Licensing Law and Lien Law
Licensing Law and Lien Law
This domain tests Mississippi contractor licensing and the state construction lien statute. Expect threshold, certificate, filing-deadline, and enforcement questions.
Licensing rules
- Mississippi generally requires an MSBOC contractor license for construction or improvement of real property when the project is $50,000 or more; residential builder and remodeler classifications have their own scope.
- Public bids require a certificate of responsibility; the number is typically shown on the bid envelope. Bidding without it can make the bid nonresponsive.
- Unlicensed contracting can bring criminal and civil penalties and can jeopardize payment. An entity cannot cure a missing qualifier by borrowing another contractor's license.
Lien rules
- A construction lien claimant generally must file a notice of lien in the chancery clerk's office of the county where the property is located within 90 days after last furnishing labor or materials, and must serve required notice on the owner.
- An enforcement suit must be timely filed, generally within one year after the lien filing; otherwise the lien is lost.
- Owners may discharge a lien by bond or payment; waivers must be understood before signing.
Worked example. A supplier last furnishes on April 10. Counting 90 days: 20 days remain in April, 31 in May, 30 in June, and 9 in July, so the filing deadline is July 9. Reasoning: the clock runs from last furnishing, not from contract signing or first delivery; file earlier to allow for recording and service.
Traps. Counting from the wrong date; filing in circuit court instead of the chancery clerk; assuming liens attach to public property; using an unlicensed entity on a $50,000-plus job.