Sykes' Payment Assurance Legislation for Design Professionals Signed into Law
July 1, 2021
Vernon Sykes News
Today, Governor DeWine signed Senate Bill 49, legislation introduced by state Senators Vernon Sykes (D-Akron) and Jay Hottinger (R-Newark) to create a payment assurance program for design professionals.
“This legislation ensures that architects, engineers and other designers will get paid for their work, regardless of the outcome of their projects,” Sykes said. “It will support hardworking Ohioans by protecting the value of their labor, which is why I am very grateful that this legislation will become law.”
This bill would create a design professional lien right modeled after the brokers’ lien established by House Bill 510 of the 129th General Assembly. The provisions would be identical for each of the design professionals and would not be included in Ohio’s mechanics’ lien law, Chapter 1311. To avoid conflict, mechanics’ liens will always take precedence over a design professional’s lien, regardless of filing date.
The design professional lien will:
• Apply only to commercial property, and not to residential property;
• Apply only to private work, and not to public construction; and
• Will be subordinate to any real estate mortgage previously filed.
“This legislation ensures that architects, engineers and other designers will get paid for their work, regardless of the outcome of their projects,” Sykes said. “It will support hardworking Ohioans by protecting the value of their labor, which is why I am very grateful that this legislation will become law.”
This bill would create a design professional lien right modeled after the brokers’ lien established by House Bill 510 of the 129th General Assembly. The provisions would be identical for each of the design professionals and would not be included in Ohio’s mechanics’ lien law, Chapter 1311. To avoid conflict, mechanics’ liens will always take precedence over a design professional’s lien, regardless of filing date.
The design professional lien will:
• Apply only to commercial property, and not to residential property;
• Apply only to private work, and not to public construction; and
• Will be subordinate to any real estate mortgage previously filed.