In South Dakota, existing lien law statutes accurately describe the appropriate process of ensuring rights to lay claim on lien for materials suppliers and contractors in the state. Adhering to these important deadlines and procedures is essential to preserving the right to lay claim on a lien in the event of non-payment from project owners.
Primary contractors in the state of South Dakota are required by law to provide and serve owner of project with notice of claim for non-payment and sworn account of services. Owners, on the other hand, are required by law to provide notice to primary contractor, and prime contractor must provide written notice stating a dispute in claims within fifteen (15) days. Primary contractors are required to file notice of project beginning to preserve their lien rights no later than thirty (30) days after starting the work.
After owner provides written notice of work completion not later than fifteen (15) days after work is actually complete, primary contractors must provide verified itemized account of claims in lien. Lien action cannot begin sooner than ten (10) days after providing itemized account, and prime contractors must give statement of claim on lien no more than one hundred and twenty (120) days after last date on project. Enforcement actions on a lien taken by primary contractors must occur within six (6) years following the last date of work noted in lien statement. If owner issues written demand to commence, action to enforce lien claims through suit must be started by the primary contractor within thirty (30) days.
Sub contractors operating in the state of South Dakota are required by law to provide notice of providing labor and suppliers no later than sixty (60) days after starting to do so, including proving copy of this notice to project owners. Following this, sub contractors are obligated by law to follow the same steps to lay claim on liens as prime contractors, including:
Materials suppliers in the state of South Dakota follow the same procedures for preliminary notice and claims on liens as sub contractors and prime contractors. These integral steps are clearly detailed in the above paragraphs.