PWA

Question 1

what does the PWA protect

Answer 1

contractors and suppliers who provide labor and supplies on credit for the improvement of property

Question 2

what claims does the PWA protect

Answer 2

unpaid wages and material costs

Question 3

what does the PWA give a claimant

Answer 3

1. a claim against the owner of the immovable property
2. a privilege over the immovable which the work was done

Question 4

how does one avoid a PWA claim and privilege

Answer 4

owners can file a NOC and obtain a surety bond

Question 5

what needs to be included in the NOC

Answer 5

1. signed by owner and contractor
2. property description
3. describe work done
4. contract price or method of calculation and when payment is due

Question 6

when and where must NOC be filed

Answer 6

in mortgage records; must be filed before work begins (i.e., when materials of at least $100 are delivered to the site or other visible work is conducted)

Question 7

what amount must the surety bond be

Answer 7

in an amount sufficient to cover potential claims and attach evidence of bond to NOC

Question 8

how does a PWA privilege have effect

Answer 8

it must (1) arise and (2) be preserved by claimant

Question 9

generally, how does a claim arise

Answer 9

as soon as the claimant is owed money

Question 10

first exception to general rule about claims arising

Answer 10

claimant is the general contractor and cost of construction is greater than $100K, then the general contractor must file a NOC

Question 11

how to preserve claim/privilege

Answer 11

statement of claim and privilege must be filed – must be in writing

Question 12

what must be included in statement of claim and privilege

Answer 12

1. signed by claimant
2. identify the immovable where work is performed
3. describe the amount claimed and nature of work
4. reasonably itemize elements and/or specific materials/services supplied

Question 13

where must the statement of claim and privilege be filed

Answer 13

mortgage records

Question 14

when must statement of claim and privilege be filed

Answer 14

within 60 days of the earlier of the good faith filing of notice of termination or the date of substantial completion or abandonment of the work

Question 15

when is a work substantially complete

Answer 15

when (1) the last work is performed on or materials are delivered to the construction site; or (2) the owner accepts the improvement or possesses or occupies the immovable

Question 16

when is a work abandoned

Answer 16

when (1) the owner terminates the work and notifies persons engaged in its performance that the owner no longer desires to continue it; or (3) the owner otherwise objectively and in GF manifests the abandonment or discontinuance of the project

Question 17

when are PWA privileges are effective against third persons generally

Answer 17

(1) when the NOC is properly and timely filed or (2) when work begins

Question 18

what’s the exception to the general rule as to when PWA privileges become effective against third persons

Answer 18

no work affidavit –creates an irrebuttable presumption that work has not begun as of a stipulated date and time, and that presumption remains true at the time a subsequent mortgage or privilege is filed

Question 19

requirements for a no work affidavit

Answer 19

1. signed by an engineer, surveyor, or architect
2. declare that work hasn’t begun as of a certain date and time
3. contain a complete property description
4. be filed in the mtg records no later than 4 business days before or after the filing of a mortgage or privilege
5. be based on an inspection that occurred no later than 4 days before or after the filing of a mortgage or privilege