What Happens When Construction Recommences?

If construction ceases, or is terminated prior to completion, and the owner desires to recommence construction, there are two options for the owner. One is that the owner can pay all lienors in full or pro rata according to the proper payments defense statutes, in which case all liens for work performed after recommencement shall take priority as of the date of the recommencement. The second alternative is that the owner may record an affidavit in the office of the Clerk of the Circuit Court, stating the intention to recommence construction and that all lienors who have served a Notice To Owner have been paid in full except for those specifically listed. Those unpaid lienors specifically listed must be served with copies of the Notice of Recommencement. If any unpaid lienor listed on the Notice of Recommencement fails to record a Claim of Lien within thirty (30) days after the owner records the Notice of Recommencement, the liens for work performed after recommencement shall have priority over any lien rights of that unpaid lienor who provided labor, services, or materials prior to the recommencement and who failed to record a Claim of Lien within this thirty (30) day period.

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DISCLAIMER AND CAUTION: THESE MATERIALS ARE PROVIDED FOR GENERAL INFORMATIONAL PURPOSES ONLY AND ARE NOT INTENDED NOR SHOULD THEY BE CONSTRUED AS LEGAL ADVICE AS TO ANY PARTICULAR SET OF FACTS OR CIRCUMSTANCES. DUE TO THE COMPLEXITY OF THE CONSTRUCTION LIEN LAW STATUTES AND THE CASES INTERPRETING AND APPLYING THE STATUTES, IT IS RECOMMENDED THAT COMPETENT LEGAL COUNSEL BE CONSULTED IN REGARD TO ANY QUESTIONS AS TO THE APPLICABILITY OF CONSTRUCTION LIEN LAW TO ANY SET OF PARTICULAR FACTS.

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