Have you recently performed work, or supplied materials, to a construction project in Missouri? Were you successful in collecting payment, or are you still working on some older accounts receivable? If you were unsuccessful in collecting payment from your last construction project, you’re not alone. Contractors and material suppliers all over the country have wrestled with this problem for years and, in an effort to make things safer, each state has created their own Lien Law to ensure that all parties are protected from non-payment.

The state of Missouri specifically has several parameters in place to protect the interests of all who perform work and/or supply materials to construction projects in Missouri. The statutes laid out in the Missouri Lien Laws protect and maintain Lien Rights for the following: general contractors, subcontractors, suppliers of materials, labors, registered architects, engineers, equipment lessors, surveyors, and landscaping services. When you know and understand the law as it applies to you, you can ensure that you and your business is protected from the loss of funds at the end of a construction project.

We’ve provided a few of the basic provisions included in the Missouri Lien Law to help you understand your rights and plan your course of action. The following is not intended to be a full representation of the law but a basis to help you understand your Lien Rights in the state of Missouri.

1. A Preliminary Notice is required; however, the specifics depend on the project. General contractors (with the exception of architects) must file and serve a Preliminary Notice prior to receiving any payment from the Property Owner. Subcontractors, on the other hand, must obtain consent signed by the Property Owner from the General Contractor. If this consent is not obtained, the subcontractor will not have Lien Rights on the project.
2. All Subcontractors (or anyone who is not in direct contract with the Property Owner) are required to file a Notice of Claim of Lien 10 days prior to filing a Missouri Lien Statement. Failure to do so may result in the loss of your Lien Rights.
3. A Missouri Lien Statement must be filed within 6 months of the last day worked and/or materials were provided for the project. This does not include minor repair or follow-up work.
4. Your Lien Statement should not include any fees or interest charges. The amount included in the Lien Statement is limited to unpaid labor, materials, and/or equipment provided to the project. General contractors can provide a lump sum due; however, subcontractors must provide an itemized account of all the labor and/or materials furnished and unpaid. Keep in mind that while fees and interest charges are not permitted for inclusion in Missouri Lien Statements, they are often awarded to the lien claimant who is successful in a foreclosure action.

Too often clients attempt to apply this very complicated law without professional assistance, resulting in the loss of their Lien Rights and their ability to secure their open accounts receivable. That’s why it is so important to hire a Preliminary Notice and Lien Statement Service to prepare and serve your Missouri Preliminary Notice, Notice of Claim of Lien and Lien Statement. Using such a service will ensure that the proper research is completed and verified so you don’t run the risk of forfeiting your Lien Rights due to any misinformation, missed documents, or unmet deadlines.

CRM Lien Services will thoroughly research and verify all of the information included in your Preliminary Notice, Notice of Claim of Lien, and Lien Statement so you stay protected. We are current with any changes to the Missouri Lien Law so your notices are prepared according to the latest statutes.

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