Advanced · Lesson 1 · 8 min
Multi-Party Construction Projects
Navigating lien strategy when owners, lenders, GCs, subs, sub-subs, and suppliers all share the same project.
Overview
Large commercial projects have layered contracts and layered lien rights.
Strategy depends on where the claimant sits in the tier and who has paid whom.
Key Concepts
- • Stop-notice rights and trapping funds at the lender
- • Joint check arrangements as conflict resolution
- • Sub-sub and supplier rights against the property
- • Coordinated lien releases at project closeout
Common Mistakes
- • Filing without first checking whether the GC has been paid by the owner.
- • Ignoring stop-notice mechanics where they are the cleaner remedy.
Practical Examples
Lender pressure
A supplier serves a stop notice on the construction lender. The lender freezes draws until the dispute is resolved. Payment lands within two weeks.
Downloadable Resources
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Educational use only. Not legal advice. Lien rules vary by state — consult licensed counsel.