Definition: Materialman
A Materialman is an individual or business entity that provides materials to be used in the construction, improvement, or repair of a building or other property structures. Materialmen play a crucial role in real estate development projects by ensuring that contractors have the necessary supplies to complete their work. When a materialman is not paid for the materials supplied, they have legal recourse to file a Mechanic’s Lien against the property, thereby securing their right to compensation.
Examples
- Lumber Supplier: A lumber company that provides wood to a construction project is considered a materialman. If the construction company fails to pay for the wood, the lumber company can file a mechanic’s lien to secure payment.
- Concrete Provider: A business that supplies concrete to a builder for creating foundations and other structures acts as a materialman. In the case of non-payment, the concrete provider may record a mechanic’s lien against the property.
- Electrical Supplies Distributor: An electrical supply company that provides lighting, wires, and other electrical components to an electrician working on a property is a materialman. If they are not remunerated for these supplies, they have the option to file a mechanic’s lien.
Frequently Asked Questions
What rights do materialmen have if they are not paid?
If materialmen are not paid for the materials they have supplied, they have the right to file a Mechanic’s Lien against the property. This lien acts as a claim on the property, effectively preventing its sale or refinancing until the materialman is paid.
Do materialmen need a contract to file a mechanic’s lien?
While having a written contract can strengthen a materialman’s case, it is not always necessary. The exact requirements can vary by jurisdiction, and materialmen often need to adhere to specific notices and filing deadlines.
Can a materialman file a claim for both labor and materials?
Typically, a materialman is specifically concerned with recovering costs for materials supplied. However, if the materialman also performed labor or services, they might have an additional claim depending on the terms of the agreement and local lien laws.
How long does a materialman have to file a mechanic’s lien?
The time frame within which a materialman must file a mechanic’s lien varies by state or province. It can range from 30 days to several months after the last materials were supplied. It’s essential for materialmen to check local laws to ensure they file within the allotted time period.
How can a property owner remove a mechanic’s lien filed by a materialman?
A property owner can remove a mechanic’s lien by paying the amount claimed or disputing the lien in court. In some cases, the owner can discharge the lien by posting a bond that covers the lien amount.
Related Terms
- Mechanic’s Lien: A legal claim against a property that secures payment for labor, services, and materials provided for property improvements.
- Construction Lien: Similar to a mechanic’s lien but can also include claims for labor and services by contractors and subcontractors.
- Contractor: A person or company contracted to furnish supplies or perform labor for construction projects.
- Subcontractor: A secondary contractor hired by the primary contractor to perform specialized tasks as a part of larger projects.
- Lien Waiver: A document from a contractor, subcontractor, or materialman waiving future lien rights upon payment.
Online Resources
- Nolo’s Mechanic’s Liens: Protecting Your Right to Payment
- Legal Information Institute’s Mechanics’ Lien Statutes by State
- Construction Financial Management Association
References
- Nolo. “Mechanic’s Liens.” Nolo. Accessed October 10, 2023. Link
- Legal Information Institute. “Mechanics’ Lien Statutes by State.” Cornell Law School. Accessed October 10, 2023. Link
Suggested Books for Further Studies
- Building Contractors’ and Homeowners’ Guide to Mechanics’ Liens by David Carey
- The Construction Contracts Book: How to Find Common Ground in Negotiating the 2007 Industry Form Contract Documents by Daniel S. Brennan
- Mechanics’ Liens & Construction Forms by Scott J. Hart and William L. Porter
- Legal Aspects of Architecture, Engineering and the Construction Process by Justin Sweet, Marc M. Schneier, and Jonathan J. Sweet
