Chapter 2 - Contractors Or Materialmen
CHAPTER 2 - CONTRACTORS OR MATERIALMEN
29-2-101. Persons entitled to liens; extent of lien on realty;exceptions.
(a) Except as provided in W.S. 29-2-111, every personperforming any work on or furnishing any materials or plans for any building orany improvement upon land shall have for his work done or plans or materialsfurnished a lien upon the building or improvements, and upon the land of theowner on which they are situated to the extent of one (1) acre. If theimprovements cover more than one (1) acre the lien shall extend to all theadditional land covered thereby.
NOTE: Effective7/1/2011, this section will read as follows:
(a) Every contractor, subcontractor or materialman performingany work on or furnishing any materials for any building or any improvementupon real property shall have for his work done or plans or materials furnisheda lien upon the building or improvements, and upon the real property of theowner on which they are situated to the extent of one (1) acre. If theimprovements cover more than one (1) acre the lien shall extend to all theadditional real property covered thereby.
(b) To have a lien the work or materials shall be furnishedunder a contract.
(c) Notwithstanding subsection (a) of this section if the landsubject to a lien is located in any city, town or subdivision the lien shallextend to the entire lot upon which the building or improvement is located.
NOTE: Effective7/1/2011, this section will read as follows:
(c) Notwithstanding subsection (a) of this section if the realproperty subject to a lien is located in any city, town or subdivision the lienshall extend to the entire lot upon which the building or improvement islocated.
(d) A cooperative utility, as defined by W.S. 17-20-140(a)(i),shall have a lien for the materials or services provided to a member. The lienshall attach to the real property of the member at the location where thematerials or services were provided, if the amount due to the utility:
(i) Is greater than five thousand dollars ($5,000.00); and
(ii) Has been unpaid for more than ninety (90) days.
(e) The lien under this section shall extend to the owner'sreal property and easements to the extent necessary to provide legal access bya roadway for ingress and egress to the building, improvements or real propertysubject to the lien, not to exceed forty (40) feet in width to the nearesteasement, public road or highway.
NOTE: This section becomes effective7/1/2011.
29-2-102. Extent of perfected lien.
Anylien properly perfected shall extend to the entire interest of the owner.
29-2-103. Right of judicial sale and removal of improvements.
Anyperson enforcing the lien provided by this chapter may have the building orimprovements sold under execution. However, if any party establishes that theland, after removal of the improvement, would be in the same or similarcondition as prior to the performance of the work for which the lien is claimedthe court may authorize the removal of the improvement. The party foreclosingthe lien may be entitled to reasonable costs for removing any improvement orfor restoring the property to its original condition.
NOTE: Effective7/1/2011, this section will read as follows:
29-2-103. Right of judicial sale and removal of improvements.
Anylien claimant enforcing the lien may have the building, improvements and realproperty sold under execution. However, if any party establishes that the realproperty, after removal of the improvement, would be in the same or similarcondition as prior to the performance of the work for which the lien isclaimed, the court may authorize the removal of the improvement. In addition toattorneys' fees and costs, the lien claimant foreclosing the lien may beentitled to reasonable costs for removing any improvement or for restoring theproperty to its original condition.
29-2-104. Lien upon leaseholds; foreclosure; removal of improvements.
(a) Every building or improvement or any material furnished foruse upon any leased property shall subject the leasehold interest to the lienprovided by this chapter.
(b) A lien claimant may:
(i) Proceed to foreclose a lien upon the leasehold subject tothe limitations of W.S. 29-2-101 (a), (b) and (c); or
(ii) Seek an order from the court for removal of anyimprovement. Upon establishing that the property will be in the same or similarcondition as prior to the performance of the work for which the lien isclaimed, the court may authorize the removal. The party foreclosing the lienmay be entitled to reasonable costs for removing any improvements or forrestoring the property to its previous condition.
29-2-105. Lien for improvements placed by tenant authorized bylandlord.
(a) Notwithstanding the definition of "owner", if atenant places any improvements either within or on the outside of any buildingor on the land on which the building stands, the person doing any work orfurnishing any material for the purpose of the improvement shall have a lienupon the building and land as provided by this chapter if:
NOTE: Effective7/1/2011, this section will read as follows:
(a) Notwithstanding the definition of "owner", if atenant places any improvements either within or on the outside of any buildingor on the real property on which the building stands, the person doing any workor furnishing any material for the purpose of the improvement shall have a lienupon the landlord's and the tenant's interest in the building and real propertyas provided by this chapter if:
(i) The landlord has agreed to pay the costs of theimprovement; or
(ii) The improvements are specifically authorized by thelandlord.
29-2-106. When statement lien to be filed; rights of subcontractor notabridged by contract between owner and contractor; agreement to extend filingperiod.
(a) Every contractor shall file his lien statement within onehundred twenty (120) days and every other person shall file within ninety (90)days:
(i) After the last day when work was performed or materialsfurnished under contract; or
(ii) From the date the work was substantially completed orsubstantial completion of the contract to furnish materials, whichever isearlier; or
(iii) With respect to an employee or subcontractor, after thelast day he performed work at the direction of his employer or contractor.
NOTE: Effective7/1/2011, this section will read as follows:
(a) Except as provided in subsection (c) of this section, anycontractor asserting a lien under this chapter shall file his lien statementwithin one hundred fifty (150) days and every other person asserting a lienunder this chapter shall file within one hundred twenty (120) days:
(i) Of the earlier of:
(A) After the last day when work was performed or materialsfurnished under contract;
(B) From the date of substantial completion of the project onwhich work was performed or materials were furnished under contract; or
(ii) With respect to a subcontractor, after the last day heperformed work at the direction of the contractor or other person authorized toprovide direction.
(b) No contract made between the owner and the contractor shallbe construed to affect or restrict the right of any subcontractor, journeymanor worker to file a lien.
NOTE: Effective7/1/2011, this section will read as follows:
(b) No contract made between the record owner and thecontractor shall be construed to affect or restrict the right of anysubcontractor or materialman to file a lien.
(c) Any party to a contract for which a lien may be filed mayagree to an extension of the time within which the lien may be filed. The timeagreed upon may not exceed twice the time within which the lien would have tobe filed in accordance with subsection (a) of this section. The agreement shallbe acknowledged before a notarial officer, and signed by the owner, thecontractor and any other parties to the contract before it is valid. Theagreement shall be filed with and recorded by the county clerk in the manner providedby W.S. 29-1-301 for a lien statement. The lien rights of persons not signingthe agreement are not affected by it.
NOTE: Effective7/1/2011, this section will read as follows:
(c) The record owner may record a notice of substantialcompletion of the project in the records of the county clerk in the countywhere the project is located. If a notice of substantial completion of theproject is recorded under this subsection, the date the notice is recordedshall be presumed to be the date of substantial completion of the project.After the notice has been duly recorded, the record owner shall send a copy ofthe notice within five (5) days to all contractors, subcontractors andmaterialmen who provided the record owner with preliminary notice pursuant toW.S. 29-2-112. The notice shall not extend the date by which a lien statementshall be filed as may otherwise be provided in this section. The time to filea lien statement by any contractor, subcontractor or materialman shall not beaffected if the record owner fails to send the notice of substantial completionof the project.
(d) A cooperative utility claiming a lien under W.S.29-2-101(d) shall file its lien statement within one hundred eighty (180) daysafter the first date the provisions of W.S. 29-2-101(d)(i) and (ii) were met. The cooperative utility and its member may agree to an extension of the time inwhich the lien may be filed, but the agreement may not exceed a total time forfiling the lien statement beyond three hundred sixty (360) days. Any agreementfor an extension under this subsection shall otherwise comply with therequirements of subsection (c) of this section.
NOTE: Effective7/1/2011, this section will read as follows:
(d) The notice of substantial completion of the project shallrefer to this section, provide the date of substantial completion of theproject on the notice and state in bold face type: "This notice createsa rebuttable presumption that the period for filing a lien shall begin to runas of the date the notice was recorded. If the recipient of the notice has notbeen paid in full, any lien to be filed on the property to secure full paymentshall be filed by contractors within one hundred fifty (150) days of the datethe notice was recorded and within one hundred twenty (120) days of the datethe notice was recorded for materialmen."
(e) Any party to a contract for which a lien may be filed mayagree to an extension of the time within which the lien may be filed. The timeagreed upon may not exceed twice the time within which the lien would have tobe filed in accordance with subsection (a) of this section. The agreement shallbe acknowledged before a notarial officer, and signed by the owner, thecontractor and any other parties to the contract before it is valid. Theagreement shall be filed with and recorded by the county clerk in the mannerprovided by W.S. 29-1-312 for a lien statement. The lien rights of persons notsigning the agreement are not affected by it.
NOTE: This section is effective 7/1/11.
(f) A cooperative utility claiming a lien under W.S.29-2-101(d) shall file its lien statement within one hundred eighty (180) daysafter the first date the provisions of W.S. 29-2-101(d)(i) and (ii) were met. The cooperative utility and its member may agree to an extension of the time inwhich the lien may be filed, but the agreement may not exceed a total time forfiling the lien statement beyond three hundred sixty (360) days. Any agreementfor an extension under this subsection shall otherwise comply with therequirements of subsection (e) of this section.
NOTE: This section is effective 7/1/11.
29-2-107. Notice of intention to file lien.
Beforefiling a lien pursuant to this chapter every person shall give ten (10) daysnotice to the owner or his agent in writing of any claim against a building oran improvement or for materials furnished stating the amount of any claim andfrom whom it is due.
Effective 7/1/11 this section will read as follows:
29-2-107. Notice of intention to file lien.
(a) Before filing a lien pursuant to this chapter a lienclaimant shall send written notice to the record owner or his agent of anyclaim against real property, a building or an improvement stating the amount ofany claim and from whom it is due. The notice shall be sent no later thantwenty (20) days prior to filing a lien statement.
(b) The notice under this section shall be in substantially thesame format and contain the same information as the notice form specified inW.S. 29-10-102. The notice forms shall be made available and may be obtainedat the county clerk's office of each county.
29-2-108. Duty of contractor to defend action; liability of contractorto owner.
Thecontractor shall defend any action brought by his employee, subcontractorshired by the contractor, their employees or by any suppliers of materialsprovided under contract in accordance with this chapter at his own expense.During the pendency of the action the owner or his agent may withhold from thecontractor the amount of money for which a lien is filed. If judgment isrendered against the owner or his property on the lien foreclosure, he maydeduct from any amount due to the contractor the amount of the judgment andcosts. If the owner has paid the contractor in full he may recover from thecontractor any amount paid by the owner for which the contractor was originallyliable.
NOTE: Effective7/1/2011, this section will read as follows:
29-2-108. Duty of contractor to defend action; liability of contractorto owner.
Thecontractor shall, at his own expense, defend any action brought by hisemployee, subcontractors hired by the contractor, their employees or by anysuppliers of materials provided under contract in accordance with this chapter.During the pendency of the action the owner or his agent may withhold from thecontractor the amount of money for which a lien is filed. If judgment isrendered against the owner or his property on the lien foreclosure, he maydeduct from any amount due to the contractor the amount of the judgment andcosts. If the owner has paid the contractor in full he may recover from thecontractor any amount paid by the owner for which the contractor was originallyliable.
29-2-109. Limitation of actions; duration of liens.
Allactions to foreclose or enforce a lien under this chapter shall be commencedwithin one hundred eighty (180) days after the filing of the lien statement. Nolien shall continue to exist except by virtue of the provisions of this chapterfor more than one hundred eighty (180) days after the lien is filed unless anaction to foreclose the lien is instituted.
29-2-110. Notice to owner; limitations; condition precedent to lien.[NOTE: Effective 7/1/2011, this section is Repealed by Laws 2010, Ch. 92, 3.]
(a) Every prime contractor or subcontractor shall give to theowner or his agent, within thirty (30) days of providing any materials orservices by the contractor or subcontractor governed by this chapter, a writtennotice which shall be receipted by the owner or his agent and include thefollowing language in ten point bold type:
NOTICE TO OWNER
FAILUREOF THIS PRIME CONTRACTOR OR SUBCONTRACTOR TO PAY THOSE PERSONS SUPPLYINGMATERIALS OR SERVICES TO COMPLETE THIS CONTRACT CAN RESULT IN THE FILING OF AMECHANIC'S LIEN ON THE PROPERTY WHICH IS THE SUBJECT OF THIS CONTRACT PURSUANTTO W.S. 29-2-101 THROUGH 29-2-111. TO AVOID THIS RESULT, WHEN PAYING FOR LABORAND MATERIALS YOU MAY ASK THIS PRIME CONTRACTOR OR SUBCONTRACTOR FOR "LIENWAIVERS" FROM ALL PERSONS SUPPLYING MATERIALS OR SERVICES FOR THE WORKDESCRIBED IN THIS CONTRACT. FAILURE TO SECURE LIEN WAIVERS MAY RESULT IN YOURPAYING FOR LABOR AND MATERIALS TWICE.
(b) This section applies to the contractual and legalobligations of the owner, including the initial purchase price or contractamount plus any additions or change orders, to the prime contractor orsubcontractor for the purpose of payment to the subcontractors or suppliers ofmaterials or services to the job if:
(i) The property is an existing single-family dwelling unit;
(ii) The property is a residence constructed by the owner orunder a contract entered into by the owner prior to its occupancy as hisprimary residence; or
(iii) The property is a single-family, owner-occupied dwellingunit, including a residence constructed and sold for occupancy as a primaryresidence. This paragraph shall not apply to a developer or builder ofmultiple residences.
(c) Compliance with this section is a condition precedent toestablishing a lien in favor of the prime contractor or subcontractor underthis chapter.
(d) Notice by any contractor or subcontractor which complieswith this section relieves any remaining contractors or subcontractors underthe same contract of any obligations under this section.
29-2-111. Notice of right to claim a lien required; limitations.[NOTE: Effective 7/1/2011, this section is Repealed by Laws 2010, Ch. 92, 3.]
(a) Any subcontractor or materialman who may claim a lien underthis title shall give notice of his right to claim a lien to the primecontractor. Failure to give notice to a prime contractor who has complied withsubsections (f) and (g) of this section waives the subcontractor ormaterialman's right to a lien.
(b) The notice of the right to claim a lien shall be given nolater than sixty (60) days after the date on which services or materials arefirst furnished.
(c) The notice of the right to claim a lien shall be sent tothe prime contractor by certified mail or delivered to and receipted by theprime contractor or his agent. Notice by certified mail is effective on thedate the notice is mailed.
(d) The notice shall be in writing and shall state that it is anotice of a right to claim a lien against the buildings or improvements or uponthe real estate for services or materials furnished. The notice shall besigned by the subcontractor or materialman and shall include the followinginformation:
(i) The subcontractor's or materialman's name, address andphone number and the name of a contact person;
(ii) The name and address of the subcontractor's ormaterialman's vendor; and
(iii) The type or description of the materials or services to beprovided.
(e) This section shall only apply where the prime contractor'scontract is for fifty thousand dollars ($50,000.00) or more.
(f) The prime contractor shall post on the construction site aprominent sign citing this section and stating that any subcontractor ormaterialman shall give notice to the prime contractor of the right to claim alien and that failure to provide the notice shall waive the subcontractor ormaterialman's right to a lien.
(g) The owner or his agent shall provide written notice of theinformation required by this section in the project specifications.
29-2-112. Preliminary notices. [This section is effective July 1,2011.]
(a) With respect to perfecting the right to file a constructionlien under this chapter, the following preliminary notice requirements shallapply:
(i) The contractor, subcontractor and materialman shall sendwritten notice to the record owner or his agent, of the right to assert a lienagainst the property for which services or materials are provided if thecontractor, subcontractor or materialman is not paid, and the right of theowner or contractor to obtain a lien waiver upon payment for services ormaterials. Each subcontractor and materialman shall provide a copy of thewritten notice to the contractor for which the subcontractor or materialman isproviding services or materials;
(ii) Any notice required under this section shall be sent:
(A) By the contractor prior to receiving any payment fromowner, including advances;
(B) By the subcontractor or materialman within thirty (30) daysafter first providing services or materials to the construction project.
(iii) Failure to send the notice required under this sectionwithin the time specified shall bar the right of a contractor, subcontractor ormaterialman to assert a lien;
(iv) The notice required under this section shall be in substantiallythe same format and contain the same information as the notice contained inW.S. 29-10-101. The form shall be made available and may be obtained at thecounty clerk's office of each county.
29-2-113. Identity of record owner or his agent provided. [Thissection is effective July 1, 2011.]
The contractor shall provide tosubcontractors and materialmen at the time of contracting with them the nameand address of the record owner and his agent, if applicable, and legaldescription of the site of the project on which work will be performed ormaterials furnished.