2010 Pending Missouri Construction Laws
04/27/10
Changes to long established construction laws are pending before the 2010 Missouri legislature:
Senate Bill 934 — Proposes to strictly limit mechanic’s liens on new residential property (including street and utility construction) by imposing several new expensive and technical requirements. It would require all contractors to record and post a "’notice of intent to perform’ which shall be effective to initiate lien rights for any person identified in such notice."
The act would require all subcontractors not specifically identified in the original "notice of intent to perform" to record and post a "notice of commencement" to create mechanic’s lien rights.
If property is conveyed prior to the notice of commencement then all lien rights are forfeited.
The notices would be required to contain the name and address of the property owner, the name, address, telephone number, e-mail address and fax number of the contractor/subcontractor, the correct legal description of the property, in addition to other required information.
The bill would make "Unconditional Final Lien Waivers" binding even if the result of fraud, so long as the fraud is "not attributable to all persons relying on such."
Lastly, the bill would remove mechanic’s liens were a surety bond is posted.
The language in the proposed bill is confusing and contradictory in several locations.
Senate Bill 935 – Proposes to modify the law relating mechanic’s lien priorities. SB 935 proposes to eliminate the "1st spade rule." SB 935 would make a mechanic’s lien prior only to those liens or encumbrances "which are subsequent to the commencement of the furnishing of" the claimant by the claimant "at the site of the property subject to the lien."
Other pending construction related proposed changes to Missouri law:
SB 727 – Proposes to create statutory warranties for all home buyers and homeowners. Specifically, it proposes to create three new-home warranties 1) against faulty workmanship and defective materials due to noncompliance with building standards for 3 years, 2) against faulty installation of plumbing, electrical, heating and cooling systems for 5 years, and 3) against major construction defects for 10 years. These warranties transfer to subsequent purchasers of the home.
SB 867 – Proposes to provide that lien waivers are only valid to the extent payment is received by the claimant in exchange for the waiver. Increases the lien of architects, engineers, landscape architects and land surveyors from 1 acre to 3. Requires lien claimants to only set forth the dollar amount due, with a brief general description of the type of labor, materials or services provided in the statement. Eliminates the need for a detailed itemization of labor, materials and services. Provides for the appointment of a disinterested person to serve as a referee to assess the validity of lien claims once suit is filed. Lastly, it provides that reasonable attorneys’ fees, interest and costs shall be levied against the property charged with the lien, but if the claimant has made a claim without just cause, then the owner shall be awarded its reasonable attorneys’ fees.
SB 1034 – Proposes to create state building, residential, fire, plumbing, mechanical and electrical codes. Each municipality is required to adopt the state construction codes.
HB 1932 – Proposes to require a seller of a newly constructed residential home to disclose its energy efficiency rating under the energy star rating system to the purchaser at least one week before the completion of the sale.
If Swanson Midgley’s Construction Law Group can be of any assistance, please contact James Freeman, Scott Murphy or Holly Fisher.
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