Owning a business usually comes with sacrifices you must make. However, something you should never have to sacrifice is your income. Be sure you can collect what you are owed by learning and understanding the proper lien laws for your state. We’re here to take away the complexity and confusion and give it to you straight. If you work in Vermont and need to know the lien laws, this is the place for you. Here, we break down exactly what the state of Vermont requires for you to properly file a valid lien and bond claim.
How to File a Valid Lien in Vermont:
- Place 3* and above Contractors and Material Suppliers have lien rights.
- You must file your “Notice of Lien” within one hundred and eighty (180) days from the time when payment becomes due for the last work done and/or materials supplied.
- For Place 2* and below Contractors and Material Suppliers, your lien will only be valid up to the amount that the Owner still owes to the Place 1* Contractor when they receive your notice of lien. Therefore, the earlier you send notice the better.
- You must file suit and obtain an attachment of the lien within one hundred and eighty (180) days of it being filed.
How to Have a Valid Bond Claim in Vermont:
- Only projects for the Agency of Transportation require payment bonds. To have a valid claim on that bond, you must file a sworn statement of claim within ninety (90) days of final acceptance of the project by the state.
- You must file suit to enforce your bond claim within one (1) year of filing it.
If you work in Vermont, it is necessary that you familiarize yourself with the lien laws listed above. To protect your payment, you must follow them as closely as possible. If you want to get your hands on Vermont’s lien and bond forms, consider purchasing the required materials from us! If you’d like someone else to take care of filing your construction lien or bond claims, and do it the right way, contact an experienced Vermont lien lawyer who knows construction law. Our sister company, The Cromeens Law Firm, has a 90% success rate of collections before having to foreclose on a lien, saving you costly legal fees. To protect your people, you need to ensure your income. Make it happen and file your liens the right way.
*The “places” referenced in the rules above correlate to the Construction Food Chain Chart from Karalynn Cromeens’ book,
Quit Getting Stiffed. The chart can be found here to use when following these lien and bond rules.