Can I Sign Pennsylvania Banking PDF

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good afternoon and welcome to today's webinar hosted by the national network of credit and financial professionals I am here today with Jerry Bailey executive sales and education services manager for mts who will be presenting on pennsylvania lien law changes a few items to get out of the way before we begin if you have any questions during the course of the presentation you can ask them through the question function on your side panel we will gather all these questions and save them for a question and answer at the end of the presentation if you are looking for a copy of the slides to follow along today they are available through the handout section when your side panel we will also be sending through email after the presentation is complete I'm a copy of the handout the last item is we will have a brief survey that pops up after the webinar ends it only takes about 30 seconds to fill out but it gives us a lot of great information when how we can continue to make our webinars is better for you now ken fresco will give you a brief intro of our speaker thank you shower getting afternoon everybody just a quick background on Jerry as shower said he's currently the executive sales and education services manager for NCS and it's been with that company since 1995 prior to coming to NCS Jerry was a corporate credit manager in the manufacturing industry for 10 years during which time he gained very thorough hands-on experience with both UCC filings and mechanics lien filings Jerry consults with companies daily and has spoken to groups nationwide about article 9 of the Uniform Commercial Code revised article 9 the nuances of construction credit and the benefits are selling through security transactions so with that I'd like to pass it back to jerrys begin today's presentation okay thanks Ken thanks Sharon I appreciate you folks having me in to speak with everyone today welcome to our webinar today thanks folks we appreciate you spending some time with us on the educational programs today we're going to talk about mechanics liens and it's going to be very specific we're going to talk about the changes to the lien was the state of Pennsylvania has enacted if you're familiar with them the law was actually enacted in 2016 but became effective once they they created a functioning website that would be known as the Pennsylvania construction notices directory that was the mandate the the order was to make sure that was working by the 31st of December of 2016 that happened it was actually two days early so this website is functioning now Pennsylvania joins a group of states that consists of three only that have this online registration Utah has their construction registry Iowa has one and pennsylvania now has this directory also i think the changes are good i think they are for the benefit of subcontractors and material suppliers I the changes really were oriented towards trying to save the subcontractors and material suppliers from abuse and some of the contractors taking advantage of them so I think the changes are good here's our agenda so we'll talk about this directory was created we now an owner has an opportunity to register his his project in this directory and if he does then there are other notices that will be required by us as material suppliers and subcontractors to protect our lien rights so there will be some other requirements for us again those are good things though and essentially what this notice directory is is it's going to be an online searchable directory for these projects and the criteria we'll talk about that in a minute but the changes that we're going to talk about are in addition to the lien was as they exist in Pennsylvania they are not replacing the Lee laws so the things you're familiar with in the state of Pennsylvania as of 1231 2016 still apply today we just have added a couple of things if these projects are registered in this notice directory so you know if you looked in the National lean digest to see what you had to do in a given State before the first of January of this year this is what you would see for Pennsylvania notice non-statutory recommend you do it but it's not required and then you see your lien timeframe six months from last furnishing and you have your formal notice so nothing has changed with that we have six months to file our lean six months from last furnishing to file our lean in the state of Pennsylvania we still must serve the formal notice upon the owner at least 30 days before we record the lien and there's a there are several states to do this and the theory behind that is they're trying to give the owner 30 days or so to resolve this problem before the lead actually gets recorded against their property so that is still the same we still have that formal notice 30 days before we actually filed a lien and our time frame is six months from last furnishing materials or services to the jobsite so those things still exist we still have to pay attention to those deadlines in the Pennsylvania lien was here's what it has done and what the changes have done it has created a construction notices directory and the construction notices directory pertain to any projects that are over 1.5 million dollars and that that threshold applies to the contract between the owner and the general contractor it doesn't matter if our contract as a subcontractor or our arrangement as a material supplier is not over one and a half million if the contract between the owner and the general is over one and a half million dollars it becomes what is deemed a searchable project and the owner then has the option to register and create this project in the construction notices directory and notice I said the owner has the option it is not required it is entirely the prerogative of the owner if it's over 1.5 million dollars they can register it and they will register it via a notice of commencement is how they will create this project in the registry now you would hope that most of the owners will embrace this ultimately it is going to be in their best interest this directory provides for some notices which are going to identify all of the parties that can possibly file leans against the piece of the property has been improved that's a good thing the owner certainly does not want lien spot against his property so if he can identify all of those people and make sure they're getting paid then that will minimize his stress in his peril so it will be in the owners best interests to to create this this directory so that's basically what will happen if it's over one and a half million dollars I as the owner have this option to record this notice of commencement and here's what the notice of commencement contains the name location and county in which the project is located a legal description of the property including the tax ID number for each parcel so if there's multiple parcels well we'll have the tax ID numbers name address and email address of the contractor and the owner of record if it's a bonded project the name address in the email address of the surety and each project will have a unique identifying number and this unique identifying number it would probably wise for us to start to adopt this unique identifying number in the paperwork we're using for the project our invoices if you know if we can into our contracts certainly waivers of lien we should be referring to this unique identifying number for this project so we want to start to think about incorporating that now the notice of commencement will be posted at the job site as you can see you know in construction credit getting this job information is always one of the most difficult things to do now this notice of commencement will have all of the information that we will need to serve our notices and protect our lien rights and this is good Pennsylvania now jumps into they are the eight state that has this this notice of commencement so the states that do it's a really great thing most of the states there isn't a registry like there is here you have to to request it from the owner and they will send you the notice of commencement and you then would have all the pertinent project information this in Pennsylvania we're going to go into the registry or the directory rather and search on the project if it's in there will be able to take a look at the notice of commencement it costs the owner of 72 bucks to register a project into into the directory so there is a cost for them now we'll see we we can take a look in the directory we can search for free if we want to do activities and they're like doing notice of furnishing or a notice of notice of non-payment or any other things we we have to then register with the registry now if the owner does register this project via a notice of commencement it now gives us some additional requirements that we must comply with as subcontractors and material suppliers so if it's registered and we search and we see this project in there we then have the obligation to register our notice of furnishing as a material supplier or a subcontractor and we have to do that within 45 days after furnishing material first furnishing material to the jobsite so this is good this notice of furnishing we're going to register and again Pennsylvania jumps into the large majority of states that require some sort of a notification to the owner previously they didn't you had six months to file the liens there was no notice required that's that's not like most of the states but nearly 40 of the states you have some sort of a notice required and the reason is very logical the owner wants to know anybody that can possibly file a lien against his property and when you think me owners perspective the owner has a contract with the general contractor he knows who the general is and the owner may know a couple of the subcontractors but the owner won't know all of the subcontractors and the owner isn't going to know a good deal of the third tier material and service providers and yet all of those entities have the right and the opportunity to file a lien against the owner's property which of course he does not want so that's what this notice tries to prevent the theory here is identify everybody that could possibly lien the property to the owner and the owner then looks out for himself and the way he'll do that is he built a system of checks and balances in when he gets a draw from the general contractor each month requesting payment he's going to look and make sure he's got waivers a lien from all of the people that have registered their notice of furnishing so he'll just match up notice the furnishing from the window people yep I got away relief in the window people they've been paid okay looks like I've gotten the waiver a lien from everybody that has registered to notice of furnishing good to go looks like everybody's gotten their money here you go general contractor here is your check so that is what most of the states require Pennsylvania has this at 45 days after first furnishing most of the states requires that this is done pretty early where you have to identify yourself 45 days some of the states it's 30 some states it's only 24 first furnishing but Pennsylvania has now added that so if it is a searchable project it's over 1.5 million the owner registers a notice of commencement and creates this project in the directory we then have to go in and register our notice of furnishing within 45 days first furnishing and this is good too because the states that have these pulmonary notices it's going to drive our dsos down this identifying process it's pretty consistent the people that serve their notices consistently identify themselves to the owner are going to get paid ahead of the people that do not so we have the notice of furnishing if it is a searchable project and here's what to notice the furnishing has to contain it has to contain a general description of the labor and the materials furnished the name and address of who we are the name and address of who our customer is and description of the project based on what is in the notice of commencement so again this is a good thing and that's what could it be contained in a notice of furnishing you'll see we'll go online and register it will take a look at what the registry looks like and how we would record a notice of furnishing now there the notice of furnishing is required we must do that if we do not do that notice of furnishing the statute makes it clear if we fail to comply we forfeit our right to file the lien so so we do not have a choice if we must do the notice of furnishing if it is a searchable project in the directory it creates a couple other notices that are there optional really it has a notice of completion and an optional notice of non-payment the notice of completion is something that the owner would record and the owner will go in and record this within 45 days the actual completion of the work it really doesn't affect anything it doesn't change what we have to do it doesn't affect the timeframes and when we have to do it it is completely the option of the owner it's not a bad idea for us to know that this exists and see that it's out there though it can help us outside the lean process it can help us maybe we're looking for our retainage and we haven't gotten our retainage yet we can go into the end of the directory and see the Jesus notice the completion was was recorded four months ago where's my retainage so maybe if we're going to court and there are arguments over when the project was completed and there is a record of notice of completion that is in our best interest to that ends that argument so if the notice of completion is recorded it's in our best interest to go get a copy of it and then the notice of non-payment is optional for us to the notice of non-payment um it we record it in the directory it's informational only it doesn't affect anything it doesn't relieve us from doing the formal notice if we need to go to lean it is merely thinking this of it like a Dunning notice where we're letting the owner know that we're not paid there is no time frame when we have to do the notice of non-payment reasonably when you know there's an issue with payment seems like you would do the notice of non-payment but this is a notice that we're going to record and register rather that basically just let the owner know that look we haven't gotten our money and we think there's a problem so those 20 notices again are optional we do not have to do those but they but you know it's good ideas for us to be aware of a notice of completion and if we have a payment situation to make sure we we sent out the notice of non-payment or register that so it also makes residential go unpaid balance if you're familiar with the you know the state's view liens two different ways some of the states Arlene is capped by what is unpaid from the owner to the general contractor that's what Pennsylvania has done on residential contracts now so if you are furnishing to residential improvements recognize that your lien will be limited to whatever the owner owes the prime contractor so if you're a sub and your do five thousand dollars but the owner has already paid the general everything he owns them the statute is telling you you have an empty lien you don't have any lien rights because there's nothing left to be paid so that is something that we want to be aware of all so if we're providing residential e now and this is what one of the parts that I think tells us that the state of Pennsylvania is really seriously trying to limit the abuse of subcontractors and material suppliers because they said look you know we're putting some keys in this and the statute says subcontracts must contain notice that failure by a subcontractor to timely file their notice of furnishing may result in forfeiture of their lien rights and also it must say it's online for an owner or a general contractor to request or encourage a subcontractor not to file their notice of furnishing so this is pretty serious and it further says look a violation of this is going to be considered to be a second-degree misdemeanor and the subcontractor consumer cover actual damages caused by violation if let's say they coerced you into not doing your notice and you lost your lien ri hts feasibly you can look to them for the value of your lien now actual damages and also the courts may award the reasonable attorneys fees costs everything like that but if your general contractors you're going to have to get that verbiage into your subcontract and if your subcontractors when you're getting your contracts this verbiage should be in the sub contracts that you are getting so now if you go in when you look into national lien digest the rules will say very quickly one notice searchable projects within 45 days after first furnishing we must register our notice and we kind of compare to the utah state registry that they have an eight I think Pennsylvania tried to mimic it after that they're very similar both both registry directories require an account to be set up for the entity accessing the website besides unique identifying number to each project we need you requires a tax ID number as as a parcel number links the notice of furnishing all the notices together notice the completion notice a non payment and the dose of commencement will all be linked together and it allows the user to search for projects using all of those things unique identifying number the project name property owner date of the document by county you'll see how we're able to sue or to search rather when we get in directory so let's take a look at the directory here's what it looks like and I would urge all of you to go look you can just google the pennsylvania state notices construction notice of directory there's the website you can see PA gov backslash FC ND this is the this is the first page and you'll see when you go into the first page there is all sorts of helpful information on it there's a like a tutorial video that shows you how to do some of the things they're so I'm go play around I mean I have screenshots here because I think it's in your best interest to all go look at the registry excuse me so you know whenever you get a chance go look but but the notice directories that mean the penn state of pennsylvania is pretty clear they have a blip that says look the Department of General Services is not responsible for the accuracy of the information provided in the directory so and also one of the questions we had I believe what um who was going to monitor all of this and make sure the notices of commencement our bar served in time actually was our understanding enormous file the notice of commencement prior to first commencement who is checking to make sure the owner GC is filing within that time frame no one the think of it from the state of Pennsylvania site they don't know about every project that's going on so they can't possibly monitor to see if the notice of commencement has been registered for a given project also recognized it's the owners prerogative I mean it's their option to register it in this directory they do not have to it's not a requirement so it's going to be up to us to go search and see when we get on a project that's going to be our first line we will go to the system and search to see if the project is registered in the notice directory so again and again the accuracy of the information so it's on us you people are all pretty familiar with mechanics lien logs if we screw something up its our fault it's their own lean so you don't take the information that's in the directory and use it as gospel we need to make sure we're doing our own due diligence and identifying the owner of the property making sure we have correct legal parties and all of those things to make sure that everything is done as it needs to be so don't just grab information out of here especially if you have large dog our mounts for your projects you still want to do your verifications and double checking to make sure you have the correct legal parties and that need to be identified in this so we decided we want to do a search we don't need an account to do a search if we want to record a notice of commencement or a notice of furnishing or a notice of non-payment we do need an account at that point but we can click search and it takes us in and you know there's there's a lot more questions than answers at this point i clicked in today and there are eggs there are 19 projects registered in the notice directory as of right now so you know we're looking at what six weeks and there are 19 projects that have been actually registered in in the system so you know a lot of how it's going to work out if you were familiar when you talk rot there is up there were some tanks and some speed bumps that occurred in the first six months so some of the things are going to be ironed out but we can commit we can search on all sorts of things it's a very searchable database we can search on the project name the owner named general contractor a contractor the identifying the unique identifying number by city or by county by the street address will be able to search by all of those but this is where we'll search we get on a project it seems to be a lot of money we want to make sure we search because if it's in here and we don't search we don't do our notice of furnishing now we've lost our lean rights so again if it's over we think it's over 1.5 we're going to search and see if it's in here make sure we're doing what we need to you can search you need to enter about four characters at least four characters in and then it will search on anything for or greater so you can't put like two letters and in search it needs a little bit more and you'll have to get familiar with how to search too it's kind of like Google you know you when Google first came out you know you get better and better at how to search for specifically what you're looking for and with this really it might be better to start with broader searches and then try and narrow them down to figure out if this project is in there and again you know one of the questions was how quickly [Music] you know how quickly does it show in real time there's 19 projects so as of right now the NoCs that are recorded against the projects are posted at least daily I don't know if it's any sooner than that oh and I don't know if they're viewable in real time but the notice will see here when we look at the searchable database mean here's the projects so we're looking at basically a couple Dick's Sporting Goods Hamilton United business and boys 2017 renovation and you can see like for this united business park United drive in shippensburg so there's not even a street number in the address so again recognize the system will take whatever you put into it we still need to make sure we're verifying the information and making sure we got the correct property etc so don't trust the information it's in here but we can click in this information icon and it pops open and it will give us additional information it opens the project and it says okay here's the notice history on the thirtieth of December Peter Norman Esquire on behalf of the owner recorded and registered this notice of commencement and then shortly after that on twelfth of January tag lumber registered their notice of furnishing and you see out here we can take a look at them so that was one of the other questions this can you see and upload and download the notices yeah you can we'll be able to do that will show them see how that happens in a minute here and then download you know we just go down we can scroll down it gives us the project information here's the property owner again with an email address for the property owner and then the contractor and the project name and again with an email address for the contractor so we're getting the project information that we need through the registry but if we want to go look we would click on that little that PDF icon and we can see so for this project here is the here is the notice of commencement and we can print it out download it whatever we need and if you notice it is date and time stamps the notice of commencement will be date and time-stamped and the notice of furnishing will be date and time-stamped also so that was one of the questions was regarding timing and how soon is it going to show even if it doesn't show until maybe they you know they update overnight everything will be date and time stamped as to when it was recorded in there so that's the notices commencement you can see all the information from the notice of commencement here is the notice of furnishing and all the the information is contained in the notice the furnishing including the party that recorded it and then here is the second page of the notice of you know the terms and conditions for the notice of furnishing so again there's about nineteen projects in there now not a whole lot of activity so we once this thing gets fully functioning and we have thousands of projects how quickly is it going to update you know that will be interesting to see how it plays out as we go but you know again that's just something that as we go we'll have to wait and see how that happens so before we review here are some of the questions that we had Oh project is closed but less than the threshold and then the threshold changes in any way the meets or exceeds the threshold do they now have the option to file the notice of commencement after commencement so good question so maybe a project is 1.4 million dollars and then they put a change through for two hundred thousand dollars which pushes it over the 1.5 there there aren't any provisions in the statute for filing a notice of commencement after commencement of the project now the issue for me would be okay let's say this happens four months after the project has commenced and now the owner records and registers notices commencement well there could be several sub contractors that are past their 45 days from first furnishing that they have to do the notice of furnishing so they would be blown out on their lean right so my inclination would be no but again it hasn't come up we'll have see how that happens and how it plays out when the owner files the NOC does it show up in real time okay we talked about that it's you know they show up daily I am not sure if it's any quicker than that if it's in real time but they are time stamps you can see when it was recorded when we filed a notice of furnishing through the site does it notify the GC or we need to print and mail via certified return receipt our understanding this is done through the directory and no mailing is required the directory will provide a printable receipt as proof of your notice of furnishing so you can print that out once you register your notice of furnishing and it will probably a good idea once you do and it registers and you see it's a printed out with the date and the time stamp so you have proof of your registering of your notice of furnishing if the GCS owner gc's contract is a no lien non lien filed contract and they still file the NOC notice the commencement does that void the no lien contract clause there isn't any indication in the change that indicates that filing a notice of commencement would void the no lead contract clause what is the cost of the subcontractor set up an account I'm we haven't done it yet I know it's $72 for the owner I don't know if Pennsylvania is going to change once we actually go in and set up an account and serve one will better know but as of right now i'm sorry i'm not sure if we file a notice the furnishing do we have to follow up with filing a notice of non-payment to secure our lien rights and what is the time frame we kind of covered this the notice of non-payment is informational only it is not required it is our option practically when would we do it well once we know there is an issue with non-payment that would probably be the good time to go ahead and do the notice of non-payment register that in the directory that's what we have to cover the changes have gone through anything over 1.5 million becomes a searchable project it's the owners option to record it and create a project in the directory they do that via this notice of commencement once they do we then have the requirement as subs and material suppliers to register a notice of furnishing within 45 days of first furnishing that's the important date there are there other notices they're optional the notice of completion the owner may register we may register a notice of non-payment which we just talked about again we're six weeks into this directory so lots more questions than answers as we go through if we don't cover things today and where you think of questions after this please don't hesitate there's my information take it down and feel free to contact me email me or call me with updates as to what's going on with the directory again I think these are good changes it is for the protection of subcontractors and material suppliers it does provide us visibility to the owner now if he registered the project we can get visibility with the owner much earlier than we could without the notices I think those are all good things and will lead to protection for us as subcontractors and material suppliers with that if we have any questions yes I'm Terry there is one question posed by Bert he asked is there a time constraint for owners to register their job if we check and don't see our job and 45 days pass but owner registers after our last furnishings as an example yes the owner is late and registering a project we again it doesn't say anything that allows for the owner to register the project after commencement of the project so will that come up possibly and we'll have to see what is there but as of right now the statute does not cover or provide for the owner to register the project after commencement but stay tuned and I also want to tell everybody stay tuned if you're not with with the folks at the Federation and with us two we have a blog and we put a lot of stuff out on social media where we'll be updating the things that are happening with this their directory and little things like that you know little nuance e things that you know they come up and we'll address them and publish them for the world might you know look here's what what happened and here's how it was handled okay teary and there are no more questions if anyone does have any questions I will provide Gary's email when I send the PDF version of the presentation later today and you can follow up directly with Jerry okay thank you okay I have a me and I appreciate it you're welcome with that said we are going to close today's webinar I would like to thank Jerry Bailey for taking the time to present to our group today and I thank all today's attendees for taking time out of their day to join us thank you all again and we look forward to seeing you at the next webinar Thank You Jerry thanks