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The Notice Intention form plays a crucial role in the realm of construction and real estate within Wisconsin. It is designed to inform property owners of potential lien claims, thereby safeguarding the rights of those who provide labor or materials for a project. Several key aspects are covered by the form: it highlights when a lien notice is necessary and specifies the timeframes within which a notice must be served. This includes a requirement for prime contractors to provide written notice to owners within a specific period after beginning work, as well as the obligation for subcontractors to send a signed notice within 60 days of first performance. The form also clarifies the subsequent steps involved in filing a claim for lien, including the necessity of a written notice of intent to file a lien complaint at least 30 days prior to the actual filing. Additionally, the form outlines the timeframe for filing claims, procedures for lien foreclosure actions, and requirements for service of notices. By understanding these elements, all parties involved can better navigate the complexities of Wisconsin’s construction lien law and, importantly, protect their rights and interests in construction projects.

Notice Intention Example

WISCONSIN CONSTRUCTION LIEN LAW CARD

Prepared by Robert A. Mich, Jr.

Law Offices of Kay & Andersen, LLC

One Point Place, Suite 201, Madison, WI 53719

(608) 833-0077

Website: www.kayandandersen.com

E-mail: law@kayandandersen.com

1.Notice Required to Preserve Lien Rights

a.No lien notice is necessary to preserve lien rights if the lien claimant is a laborer or mechanic employed by any prime contractor or subcontractor, or the lien claimant contracts directly with the owner and is not a prime contractor, or the improvement involves more than 4 residential living units or is partly or wholly nonresidential in character, or the prime contractor is an owner of the land to be improved.

b.In all cases other than those identified in sub. (a), a lien claimant must serve a notice on the owner to preserve the lien.

c.Where the notice is required, a prime contractor must give owner notice in written contract or if there is no written contract, by separate written notice within 10 days after first furnishing or procuring labor, materials, services, plans, or specifications. See # 1 on the reverse side of this card for the form of the notice.

d.Where notice is required for any lien claimant other than a prime contractor, the claimant must serve the owner with two signed copies of the notice within 60 days after first performing, furnishing, or procuring labor, services, materials, plans, or specifications. See # 2 on the reverse side of this card for the form of the notice. If late notice is served after this 60 day deadline, lien will only apply to labor, services, materials, plans, or specifications which are performed, furnished, or procured after the late notice is actually received by the owner.

2.Written Notice of Intent to File Lien and Filing of Claim for Lien

a.Owner must be served with written notice of intent to file lien at least 30 days prior to the filing of the lien. See # 3 on the reverse side of this card for the form for a written notice of intent to file lien.

b.Claim for lien must be filed within six months from date of last furnishing or procuring labor, materials, services, plans, or specifications, but no sooner than 30 days after the giving of written notice of intent to file lien.

c.Claim for lien is filed in the office of the Clerk of Circuit Court of the county in which the improved property is located, and copies of the lien rights notice (if any) and the notice of intent to file lien must be attached to the claim for lien. Copy of the claim for lien must be served on owner within 30 days after filing of claim for lien.

3.Commencement of Lien Foreclosure Action

a.A lien foreclosure action must be brought and summons and complaint filed within two years of the date the lien claim was filed. After filing the complaint, the claimant must file a lis pendens with the Register of Deeds in each county in which the property is located.

b.The action may be to foreclose the lien and also to obtain a money judgment in the event the lien is worthless.

c.After a lien foreclosure judgment is obtained, the real estate is sold by further legal proceedings. Among several competing lien claimants, if insufficient proceeds exist, they share on a prorata basis. No priority is given to the lien claimant who files first.

4.Lien Waivers

a.Lien waivers are valid whether or not payment is given for them. Lien waivers waive all lien rights of a particular portion of the labor, services, materials, plans, or specifications.

b.A lien claimant is entitled to refuse to furnish a lien waiver unless paid in full for the labor, services, materials, plans, or specifications to which the waiver relates. However, once the waiver is signed and released, it is valid and binding whether or not payment is made.

c.A lien waiver may be limited in scope, although any ambiguity in a lien waiver will be construed against the party signing it.

5.Substitution of Bond for Construction Lien

a.A contract between an owner and a prime contractor may contain a provision for the substitution of a bond for lien rights.

b.Any claimant may commence an action against the prime contractor and bonding company not later than one year after completion of the contract for the construction of the improvement, if the subcontractor or materialman previously notified the prime contractor in writing within 60 days after first providing labor or materials that the subcontractor or materialman was providing labor or materials on the project. Such notice is not required for work up to $5,000, claims brought by employees, or projects where the subcontractor, supplier, or service provider was listed in a contract with the prime contractor.

c.On any project constructed pursuant to a contract and payment bond, any person furnishing labor, materials, services, plans, or

specifications to any prime contractor or subcontractor shall have a lien on the money due the prime contractor or subcontractor if the lienor, before payment is made to the prime contractor or subcontractor, serves a written notice of the lienor’s claim on the owner and any mortgage lender furnishing funds for the construction. The owner and lender must then withhold a sufficient amount to pay the claim. A copy of the notice must also be served by the lienor upon the prime contractor or subcontractor within 7 days after service of the notice upon the owner and lender. The prime contractor or subcontractor may dispute the claim by serving written notice on the owner and the lien claimant within 30 days, and if no dispute is made, the amount claimed is paid over to the lien claimant by the owner and charged to the prime contractor or subcontractor.

d.If the prime contractor or subcontractor does not dispute the claims and the total of lien claims exceeds the sum due the prime contractor or subcontractor, owner shall pay out money proportionately to lien claimants unless an action is started within 20 days after the owner serves written notice of its intention to issue proportionate payments to all lien claimants and the prime contractor or subcontractor.

6.Void Provisions in Construction Contracts Provisions in construction contracts are void if they:

a.Waive a contractor's rights to a construction lien or a claim against a payment bond before the lienholder has been paid,

b.Make the construction contract subject to the laws of another state or require dispute resolution in another state, or

c.Contain a provision making payment to a prime contractor a condition precedent to a prime contractor's payment to a subcontractor or supplier (pay-if-paid). However, a provision merely delaying a payment to a subcontractor until the prime contractor receives payment from the owner (pay-when-paid) is permitted.

7.Public Improvements (Lien Claims on Public Funds Due Prime Contractor)

a.Lien notice must be served on a clerk or treasurer of municipality or governmental agency responsible for the construction of the project, before payment is made to prime contractor. A copy of the notice must be served upon the prime contractor at the same time.

b.If prime contractor disputes the claim, action must be brought within three months from the time notice is served, otherwise the lien claim is barred.

c.If the prime contractor does not dispute claims and the total of lien claims exceed sum due prime contractor, governmental official shall pay out money on a proportional basis to lien claimants unless an action is started within 20 days after the official mailed notice to all claimants regarding the proposed distribution.

8.Suit on Bond in Public Improvements

a.A subcontractor, supplier, or service provider may sue prime contractor and sureties upon the bond for unpaid claims but action must be brought within one year after completion of work under the contract, provided the subcontractor, supplier, or service provider previously served the prime contractor with written notice of its work within 60 days after first performing, furnishing, or procuring labor, services, materials, plans, or specifications, unless one of the exceptions noted in paragraph 5.b. applies.

b.Some surety contracts require commencement of action before one year after completion of work. A copy of the surety bond should be obtained and complied with.

9.Federal Public Improvements (Miller Act, Title 40, Sections 3131 and 3133)

a.Performance and payment bonds are required on all United States contracts of more than $100,000.

b.Suit may be brought against surety after expiration of 90 days from the date of last furnishing labor or materials, but suit must be commenced within one year of the date that labor or material was last furnished.

c.A sub of a subcontractor or materialman of a subcontractor must give written notice to the prime contractor furnishing the payment bond within 90 days of last furnishing labor or materials in order to preserve action.

10.Service of Notices

All notices required under the Wisconsin construction lien law must be in writing and served by personal delivery, delivery by registered or certified mail, or another means of delivery in which the recipient makes written confirmation of the delivery. Service upon the state of Wisconsin must be performed by registered or certified mail.

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1.Prime Contractor Notice -

A prime contractor’s notice of lien rights, whether included in a written contract or separately given within 10 days of first furnishing or

procuring labor, materials, services, plans or specifications, shall be in at least 8-point bold type if printed, or in capital letters if typewritten. It shall be given to the owner or the owner’s authorized agent in substantially the following language: “As required by the

Wisconsin construction lien law, claimant hereby notifies owner that persons or companies performing, furnishing, or procuring labor, services, materials, plans, or specifications for the construction on owner’s land may have lien rights on owner’s land and buildings if not paid. Those entitled to lien rights, in addition to the undersigned claimant, are those who contract directly with the owner or those who give the owner notice within 60 days after they first perform, furnish, or procure labor, services, materials, plans, or specifications for the construction. Accordingly, owner probably will receive notices from those who perform, furnish, or procure labor, services,

materials, plans, or specifications for the construction, and should give a copy of each notice received to the mortgage lender, if any.

Claimant agrees to cooperate with the owner and the owner’s lender, if any, to see that all potential lien claimants are duly paid.”

2.Subcontractor, Supplier or Service Provider Notice -

Every person other than a prime contractor shall have a lien only if within 60 days after performing, furnishing, or procuring the first labor, materials, services, plans, or specifications, the claimant gives written notice, in two signed copies, to the owner or the owner’s authorized agent. The notice shall be in substantially the following language, with the blanks filled in: “As a part of your construction contract, your prime contractor or claimant has already advised you that those who perform, furnish, or procure labor, services, materials, plans, or specifications for the work will be notifying you. The undersigned first performed, furnished, or procured labor, services, materials, plans, or specifications on . . . (give date) for the improvement now under construction on your real estate at . . . (give

legal description, street address, or other clear description). Please give your mortgage lender the extra copy of this notice within 10 days after you receive this, so your lender, too, will know that the undersigned is included in the job.”

3.Notice of Intent to File Lien -

No lien claim may be filed or action brought unless, at least 30 days before timely filing of the lien claim, the lien claimant serves on the owner a written notice of intent to file lien claim, in substantially the following language: "You are hereby notified that the undersigned lien claimant intends to file a lien claim under the Wisconsin Construction Lien Law for labor, materials, services, plans, or specifications furnished in connection with the work of improvement done or being done on your real estate at (give legal description, street address or other clear description), said improvement being (describe briefly) and being done pursuant to a contract between (identify prime contractor and owner). Said lien claim of the undersigned is in the amount of $___________. The undersigned last furnished labor, materials, services, plans, or specifications for said improvement on your land on (date) and intends to file a construction lien claim pursuant to § 779.06 of the Wisconsin Statutes, on a date no later than six months after said date of last furnishing labor, materials, services, plans, or specifications, and no earlier than 30 days after you receive this notice, unless you pay and satisfy said lien claim prior thereto."

The user of this card is encouraged to consult with his or her own attorney regarding its contents. See Chapter 779, Wisconsin Statutes and related case law for detailed requirements for preservation and enforcement of lien and bond claims in Wisconsin.

©2011 Law Offices of Kay & Andersen, LLC

Form Characteristics

Fact Name Description
Preservation of Lien Rights A lien notice is not necessary for specific claimants, including laborers or those with direct contracts with the owner, but generally, a notice must be served to preserve lien rights.
Written Notice Requirement Claimants must provide written notice of intent to file a lien at least 30 days before doing so. Failure to notify can affect lien rights.
Filing Deadline A claim for lien must be filed within six months after the last provision of labor or materials, but no sooner than 30 days after the notice of intent is served.
Foreclosure Action Timeline To enforce lien rights, a foreclosure action must be commenced within two years of filing the lien claim.
Lien Waivers Validity Even without payment, lien waivers remain valid and can apply to specific labor or materials provided.
Contractual Provisions Certain provisions in construction contracts, such as waiving lien rights before payment, are void under Wisconsin law.
Public Improvement Lien Claims For public projects, lien notices must be served to municipal entities prior to payment to the prime contractor.

Guidelines on Utilizing Notice Intention

Filling out the Notice of Intent to File Lien requires careful attention to detail to ensure compliance with state laws. After completing this form, it must be delivered to the property owner at least 30 days before filing any lien claim. This is a crucial step for preserving lien rights under Wisconsin law. Below are the steps to successfully complete the form.

  1. Obtain the blank Notice of Intent to File Lien form.
  2. Fill in the date at the top of the form.
  3. Clearly identify the property in question by providing its legal description, street address, or another specific designation.
  4. Describe the nature of the improvement being made on the property.
  5. Identify the prime contractor and the property owner involved in the project.
  6. State the amount of the lien claim in the appropriate space.
  7. Indicate the date when labor, materials, or services were last provided for the project.
  8. Sign and date the form at the bottom to verify that the information is accurate.
  9. Make two copies of the completed form, as you will need to serve one to the owner and keep one for your records.
  10. Deliver the signed Notice of Intent to File Lien to the property owner personally, by registered or certified mail, or by another method that requires written confirmation of receipt.

What You Should Know About This Form

What is the Notice Intention form and why is it important?

The Notice Intention form is a critical document within Wisconsin’s construction lien law framework. It serves as a formal notification to the property owner that the lien claimant intends to file a lien against their property. This notice must be served at least 30 days before the actual lien filing. Its primary importance lies in preserving the claimant's rights. By providing this notice, the claimant ensures that the property owner is aware of potential claims, thereby giving the owner a chance to satisfy the claim before legal actions escalate. Failure to provide this notice could jeopardize the claimant’s ability to recover unpaid amounts through a lien.

Who is required to serve the Notice Intention form?

Under Wisconsin law, any individual or entity intending to file a lien must serve the Notice Intention form on the property owner. This includes subcontractors, suppliers, and service providers who have contributed to a construction project but are not the principal contractors. It is crucial for these parties to serve the notice to protect their rights. Specifically, this notice must be done at least 30 days prior to filing a lien claim. By doing so, they formally communicate their intention and alert the property owner of the potential consequences of non-payment.

What happens if the Notice Intention form is not served?

If the Notice Intention form is not served properly, the lien claimant risks losing their rights to file a lien on the property. The law specifies that lien claims cannot be filed until this notice has been appropriately submitted and the waiting period has elapsed. This stipulation emphasizes the importance of following the correct procedural steps. Without this notice, any subsequent claims for unpaid work or materials may be considered invalid, leaving the claimant without recourse to recover financial losses through a lien.

What is the time frame for filing a lien after serving the Notice Intention form?

Once the Notice Intention form has been served, the claimant must wait a minimum of 30 days before filing the actual lien claim. However, there are additional time restrictions. The claim must be filed within six months of the last date the claimant furnished labor or materials related to the project. Adhering to this timeline is vital; missing these deadlines could result in the claim being barred, effectively extinguishing any possible recovery. Therefore, careful attention to both the notice and filing dates is essential for anyone looking to assert a lien in Wisconsin.

Common mistakes

When filling out the Notice Intention form related to construction liens in Wisconsin, individuals often make several common mistakes that can jeopardize their rights. Understanding these mistakes can help ensure compliance with the law.

First, some people overlook the requirement to serve the notice within the appropriate timeframes. It is crucial to recognize that a prime contractor must provide notice to the owner either in the written contract or by separate written notice within 10 days after supplying labor or materials. Failing to do so may invalidate the claim. On the other hand, if the claimant is not a prime contractor, they must ensure that they provide two signed copies of the notice within 60 days. Missing these deadlines can significantly impact their lien rights.

Another common error involves the lack of sufficient details in the notices. Each notice should provide a clear description of the work performed, including the property’s address and legal description. Vague or incomplete information may lead to disputes about the legitimacy of the claim. It is essential to give specific dates and amounts related to the services provided to build a strong case.

Additionally, people sometimes forget to include the necessary attachments with their claims. When filing a claim for a lien, it is mandatory to attach copies of any lien rights notice and the notice of intent to file. Neglecting these attachments may result in the claim being rejected or delayed.

Improper service of notices is also a frequent pitfall. All required notices must be delivered in writing and can be served through personal delivery, registered or certified mail, or another method where the recipient confirms receipt. If the delivery method does not meet these criteria, the notice might not be considered valid, which could lead to serious repercussions.

Furthermore, there are instances where claimants fail to understand the significance of dispute timelines. If a prime contractor disputes a lien claim, the claimant is required to take action within a specific period. Failing to initiate the necessary legal proceedings timely will bar the claim. This mistake can be critical, especially in complicated projects where multiple parties are involved.

Lastly, individuals might neglect to consult with legal counsel about their situations. The process of filing and enforcing liens can be complex, and professional guidance can help navigate the nuances of the Wisconsin construction lien law. Without this expertise, individuals may inadvertently make errors that could have easily been avoided.

Being aware of these common mistakes can significantly improve the process of completing a Notice Intention form. Taking the time to ensure all requirements are met can protect lien rights and lead to successful recovery efforts.

Documents used along the form

The Notice of Intent form is an essential part of managing lien rights under Wisconsin Construction Lien Law. However, several related forms and documents are often used in conjunction with this notice. Each plays a vital role in ensuring that all parties are properly informed and that their rights are protected. Below is a list of documents that frequently accompany the Notice of Intent form.

  • Prime Contractor Notice: This document notifies the property owner of the potential for lien rights. It should be provided within 10 days of first supplying materials or labor and must be given in bold type or capital letters to ensure clarity.
  • Subcontractor, Supplier, or Service Provider Notice: Non-prime contractors must send this notice within 60 days after they first supply labor or materials. Two signed copies are required, which serve to inform the property owner of the work being done on their property.
  • Claim for Lien: To enforce a lien, this claim must be filed within six months of the last work performed. It includes essential details about the work provided and must be submitted to the Clerk of Circuit Court.
  • Written Notice of Intent to File Lien: This notice must be served at least 30 days before filing a lien. It outlines the claimant's intention and includes details regarding the nature of the work and the amount owed.
  • Lien Waivers: These documents release lien rights for a specific amount of work or materials. They can be signed regardless of payment status, but claimants may refuse to sign unless fully paid.
  • Substitution of Bond for Construction Lien: In some contracts, this agreement allows a bond to replace lien rights. It establishes a legal framework for pursuing claims against the contractor and any bonding company.
  • Lis Pendens: This document provides public notice that legal action has been initiated concerning a property. It must be filed alongside a lien foreclosure complaint.
  • Service of Notices: This procedural document outlines how and when notices must be served, ensuring compliance with legal requirements and providing proper delivery methods.

Each of these forms and documents plays a crucial role in the construction process, safeguarding the rights of all parties involved. Understanding and utilizing them correctly can help avoid disputes and ensure proper payment for services rendered. Take the time to familiarize yourself with these important tools.

Similar forms

The Notice of Intention form is related to several other documents that fulfill similar purposes within the context of construction lien law. Below is a list outlining these documents and how they connect to the Notice of Intention form.

  • Written Notice of Intent to File Lien: Like the Notice of Intention, this document must be served before filing a claim for a lien. It also requires a timeframe, specifically a minimum of 30 days before a lien claim can be filed, establishing a formal communication between the claimant and the owner.
  • Claim for Lien: This document is closely tied to the Notice of Intention as it is the next step after the notice. The claim must be filed within six months from the last date of providing labor or materials, and no sooner than 30 days following the Notice of Intent, reinforcing the need for proper notice prior to initiating a claim.
  • Prime Contractor Notice: This notice serves a similar notification purpose as the Notice of Intention. It provides the owner with information regarding potential lien rights and must be given within 10 days of furnishing labor or materials, ensuring the owner is kept informed about possible claims.
  • Subcontractor, Supplier, or Service Provider Notice: Similar to the previous notices, this document is essential for subcontractors and suppliers as it also requires a timely notification within 60 days of first supplying labor or materials to preserve their lien rights, similar to the Notice of Intention's requirements.
  • Notice of Lien Waiver: While differing slightly in purpose, lien waivers function similarly by requiring written documentation that informs all parties about the waiver of lien rights associated with specific labor or materials. This helps maintain transparency regarding lien rights.
  • Service of Notices: This document outlines the requirements for serving any notices under construction lien law, including the Notice of Intention. Proper service ensures that all parties receive necessary notifications effectively and within statutory guidelines, thus protecting the rights of the claimant and owner.

Dos and Don'ts

When filling out the Notice of Intention form, it's crucial to follow certain guidelines to avoid potential pitfalls.

  • Make sure to provide accurate details about the property and the work performed.
  • Serve the notice within the required timeframe to maintain your lien rights.
  • Include two signed copies when submitting the notice to the owner.
  • Consult with a legal expert if you have questions about the process.

On the other hand, be cautious and avoid these common mistakes:

  • Do not delay in sending the notice; timing is essential.
  • Avoid using vague language; clarity is critical in these documents.
  • Do not forget to keep a copy of the notice for your records.
  • Refrain from assuming verbal agreements will suffice; written documentation is mandatory.

Misconceptions

1. Misconception: A Notice of Intent form is only necessary for contractors. This form is required for all lien claimants, including subcontractors and suppliers, to serve written notice to the property owner at least 30 days prior to filing a lien.

2. Misconception: All claimants have the same notice requirements. Different types of claimants have varied requirements. For example, prime contractors have different notice obligations compared to subcontractors or suppliers.

3. Misconception: A Notice of Intent is optional. The Notice of Intent is mandatory. Failing to serve it properly may prevent the claimant from filing a lien claim, which could jeopardize their rights to payment.

4. Misconception: The Notice must be filed in person. Notices can be served via personal delivery, registered or certified mail, or any other method that ensures written confirmation of delivery.

5. Misconception: There is no deadline for filing a lien claim. Claims must be filed within six months of the last provision of labor or materials, but no sooner than 30 days after serving the Notice of Intent.

6. Misconception: Late notices invalidate lien rights. While late notices affect lien enforcement, they do not completely invalidate rights. A late notice may still protect payments for labor or materials provided after the notice is received.

7. Misconception: Filing a lien guarantees payment. Filing a lien provides a legal claim against a property but does not guarantee payment. It may still require further legal action to be enforced.

8. Misconception: Any form of notice will suffice. Notices must adhere to strict statutory language and requirements. Improperly formatted notices could be rejected, thus impacting lien rights.

9. Misconception: The order of claims determines payment priority. In Wisconsin, priority among lien claimants is not based on the order of filing. All claimants share on a prorated basis if the proceeds are insufficient.

10. Misconception: Lien waivers are always binding regardless of payment. While lien waivers are generally binding, a claimant may refuse to sign one until payment has been made. Once signed, the waiver is valid but may still be limited in scope.

Key takeaways

Filling out and using the Notice Intention form is essential for protecting lien rights under Wisconsin construction lien law. Here are seven key takeaways:

  • Preserving Lien Rights: A notice is only necessary for lien claimants other than laborers or those contracting directly with the owner. Missing this requirement may jeopardize lien rights.
  • Timelines Matter: The written notice of intent to file a lien must be served at least 30 days before filing the lien claim. Timing is crucial.
  • Dual Copies Required: Claimants other than prime contractors must send two signed copies of their notice within 60 days of starting the work. This ensures the owner formally acknowledges the claim.
  • Filing Location: The lien claim must be filed in the Clerk of Circuit Court for the county where the property is located. Be sure to comply with filing requirements.
  • Notification Process: All notices must be in writing and delivered using personal delivery, registered, or certified mail. Keeping track of how you send the notice is important.
  • Consider Bond Replacements: Contracts may allow for a bond in place of lien rights, but this often requires clear prior notification to the prime contractor.
  • Contract Provisions: Be cautious with contract language. Any provision waiving lien rights prior to payment can render a contract void.

Understanding these aspects will help ensure that lien rights are preserved and enforceable, safeguarding interests in construction projects.