ACEC/MA Testifies in Support of Amendment to Mechanics Lien Law

Testifying at the October 15, 2009 hearing before the Joint Committee on the Judiciary:   center of photo, facing the legislative committee:   Robin Greenleaf, PE, Architectural Engineers, Inc. (ACEC/MA),  David Humphrey, PLS, Schofield Brothers of New England, Inc. (ACEC/MA and MALSCE),  Michael Hicks, AIA (BSA and ACEC/MA)

HB 1769: An Act Amending the Mechanics Lien Law
SB 1806: An Act Relative to a Lien for Architects, Engineers, Land Surveyors and Licensed Site Professionals
[HB. 1769 Sponsor: Rep. James E. Vallee; SB. 1806 Sponsor: Sen. Karen Spilka]

ISSUE
These bills propose an amendment to the existing Mechanic’s Lien Law that would allow licensed design professionals, architects, engineers, land surveyors and licensed site professionals to lien property when the owner and/or developer fails to pay for agreed-upon services. Many of these design firms are small businesses whose day to day operations are severely impacted when owners and developers fail to pay invoices.   A panel of ACEC/MA, MALSCE and BSA members testified in support of these two similar bills before the Joint Committee on the Judiciary on October 15, 2009.

KEY POINTS ABOUT THIS BILL

• Design Services Provide Value to Real Estate:  Services provided by engineers, land surveyors and other design professionals create substantial value for property owners. All design work produces documents, which bring a tangible, elevated financial value to the Owner’s land
• Limited Options for Nonpayment: For a variety of reasons, some land owners regularly don’t pay all or portion of the fees that have been promised to the design professional. Unscrupulous developers know this very well and often arrange to withhold payments just below the threshold that would make a lawsuit viable. A designer’s only recourse is to sue – an expensive and protracted process that often costs more than the fees owed.
• Solution: These bills propose an amendment to M.G.L. c. 254, Liens on Buildings and Land, the Massachusetts Mechanic’s Lien statute. The amendment would:
  
  •    Allow licensed design professionals, architects, engineers, land surveyors and licensed site professionals, to lien property when the owner and/or developer fails to pay for agreed-upon services.
  •    Keep unchanged the current process for general contractors and subcontractors, such as plumbing and electrical trades, to place a lien on property when the owner/developer has not paid for their work.
  •    Have no impact on owners/developers who pay their bills.
  •    Bring Massachusetts in line with the majority of other states which allow licensed design professionals to place a lien on property when owners and developers fail to pay the invoices.

ACTION REQUESTED FROM MEMBERS
Send letters to your State Senator and your State Representative asking them to:
Support: H. 1769:  An Act Amending the Mechanics Lien Law
Support: S. 1806: An Act Relative to a Lien for Architects, Engineers, Land Surveyors and Licensed Site Professionals