CPA · Prompt Payment and Construction Lien Act
Part 2 — Creation of Lien
23 Minor lien fund
respect of a contract, the owner shall retain for a period of 60 days
from the date of the completion of the contract an amount equal to
10% of the value of the work actually done and materials actually
furnished on or after the date of issue of the certificate of
substantial performance.
(1.1) Notwithstanding subsection (1), with respect to
improvements to an oil or gas well or to an oil or gas well site,
when a certificate of substantial performance is issued in respect of
a contract, the owner shall retain for a period of 90 days from the
date of the completion of the contract an amount equal to 10% of
the value of the work actually done and materials actually
furnished on or after the date of issue of the certificate of
substantial performance.
(1.2) Notwithstanding subsection (1), with respect to
improvements primarily related to the furnishing of concrete as a
material or work done in relation to concrete, when a certificate of
substantial performance is issued in respect of a contract, the owner
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shall retain for a period of 90 days from the date of the completion
of the contract an amount equal to 10% of the value of the work
actually done and materials actually furnished on or after the date
of issue of the certificate of substantial performance.
(2) In addition to the amount retained under subsection (1), (1.1)
or (1.2), the owner shall also retain, during any time while a lien is
registered, any amount payable under the contract that has not been
paid under the contract that is over and above the 10% referred to
in subsection (1), (1.1) or (1.2) for work done and materials
furnished on and after the date of issue of the certificate of
substantial performance of the contract.
(3) Except as provided in section 13(1), when a lien to which this
section applies is claimed by a person other than the contractor, it
does not attach so as to make the minor lien fund liable for a sum
greater than the total of
(a) 10% of the value of the w ork actually done or materials
actually furnished on and after the date of issue of the
certificate of substantial performance by the contractor or
subcontractor for whom and at whose request the work
was done or the materials were furnished giving rise to the
claim of lien, and
(b) any additional sum due and owing but unpaid to that
contractor or subcontractor for work done or materials
furnished on and after the date of issue of the certificate of
substantial performance.
(4) Except as prescribed in section 13(1) when, in respect of liens
to which this section applies, there is more than one lien claim
arising from work done or materials furnished for and at the request
of the contractor or the same subcontractor, they do not attach so as
to make the minor lien fund liable in their cumulative total for a
sum greater than the total of
(a) 10% of the value of the w ork actually done or materials
actually furnished on and after the date of issue of the
certificate of substantial performance by the contractor or
subcontractor, as the case may be, and
(b) any additional sum due and owing but unpaid to that
contractor or subcontractor for work done or materials
furnished on and after the date of issue of the certificate of
substantial performance.
(5) A payment of an amount, other than that required to be
retained under subsection (1), (1.1) or (1.2), that is made in good
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faith by an owner or mortgagee to a contractor at a time when there
is not any lien registered is valid, so that the minor lien fund is
reduced by the amount of the payment.
(6) If a contractor or subcontractor defaults in completing the
contractor's or subcontractor's contract, the minor lien fund
(a) shall not, as against a lie nholder, be applied to the
completion of the contract or for any purpose other than
the satisfaction of liens, and
(b) when distributed, shall be distributed in the manner
prescribed by section 61.
(7) A person who in good faith underestimates the value of the
work actually done or materials actually furnished at any specific
time and retains the percentage of the value required to be retained
by this section, calculated on that underestimated value, does not
lose the protection afforded by this Act if the person provides, for
the satisfaction of liens in accordance with this Act, an amount
equal to the correct amount that should have been retained pursuant
to this section.
RSA 2000 cB-7 s23;2001 c20 ss6,27