Presented by: Frank Riggs, Troutman Sanders
Chair, Construction Practice Group
In the Summer of 2008, the Georgia Legislature passed Senate Bill 374 and thereby made the most sweeping changes yet to the Georgia lien laws. These changes, which go into effect on March 31, 2009, have wide-ranging impacts. The required forms for perfecting and releasing lien rights have been changed. Timeframes and notice requirements have been altered. A new claim of lien form is required. New procedures for various lien law measures have been introduced, and old procedures have been varied and, in most cases, improved.
In the paragraphs below, you will find a summary of the important changes made to the Georgia lien law, as well as a reference to the now current lien law provision which will be altered as of March 31, 2009. Where appropriate, you will see comments on the impact of these changes and suggestions for the proper management of lien law issues. Please understand that one aspect of the Georgia lien law has not changed—“substantial compliance” with lien law requirements is almost never good enough. Your failure to strictly observe the lien law requirements, as changed this year, will almost always lead to a forfeiture of your lien rights or a failure to gain the benefits otherwise available to you under the Georgia lien statute.
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