Lien Law, Payment, and Risk Management
What this domain tests
Montana mechanic's liens, payment, retainage, bonds, insurance, indemnity, and risk transfer.
Core rules
- Montana lien law is MCA Title 71, chapter 3. A claimant not in direct contract with the owner generally must give the owner a written Notice of Right to Claim Lien within 20 days after first furnishing; the lien must be recorded within 90 days after last furnishing. Verify current deadlines before relying.
- Lien waivers: conditional vs unconditional, progress vs final. Never sign a final unconditional waiver before funds clear.
- Public work: payment bonds substitute for lien rights; bond notice deadlines apply.
- Retainage: follow the contract and Montana public-works rules; release at substantial or final completion.
- Risk: CGL, umbrella, builders risk, workers' comp, professional liability; indemnity and additional-insured endorsements; surety bonds.
Worked example
A supplier first delivers April 1 and last delivers June 1. It should send the owner the 20-day notice by April 21 and record the lien by August 30. Waiting until September likely destroys the lien, leaving only a contract or bond claim.
Traps
Assuming the prime must send the 20-day notice; signing unconditional waivers; missing bond notice; relying on liens on public work; letting insurance lapse.