ARE CE #7 Flashcards
What is the main difference between the filing of a Stop Notice
and a Mechanics Lien?
Stop Notice may be filed on a public project or private project.
A Stop Notice is a lien against funds.
Mechanics lien cannot be filed on a public
project, only a private project.
What is a Stop Notice?
A Stop Notice is a lien against funds.
The procedure for filing
a Stop Notice is similar to a Mechanics Lien. Stop Notices can be used on private or public projects and served accordingly:
• Private projects - serve Stop Notice to Lender
• Public projects - serve Stop Notice to
Owner of public work
How does a Notice of Non-Responsibility
protect the Owner?
A Notice of Non-Responsibility is utilized when a tenant (not Owner) of a space is performing work and the Owner (landlord) wants to protect themselves from any liens stemming from the failure of the tenant to pay contractors and vendors.
The Notice of Non-Responsibility is completed by the Owner and physically
posted at the construction site.
Define a Bonded Stop Notice.
Bonded Stop Notice - a Stop Notice presented to a construction lender accompanied by a bond with good and sufficient sureties for 125% of the claim.
If a Bonded Stop Notice is presented to the lender, the lender does not have the option
to withhold funds.
What is the warranty period for the
Contractor’s work?
According to the A201, General Conditions, the Contractor must correct any work not found to be in compliance with the Contract Documents within 1 year of
Substantial Completion.
What are five ways an Architect can help protect an Owner from
liens being filed.
- Have the Owner request the General Contractor to purchase a Performance Bond
and Payment Bond. - Receive a signed lien release from subcontractors at time of payment.
- Architect process Contractor’s request for payment in a timely manner.
- Collect and hold retainage.
- Recommend the Owner file Notice of Completion with County Recorder to reduce
the window in which liens may be filed.
