CHAPTER 203

FORMERLY

SENATE BILL NO. 130

AS AMENDED BY HOUSE AMENDMENT NO. 1

AN ACT TO AMEND TITLE 25 OF THE DELAWARE CODE RELATING TO MECHANICS' LIENS.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE :

Section 1. Amend §2701, Title 25 of the Delaware Code by adding a new subsection as follows:

“(3) ‘Construction management services’ includes services performed pursuant to a contract with an owner of a structure, or with the agent of such owner, for the management of the erection, alteration or repair of such structure, where the person or entity providing such services does not perform or furnish labor or material for such erection, alteration or repair.”

Section 2. Amend §2711, Title 25 of the Delaware Code by striking the section in its entirety and substituting in lieu thereof the following:

Ҥ 2711. Time for filing of statement of claim.

(a) A contractor who (1) has made his contract directly with the owner or reputed owner of any structure and (2) has furnished both labor and material in and for such structure, or has provided construction management services in connection with the furnishing of such labor and material, in order to avail himself of the benefits of this subchapter, shall file his statement of claim within 180 days after the completion of such structure. For purposes of this subsection, and without limitation, a statement of claim shall be deemed timely if it is filed within 180 days of any of the following:

(1) The date of purported completion of all the work called for by the contract as provided by the contract if such date has been agreed to in the contract itself;

(2) The date when the statute of limitations commences to run in relation to the particular phase or segment of work performed pursuant to the contract, to which phase or segment of work the statement of claim relates, where such date for such phase or segment has been specifically provided for in the contract itself;

(3) The date when the statute of limitations commences to run in relation to the contract itself where such date has been specifically provided for in the contract itself;

(4) The date when payment of 90% of the contract price, including the value of any work done pursuant to contract modifications or change orders, has been received by the contractor;

(5) The date when the contractor submits his final invoice to the owner or reputed owner of such structure;

(6) With respect to a structure for which a certificate of occupancy must be issued, the date when such certificate is issued;

(7) The date when the structure has been accepted, as provided in the contract, by the owner or reputed owner;

(8) The date when the engineer or architect retained by the owner or reputed owner, or such other representative designated by the owner or reputed owner for this purpose, issues a certificate of completion; or

(9) The date when permanent financing for the structure is completed.

(b) All other persons embraced within this chapter and entitled to avail themselves of the liens herein provided shall file a statement of their respective claims within 120 days from the date from the completion of the labor performed or from the last delivery of materials furnished by them respectively. For purposes of this subsection, and without limitation, a statement of claim on behalf of such person shall be deemed timely if it is filed within 120 days of either of the following:

(1) The date final payment, including all retainage, is due to such person; or

(2) The date final payment is made to the contractor (i) who has contracted directly with the owner or reputed owner of any structure for the erection, alteration or repair of same, and (ii) with whom such person has a contract, express or implied, for the furnishing of labor or materials, or both, in connection with such erection, alteration or repair.”

Section 3. Amend §2712(b)(4), Title 25 of the Delaware Code by striking the subdivision in its entirely and substituting in lieu thereof the following:

“(4) The amount claimed to be due, and, if the amount is not fixed by the contract, a statement of the nature and kind of the labor done or materials furnished with a bill of particulars annexed, showing the kind and amount of labor done or materials furnished or construction management services provided; provided, that if the amount claimed to be due is fixed by the contract, then a true and correct copy of such contract, including all modifications or amendments thereto, shall be annexed;”

Section 4. Amend §2712(b)(6), Title 25 of the Delaware Code by striking the subdivision in its entirety and substituting in lieu thereof the following:

“(6) The time when the doing of the labor or the furnishing of the material or the providing of the construction management services was finished, except that, (i) with respect to claims on behalf of contractors covered by §2711(a) of this chapter, the date of the completion of the structure, including a specification of the act or event upon which the contractor relies for such date, and, (ii) with respect to claims on behalf of other persons covered by §2711(b) of this chapter, the date of completion of the labor performed or of the last delivery of materials furnished, or both, as the case may be, or a specification of such other act or event upon which such person relies for such date.”

Section 5. Amend §2712(b)(8), Title 25 of the Delaware Code by striking the subdivision in its entirely and substituting in lieu thereof the following:

“(8) That the labor was done or the materials were furnished or the construction management services were provided on the credit of the structure;”

Section 6. Amend §2717, Title 25 of the Delaware Code by striking the section in its entirely and substituting in lieu thereof the following:

“Proof by the claimant that labor or materials, or both, was performed or furnished upon or to any structure, or immediately adjacent thereto, or that construction management services were provided in connection with the performance or furnishing of such labor or materials, shall be prima facie evidence that the same was performed or furnished or provided for and on the credit of such structure.”

Section 7. Amend §2721(a), Title 25 of the Delaware Code by inserting the phrase “or construction management services provided” following the phrase “labor done or materials furnished” and before the phrase “to maintain any personal action against the owner or contractor of such structure”.

Section 8. Amend §2721(b), Title 25 of the Delaware Code by inserting the phrase “, or for any construction management services provided in connection with such labor done or materials furnished,” following the phrase “in the erection, alteration or repair of any structure” and before the phrase “to maintain any personal action against the owner or reputed owner of the structure”.

Section 9. This Act shall become effective 180 days following its enactment into law.

Approved July 20,1999