Interest on the bonds and securities must be paid to the contractor as the interest accrues (5) The contractor or subcontractor may withhold payment of not more than five percent from the moneys earned by any subcontractor or sub-subcontractor or supplier contracted with by the contractor to provide labor materials or equipment to the public project Whenever the contractor or subcontractor reserves funds earned by a subcontractor or sub-subcontractor or

CCBA Nuts amp Bolts on Construction Law - 46 of 49

supplier the contractor or subcontractor must pay interest to the subcontractor or sub-subcontractor or supplier at a rate equal to that received by the contractor or subcontractor from reserved funds (6) A contractor may submit a bond for all or any portion of the contract retainage in a form acceptable to the public body and from a bonding company meeting standards established by the public body The public body must accept a bond meeting these requirements unless the public body can demonstrate good cause for refusing to accept it This bond and any proceeds therefrom are subject to all claims and liens and in the same manner and priority as set forth for retained percentages in this chapter The public body must release the bonded portion of the retained funds to the contractor within thirty days of accepting the bond from the contractor Whenever a public body accepts a bond in lieu of retained funds from a contractor the contractor must accept like bonds from any subcontractors or suppliers from which the contractor has retained funds The contractor must then release the funds retained from the subcontractor or supplier to the subcontractor or supplier within thirty days of accepting the bond from the subcontractor or supplier (7) If the public body administering a contract after a substantial portion of the work has been completed finds that an unreasonable delay will occur in the completion of the remaining portion of the contract for any reason not the result of a breach thereof it may if the contractor agrees delete from the contract the remaining work and accept as final the improvement at the stage of completion then attained and make payment in proportion to the amount of the work accomplished and in this case any amounts retained and accumulated under this section must be held for a period of sixty days following the completion In the event that the work is terminated before final completion as provided in this section the public body may thereafter enter into a new contract with the same contractor to perform the remaining work or improvement for an amount equal to or less than the cost of the remaining work as was provided for in the original contract without advertisement or bid The provisions of this chapter are exclusive and supersede all provisions and regulations in conflict herewith (8) Whenever the department of transportation has contracted for the construction of two or more ferry vessels sixty days after completion of all contract work on each ferry vessel the department must release and pay in full the amounts retained in connection with the construction of the vessel subject to the provisions of RCW 6028021 and chapter 3912 RCW However the department of transportation may at its discretion condition the release of funds retained in connection with the completed ferry upon the contractor delivering a good and sufficient bond with two or more sureties or with a surety company in the amount of the retained funds to be released to the contractor conditioned that no taxes may be certified or claims filed for work on the ferry after a period of sixty days following completion of the ferry and if taxes are certified or claims filed recovery may be had on the bond by the department of revenue the employment

CCBA Nuts amp Bolts on Construction Law - 47 of 49

security department the department of labor and industries and the material suppliers and laborers filing claims (9) Except as provided in subsection (1) of this section reservation by a public body for any purpose from the moneys earned by a contractor by fulfilling its responsibilities under public improvement contracts is prohibited (10) Contracts on projects funded in whole or in part by farmers home administration and subject to farmers home administration regulations are not subject to subsections (1) through (9) of this section (11) This subsection applies only to a public body that has contracted for the construction of a facility using the general contractorconstruction manager procedure as defined under RCW 3910210 If the work performed by a subcontractor on the project has been completed within the first half of the time provided in the general contractorconstruction manager contract for completing the work the public body may accept the completion of the subcontract The public body must give public notice of this acceptance After a forty-five day period for giving notice of liens and compliance with the retainage release procedures in RCW 6028021 the public body may release that portion of the retained funds associated with the subcontract Claims against the retained funds after the forty-five day period are not valid (12) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise (a) Contract retainage means an amount reserved by a public body from the moneys earned by a person under a public improvement contract (b) Person means a person or persons mechanic subcontractor or materialperson who performs labor or provides materials for a public improvement contract and any other person who supplies the person with provisions or supplies for the carrying on of a public improvement contract (c) Public body means the state or a county city town district board or other public body (d) Public improvement contract means a contract for public improvements or work other than for professional services or a work order as defined in RCW 3910210

CCBA Nuts amp Bolts on Construction Law - 48 of 49

RCW 6432070 Liens or encumbrances mdash Enforcement mdash Satisfaction

(1) Subsequent to recording the declaration as provided in this chapter and while the property remains subject to this chapter no lien shall thereafter arise or be effective against the property During such period liens or encumbrances shall arise or be created only against each apartment and the percentage of undivided interest in the common areas and facilities and appurtenant to such apartment in the same manner and under the same conditions in every respect as liens or encumbrances may arise or be created upon or against any other separate parcel of real property subject to individual ownership PROVIDED That no labor performed or materials furnished with the consent of or at the request of the owner of any apartment or such owners agent contractor or subcontractor shall be the basis for the filing of a lien against any other apartment or any other property of any other apartment owner not expressly consenting to or requesting the same except that such express consent shall be deemed to be given by any apartment owner in the case of emergency repairs Labor performed or materials furnished for the common areas and facilities if authorized by the association of apartment owners the manager or board of directors shall be deemed to be performed or furnished with the express consent of each apartment owner and shall be the basis for the filing of a lien against each of the apartments and shall be subject to the provisions of subsection (2) of this section (2) In the event a lien against two or more apartments becomes effective the apartment owners of the separate apartments may remove their apartment and the percentage of undivided interest in the common areas and facilities appurtenant to such apartment from the lien by payment of the fractional or proportional amounts attributable to each of the apartments affected Such individual payments shall be computed by reference to the percentages appearing on the declaration Subsequent to any such payment discharge or satisfaction the apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto shall thereafter be free and clear of the liens so paid satisfied or discharged Such partial payment satisfaction or discharge shall not prevent the lienor from proceeding to enforce his or her rights against any apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto not so paid satisfied or discharged

CCBA Nuts amp Bolts on Construction Law - 49 of 49

  • Cover Sheet
  • 20141110 - Washington Lien and Bond CLE
  • LampI Lien Summary
  • Claim of Lien
  • Form Notice to Owner
  • Model Disclosure Statement (Notice to Customer)
  • LampI Facts about Construction Liens
    • What you should know about contracts
    • How to protect your investment
    • For more information
      • Notice of Claim Against Bond and Retained Percentage
      • Preclaim Notice Bond amp Retained Percentage
      • Statute Handout
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 FRA 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 ITA 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 JPN ltFEFF9ad854c18cea306a30d730ea30d730ec30b951fa529b7528002000410064006f0062006500200050004400460020658766f8306e4f5c6210306b4f7f75283057307e305930023053306e8a2d5b9a30674f5c62103055308c305f0020005000440046002030d530a130a430eb306f3001004100630072006f0062006100740020304a30883073002000410064006f00620065002000520065006100640065007200200035002e003000204ee5964d3067958b304f30533068304c3067304d307e305930023053306e8a2d5b9a306b306f30d530a930f330c8306e57cb30818fbc307f304c5fc59808306730593002gt KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020ace0d488c9c80020c2dcd5d80020c778c1c4c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200035002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor prepress-afdrukken van hoge kwaliteit De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 50 en hoger) NOR ltFEFF004200720075006b00200064006900730073006500200069006e006e007300740069006c006c0069006e00670065006e0065002000740069006c002000e50020006f0070007000720065007400740065002000410064006f006200650020005000440046002d0064006f006b0075006d0065006e00740065007200200073006f006d00200065007200200062006500730074002000650067006e0065007400200066006f00720020006600f80072007400720079006b006b0073007500740073006b00720069006600740020006100760020006800f800790020006b00760061006c0069007400650074002e0020005000440046002d0064006f006b0075006d0065006e00740065006e00650020006b0061006e002000e50070006e00650073002000690020004100630072006f00620061007400200065006c006c00650072002000410064006f00620065002000520065006100640065007200200035002e003000200065006c006c00650072002000730065006e006500720065002egt PTB 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 SUO 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 SVE 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 ENU (Use these settings to create Adobe PDF documents best suited for high-quality prepress printing Created PDF documents can be opened with Acrobat and Adobe Reader 50 and later) gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false ConvertColors ConvertToCMYK DestinationProfileName () DestinationProfileSelector DocumentCMYK Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles false MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector DocumentCMYK PreserveEditing true UntaggedCMYKHandling LeaveUntagged UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ]gtgt setdistillerparamsltlt HWResolution [2400 2400] PageSize [612000 792000]gtgt setpagedevice

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true PreserveOverprintSettings true StartPage 1 SubsetFonts true TransferFunctionInfo Apply UCRandBGInfo Preserve UsePrologue false ColorSettingsFile () AlwaysEmbed [ true Algerian Arial-Black Arial-BoldItalicMT Arial-BoldMT Arial-ItalicMT ArialMT ArialNarrow ArialNarrow-Bold ArialNarrow-BoldItalic ArialNarrow-Italic BaskOldFace Bauhaus93 BellMT BellMTBold BellMTItalic BerlinSansFB-Bold BerlinSansFBDemi-Bold BerlinSansFB-Reg BernardMT-Condensed BodoniMTPosterCompressed BookAntiqua BookAntiqua-Bold BookAntiqua-BoldItalic BookAntiqua-Italic BookmanOldStyle BookmanOldStyle-Bold BookmanOldStyle-BoldItalic BookmanOldStyle-Italic BookshelfSymbolSeven BritannicBold Broadway BrushScriptMT CalifornianFB-Bold CalifornianFB-Italic CalifornianFB-Reg Centaur CenturyGothic CenturyGothic-Bold CenturyGothic-BoldItalic CenturyGothic-Italic Chiller-Regular ColonnaMT ComicSansMS ComicSansMS-Bold CooperBlack CourierNewPS-BoldItalicMT CourierNewPS-BoldMT CourierNewPS-ItalicMT CourierNewPSMT EstrangeloEdessa EXTRAAPLNew-Regular EXTRAOIANew-Regular FootlightMTLight FranklinGothic-Medium FranklinGothic-MediumItalic FreestyleScript-Regular Garamond Garamond-Bold Garamond-Italic Gautami Georgia Georgia-Bold Georgia-BoldItalic Georgia-Italic HarlowSolid Harrington HighTowerText-Italic HighTowerText-Reg Impact InformalRoman-Regular Jokerman-Regular JuiceITC-Regular Kartika KristenITC-Regular KunstlerScript Latha LatinWide LucidaATTMSpecial LucidaBright LucidaBright-Demi LucidaBright-DemiItalic LucidaBright-Italic LucidaCalligraphy-Italic LucidaConsole LucidaFax LucidaFax-Demi LucidaFax-DemiItalic LucidaFax-Italic LucidaforAttachmate LucidaHandwriting-Italic LucidaSans LucidaSans-Demi LucidaSans-DemiItalic LucidaSans-Italic LucidaSansUnicode Magneto-Bold Mangal-Regular MaturaMTScriptCapitals MicrosoftSansSerif Mistral Modern-Regular Monospace821BT-Roman MonotypeCorsiva MSOutlook MSReferenceSansSerif MSReferenceSpecialty MVBoli NiagaraEngraved-Reg NiagaraSolid-Reg OldEnglishTextMT Onyx PalatinoLinotype-Bold PalatinoLinotype-BoldItalic PalatinoLinotype-Italic PalatinoLinotype-Roman Parchment-Regular Playbill PoorRichard-Regular Raavi Ravie ShowcardGothic-Reg Shruti SnapITC-Regular Stencil Sylfaen SymbolMT Tahoma Tahoma-Bold TempusSansITC TimesNewRomanPS-BoldItalicMT TimesNewRomanPS-BoldMT TimesNewRomanPS-ItalicMT TimesNewRomanPSMT Trebuchet-BoldItalic TrebuchetMS TrebuchetMS-Bold TrebuchetMS-Italic Tunga-Regular Verdana Verdana-Bold Verdana-BoldItalic Verdana-Italic VinerHandITC Vivaldii VladimirScript Vrinda Webdings Wingdings2 Wingdings3 Wingdings-Regular ZWAdobeF ] NeverEmbed [ true ] AntiAliasColorImages false CropColorImages true ColorImageMinResolution 300 ColorImageMinResolutionPolicy OK DownsampleColorImages true ColorImageDownsampleType Bicubic ColorImageResolution 300 ColorImageDepth -1 ColorImageMinDownsampleDepth 1 ColorImageDownsampleThreshold 150000 EncodeColorImages false ColorImageFilter DCTEncode AutoFilterColorImages true ColorImageAutoFilterStrategy JPEG ColorACSImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt ColorImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000ColorACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000ColorImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasGrayImages false CropGrayImages true GrayImageMinResolution 300 GrayImageMinResolutionPolicy OK DownsampleGrayImages true GrayImageDownsampleType Bicubic GrayImageResolution 300 GrayImageDepth -1 GrayImageMinDownsampleDepth 2 GrayImageDownsampleThreshold 150000 EncodeGrayImages false GrayImageFilter DCTEncode AutoFilterGrayImages true GrayImageAutoFilterStrategy JPEG GrayACSImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt GrayImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000GrayACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000GrayImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasMonoImages false CropMonoImages true MonoImageMinResolution 1200 MonoImageMinResolutionPolicy OK DownsampleMonoImages true MonoImageDownsampleType Bicubic MonoImageResolution 1200 MonoImageDepth -1 MonoImageDownsampleThreshold 150000 EncodeMonoImages false MonoImageFilter CCITTFaxEncode MonoImageDict ltlt K -1 gtgt AllowPSXObjects false CheckCompliance [ None ] PDFX1aCheck false PDFX3Check false PDFXCompliantPDFOnly false PDFXNoTrimBoxError true PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile (None) PDFXOutputConditionIdentifier () PDFXOutputCondition () PDFXRegistryName () PDFXTrapped False Description ltlt CHS ltFEFF4f7f75288fd94e9b8bbe5b9a521b5efa7684002000410064006f006200650020005000440046002065876863900275284e8e9ad88d2891cf76845370524d53705237300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200035002e003000204ee553ca66f49ad87248672c676562535f00521b5efa768400200050004400460020658768633002gt CHT ltFEFF4f7f752890194e9b8a2d7f6e5efa7acb7684002000410064006f006200650020005000440046002065874ef69069752865bc9ad854c18cea76845370524d5370523786557406300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200035002e003000204ee553ca66f49ad87248672c4f86958b555f5df25efa7acb76840020005000440046002065874ef63002gt DAN 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 DEU ltFEFF00560065007200770065006e00640065006e0020005300690065002000640069006500730065002000450069006e007300740065006c006c0075006e00670065006e0020007a0075006d002000450072007300740065006c006c0065006e00200076006f006e002000410064006f006200650020005000440046002d0044006f006b0075006d0065006e00740065006e002c00200076006f006e002000640065006e0065006e002000530069006500200068006f006300680077006500720074006900670065002000500072006500700072006500730073002d0044007200750063006b0065002000650072007a0065007500670065006e0020006d00f60063006800740065006e002e002000450072007300740065006c006c007400650020005000440046002d0044006f006b0075006d0065006e007400650020006b00f6006e006e0065006e0020006d006900740020004100630072006f00620061007400200075006e0064002000410064006f00620065002000520065006100640065007200200035002e00300020006f0064006500720020006800f600680065007200200067006500f600660066006e00650074002000770065007200640065006e002egt ESP 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 FRA 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 ITA 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          1. To
          2. Date
          3. Re
          4. From
          5. AT THE REQUEST OF
          6. Sender
          7. Address
          8. Telephone
          9. Brief description of professional services materials or equipment provided or to be provided
          10. 1
          11. 2
          12. 3
          13. reg no
          14. deposit $
          15. expiration date
          16. claims up to $
          17. Reset

excess of ten thousand dollars If the claim of lien affects more than one parcel of real property and is segregated to each parcel the bond may be segregated the same as in the claim of lien A separate bond shall be required for each claim of lien made by separate claimants However a single bond may be used to guarantee payment of amounts claimed by more than one claim of lien by a single claimant so long as the amount of the bond meets the requirements of this section as applied to the aggregate sum of all claims by such claimant The condition of the bond shall be to guarantee payment of any judgment upon the lien in favor of the lien claimant entered in any action to recover the amount claimed in a claim of lien or on the claim asserted in the claim of lien The effect of recording a bond shall be to release the real property described in the notice of claim of lien from the lien and any action brought to recover the amount claimed Unless otherwise prohibited by law if no action is commenced to recover on a lien within the time specified in RCW 6004141 the surety shall be discharged from liability under the bond If an action is timely commenced then on payment of any judgment entered in the action or on payment of the full amount of the bond to the holder of the judgment whichever is less the surety shall be discharged from liability under the bond Nothing in this section shall in any way prohibit or limit the use of other methods devised by the affected parties to secure the obligation underlying a claim of lien and to obtain a release of real property from a claim of lien

6004181 Rank of lien mdash Application of proceeds mdash Attorneys fees

(1) In every case in which different construction liens are claimed against the same property the court shall declare the rank of such lien or class of liens which liens shall be in the following order (a) Liens for the performance of labor (b) Liens for contributions owed to employee benefit plans (c) Liens for furnishing material supplies or equipment (d) Liens for subcontractors including but not limited to their labor and materials and (e) Liens for prime contractors or for professional services (2) The proceeds of the sale of property must be applied to each lien or class of liens in order of its rank and in an action brought to foreclose a lien pro rata among each claimant in each separate priority class A personal judgment may be rendered against any party personally liable for any debt for which the lien is claimed If the lien is established the judgment shall provide

CCBA Nuts amp Bolts on Construction Law - 44 of 49

for the enforcement thereof upon the property liable as in the case of foreclosure of judgment liens The amount realized by such enforcement of the lien shall be credited upon the proper personal judgment The deficiency if any remaining unsatisfied shall stand as a personal judgment and may be collected by execution against any party liable therefor (3) The court may allow the prevailing party in the action whether plaintiff or defendant as part of the costs of the action the moneys paid for recording the claim of lien costs of title report bond costs and attorneys fees and necessary expenses incurred by the attorney in the superior court court of appeals supreme court or arbitration as the court or arbitrator deems reasonable Such costs shall have the priority of the class of lien to which they are related as established by subsection (1) of this section (4) Real property against which a lien under this chapter is enforced may be ordered sold by the court and the proceeds deposited into the registry of the clerk of the court pending further determination respecting distribution of the proceeds of the sale

6004900 Liberal construction mdash 1991 c 281

RCW 1927095 6004230 and 6004011 through 6004226 and 6004261 are to be liberally construed to provide security for all parties intended to be protected by their provisions

RCW 6028011

Retained percentage mdash Public transportation projects mdash Labor and material lien created mdash Bond in lieu of retained funds mdash Termination before completion mdash Chapter deemed exclusive mdash Release of ferry contract payments mdash Projects of farmers home administration mdash General contractorconstruction manager procedure mdash Definitions

(1)(a) Except as provided in (b) of this subsection public improvement contracts must provide and public bodies must reserve a contract retainage not to exceed five percent of the moneys earned by the contractor as a trust fund for the protection and payment of (i) The claims of any person arising under the contract and (ii) the state with respect to taxes increases and penalties imposed pursuant to Titles 50 51 and 82 RCW which may be due from such contractor (b) Public improvement contracts funded in whole or in part by federal transportation funds must rely upon the contract bond as referred to in chapter 3908 RCW for the protection and payment of (i) The claims of any person or persons arising under the contract to the extent such claims are provided for in RCW 3908010 and (ii) the state with respect to taxes increases and penalties incurred on the public improvement project under Titles 50 51 and 82 RCW which may be due The contract bond must remain in full force and effect until at a minimum all claims filed in compliance with chapter 3908 RCW are resolved

CCBA Nuts amp Bolts on Construction Law - 45 of 49

(2) Every person performing labor or furnishing supplies toward the completion of a public improvement contract has a lien upon moneys reserved by a public body under the provisions of a public improvement contract However the notice of the lien of the claimant must be given within forty-five days of completion of the contract work and in the manner provided in RCW 3908030 (3) The contractor at any time may request the contract retainage be reduced to one hundred percent of the value of the work remaining on the project (a) After completion of all contract work other than landscaping the contractor may request that the public body release and pay in full the amounts retained during the performance of the contract and sixty days thereafter the public body must release and pay in full the amounts retained (other than continuing retention of five percent of the moneys earned for landscaping) subject to the provisions of chapters 3912 and 6028 RCW (b) Sixty days after completion of all contract work the public body must release and pay in full the amounts retained during the performance of the contract subject to the provisions of chapters 3912 and 6028 RCW (4) The moneys reserved by a public body under the provisions of a public improvement contract at the option of the contractor must be (a) Retained in a fund by the public body (b) Deposited by the public body in an interest bearing account in a bank mutual savings bank or savings and loan association Interest on moneys reserved by a public body under the provision of a public improvement contract must be paid to the contractor (c) Placed in escrow with a bank or trust company by the public body When the moneys reserved are placed in escrow the public body must issue a check representing the sum of the moneys reserved payable to the bank or trust company and the contractor jointly This check must be converted into bonds and securities chosen by the contractor and approved by the public body and the bonds and securities must be held in escrow Interest on the bonds and securities must be paid to the contractor as the interest accrues (5) The contractor or subcontractor may withhold payment of not more than five percent from the moneys earned by any subcontractor or sub-subcontractor or supplier contracted with by the contractor to provide labor materials or equipment to the public project Whenever the contractor or subcontractor reserves funds earned by a subcontractor or sub-subcontractor or

CCBA Nuts amp Bolts on Construction Law - 46 of 49

supplier the contractor or subcontractor must pay interest to the subcontractor or sub-subcontractor or supplier at a rate equal to that received by the contractor or subcontractor from reserved funds (6) A contractor may submit a bond for all or any portion of the contract retainage in a form acceptable to the public body and from a bonding company meeting standards established by the public body The public body must accept a bond meeting these requirements unless the public body can demonstrate good cause for refusing to accept it This bond and any proceeds therefrom are subject to all claims and liens and in the same manner and priority as set forth for retained percentages in this chapter The public body must release the bonded portion of the retained funds to the contractor within thirty days of accepting the bond from the contractor Whenever a public body accepts a bond in lieu of retained funds from a contractor the contractor must accept like bonds from any subcontractors or suppliers from which the contractor has retained funds The contractor must then release the funds retained from the subcontractor or supplier to the subcontractor or supplier within thirty days of accepting the bond from the subcontractor or supplier (7) If the public body administering a contract after a substantial portion of the work has been completed finds that an unreasonable delay will occur in the completion of the remaining portion of the contract for any reason not the result of a breach thereof it may if the contractor agrees delete from the contract the remaining work and accept as final the improvement at the stage of completion then attained and make payment in proportion to the amount of the work accomplished and in this case any amounts retained and accumulated under this section must be held for a period of sixty days following the completion In the event that the work is terminated before final completion as provided in this section the public body may thereafter enter into a new contract with the same contractor to perform the remaining work or improvement for an amount equal to or less than the cost of the remaining work as was provided for in the original contract without advertisement or bid The provisions of this chapter are exclusive and supersede all provisions and regulations in conflict herewith (8) Whenever the department of transportation has contracted for the construction of two or more ferry vessels sixty days after completion of all contract work on each ferry vessel the department must release and pay in full the amounts retained in connection with the construction of the vessel subject to the provisions of RCW 6028021 and chapter 3912 RCW However the department of transportation may at its discretion condition the release of funds retained in connection with the completed ferry upon the contractor delivering a good and sufficient bond with two or more sureties or with a surety company in the amount of the retained funds to be released to the contractor conditioned that no taxes may be certified or claims filed for work on the ferry after a period of sixty days following completion of the ferry and if taxes are certified or claims filed recovery may be had on the bond by the department of revenue the employment

CCBA Nuts amp Bolts on Construction Law - 47 of 49

security department the department of labor and industries and the material suppliers and laborers filing claims (9) Except as provided in subsection (1) of this section reservation by a public body for any purpose from the moneys earned by a contractor by fulfilling its responsibilities under public improvement contracts is prohibited (10) Contracts on projects funded in whole or in part by farmers home administration and subject to farmers home administration regulations are not subject to subsections (1) through (9) of this section (11) This subsection applies only to a public body that has contracted for the construction of a facility using the general contractorconstruction manager procedure as defined under RCW 3910210 If the work performed by a subcontractor on the project has been completed within the first half of the time provided in the general contractorconstruction manager contract for completing the work the public body may accept the completion of the subcontract The public body must give public notice of this acceptance After a forty-five day period for giving notice of liens and compliance with the retainage release procedures in RCW 6028021 the public body may release that portion of the retained funds associated with the subcontract Claims against the retained funds after the forty-five day period are not valid (12) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise (a) Contract retainage means an amount reserved by a public body from the moneys earned by a person under a public improvement contract (b) Person means a person or persons mechanic subcontractor or materialperson who performs labor or provides materials for a public improvement contract and any other person who supplies the person with provisions or supplies for the carrying on of a public improvement contract (c) Public body means the state or a county city town district board or other public body (d) Public improvement contract means a contract for public improvements or work other than for professional services or a work order as defined in RCW 3910210

CCBA Nuts amp Bolts on Construction Law - 48 of 49

RCW 6432070 Liens or encumbrances mdash Enforcement mdash Satisfaction

(1) Subsequent to recording the declaration as provided in this chapter and while the property remains subject to this chapter no lien shall thereafter arise or be effective against the property During such period liens or encumbrances shall arise or be created only against each apartment and the percentage of undivided interest in the common areas and facilities and appurtenant to such apartment in the same manner and under the same conditions in every respect as liens or encumbrances may arise or be created upon or against any other separate parcel of real property subject to individual ownership PROVIDED That no labor performed or materials furnished with the consent of or at the request of the owner of any apartment or such owners agent contractor or subcontractor shall be the basis for the filing of a lien against any other apartment or any other property of any other apartment owner not expressly consenting to or requesting the same except that such express consent shall be deemed to be given by any apartment owner in the case of emergency repairs Labor performed or materials furnished for the common areas and facilities if authorized by the association of apartment owners the manager or board of directors shall be deemed to be performed or furnished with the express consent of each apartment owner and shall be the basis for the filing of a lien against each of the apartments and shall be subject to the provisions of subsection (2) of this section (2) In the event a lien against two or more apartments becomes effective the apartment owners of the separate apartments may remove their apartment and the percentage of undivided interest in the common areas and facilities appurtenant to such apartment from the lien by payment of the fractional or proportional amounts attributable to each of the apartments affected Such individual payments shall be computed by reference to the percentages appearing on the declaration Subsequent to any such payment discharge or satisfaction the apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto shall thereafter be free and clear of the liens so paid satisfied or discharged Such partial payment satisfaction or discharge shall not prevent the lienor from proceeding to enforce his or her rights against any apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto not so paid satisfied or discharged

CCBA Nuts amp Bolts on Construction Law - 49 of 49

  • Cover Sheet
  • 20141110 - Washington Lien and Bond CLE
  • LampI Lien Summary
  • Claim of Lien
  • Form Notice to Owner
  • Model Disclosure Statement (Notice to Customer)
  • LampI Facts about Construction Liens
    • What you should know about contracts
    • How to protect your investment
    • For more information
      • Notice of Claim Against Bond and Retained Percentage
      • Preclaim Notice Bond amp Retained Percentage
      • Statute Handout
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 DEU 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 ESP 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 FRA ltFEFF005500740069006c006900730065007a00200063006500730020006f007000740069006f006e00730020006100660069006e00200064006500200063007200e900650072002000640065007300200064006f00630075006d0065006e00740073002000410064006f00620065002000500044004600200070006f0075007200200075006e00650020007100750061006c0069007400e90020006400270069006d007000720065007300730069006f006e00200070007200e9007000720065007300730065002e0020004c0065007300200064006f00630075006d0065006e00740073002000500044004600200063007200e900e90073002000700065007500760065006e0074002000ea0074007200650020006f007500760065007200740073002000640061006e00730020004100630072006f006200610074002c002000610069006e00730069002000710075002700410064006f00620065002000520065006100640065007200200035002e0030002000650074002000760065007200730069006f006e007300200075006c007400e90072006900650075007200650073002egt ITA ltFEFF005500740069006c0069007a007a006100720065002000710075006500730074006500200069006d0070006f007300740061007a0069006f006e00690020007000650072002000630072006500610072006500200064006f00630075006d0065006e00740069002000410064006f00620065002000500044004600200070006900f900200061006400610074007400690020006100200075006e00610020007000720065007300740061006d0070006100200064006900200061006c007400610020007100750061006c0069007400e0002e0020004900200064006f00630075006d0065006e007400690020005000440046002000630072006500610074006900200070006f00730073006f006e006f0020006500730073006500720065002000610070006500720074006900200063006f006e0020004100630072006f00620061007400200065002000410064006f00620065002000520065006100640065007200200035002e003000200065002000760065007200730069006f006e006900200073007500630063006500730073006900760065002egt JPN ltFEFF9ad854c18cea306a30d730ea30d730ec30b951fa529b7528002000410064006f0062006500200050004400460020658766f8306e4f5c6210306b4f7f75283057307e305930023053306e8a2d5b9a30674f5c62103055308c305f0020005000440046002030d530a130a430eb306f3001004100630072006f0062006100740020304a30883073002000410064006f00620065002000520065006100640065007200200035002e003000204ee5964d3067958b304f30533068304c3067304d307e305930023053306e8a2d5b9a306b306f30d530a930f330c8306e57cb30818fbc307f304c5fc59808306730593002gt KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020ace0d488c9c80020c2dcd5d80020c778c1c4c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200035002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor prepress-afdrukken van hoge kwaliteit De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 50 en hoger) NOR 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 PTB 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 SUO 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 SVE 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 ENU (Use these settings to create Adobe PDF documents best suited for high-quality prepress printing Created PDF documents can be opened with Acrobat and Adobe Reader 50 and later) gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false ConvertColors ConvertToCMYK DestinationProfileName () DestinationProfileSelector DocumentCMYK Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles false MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector DocumentCMYK PreserveEditing true UntaggedCMYKHandling LeaveUntagged UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ]gtgt setdistillerparamsltlt HWResolution [2400 2400] PageSize [612000 792000]gtgt setpagedevice

          ltlt ASCII85EncodePages false AllowTransparency false AutoPositionEPSFiles true AutoRotatePages None Binding Left CalGrayProfile (Dot Gain 20) CalRGBProfile (sRGB IEC61966-21) CalCMYKProfile (US Web Coated 050SWOP051 v2) sRGBProfile (sRGB IEC61966-21) CannotEmbedFontPolicy Warning CompatibilityLevel 14 CompressObjects Tags CompressPages true ConvertImagesToIndexed true PassThroughJPEGImages true CreateJDFFile false CreateJobTicket false DefaultRenderingIntent Default DetectBlends true DetectCurves 00000 ColorConversionStrategy LeaveColorUnchanged DoThumbnails false EmbedAllFonts true EmbedOpenType false ParseICCProfilesInComments true EmbedJobOptions true DSCReportingLevel 0 EmitDSCWarnings false EndPage -1 ImageMemory 1048576 LockDistillerParams true MaxSubsetPct 100 Optimize true OPM 1 ParseDSCComments true ParseDSCCommentsForDocInfo true PreserveCopyPage true PreserveDICMYKValues true PreserveEPSInfo true PreserveFlatness true PreserveHalftoneInfo false PreserveOPIComments true PreserveOverprintSettings true StartPage 1 SubsetFonts true TransferFunctionInfo Apply UCRandBGInfo Preserve UsePrologue false ColorSettingsFile () AlwaysEmbed [ true Algerian Arial-Black Arial-BoldItalicMT Arial-BoldMT Arial-ItalicMT ArialMT ArialNarrow ArialNarrow-Bold ArialNarrow-BoldItalic ArialNarrow-Italic BaskOldFace Bauhaus93 BellMT BellMTBold BellMTItalic BerlinSansFB-Bold BerlinSansFBDemi-Bold BerlinSansFB-Reg BernardMT-Condensed BodoniMTPosterCompressed BookAntiqua BookAntiqua-Bold BookAntiqua-BoldItalic BookAntiqua-Italic BookmanOldStyle BookmanOldStyle-Bold BookmanOldStyle-BoldItalic BookmanOldStyle-Italic BookshelfSymbolSeven BritannicBold Broadway BrushScriptMT CalifornianFB-Bold CalifornianFB-Italic CalifornianFB-Reg Centaur CenturyGothic CenturyGothic-Bold CenturyGothic-BoldItalic CenturyGothic-Italic Chiller-Regular ColonnaMT ComicSansMS ComicSansMS-Bold CooperBlack CourierNewPS-BoldItalicMT CourierNewPS-BoldMT CourierNewPS-ItalicMT CourierNewPSMT EstrangeloEdessa EXTRAAPLNew-Regular EXTRAOIANew-Regular FootlightMTLight FranklinGothic-Medium FranklinGothic-MediumItalic FreestyleScript-Regular Garamond Garamond-Bold Garamond-Italic Gautami Georgia Georgia-Bold Georgia-BoldItalic Georgia-Italic HarlowSolid Harrington HighTowerText-Italic HighTowerText-Reg Impact InformalRoman-Regular Jokerman-Regular JuiceITC-Regular Kartika KristenITC-Regular KunstlerScript Latha LatinWide LucidaATTMSpecial LucidaBright LucidaBright-Demi LucidaBright-DemiItalic LucidaBright-Italic LucidaCalligraphy-Italic LucidaConsole LucidaFax LucidaFax-Demi LucidaFax-DemiItalic LucidaFax-Italic LucidaforAttachmate LucidaHandwriting-Italic LucidaSans LucidaSans-Demi LucidaSans-DemiItalic LucidaSans-Italic LucidaSansUnicode Magneto-Bold Mangal-Regular MaturaMTScriptCapitals MicrosoftSansSerif Mistral Modern-Regular Monospace821BT-Roman MonotypeCorsiva MSOutlook MSReferenceSansSerif MSReferenceSpecialty MVBoli NiagaraEngraved-Reg NiagaraSolid-Reg OldEnglishTextMT Onyx PalatinoLinotype-Bold PalatinoLinotype-BoldItalic PalatinoLinotype-Italic PalatinoLinotype-Roman Parchment-Regular Playbill PoorRichard-Regular Raavi Ravie ShowcardGothic-Reg Shruti SnapITC-Regular Stencil Sylfaen SymbolMT Tahoma Tahoma-Bold TempusSansITC TimesNewRomanPS-BoldItalicMT TimesNewRomanPS-BoldMT TimesNewRomanPS-ItalicMT TimesNewRomanPSMT Trebuchet-BoldItalic TrebuchetMS TrebuchetMS-Bold TrebuchetMS-Italic Tunga-Regular Verdana Verdana-Bold Verdana-BoldItalic Verdana-Italic VinerHandITC Vivaldii VladimirScript Vrinda Webdings Wingdings2 Wingdings3 Wingdings-Regular ZWAdobeF ] NeverEmbed [ true ] AntiAliasColorImages false CropColorImages true ColorImageMinResolution 300 ColorImageMinResolutionPolicy OK DownsampleColorImages true ColorImageDownsampleType Bicubic ColorImageResolution 300 ColorImageDepth -1 ColorImageMinDownsampleDepth 1 ColorImageDownsampleThreshold 150000 EncodeColorImages false ColorImageFilter DCTEncode AutoFilterColorImages true ColorImageAutoFilterStrategy JPEG ColorACSImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt ColorImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000ColorACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000ColorImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasGrayImages false CropGrayImages true GrayImageMinResolution 300 GrayImageMinResolutionPolicy OK DownsampleGrayImages true GrayImageDownsampleType Bicubic GrayImageResolution 300 GrayImageDepth -1 GrayImageMinDownsampleDepth 2 GrayImageDownsampleThreshold 150000 EncodeGrayImages false GrayImageFilter DCTEncode AutoFilterGrayImages true GrayImageAutoFilterStrategy JPEG GrayACSImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt GrayImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000GrayACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000GrayImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasMonoImages false CropMonoImages true MonoImageMinResolution 1200 MonoImageMinResolutionPolicy OK DownsampleMonoImages true MonoImageDownsampleType Bicubic MonoImageResolution 1200 MonoImageDepth -1 MonoImageDownsampleThreshold 150000 EncodeMonoImages false MonoImageFilter CCITTFaxEncode MonoImageDict ltlt K -1 gtgt AllowPSXObjects false CheckCompliance [ None ] PDFX1aCheck false PDFX3Check false PDFXCompliantPDFOnly false PDFXNoTrimBoxError true PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile (None) PDFXOutputConditionIdentifier () PDFXOutputCondition () PDFXRegistryName () PDFXTrapped False Description ltlt CHS ltFEFF4f7f75288fd94e9b8bbe5b9a521b5efa7684002000410064006f006200650020005000440046002065876863900275284e8e9ad88d2891cf76845370524d53705237300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200035002e003000204ee553ca66f49ad87248672c676562535f00521b5efa768400200050004400460020658768633002gt CHT ltFEFF4f7f752890194e9b8a2d7f6e5efa7acb7684002000410064006f006200650020005000440046002065874ef69069752865bc9ad854c18cea76845370524d5370523786557406300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200035002e003000204ee553ca66f49ad87248672c4f86958b555f5df25efa7acb76840020005000440046002065874ef63002gt DAN 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 DEU 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 ESP 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 FRA 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 JPN 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          1. To
          2. Date
          3. Re
          4. From
          5. AT THE REQUEST OF
          6. Sender
          7. Address
          8. Telephone
          9. Brief description of professional services materials or equipment provided or to be provided
          10. 1
          11. 2
          12. 3
          13. reg no
          14. deposit $
          15. expiration date
          16. claims up to $
          17. Reset

for the enforcement thereof upon the property liable as in the case of foreclosure of judgment liens The amount realized by such enforcement of the lien shall be credited upon the proper personal judgment The deficiency if any remaining unsatisfied shall stand as a personal judgment and may be collected by execution against any party liable therefor (3) The court may allow the prevailing party in the action whether plaintiff or defendant as part of the costs of the action the moneys paid for recording the claim of lien costs of title report bond costs and attorneys fees and necessary expenses incurred by the attorney in the superior court court of appeals supreme court or arbitration as the court or arbitrator deems reasonable Such costs shall have the priority of the class of lien to which they are related as established by subsection (1) of this section (4) Real property against which a lien under this chapter is enforced may be ordered sold by the court and the proceeds deposited into the registry of the clerk of the court pending further determination respecting distribution of the proceeds of the sale

6004900 Liberal construction mdash 1991 c 281

RCW 1927095 6004230 and 6004011 through 6004226 and 6004261 are to be liberally construed to provide security for all parties intended to be protected by their provisions

RCW 6028011

Retained percentage mdash Public transportation projects mdash Labor and material lien created mdash Bond in lieu of retained funds mdash Termination before completion mdash Chapter deemed exclusive mdash Release of ferry contract payments mdash Projects of farmers home administration mdash General contractorconstruction manager procedure mdash Definitions

(1)(a) Except as provided in (b) of this subsection public improvement contracts must provide and public bodies must reserve a contract retainage not to exceed five percent of the moneys earned by the contractor as a trust fund for the protection and payment of (i) The claims of any person arising under the contract and (ii) the state with respect to taxes increases and penalties imposed pursuant to Titles 50 51 and 82 RCW which may be due from such contractor (b) Public improvement contracts funded in whole or in part by federal transportation funds must rely upon the contract bond as referred to in chapter 3908 RCW for the protection and payment of (i) The claims of any person or persons arising under the contract to the extent such claims are provided for in RCW 3908010 and (ii) the state with respect to taxes increases and penalties incurred on the public improvement project under Titles 50 51 and 82 RCW which may be due The contract bond must remain in full force and effect until at a minimum all claims filed in compliance with chapter 3908 RCW are resolved

CCBA Nuts amp Bolts on Construction Law - 45 of 49

(2) Every person performing labor or furnishing supplies toward the completion of a public improvement contract has a lien upon moneys reserved by a public body under the provisions of a public improvement contract However the notice of the lien of the claimant must be given within forty-five days of completion of the contract work and in the manner provided in RCW 3908030 (3) The contractor at any time may request the contract retainage be reduced to one hundred percent of the value of the work remaining on the project (a) After completion of all contract work other than landscaping the contractor may request that the public body release and pay in full the amounts retained during the performance of the contract and sixty days thereafter the public body must release and pay in full the amounts retained (other than continuing retention of five percent of the moneys earned for landscaping) subject to the provisions of chapters 3912 and 6028 RCW (b) Sixty days after completion of all contract work the public body must release and pay in full the amounts retained during the performance of the contract subject to the provisions of chapters 3912 and 6028 RCW (4) The moneys reserved by a public body under the provisions of a public improvement contract at the option of the contractor must be (a) Retained in a fund by the public body (b) Deposited by the public body in an interest bearing account in a bank mutual savings bank or savings and loan association Interest on moneys reserved by a public body under the provision of a public improvement contract must be paid to the contractor (c) Placed in escrow with a bank or trust company by the public body When the moneys reserved are placed in escrow the public body must issue a check representing the sum of the moneys reserved payable to the bank or trust company and the contractor jointly This check must be converted into bonds and securities chosen by the contractor and approved by the public body and the bonds and securities must be held in escrow Interest on the bonds and securities must be paid to the contractor as the interest accrues (5) The contractor or subcontractor may withhold payment of not more than five percent from the moneys earned by any subcontractor or sub-subcontractor or supplier contracted with by the contractor to provide labor materials or equipment to the public project Whenever the contractor or subcontractor reserves funds earned by a subcontractor or sub-subcontractor or

CCBA Nuts amp Bolts on Construction Law - 46 of 49

supplier the contractor or subcontractor must pay interest to the subcontractor or sub-subcontractor or supplier at a rate equal to that received by the contractor or subcontractor from reserved funds (6) A contractor may submit a bond for all or any portion of the contract retainage in a form acceptable to the public body and from a bonding company meeting standards established by the public body The public body must accept a bond meeting these requirements unless the public body can demonstrate good cause for refusing to accept it This bond and any proceeds therefrom are subject to all claims and liens and in the same manner and priority as set forth for retained percentages in this chapter The public body must release the bonded portion of the retained funds to the contractor within thirty days of accepting the bond from the contractor Whenever a public body accepts a bond in lieu of retained funds from a contractor the contractor must accept like bonds from any subcontractors or suppliers from which the contractor has retained funds The contractor must then release the funds retained from the subcontractor or supplier to the subcontractor or supplier within thirty days of accepting the bond from the subcontractor or supplier (7) If the public body administering a contract after a substantial portion of the work has been completed finds that an unreasonable delay will occur in the completion of the remaining portion of the contract for any reason not the result of a breach thereof it may if the contractor agrees delete from the contract the remaining work and accept as final the improvement at the stage of completion then attained and make payment in proportion to the amount of the work accomplished and in this case any amounts retained and accumulated under this section must be held for a period of sixty days following the completion In the event that the work is terminated before final completion as provided in this section the public body may thereafter enter into a new contract with the same contractor to perform the remaining work or improvement for an amount equal to or less than the cost of the remaining work as was provided for in the original contract without advertisement or bid The provisions of this chapter are exclusive and supersede all provisions and regulations in conflict herewith (8) Whenever the department of transportation has contracted for the construction of two or more ferry vessels sixty days after completion of all contract work on each ferry vessel the department must release and pay in full the amounts retained in connection with the construction of the vessel subject to the provisions of RCW 6028021 and chapter 3912 RCW However the department of transportation may at its discretion condition the release of funds retained in connection with the completed ferry upon the contractor delivering a good and sufficient bond with two or more sureties or with a surety company in the amount of the retained funds to be released to the contractor conditioned that no taxes may be certified or claims filed for work on the ferry after a period of sixty days following completion of the ferry and if taxes are certified or claims filed recovery may be had on the bond by the department of revenue the employment

CCBA Nuts amp Bolts on Construction Law - 47 of 49

security department the department of labor and industries and the material suppliers and laborers filing claims (9) Except as provided in subsection (1) of this section reservation by a public body for any purpose from the moneys earned by a contractor by fulfilling its responsibilities under public improvement contracts is prohibited (10) Contracts on projects funded in whole or in part by farmers home administration and subject to farmers home administration regulations are not subject to subsections (1) through (9) of this section (11) This subsection applies only to a public body that has contracted for the construction of a facility using the general contractorconstruction manager procedure as defined under RCW 3910210 If the work performed by a subcontractor on the project has been completed within the first half of the time provided in the general contractorconstruction manager contract for completing the work the public body may accept the completion of the subcontract The public body must give public notice of this acceptance After a forty-five day period for giving notice of liens and compliance with the retainage release procedures in RCW 6028021 the public body may release that portion of the retained funds associated with the subcontract Claims against the retained funds after the forty-five day period are not valid (12) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise (a) Contract retainage means an amount reserved by a public body from the moneys earned by a person under a public improvement contract (b) Person means a person or persons mechanic subcontractor or materialperson who performs labor or provides materials for a public improvement contract and any other person who supplies the person with provisions or supplies for the carrying on of a public improvement contract (c) Public body means the state or a county city town district board or other public body (d) Public improvement contract means a contract for public improvements or work other than for professional services or a work order as defined in RCW 3910210

CCBA Nuts amp Bolts on Construction Law - 48 of 49

RCW 6432070 Liens or encumbrances mdash Enforcement mdash Satisfaction

(1) Subsequent to recording the declaration as provided in this chapter and while the property remains subject to this chapter no lien shall thereafter arise or be effective against the property During such period liens or encumbrances shall arise or be created only against each apartment and the percentage of undivided interest in the common areas and facilities and appurtenant to such apartment in the same manner and under the same conditions in every respect as liens or encumbrances may arise or be created upon or against any other separate parcel of real property subject to individual ownership PROVIDED That no labor performed or materials furnished with the consent of or at the request of the owner of any apartment or such owners agent contractor or subcontractor shall be the basis for the filing of a lien against any other apartment or any other property of any other apartment owner not expressly consenting to or requesting the same except that such express consent shall be deemed to be given by any apartment owner in the case of emergency repairs Labor performed or materials furnished for the common areas and facilities if authorized by the association of apartment owners the manager or board of directors shall be deemed to be performed or furnished with the express consent of each apartment owner and shall be the basis for the filing of a lien against each of the apartments and shall be subject to the provisions of subsection (2) of this section (2) In the event a lien against two or more apartments becomes effective the apartment owners of the separate apartments may remove their apartment and the percentage of undivided interest in the common areas and facilities appurtenant to such apartment from the lien by payment of the fractional or proportional amounts attributable to each of the apartments affected Such individual payments shall be computed by reference to the percentages appearing on the declaration Subsequent to any such payment discharge or satisfaction the apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto shall thereafter be free and clear of the liens so paid satisfied or discharged Such partial payment satisfaction or discharge shall not prevent the lienor from proceeding to enforce his or her rights against any apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto not so paid satisfied or discharged

CCBA Nuts amp Bolts on Construction Law - 49 of 49

  • Cover Sheet
  • 20141110 - Washington Lien and Bond CLE
  • LampI Lien Summary
  • Claim of Lien
  • Form Notice to Owner
  • Model Disclosure Statement (Notice to Customer)
  • LampI Facts about Construction Liens
    • What you should know about contracts
    • How to protect your investment
    • For more information
      • Notice of Claim Against Bond and Retained Percentage
      • Preclaim Notice Bond amp Retained Percentage
      • Statute Handout
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 ESP ltFEFF005500740069006c0069006300650020006500730074006100200063006f006e0066006900670075007200610063006900f3006e0020007000610072006100200063007200650061007200200064006f00630075006d0065006e0074006f00730020005000440046002000640065002000410064006f0062006500200061006400650063007500610064006f00730020007000610072006100200069006d0070007200650073006900f3006e0020007000720065002d0065006400690074006f007200690061006c00200064006500200061006c00740061002000630061006c0069006400610064002e002000530065002000700075006500640065006e00200061006200720069007200200064006f00630075006d0065006e0074006f00730020005000440046002000630072006500610064006f007300200063006f006e0020004100630072006f006200610074002c002000410064006f00620065002000520065006100640065007200200035002e003000200079002000760065007200730069006f006e0065007300200070006f00730074006500720069006f007200650073002egt FRA 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 ITA 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 JPN ltFEFF9ad854c18cea306a30d730ea30d730ec30b951fa529b7528002000410064006f0062006500200050004400460020658766f8306e4f5c6210306b4f7f75283057307e305930023053306e8a2d5b9a30674f5c62103055308c305f0020005000440046002030d530a130a430eb306f3001004100630072006f0062006100740020304a30883073002000410064006f00620065002000520065006100640065007200200035002e003000204ee5964d3067958b304f30533068304c3067304d307e305930023053306e8a2d5b9a306b306f30d530a930f330c8306e57cb30818fbc307f304c5fc59808306730593002gt KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020ace0d488c9c80020c2dcd5d80020c778c1c4c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200035002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor prepress-afdrukken van hoge kwaliteit De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 50 en hoger) NOR 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 PTB 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 SUO ltFEFF004b00e40079007400e40020006e00e40069007400e4002000610073006500740075006b007300690061002c0020006b0075006e0020006c0075006f00740020006c00e400680069006e006e00e4002000760061006100740069007600610061006e0020007000610069006e006100740075006b00730065006e002000760061006c006d0069007300740065006c00750074007900f6006800f6006e00200073006f00700069007600690061002000410064006f0062006500200050004400460020002d0064006f006b0075006d0065006e007400740065006a0061002e0020004c0075006f0064007500740020005000440046002d0064006f006b0075006d0065006e00740069007400200076006f0069006400610061006e0020006100760061007400610020004100630072006f0062006100740069006c006c00610020006a0061002000410064006f00620065002000520065006100640065007200200035002e0030003a006c006c00610020006a006100200075007500640065006d006d0069006c006c0061002egt SVE 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 ENU (Use these settings to create Adobe PDF documents best suited for high-quality prepress printing Created PDF documents can be opened with Acrobat and Adobe Reader 50 and later) gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false ConvertColors ConvertToCMYK DestinationProfileName () DestinationProfileSelector DocumentCMYK Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles false MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector DocumentCMYK PreserveEditing true UntaggedCMYKHandling LeaveUntagged UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ]gtgt setdistillerparamsltlt HWResolution [2400 2400] PageSize [612000 792000]gtgt setpagedevice

          ltlt ASCII85EncodePages false AllowTransparency false AutoPositionEPSFiles true AutoRotatePages None Binding Left CalGrayProfile (Dot Gain 20) CalRGBProfile (sRGB IEC61966-21) CalCMYKProfile (US Web Coated 050SWOP051 v2) sRGBProfile (sRGB IEC61966-21) CannotEmbedFontPolicy Warning CompatibilityLevel 14 CompressObjects Tags CompressPages true ConvertImagesToIndexed true PassThroughJPEGImages true CreateJDFFile false CreateJobTicket false DefaultRenderingIntent Default DetectBlends true DetectCurves 00000 ColorConversionStrategy LeaveColorUnchanged DoThumbnails false EmbedAllFonts true EmbedOpenType false ParseICCProfilesInComments true EmbedJobOptions true DSCReportingLevel 0 EmitDSCWarnings false EndPage -1 ImageMemory 1048576 LockDistillerParams true MaxSubsetPct 100 Optimize true OPM 1 ParseDSCComments true ParseDSCCommentsForDocInfo true PreserveCopyPage true PreserveDICMYKValues true PreserveEPSInfo true PreserveFlatness true PreserveHalftoneInfo false PreserveOPIComments true PreserveOverprintSettings true StartPage 1 SubsetFonts true TransferFunctionInfo Apply UCRandBGInfo Preserve UsePrologue false ColorSettingsFile () AlwaysEmbed [ true Algerian Arial-Black Arial-BoldItalicMT Arial-BoldMT Arial-ItalicMT ArialMT ArialNarrow ArialNarrow-Bold ArialNarrow-BoldItalic ArialNarrow-Italic BaskOldFace Bauhaus93 BellMT BellMTBold BellMTItalic BerlinSansFB-Bold BerlinSansFBDemi-Bold BerlinSansFB-Reg BernardMT-Condensed BodoniMTPosterCompressed BookAntiqua BookAntiqua-Bold BookAntiqua-BoldItalic BookAntiqua-Italic BookmanOldStyle BookmanOldStyle-Bold BookmanOldStyle-BoldItalic BookmanOldStyle-Italic BookshelfSymbolSeven BritannicBold Broadway BrushScriptMT CalifornianFB-Bold CalifornianFB-Italic CalifornianFB-Reg Centaur CenturyGothic CenturyGothic-Bold CenturyGothic-BoldItalic CenturyGothic-Italic Chiller-Regular ColonnaMT ComicSansMS ComicSansMS-Bold CooperBlack CourierNewPS-BoldItalicMT CourierNewPS-BoldMT CourierNewPS-ItalicMT CourierNewPSMT EstrangeloEdessa EXTRAAPLNew-Regular EXTRAOIANew-Regular FootlightMTLight FranklinGothic-Medium FranklinGothic-MediumItalic FreestyleScript-Regular Garamond Garamond-Bold Garamond-Italic Gautami Georgia Georgia-Bold Georgia-BoldItalic Georgia-Italic HarlowSolid Harrington HighTowerText-Italic HighTowerText-Reg Impact InformalRoman-Regular Jokerman-Regular JuiceITC-Regular Kartika KristenITC-Regular KunstlerScript Latha LatinWide LucidaATTMSpecial LucidaBright LucidaBright-Demi LucidaBright-DemiItalic LucidaBright-Italic LucidaCalligraphy-Italic LucidaConsole LucidaFax LucidaFax-Demi LucidaFax-DemiItalic LucidaFax-Italic LucidaforAttachmate LucidaHandwriting-Italic LucidaSans LucidaSans-Demi LucidaSans-DemiItalic LucidaSans-Italic LucidaSansUnicode Magneto-Bold Mangal-Regular MaturaMTScriptCapitals MicrosoftSansSerif Mistral Modern-Regular Monospace821BT-Roman MonotypeCorsiva MSOutlook MSReferenceSansSerif MSReferenceSpecialty MVBoli NiagaraEngraved-Reg NiagaraSolid-Reg OldEnglishTextMT Onyx PalatinoLinotype-Bold PalatinoLinotype-BoldItalic PalatinoLinotype-Italic PalatinoLinotype-Roman Parchment-Regular Playbill PoorRichard-Regular Raavi Ravie ShowcardGothic-Reg Shruti SnapITC-Regular Stencil Sylfaen SymbolMT Tahoma Tahoma-Bold TempusSansITC TimesNewRomanPS-BoldItalicMT TimesNewRomanPS-BoldMT TimesNewRomanPS-ItalicMT TimesNewRomanPSMT Trebuchet-BoldItalic TrebuchetMS TrebuchetMS-Bold TrebuchetMS-Italic Tunga-Regular Verdana Verdana-Bold Verdana-BoldItalic Verdana-Italic VinerHandITC Vivaldii VladimirScript Vrinda Webdings Wingdings2 Wingdings3 Wingdings-Regular ZWAdobeF ] NeverEmbed [ true ] AntiAliasColorImages false CropColorImages true ColorImageMinResolution 300 ColorImageMinResolutionPolicy OK DownsampleColorImages true ColorImageDownsampleType Bicubic ColorImageResolution 300 ColorImageDepth -1 ColorImageMinDownsampleDepth 1 ColorImageDownsampleThreshold 150000 EncodeColorImages false ColorImageFilter DCTEncode AutoFilterColorImages true ColorImageAutoFilterStrategy JPEG ColorACSImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt ColorImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000ColorACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000ColorImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasGrayImages false CropGrayImages true GrayImageMinResolution 300 GrayImageMinResolutionPolicy OK DownsampleGrayImages true GrayImageDownsampleType Bicubic GrayImageResolution 300 GrayImageDepth -1 GrayImageMinDownsampleDepth 2 GrayImageDownsampleThreshold 150000 EncodeGrayImages false GrayImageFilter DCTEncode AutoFilterGrayImages true GrayImageAutoFilterStrategy JPEG GrayACSImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt GrayImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000GrayACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000GrayImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasMonoImages false CropMonoImages true MonoImageMinResolution 1200 MonoImageMinResolutionPolicy OK DownsampleMonoImages true MonoImageDownsampleType Bicubic MonoImageResolution 1200 MonoImageDepth -1 MonoImageDownsampleThreshold 150000 EncodeMonoImages false MonoImageFilter CCITTFaxEncode MonoImageDict ltlt K -1 gtgt AllowPSXObjects false CheckCompliance [ None ] PDFX1aCheck false PDFX3Check false PDFXCompliantPDFOnly false PDFXNoTrimBoxError true PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile (None) PDFXOutputConditionIdentifier () PDFXOutputCondition () PDFXRegistryName () PDFXTrapped False Description ltlt CHS ltFEFF4f7f75288fd94e9b8bbe5b9a521b5efa7684002000410064006f006200650020005000440046002065876863900275284e8e9ad88d2891cf76845370524d53705237300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200035002e003000204ee553ca66f49ad87248672c676562535f00521b5efa768400200050004400460020658768633002gt CHT ltFEFF4f7f752890194e9b8a2d7f6e5efa7acb7684002000410064006f006200650020005000440046002065874ef69069752865bc9ad854c18cea76845370524d5370523786557406300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200035002e003000204ee553ca66f49ad87248672c4f86958b555f5df25efa7acb76840020005000440046002065874ef63002gt DAN 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 DEU ltFEFF00560065007200770065006e00640065006e0020005300690065002000640069006500730065002000450069006e007300740065006c006c0075006e00670065006e0020007a0075006d002000450072007300740065006c006c0065006e00200076006f006e002000410064006f006200650020005000440046002d0044006f006b0075006d0065006e00740065006e002c00200076006f006e002000640065006e0065006e002000530069006500200068006f006300680077006500720074006900670065002000500072006500700072006500730073002d0044007200750063006b0065002000650072007a0065007500670065006e0020006d00f60063006800740065006e002e002000450072007300740065006c006c007400650020005000440046002d0044006f006b0075006d0065006e007400650020006b00f6006e006e0065006e0020006d006900740020004100630072006f00620061007400200075006e0064002000410064006f00620065002000520065006100640065007200200035002e00300020006f0064006500720020006800f600680065007200200067006500f600660066006e00650074002000770065007200640065006e002egt ESP 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 FRA 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 ITA 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          15. expiration date
          16. claims up to $
          17. Reset

(2) Every person performing labor or furnishing supplies toward the completion of a public improvement contract has a lien upon moneys reserved by a public body under the provisions of a public improvement contract However the notice of the lien of the claimant must be given within forty-five days of completion of the contract work and in the manner provided in RCW 3908030 (3) The contractor at any time may request the contract retainage be reduced to one hundred percent of the value of the work remaining on the project (a) After completion of all contract work other than landscaping the contractor may request that the public body release and pay in full the amounts retained during the performance of the contract and sixty days thereafter the public body must release and pay in full the amounts retained (other than continuing retention of five percent of the moneys earned for landscaping) subject to the provisions of chapters 3912 and 6028 RCW (b) Sixty days after completion of all contract work the public body must release and pay in full the amounts retained during the performance of the contract subject to the provisions of chapters 3912 and 6028 RCW (4) The moneys reserved by a public body under the provisions of a public improvement contract at the option of the contractor must be (a) Retained in a fund by the public body (b) Deposited by the public body in an interest bearing account in a bank mutual savings bank or savings and loan association Interest on moneys reserved by a public body under the provision of a public improvement contract must be paid to the contractor (c) Placed in escrow with a bank or trust company by the public body When the moneys reserved are placed in escrow the public body must issue a check representing the sum of the moneys reserved payable to the bank or trust company and the contractor jointly This check must be converted into bonds and securities chosen by the contractor and approved by the public body and the bonds and securities must be held in escrow Interest on the bonds and securities must be paid to the contractor as the interest accrues (5) The contractor or subcontractor may withhold payment of not more than five percent from the moneys earned by any subcontractor or sub-subcontractor or supplier contracted with by the contractor to provide labor materials or equipment to the public project Whenever the contractor or subcontractor reserves funds earned by a subcontractor or sub-subcontractor or

CCBA Nuts amp Bolts on Construction Law - 46 of 49

supplier the contractor or subcontractor must pay interest to the subcontractor or sub-subcontractor or supplier at a rate equal to that received by the contractor or subcontractor from reserved funds (6) A contractor may submit a bond for all or any portion of the contract retainage in a form acceptable to the public body and from a bonding company meeting standards established by the public body The public body must accept a bond meeting these requirements unless the public body can demonstrate good cause for refusing to accept it This bond and any proceeds therefrom are subject to all claims and liens and in the same manner and priority as set forth for retained percentages in this chapter The public body must release the bonded portion of the retained funds to the contractor within thirty days of accepting the bond from the contractor Whenever a public body accepts a bond in lieu of retained funds from a contractor the contractor must accept like bonds from any subcontractors or suppliers from which the contractor has retained funds The contractor must then release the funds retained from the subcontractor or supplier to the subcontractor or supplier within thirty days of accepting the bond from the subcontractor or supplier (7) If the public body administering a contract after a substantial portion of the work has been completed finds that an unreasonable delay will occur in the completion of the remaining portion of the contract for any reason not the result of a breach thereof it may if the contractor agrees delete from the contract the remaining work and accept as final the improvement at the stage of completion then attained and make payment in proportion to the amount of the work accomplished and in this case any amounts retained and accumulated under this section must be held for a period of sixty days following the completion In the event that the work is terminated before final completion as provided in this section the public body may thereafter enter into a new contract with the same contractor to perform the remaining work or improvement for an amount equal to or less than the cost of the remaining work as was provided for in the original contract without advertisement or bid The provisions of this chapter are exclusive and supersede all provisions and regulations in conflict herewith (8) Whenever the department of transportation has contracted for the construction of two or more ferry vessels sixty days after completion of all contract work on each ferry vessel the department must release and pay in full the amounts retained in connection with the construction of the vessel subject to the provisions of RCW 6028021 and chapter 3912 RCW However the department of transportation may at its discretion condition the release of funds retained in connection with the completed ferry upon the contractor delivering a good and sufficient bond with two or more sureties or with a surety company in the amount of the retained funds to be released to the contractor conditioned that no taxes may be certified or claims filed for work on the ferry after a period of sixty days following completion of the ferry and if taxes are certified or claims filed recovery may be had on the bond by the department of revenue the employment

CCBA Nuts amp Bolts on Construction Law - 47 of 49

security department the department of labor and industries and the material suppliers and laborers filing claims (9) Except as provided in subsection (1) of this section reservation by a public body for any purpose from the moneys earned by a contractor by fulfilling its responsibilities under public improvement contracts is prohibited (10) Contracts on projects funded in whole or in part by farmers home administration and subject to farmers home administration regulations are not subject to subsections (1) through (9) of this section (11) This subsection applies only to a public body that has contracted for the construction of a facility using the general contractorconstruction manager procedure as defined under RCW 3910210 If the work performed by a subcontractor on the project has been completed within the first half of the time provided in the general contractorconstruction manager contract for completing the work the public body may accept the completion of the subcontract The public body must give public notice of this acceptance After a forty-five day period for giving notice of liens and compliance with the retainage release procedures in RCW 6028021 the public body may release that portion of the retained funds associated with the subcontract Claims against the retained funds after the forty-five day period are not valid (12) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise (a) Contract retainage means an amount reserved by a public body from the moneys earned by a person under a public improvement contract (b) Person means a person or persons mechanic subcontractor or materialperson who performs labor or provides materials for a public improvement contract and any other person who supplies the person with provisions or supplies for the carrying on of a public improvement contract (c) Public body means the state or a county city town district board or other public body (d) Public improvement contract means a contract for public improvements or work other than for professional services or a work order as defined in RCW 3910210

CCBA Nuts amp Bolts on Construction Law - 48 of 49

RCW 6432070 Liens or encumbrances mdash Enforcement mdash Satisfaction

(1) Subsequent to recording the declaration as provided in this chapter and while the property remains subject to this chapter no lien shall thereafter arise or be effective against the property During such period liens or encumbrances shall arise or be created only against each apartment and the percentage of undivided interest in the common areas and facilities and appurtenant to such apartment in the same manner and under the same conditions in every respect as liens or encumbrances may arise or be created upon or against any other separate parcel of real property subject to individual ownership PROVIDED That no labor performed or materials furnished with the consent of or at the request of the owner of any apartment or such owners agent contractor or subcontractor shall be the basis for the filing of a lien against any other apartment or any other property of any other apartment owner not expressly consenting to or requesting the same except that such express consent shall be deemed to be given by any apartment owner in the case of emergency repairs Labor performed or materials furnished for the common areas and facilities if authorized by the association of apartment owners the manager or board of directors shall be deemed to be performed or furnished with the express consent of each apartment owner and shall be the basis for the filing of a lien against each of the apartments and shall be subject to the provisions of subsection (2) of this section (2) In the event a lien against two or more apartments becomes effective the apartment owners of the separate apartments may remove their apartment and the percentage of undivided interest in the common areas and facilities appurtenant to such apartment from the lien by payment of the fractional or proportional amounts attributable to each of the apartments affected Such individual payments shall be computed by reference to the percentages appearing on the declaration Subsequent to any such payment discharge or satisfaction the apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto shall thereafter be free and clear of the liens so paid satisfied or discharged Such partial payment satisfaction or discharge shall not prevent the lienor from proceeding to enforce his or her rights against any apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto not so paid satisfied or discharged

CCBA Nuts amp Bolts on Construction Law - 49 of 49

  • Cover Sheet
  • 20141110 - Washington Lien and Bond CLE
  • LampI Lien Summary
  • Claim of Lien
  • Form Notice to Owner
  • Model Disclosure Statement (Notice to Customer)
  • LampI Facts about Construction Liens
    • What you should know about contracts
    • How to protect your investment
    • For more information
      • Notice of Claim Against Bond and Retained Percentage
      • Preclaim Notice Bond amp Retained Percentage
      • Statute Handout
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 FRA 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 ITA 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 JPN ltFEFF9ad854c18cea306a30d730ea30d730ec30b951fa529b7528002000410064006f0062006500200050004400460020658766f8306e4f5c6210306b4f7f75283057307e305930023053306e8a2d5b9a30674f5c62103055308c305f0020005000440046002030d530a130a430eb306f3001004100630072006f0062006100740020304a30883073002000410064006f00620065002000520065006100640065007200200035002e003000204ee5964d3067958b304f30533068304c3067304d307e305930023053306e8a2d5b9a306b306f30d530a930f330c8306e57cb30818fbc307f304c5fc59808306730593002gt KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020ace0d488c9c80020c2dcd5d80020c778c1c4c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200035002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor prepress-afdrukken van hoge kwaliteit De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 50 en hoger) NOR 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 PTB ltFEFF005500740069006c0069007a006500200065007300730061007300200063006f006e00660069006700750072006100e700f50065007300200064006500200066006f0072006d00610020006100200063007200690061007200200064006f00630075006d0065006e0074006f0073002000410064006f0062006500200050004400460020006d00610069007300200061006400650071007500610064006f00730020007000610072006100200070007200e9002d0069006d0070007200650073007300f50065007300200064006500200061006c007400610020007100750061006c00690064006100640065002e0020004f007300200064006f00630075006d0065006e0074006f00730020005000440046002000630072006900610064006f007300200070006f00640065006d0020007300650072002000610062006500720074006f007300200063006f006d0020006f0020004100630072006f006200610074002000650020006f002000410064006f00620065002000520065006100640065007200200035002e0030002000650020007600650072007300f50065007300200070006f00730074006500720069006f007200650073002egt SUO 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 SVE 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 ENU (Use these settings to create Adobe PDF documents best suited for high-quality prepress printing Created PDF documents can be opened with Acrobat and Adobe Reader 50 and later) gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false ConvertColors ConvertToCMYK DestinationProfileName () DestinationProfileSelector DocumentCMYK Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles false MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector DocumentCMYK PreserveEditing true UntaggedCMYKHandling LeaveUntagged UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ]gtgt setdistillerparamsltlt HWResolution [2400 2400] PageSize [612000 792000]gtgt setpagedevice

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true PreserveOverprintSettings true StartPage 1 SubsetFonts true TransferFunctionInfo Apply UCRandBGInfo Preserve UsePrologue false ColorSettingsFile () AlwaysEmbed [ true Algerian Arial-Black Arial-BoldItalicMT Arial-BoldMT Arial-ItalicMT ArialMT ArialNarrow ArialNarrow-Bold ArialNarrow-BoldItalic ArialNarrow-Italic BaskOldFace Bauhaus93 BellMT BellMTBold BellMTItalic BerlinSansFB-Bold BerlinSansFBDemi-Bold BerlinSansFB-Reg BernardMT-Condensed BodoniMTPosterCompressed BookAntiqua BookAntiqua-Bold BookAntiqua-BoldItalic BookAntiqua-Italic BookmanOldStyle BookmanOldStyle-Bold BookmanOldStyle-BoldItalic BookmanOldStyle-Italic BookshelfSymbolSeven BritannicBold Broadway BrushScriptMT CalifornianFB-Bold CalifornianFB-Italic CalifornianFB-Reg Centaur CenturyGothic CenturyGothic-Bold CenturyGothic-BoldItalic CenturyGothic-Italic Chiller-Regular ColonnaMT ComicSansMS ComicSansMS-Bold CooperBlack CourierNewPS-BoldItalicMT CourierNewPS-BoldMT CourierNewPS-ItalicMT CourierNewPSMT EstrangeloEdessa EXTRAAPLNew-Regular EXTRAOIANew-Regular FootlightMTLight FranklinGothic-Medium FranklinGothic-MediumItalic FreestyleScript-Regular Garamond Garamond-Bold Garamond-Italic Gautami Georgia Georgia-Bold Georgia-BoldItalic Georgia-Italic HarlowSolid Harrington HighTowerText-Italic HighTowerText-Reg Impact InformalRoman-Regular Jokerman-Regular JuiceITC-Regular Kartika KristenITC-Regular KunstlerScript Latha LatinWide LucidaATTMSpecial LucidaBright LucidaBright-Demi LucidaBright-DemiItalic LucidaBright-Italic LucidaCalligraphy-Italic LucidaConsole LucidaFax LucidaFax-Demi LucidaFax-DemiItalic LucidaFax-Italic LucidaforAttachmate LucidaHandwriting-Italic LucidaSans LucidaSans-Demi LucidaSans-DemiItalic LucidaSans-Italic LucidaSansUnicode Magneto-Bold Mangal-Regular MaturaMTScriptCapitals MicrosoftSansSerif Mistral Modern-Regular Monospace821BT-Roman MonotypeCorsiva MSOutlook MSReferenceSansSerif MSReferenceSpecialty MVBoli NiagaraEngraved-Reg NiagaraSolid-Reg OldEnglishTextMT Onyx PalatinoLinotype-Bold PalatinoLinotype-BoldItalic PalatinoLinotype-Italic PalatinoLinotype-Roman Parchment-Regular Playbill PoorRichard-Regular Raavi Ravie ShowcardGothic-Reg Shruti SnapITC-Regular Stencil Sylfaen SymbolMT Tahoma Tahoma-Bold TempusSansITC TimesNewRomanPS-BoldItalicMT TimesNewRomanPS-BoldMT TimesNewRomanPS-ItalicMT TimesNewRomanPSMT Trebuchet-BoldItalic TrebuchetMS TrebuchetMS-Bold TrebuchetMS-Italic Tunga-Regular Verdana Verdana-Bold Verdana-BoldItalic Verdana-Italic VinerHandITC Vivaldii VladimirScript Vrinda Webdings Wingdings2 Wingdings3 Wingdings-Regular ZWAdobeF ] NeverEmbed [ true ] AntiAliasColorImages false CropColorImages true ColorImageMinResolution 300 ColorImageMinResolutionPolicy OK DownsampleColorImages true ColorImageDownsampleType Bicubic ColorImageResolution 300 ColorImageDepth -1 ColorImageMinDownsampleDepth 1 ColorImageDownsampleThreshold 150000 EncodeColorImages false ColorImageFilter DCTEncode AutoFilterColorImages true ColorImageAutoFilterStrategy JPEG ColorACSImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt ColorImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000ColorACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000ColorImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasGrayImages false CropGrayImages true GrayImageMinResolution 300 GrayImageMinResolutionPolicy OK DownsampleGrayImages true GrayImageDownsampleType Bicubic GrayImageResolution 300 GrayImageDepth -1 GrayImageMinDownsampleDepth 2 GrayImageDownsampleThreshold 150000 EncodeGrayImages false GrayImageFilter DCTEncode AutoFilterGrayImages true GrayImageAutoFilterStrategy JPEG GrayACSImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt GrayImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000GrayACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000GrayImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasMonoImages false CropMonoImages true MonoImageMinResolution 1200 MonoImageMinResolutionPolicy OK DownsampleMonoImages true MonoImageDownsampleType Bicubic MonoImageResolution 1200 MonoImageDepth -1 MonoImageDownsampleThreshold 150000 EncodeMonoImages false MonoImageFilter CCITTFaxEncode MonoImageDict ltlt K -1 gtgt AllowPSXObjects false CheckCompliance [ None ] PDFX1aCheck false PDFX3Check false PDFXCompliantPDFOnly false PDFXNoTrimBoxError true PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile (None) PDFXOutputConditionIdentifier () PDFXOutputCondition () PDFXRegistryName () PDFXTrapped False Description ltlt CHS ltFEFF4f7f75288fd94e9b8bbe5b9a521b5efa7684002000410064006f006200650020005000440046002065876863900275284e8e9ad88d2891cf76845370524d53705237300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200035002e003000204ee553ca66f49ad87248672c676562535f00521b5efa768400200050004400460020658768633002gt CHT ltFEFF4f7f752890194e9b8a2d7f6e5efa7acb7684002000410064006f006200650020005000440046002065874ef69069752865bc9ad854c18cea76845370524d5370523786557406300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200035002e003000204ee553ca66f49ad87248672c4f86958b555f5df25efa7acb76840020005000440046002065874ef63002gt DAN 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 DEU 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 ESP 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 FRA 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 ITA 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 JPN ltFEFF9ad854c18cea306a30d730ea30d730ec30b951fa529b7528002000410064006f0062006500200050004400460020658766f8306e4f5c6210306b4f7f75283057307e305930023053306e8a2d5b9a30674f5c62103055308c305f0020005000440046002030d530a130a430eb306f3001004100630072006f0062006100740020304a30883073002000410064006f00620065002000520065006100640065007200200035002e003000204ee5964d3067958b304f30533068304c3067304d307e305930023053306e8a2d5b9a306b306f30d530a930f330c8306e57cb30818fbc307f304c5fc59808306730593002gt KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020ace0d488c9c80020c2dcd5d80020c778c1c4c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200035002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor prepress-afdrukken van hoge kwaliteit De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 50 en hoger) NOR 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 PTB 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          1. To
          2. Date
          3. Re
          4. From
          5. AT THE REQUEST OF
          6. Sender
          7. Address
          8. Telephone
          9. Brief description of professional services materials or equipment provided or to be provided
          10. 1
          11. 2
          12. 3
          13. reg no
          14. deposit $
          15. expiration date
          16. claims up to $
          17. Reset

supplier the contractor or subcontractor must pay interest to the subcontractor or sub-subcontractor or supplier at a rate equal to that received by the contractor or subcontractor from reserved funds (6) A contractor may submit a bond for all or any portion of the contract retainage in a form acceptable to the public body and from a bonding company meeting standards established by the public body The public body must accept a bond meeting these requirements unless the public body can demonstrate good cause for refusing to accept it This bond and any proceeds therefrom are subject to all claims and liens and in the same manner and priority as set forth for retained percentages in this chapter The public body must release the bonded portion of the retained funds to the contractor within thirty days of accepting the bond from the contractor Whenever a public body accepts a bond in lieu of retained funds from a contractor the contractor must accept like bonds from any subcontractors or suppliers from which the contractor has retained funds The contractor must then release the funds retained from the subcontractor or supplier to the subcontractor or supplier within thirty days of accepting the bond from the subcontractor or supplier (7) If the public body administering a contract after a substantial portion of the work has been completed finds that an unreasonable delay will occur in the completion of the remaining portion of the contract for any reason not the result of a breach thereof it may if the contractor agrees delete from the contract the remaining work and accept as final the improvement at the stage of completion then attained and make payment in proportion to the amount of the work accomplished and in this case any amounts retained and accumulated under this section must be held for a period of sixty days following the completion In the event that the work is terminated before final completion as provided in this section the public body may thereafter enter into a new contract with the same contractor to perform the remaining work or improvement for an amount equal to or less than the cost of the remaining work as was provided for in the original contract without advertisement or bid The provisions of this chapter are exclusive and supersede all provisions and regulations in conflict herewith (8) Whenever the department of transportation has contracted for the construction of two or more ferry vessels sixty days after completion of all contract work on each ferry vessel the department must release and pay in full the amounts retained in connection with the construction of the vessel subject to the provisions of RCW 6028021 and chapter 3912 RCW However the department of transportation may at its discretion condition the release of funds retained in connection with the completed ferry upon the contractor delivering a good and sufficient bond with two or more sureties or with a surety company in the amount of the retained funds to be released to the contractor conditioned that no taxes may be certified or claims filed for work on the ferry after a period of sixty days following completion of the ferry and if taxes are certified or claims filed recovery may be had on the bond by the department of revenue the employment

CCBA Nuts amp Bolts on Construction Law - 47 of 49

security department the department of labor and industries and the material suppliers and laborers filing claims (9) Except as provided in subsection (1) of this section reservation by a public body for any purpose from the moneys earned by a contractor by fulfilling its responsibilities under public improvement contracts is prohibited (10) Contracts on projects funded in whole or in part by farmers home administration and subject to farmers home administration regulations are not subject to subsections (1) through (9) of this section (11) This subsection applies only to a public body that has contracted for the construction of a facility using the general contractorconstruction manager procedure as defined under RCW 3910210 If the work performed by a subcontractor on the project has been completed within the first half of the time provided in the general contractorconstruction manager contract for completing the work the public body may accept the completion of the subcontract The public body must give public notice of this acceptance After a forty-five day period for giving notice of liens and compliance with the retainage release procedures in RCW 6028021 the public body may release that portion of the retained funds associated with the subcontract Claims against the retained funds after the forty-five day period are not valid (12) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise (a) Contract retainage means an amount reserved by a public body from the moneys earned by a person under a public improvement contract (b) Person means a person or persons mechanic subcontractor or materialperson who performs labor or provides materials for a public improvement contract and any other person who supplies the person with provisions or supplies for the carrying on of a public improvement contract (c) Public body means the state or a county city town district board or other public body (d) Public improvement contract means a contract for public improvements or work other than for professional services or a work order as defined in RCW 3910210

CCBA Nuts amp Bolts on Construction Law - 48 of 49

RCW 6432070 Liens or encumbrances mdash Enforcement mdash Satisfaction

(1) Subsequent to recording the declaration as provided in this chapter and while the property remains subject to this chapter no lien shall thereafter arise or be effective against the property During such period liens or encumbrances shall arise or be created only against each apartment and the percentage of undivided interest in the common areas and facilities and appurtenant to such apartment in the same manner and under the same conditions in every respect as liens or encumbrances may arise or be created upon or against any other separate parcel of real property subject to individual ownership PROVIDED That no labor performed or materials furnished with the consent of or at the request of the owner of any apartment or such owners agent contractor or subcontractor shall be the basis for the filing of a lien against any other apartment or any other property of any other apartment owner not expressly consenting to or requesting the same except that such express consent shall be deemed to be given by any apartment owner in the case of emergency repairs Labor performed or materials furnished for the common areas and facilities if authorized by the association of apartment owners the manager or board of directors shall be deemed to be performed or furnished with the express consent of each apartment owner and shall be the basis for the filing of a lien against each of the apartments and shall be subject to the provisions of subsection (2) of this section (2) In the event a lien against two or more apartments becomes effective the apartment owners of the separate apartments may remove their apartment and the percentage of undivided interest in the common areas and facilities appurtenant to such apartment from the lien by payment of the fractional or proportional amounts attributable to each of the apartments affected Such individual payments shall be computed by reference to the percentages appearing on the declaration Subsequent to any such payment discharge or satisfaction the apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto shall thereafter be free and clear of the liens so paid satisfied or discharged Such partial payment satisfaction or discharge shall not prevent the lienor from proceeding to enforce his or her rights against any apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto not so paid satisfied or discharged

CCBA Nuts amp Bolts on Construction Law - 49 of 49

  • Cover Sheet
  • 20141110 - Washington Lien and Bond CLE
  • LampI Lien Summary
  • Claim of Lien
  • Form Notice to Owner
  • Model Disclosure Statement (Notice to Customer)
  • LampI Facts about Construction Liens
    • What you should know about contracts
    • How to protect your investment
    • For more information
      • Notice of Claim Against Bond and Retained Percentage
      • Preclaim Notice Bond amp Retained Percentage
      • Statute Handout
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ltFEFF9ad854c18cea306a30d730ea30d730ec30b951fa529b7528002000410064006f0062006500200050004400460020658766f8306e4f5c6210306b4f7f75283057307e305930023053306e8a2d5b9a30674f5c62103055308c305f0020005000440046002030d530a130a430eb306f3001004100630072006f0062006100740020304a30883073002000410064006f00620065002000520065006100640065007200200035002e003000204ee5964d3067958b304f30533068304c3067304d307e305930023053306e8a2d5b9a306b306f30d530a930f330c8306e57cb30818fbc307f304c5fc59808306730593002gt KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020ace0d488c9c80020c2dcd5d80020c778c1c4c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200035002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor prepress-afdrukken van hoge kwaliteit De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 50 en hoger) NOR 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 PTB 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 SUO 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 SVE ltFEFF0041006e007600e4006e00640020006400650020006800e4007200200069006e0073007400e4006c006c006e0069006e006700610072006e00610020006f006d002000640075002000760069006c006c00200073006b006100700061002000410064006f006200650020005000440046002d0064006f006b0075006d0065006e007400200073006f006d002000e400720020006c00e4006d0070006c0069006700610020006600f60072002000700072006500700072006500730073002d007500740073006b00720069006600740020006d006500640020006800f600670020006b00760061006c0069007400650074002e002000200053006b006100700061006400650020005000440046002d0064006f006b0075006d0065006e00740020006b0061006e002000f600700070006e00610073002000690020004100630072006f0062006100740020006f00630068002000410064006f00620065002000520065006100640065007200200035002e00300020006f00630068002000730065006e006100720065002egt ENU (Use these settings to create Adobe PDF documents best suited for high-quality prepress printing Created PDF documents can be opened with Acrobat and Adobe Reader 50 and later) gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false ConvertColors ConvertToCMYK DestinationProfileName () DestinationProfileSelector DocumentCMYK Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles false MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector DocumentCMYK PreserveEditing true UntaggedCMYKHandling LeaveUntagged UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ]gtgt setdistillerparamsltlt HWResolution [2400 2400] PageSize [612000 792000]gtgt setpagedevice

          ltlt ASCII85EncodePages false AllowTransparency false AutoPositionEPSFiles true AutoRotatePages None Binding Left CalGrayProfile (Dot Gain 20) CalRGBProfile (sRGB IEC61966-21) CalCMYKProfile (US Web Coated 050SWOP051 v2) sRGBProfile (sRGB IEC61966-21) CannotEmbedFontPolicy Warning CompatibilityLevel 14 CompressObjects Tags CompressPages true ConvertImagesToIndexed true PassThroughJPEGImages true CreateJDFFile false CreateJobTicket false DefaultRenderingIntent Default DetectBlends true DetectCurves 00000 ColorConversionStrategy LeaveColorUnchanged DoThumbnails false EmbedAllFonts true EmbedOpenType false ParseICCProfilesInComments true EmbedJobOptions true DSCReportingLevel 0 EmitDSCWarnings false EndPage -1 ImageMemory 1048576 LockDistillerParams true MaxSubsetPct 100 Optimize true OPM 1 ParseDSCComments true ParseDSCCommentsForDocInfo true PreserveCopyPage true PreserveDICMYKValues true PreserveEPSInfo true PreserveFlatness true PreserveHalftoneInfo false PreserveOPIComments true PreserveOverprintSettings true StartPage 1 SubsetFonts true TransferFunctionInfo Apply UCRandBGInfo Preserve UsePrologue false ColorSettingsFile () AlwaysEmbed [ true Algerian Arial-Black Arial-BoldItalicMT Arial-BoldMT Arial-ItalicMT ArialMT ArialNarrow ArialNarrow-Bold ArialNarrow-BoldItalic ArialNarrow-Italic BaskOldFace Bauhaus93 BellMT BellMTBold BellMTItalic BerlinSansFB-Bold BerlinSansFBDemi-Bold BerlinSansFB-Reg BernardMT-Condensed BodoniMTPosterCompressed BookAntiqua BookAntiqua-Bold BookAntiqua-BoldItalic BookAntiqua-Italic BookmanOldStyle BookmanOldStyle-Bold BookmanOldStyle-BoldItalic BookmanOldStyle-Italic BookshelfSymbolSeven BritannicBold Broadway BrushScriptMT CalifornianFB-Bold CalifornianFB-Italic CalifornianFB-Reg Centaur CenturyGothic CenturyGothic-Bold CenturyGothic-BoldItalic CenturyGothic-Italic Chiller-Regular ColonnaMT ComicSansMS ComicSansMS-Bold CooperBlack CourierNewPS-BoldItalicMT CourierNewPS-BoldMT CourierNewPS-ItalicMT CourierNewPSMT EstrangeloEdessa EXTRAAPLNew-Regular EXTRAOIANew-Regular FootlightMTLight FranklinGothic-Medium FranklinGothic-MediumItalic FreestyleScript-Regular Garamond Garamond-Bold Garamond-Italic Gautami Georgia Georgia-Bold Georgia-BoldItalic Georgia-Italic HarlowSolid Harrington HighTowerText-Italic HighTowerText-Reg Impact InformalRoman-Regular Jokerman-Regular JuiceITC-Regular Kartika KristenITC-Regular KunstlerScript Latha LatinWide LucidaATTMSpecial LucidaBright LucidaBright-Demi LucidaBright-DemiItalic LucidaBright-Italic LucidaCalligraphy-Italic LucidaConsole LucidaFax LucidaFax-Demi LucidaFax-DemiItalic LucidaFax-Italic LucidaforAttachmate LucidaHandwriting-Italic LucidaSans LucidaSans-Demi LucidaSans-DemiItalic LucidaSans-Italic LucidaSansUnicode Magneto-Bold Mangal-Regular MaturaMTScriptCapitals MicrosoftSansSerif Mistral Modern-Regular Monospace821BT-Roman MonotypeCorsiva MSOutlook MSReferenceSansSerif MSReferenceSpecialty MVBoli NiagaraEngraved-Reg NiagaraSolid-Reg OldEnglishTextMT Onyx PalatinoLinotype-Bold PalatinoLinotype-BoldItalic PalatinoLinotype-Italic PalatinoLinotype-Roman Parchment-Regular Playbill PoorRichard-Regular Raavi Ravie ShowcardGothic-Reg Shruti SnapITC-Regular Stencil Sylfaen SymbolMT Tahoma Tahoma-Bold TempusSansITC TimesNewRomanPS-BoldItalicMT TimesNewRomanPS-BoldMT TimesNewRomanPS-ItalicMT TimesNewRomanPSMT Trebuchet-BoldItalic TrebuchetMS TrebuchetMS-Bold TrebuchetMS-Italic Tunga-Regular Verdana Verdana-Bold Verdana-BoldItalic Verdana-Italic VinerHandITC Vivaldii VladimirScript Vrinda Webdings Wingdings2 Wingdings3 Wingdings-Regular ZWAdobeF ] NeverEmbed [ true ] AntiAliasColorImages false CropColorImages true ColorImageMinResolution 300 ColorImageMinResolutionPolicy OK DownsampleColorImages true ColorImageDownsampleType Bicubic ColorImageResolution 300 ColorImageDepth -1 ColorImageMinDownsampleDepth 1 ColorImageDownsampleThreshold 150000 EncodeColorImages false ColorImageFilter DCTEncode AutoFilterColorImages true ColorImageAutoFilterStrategy JPEG ColorACSImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt ColorImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000ColorACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000ColorImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasGrayImages false CropGrayImages true GrayImageMinResolution 300 GrayImageMinResolutionPolicy OK DownsampleGrayImages true GrayImageDownsampleType Bicubic GrayImageResolution 300 GrayImageDepth -1 GrayImageMinDownsampleDepth 2 GrayImageDownsampleThreshold 150000 EncodeGrayImages false GrayImageFilter DCTEncode AutoFilterGrayImages true GrayImageAutoFilterStrategy JPEG GrayACSImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt GrayImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000GrayACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000GrayImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasMonoImages false CropMonoImages true MonoImageMinResolution 1200 MonoImageMinResolutionPolicy OK DownsampleMonoImages true MonoImageDownsampleType Bicubic MonoImageResolution 1200 MonoImageDepth -1 MonoImageDownsampleThreshold 150000 EncodeMonoImages false MonoImageFilter CCITTFaxEncode MonoImageDict ltlt K -1 gtgt AllowPSXObjects false CheckCompliance [ None ] PDFX1aCheck false PDFX3Check false PDFXCompliantPDFOnly false PDFXNoTrimBoxError true PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile (None) PDFXOutputConditionIdentifier () PDFXOutputCondition () PDFXRegistryName () PDFXTrapped False Description ltlt CHS ltFEFF4f7f75288fd94e9b8bbe5b9a521b5efa7684002000410064006f006200650020005000440046002065876863900275284e8e9ad88d2891cf76845370524d53705237300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200035002e003000204ee553ca66f49ad87248672c676562535f00521b5efa768400200050004400460020658768633002gt CHT ltFEFF4f7f752890194e9b8a2d7f6e5efa7acb7684002000410064006f006200650020005000440046002065874ef69069752865bc9ad854c18cea76845370524d5370523786557406300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200035002e003000204ee553ca66f49ad87248672c4f86958b555f5df25efa7acb76840020005000440046002065874ef63002gt DAN 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 DEU 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 ESP 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 FRA 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 ITA ltFEFF005500740069006c0069007a007a006100720065002000710075006500730074006500200069006d0070006f007300740061007a0069006f006e00690020007000650072002000630072006500610072006500200064006f00630075006d0065006e00740069002000410064006f00620065002000500044004600200070006900f900200061006400610074007400690020006100200075006e00610020007000720065007300740061006d0070006100200064006900200061006c007400610020007100750061006c0069007400e0002e0020004900200064006f00630075006d0065006e007400690020005000440046002000630072006500610074006900200070006f00730073006f006e006f0020006500730073006500720065002000610070006500720074006900200063006f006e0020004100630072006f00620061007400200065002000410064006f00620065002000520065006100640065007200200035002e003000200065002000760065007200730069006f006e006900200073007500630063006500730073006900760065002egt JPN ltFEFF9ad854c18cea306a30d730ea30d730ec30b951fa529b7528002000410064006f0062006500200050004400460020658766f8306e4f5c6210306b4f7f75283057307e305930023053306e8a2d5b9a30674f5c62103055308c305f0020005000440046002030d530a130a430eb306f3001004100630072006f0062006100740020304a30883073002000410064006f00620065002000520065006100640065007200200035002e003000204ee5964d3067958b304f30533068304c3067304d307e305930023053306e8a2d5b9a306b306f30d530a930f330c8306e57cb30818fbc307f304c5fc59808306730593002gt KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020ace0d488c9c80020c2dcd5d80020c778c1c4c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200035002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor prepress-afdrukken van hoge kwaliteit De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 50 en hoger) NOR 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 PTB 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 SUO ltFEFF004b00e40079007400e40020006e00e40069007400e4002000610073006500740075006b007300690061002c0020006b0075006e0020006c0075006f00740020006c00e400680069006e006e00e4002000760061006100740069007600610061006e0020007000610069006e006100740075006b00730065006e002000760061006c006d0069007300740065006c00750074007900f6006800f6006e00200073006f00700069007600690061002000410064006f0062006500200050004400460020002d0064006f006b0075006d0065006e007400740065006a0061002e0020004c0075006f0064007500740020005000440046002d0064006f006b0075006d0065006e00740069007400200076006f0069006400610061006e0020006100760061007400610020004100630072006f0062006100740069006c006c00610020006a0061002000410064006f00620065002000520065006100640065007200200035002e0030003a006c006c00610020006a006100200075007500640065006d006d0069006c006c0061002egt SVE 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          1. To
          2. Date
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          4. From
          5. AT THE REQUEST OF
          6. Sender
          7. Address
          8. Telephone
          9. Brief description of professional services materials or equipment provided or to be provided
          10. 1
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          12. 3
          13. reg no
          14. deposit $
          15. expiration date
          16. claims up to $
          17. Reset

security department the department of labor and industries and the material suppliers and laborers filing claims (9) Except as provided in subsection (1) of this section reservation by a public body for any purpose from the moneys earned by a contractor by fulfilling its responsibilities under public improvement contracts is prohibited (10) Contracts on projects funded in whole or in part by farmers home administration and subject to farmers home administration regulations are not subject to subsections (1) through (9) of this section (11) This subsection applies only to a public body that has contracted for the construction of a facility using the general contractorconstruction manager procedure as defined under RCW 3910210 If the work performed by a subcontractor on the project has been completed within the first half of the time provided in the general contractorconstruction manager contract for completing the work the public body may accept the completion of the subcontract The public body must give public notice of this acceptance After a forty-five day period for giving notice of liens and compliance with the retainage release procedures in RCW 6028021 the public body may release that portion of the retained funds associated with the subcontract Claims against the retained funds after the forty-five day period are not valid (12) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise (a) Contract retainage means an amount reserved by a public body from the moneys earned by a person under a public improvement contract (b) Person means a person or persons mechanic subcontractor or materialperson who performs labor or provides materials for a public improvement contract and any other person who supplies the person with provisions or supplies for the carrying on of a public improvement contract (c) Public body means the state or a county city town district board or other public body (d) Public improvement contract means a contract for public improvements or work other than for professional services or a work order as defined in RCW 3910210

CCBA Nuts amp Bolts on Construction Law - 48 of 49

RCW 6432070 Liens or encumbrances mdash Enforcement mdash Satisfaction

(1) Subsequent to recording the declaration as provided in this chapter and while the property remains subject to this chapter no lien shall thereafter arise or be effective against the property During such period liens or encumbrances shall arise or be created only against each apartment and the percentage of undivided interest in the common areas and facilities and appurtenant to such apartment in the same manner and under the same conditions in every respect as liens or encumbrances may arise or be created upon or against any other separate parcel of real property subject to individual ownership PROVIDED That no labor performed or materials furnished with the consent of or at the request of the owner of any apartment or such owners agent contractor or subcontractor shall be the basis for the filing of a lien against any other apartment or any other property of any other apartment owner not expressly consenting to or requesting the same except that such express consent shall be deemed to be given by any apartment owner in the case of emergency repairs Labor performed or materials furnished for the common areas and facilities if authorized by the association of apartment owners the manager or board of directors shall be deemed to be performed or furnished with the express consent of each apartment owner and shall be the basis for the filing of a lien against each of the apartments and shall be subject to the provisions of subsection (2) of this section (2) In the event a lien against two or more apartments becomes effective the apartment owners of the separate apartments may remove their apartment and the percentage of undivided interest in the common areas and facilities appurtenant to such apartment from the lien by payment of the fractional or proportional amounts attributable to each of the apartments affected Such individual payments shall be computed by reference to the percentages appearing on the declaration Subsequent to any such payment discharge or satisfaction the apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto shall thereafter be free and clear of the liens so paid satisfied or discharged Such partial payment satisfaction or discharge shall not prevent the lienor from proceeding to enforce his or her rights against any apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto not so paid satisfied or discharged

CCBA Nuts amp Bolts on Construction Law - 49 of 49

  • Cover Sheet
  • 20141110 - Washington Lien and Bond CLE
  • LampI Lien Summary
  • Claim of Lien
  • Form Notice to Owner
  • Model Disclosure Statement (Notice to Customer)
  • LampI Facts about Construction Liens
    • What you should know about contracts
    • How to protect your investment
    • For more information
      • Notice of Claim Against Bond and Retained Percentage
      • Preclaim Notice Bond amp Retained Percentage
      • Statute Handout
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UseDocumentProfile UseDocumentBleed false gtgt ]gtgt setdistillerparamsltlt HWResolution [2400 2400] PageSize [612000 792000]gtgt setpagedevice

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Quality 30 gtgt AntiAliasMonoImages false CropMonoImages true MonoImageMinResolution 1200 MonoImageMinResolutionPolicy OK DownsampleMonoImages true MonoImageDownsampleType Bicubic MonoImageResolution 1200 MonoImageDepth -1 MonoImageDownsampleThreshold 150000 EncodeMonoImages false MonoImageFilter CCITTFaxEncode MonoImageDict ltlt K -1 gtgt AllowPSXObjects false CheckCompliance [ None ] PDFX1aCheck false PDFX3Check false PDFXCompliantPDFOnly false PDFXNoTrimBoxError true PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile (None) PDFXOutputConditionIdentifier () PDFXOutputCondition () PDFXRegistryName () PDFXTrapped False Description ltlt CHS 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 ESP 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 ITA 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ltFEFF9ad854c18cea306a30d730ea30d730ec30b951fa529b7528002000410064006f0062006500200050004400460020658766f8306e4f5c6210306b4f7f75283057307e305930023053306e8a2d5b9a30674f5c62103055308c305f0020005000440046002030d530a130a430eb306f3001004100630072006f0062006100740020304a30883073002000410064006f00620065002000520065006100640065007200200035002e003000204ee5964d3067958b304f30533068304c3067304d307e305930023053306e8a2d5b9a306b306f30d530a930f330c8306e57cb30818fbc307f304c5fc59808306730593002gt KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020ace0d488c9c80020c2dcd5d80020c778c1c4c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200035002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor prepress-afdrukken van hoge kwaliteit De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 50 en hoger) NOR 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 PTB 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 SVE 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(Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false ConvertColors ConvertToCMYK DestinationProfileName () DestinationProfileSelector DocumentCMYK Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles false MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector DocumentCMYK PreserveEditing true UntaggedCMYKHandling LeaveUntagged UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ]gtgt setdistillerparamsltlt HWResolution [2400 2400] PageSize [612000 792000]gtgt setpagedevice

          1. To
          2. Date
          3. Re
          4. From
          5. AT THE REQUEST OF
          6. Sender
          7. Address
          8. Telephone
          9. Brief description of professional services materials or equipment provided or to be provided
          10. 1
          11. 2
          12. 3
          13. reg no
          14. deposit $
          15. expiration date
          16. claims up to $
          17. Reset

RCW 6432070 Liens or encumbrances mdash Enforcement mdash Satisfaction

(1) Subsequent to recording the declaration as provided in this chapter and while the property remains subject to this chapter no lien shall thereafter arise or be effective against the property During such period liens or encumbrances shall arise or be created only against each apartment and the percentage of undivided interest in the common areas and facilities and appurtenant to such apartment in the same manner and under the same conditions in every respect as liens or encumbrances may arise or be created upon or against any other separate parcel of real property subject to individual ownership PROVIDED That no labor performed or materials furnished with the consent of or at the request of the owner of any apartment or such owners agent contractor or subcontractor shall be the basis for the filing of a lien against any other apartment or any other property of any other apartment owner not expressly consenting to or requesting the same except that such express consent shall be deemed to be given by any apartment owner in the case of emergency repairs Labor performed or materials furnished for the common areas and facilities if authorized by the association of apartment owners the manager or board of directors shall be deemed to be performed or furnished with the express consent of each apartment owner and shall be the basis for the filing of a lien against each of the apartments and shall be subject to the provisions of subsection (2) of this section (2) In the event a lien against two or more apartments becomes effective the apartment owners of the separate apartments may remove their apartment and the percentage of undivided interest in the common areas and facilities appurtenant to such apartment from the lien by payment of the fractional or proportional amounts attributable to each of the apartments affected Such individual payments shall be computed by reference to the percentages appearing on the declaration Subsequent to any such payment discharge or satisfaction the apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto shall thereafter be free and clear of the liens so paid satisfied or discharged Such partial payment satisfaction or discharge shall not prevent the lienor from proceeding to enforce his or her rights against any apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto not so paid satisfied or discharged

CCBA Nuts amp Bolts on Construction Law - 49 of 49

  • Cover Sheet
  • 20141110 - Washington Lien and Bond CLE
  • LampI Lien Summary
  • Claim of Lien
  • Form Notice to Owner
  • Model Disclosure Statement (Notice to Customer)
  • LampI Facts about Construction Liens
    • What you should know about contracts
    • How to protect your investment
    • For more information
      • Notice of Claim Against Bond and Retained Percentage
      • Preclaim Notice Bond amp Retained Percentage
      • Statute Handout
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Quality 30 gtgt AntiAliasMonoImages false CropMonoImages true MonoImageMinResolution 1200 MonoImageMinResolutionPolicy OK DownsampleMonoImages true MonoImageDownsampleType Bicubic MonoImageResolution 1200 MonoImageDepth -1 MonoImageDownsampleThreshold 150000 EncodeMonoImages false MonoImageFilter CCITTFaxEncode MonoImageDict ltlt K -1 gtgt AllowPSXObjects false CheckCompliance [ None ] PDFX1aCheck false PDFX3Check false PDFXCompliantPDFOnly false PDFXNoTrimBoxError true PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile (None) PDFXOutputConditionIdentifier () PDFXOutputCondition () PDFXRegistryName () PDFXTrapped False Description ltlt CHS ltFEFF4f7f75288fd94e9b8bbe5b9a521b5efa7684002000410064006f006200650020005000440046002065876863900275284e8e9ad88d2891cf76845370524d53705237300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200035002e003000204ee553ca66f49ad87248672c676562535f00521b5efa768400200050004400460020658768633002gt CHT ltFEFF4f7f752890194e9b8a2d7f6e5efa7acb7684002000410064006f006200650020005000440046002065874ef69069752865bc9ad854c18cea76845370524d5370523786557406300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200035002e003000204ee553ca66f49ad87248672c4f86958b555f5df25efa7acb76840020005000440046002065874ef63002gt DAN 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 DEU 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 ESP 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 FRA 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 ITA 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 JPN ltFEFF9ad854c18cea306a30d730ea30d730ec30b951fa529b7528002000410064006f0062006500200050004400460020658766f8306e4f5c6210306b4f7f75283057307e305930023053306e8a2d5b9a30674f5c62103055308c305f0020005000440046002030d530a130a430eb306f3001004100630072006f0062006100740020304a30883073002000410064006f00620065002000520065006100640065007200200035002e003000204ee5964d3067958b304f30533068304c3067304d307e305930023053306e8a2d5b9a306b306f30d530a930f330c8306e57cb30818fbc307f304c5fc59808306730593002gt KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020ace0d488c9c80020c2dcd5d80020c778c1c4c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200035002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor prepress-afdrukken van hoge kwaliteit De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 50 en hoger) NOR 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 PTB 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 SUO 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 SVE ltFEFF0041006e007600e4006e00640020006400650020006800e4007200200069006e0073007400e4006c006c006e0069006e006700610072006e00610020006f006d002000640075002000760069006c006c00200073006b006100700061002000410064006f006200650020005000440046002d0064006f006b0075006d0065006e007400200073006f006d002000e400720020006c00e4006d0070006c0069006700610020006600f60072002000700072006500700072006500730073002d007500740073006b00720069006600740020006d006500640020006800f600670020006b00760061006c0069007400650074002e002000200053006b006100700061006400650020005000440046002d0064006f006b0075006d0065006e00740020006b0061006e002000f600700070006e00610073002000690020004100630072006f0062006100740020006f00630068002000410064006f00620065002000520065006100640065007200200035002e00300020006f00630068002000730065006e006100720065002egt ENU (Use these settings to create Adobe PDF documents best suited for high-quality prepress printing Created PDF documents can be opened with Acrobat and Adobe Reader 50 and later) gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false ConvertColors ConvertToCMYK DestinationProfileName () DestinationProfileSelector DocumentCMYK Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles false MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector DocumentCMYK PreserveEditing true UntaggedCMYKHandling LeaveUntagged UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ]gtgt setdistillerparamsltlt HWResolution [2400 2400] PageSize [612000 792000]gtgt setpagedevice

          1. To
          2. Date
          3. Re
          4. From
          5. AT THE REQUEST OF
          6. Sender
          7. Address
          8. Telephone
          9. Brief description of professional services materials or equipment provided or to be provided
          10. 1
          11. 2
          12. 3
          13. reg no
          14. deposit $
          15. expiration date
          16. claims up to $
          17. Reset