Prerequisite To Lien Claim (RCW 18.27.114) – A Reminder
On April 24, Governor Inslee released his Phase 1 Construction Restart plan signaling the beginning of a possible easing of Covid-19 related restrictions put in place under Gubernatorial Proclamation 20-25. As contractors return to work, it is the perfect time to reassess compliance with the Contractor Registration Act.
A major component of the Act, is the mandatory notice required for all projects involving either: (1) four or fewer residential units (or accessory structures) when the contract value is $1,000 or more; or (2) commercial construction where the contract value is more than $1,000, but less than $60,000. The notice must be substantially in the statutory form as laid out in RCW 18.27.114.
The statutory notice must be provided to the client prior to the starting of work on the project, must be signed by the client, and must be retained by the contractor in his or her files for a minimum of three years. The failure to obtain the signed notice will preclude any lien claims that may be asserted by the contractor against the improved property. Further, such failure is also considered an infraction under the Act and is a per se violation of the Consumer Protection Act (RCW 19.86 et seq.) which may subject a contractor to treble damages and attorney’s fees.
It is critical that contractors strictly follow the requirements of the Contractor Registration Act in order to protect their businesses. Beresford Booth is here to help if you need assistance in reviewing your forms and notices, as well as any other business needs you may have.