Changes to Georgia Lien Law Sent to Governor for Signing
by Mark A. Cobb
(UPDATED MAY 9, 2013) GOVERNOR SIGNED HB 434 INTO LAW; click here for more information!
We love sharing good news about pending changes to Georgia’s lien laws! A couple of weeks ago, we published a blog post about Georgia 2013 HB 434 which allows Georgia lien claimants to include both general condition costs and accrued interest as a part of their lien claims. At the time our blog entry was published, the Georgia House of Representatives had passed the amendment and the bill was being forwarded to the Senate. Our long-time friend, Senator Jack Murphy sponsored the bill in the Georgia Senate, and, we are pleased to report, the bill passed the Senate unanimously. Consequently, HB 434 has been forwarded to Governor Deal for consideration. Thank you Georgia representatives and senators!
This vital legislation greatly impacts Georgia’s subcontractors and material suppliers. In a recent court decision, a judge ruled that a lien claimant was not allowed to include the whole value of its contract in its lien; thus, for example, the lien claimant was potentially prohibited from included general condition costs, mobilization and demobilization costs, etc. The proposed legislation of Georgia HB 434 attempts to rectify this potentially detrimental court holding by specifically amending Georgia’s lien statute to permit a claim of lien to include the amount due and owing the lien claimant under the terms of an express or implied contract, subcontract, or purchase order as well as interest on the past due balance.
To read the proposed change to Georgia’s Mechanics and Materialmen’s Lien Act found at O.C.G.A. Section 44-14-361, please click here.
The construction attorneys at the Cobb Law Group want to keep you up-to-date on all the laws and cases which affect your rights. Please rely on us with any questions you may have regarding Georgia’s lien laws and payment bond claims. Contact us here.