When Governor Phil Bryant signed the SB 2622 recently the legislation immediately became the new lien law for the Mississippi construction Industry.

There are numerous changes to the lien law with different provisions for commercial and residential construction. Some of the key points on the lien law are as follows:

• Most notably, lien rights are extended to first and second tier sub-contractors and suppliers under the new law.
• There are prerequisites for filing a lien including a limited time for filing the lien.
• For residential liens there is a pre-lien notice requirement. Ten days prior to filing a lien, the owner must be give notice of the intent to file a lien using a form that is prescribed in the law.
• Also, on residential projects, payment by the owner is an absolute defense against a lien being filed.
• Stiff penalties can be assessed for anyone filing a false lien.

After the courts ruled that the Mississippi Stop Notice Law was unconstitutional, sub-contractors and material providers had no expedient way to pursue construction disputes involved non-payment from contractors. The new Lien Law was created as a remedy.