We provide information about the law design to help people cope with their needs; however this is not legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult an attorney if you want professional assurances that our information and your interpretation of it is appropriate to your situation.
The Private Works Act sets out two separate, but overlapping, categories of persons who are entitled to assert claims. The first category is those who have a privilege (lien) on the property to secure the obligations of the property owner arising out of work on the property. The second category includes those persons who have a claim against the owner and a claim against the contractor to secure payment of amounts due as a result of work under the contract. Generally, however, claimants include those, with or without contractual privity with the owner, who perform work or provide services and/or materials on the project. These categories include specifically
a. Contractors, for the price of their work;
b. Subcontractors, for the price of their work;
c. Laborers or employees of the owner for the price of work performed at the site of the project;
d. Sellers of materials that are incorporated in the project or are consumed at the project (including fuel used in machinery);
e. Lessors, for the rent of movables used at the project site, if leased to the owner, contractor, or the subcontractor by written lease;
f. Architects, engineers, and surveyors and their professional sub-consultants, if employed by the owner, contractor, or a subcontractor.
It is important to note that suppliers who sell materials to other suppliers are not afforded protection under the Louisiana Private Works Act.
A general (prime) contractor on a contract for more than $25,000 must record a Notice of Contract before beginning work on a project in order to protect his right to tile a lien. The filing of a Notice of Contract, with an appropriate statutory bond attached, protects the owner of the project from the claims of subcontractors, laborers, and suppliers. For public projects, there is no requirement of filing notice before beginning work, but the contract must furnish a statutorily required bond, which must be recorded in the parish where the work is to be done within thirty (30) days after the work begins.
On private projects where a Notice of Contract was timely filed, a subcontractor’s or supplier’s Statement of Claim or Privilege (lien) must be filed within thirty (30) days after the filing of a Notice of Termination. If, however, a Notice of Contract was not timely filed, the lien period is extended to sixty (60) days from filing of a Notice of Termination, or, if one is not filed, sixty (60) days from substantial completion or abandonment by the owner. There are no liens against public property, but a claimant under the Public Works Act (for example, subcontractors, laborers, and suppliers) may file a sworn statement of its claim within forty-five (45) days of recordation of acceptance of the work or notice of default.
Under the Private Works Act, a suit to enforce a claim or privilege (lien) must be filed within one year after expiration of the period for recording liens. A suit filed on the anniversary of a timely recorded lien world be timely. Under the Public Works Act, a claimant must bring suit against the surety or the contractor or both within one year from registry of acceptance of the work or notice of the default of the contractor.
Yes, persons having a direct contractual relationship with a subcontractor but not with the prime or general contractor, must be given written notice of their claims by Certified Mail within thirty (30) days from recordation of Notice of Termination of work.
Items that typically are not allowed in a lien claim are punitive damages, attorneys’ fees other than as provided by statute, and materials not incorporated in or consumed on the project.
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