Our Guide to Preliens, Waivers, Mechanic's Liens, and Bond Claims in South Dakota
South Dakota
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This is an overview of the state's statutory approach to lien law and what contractors might want to focus on to ensure lien rights are established timely, correctly, and effectively.
While we are happy to provide this guide as a quick reference, we HIGHLY encourage that you work with a construction attorney to help you with your particular circumstances in our complex construction lien law environment.
South Dakota Quick Overview
| Pursuant Code | SD Codified Laws §§ 44-9-1 et seq. | |
| Prelien Required for Private/Commercial Projects | Yes | |
| Prelien Required for Public Projects | No | |
| SD Statutory Relief | Full Price | |
| Lien Milestone Event | Last furnishing/last invoice | |
| Lien Enforcement Deadline | 6 years | |
| Waivable Lien Rights | No specific statutes | |
| Supplier to Supplier Rights | Likely No | |
| Prelien Document Name(s) | Notice of Furnishing | |
| Prelien Minimum Information | Itemized and verified account of the lien claim, including description of labor/materials and amounts | |
| Prelien Minimum Notifications | Owner, Prime Contractor | |
| Prelien Recording Requirement | No | |
| Prelien Notarized | no |
Understanding the Prelien Process on Construction Projects in South Dakota by Role
South Dakota generally does not require preliminary notice unless a Notice of Project Commencement has been filed. In that case, second-tier subcontractors and suppliers must serve notice within 60 days after last furnishing labor or materials.
Mechanic's Liens in South Dakota
In South Dakota, a mechanics lien must be filed within 120 days of the claimant's last contribution of labor or materials. Prior to recording, the lien statement must be mailed to the property owner. If the owner demands suit after receiving the lien, the claimant must initiate enforcement within 30 days of the demand; otherwise, the lien is forfeited. Without demand, a lien enforcement action may be brought within 6 years from the date of completion. Additional sworn accounts may be served upon owner voluntarily under SDCL § 44-9-10.
Bond Claims in South Dakota
South Dakota statutes do not provide a distinct framework for public bond claims separate from private lien rights. There is no statutory Miller Act equivalent outlined, and public project claimants should review specific contract terms and consult counsel for deadlines and requirements.
Construction Lien Waivers in South Dakota
Required Format: South Dakota does not require any specific statutorily required verbiage to be valid but be sure to check with your constuction attorney and consult any relevant state statutes.
Required Notarization: South Dakota does not require waivers to be notarized.
No specific waiver requirements addressed in state statutes.
Learn more about waivers here, including the when and how to use various types of waivers, the difference between a Lien Waiver and a Lien Release, what to look for before signing, and more.
- As a client, you'll have free access to our system that easily creates statutorily correct lien waivers.
- Through our technology partner Prelien Pro, you can also access best-in-class lien waiver management software, allowing you to easily track, collaborate, and share lien waivers with all your trade partners.
Assessors' websites in South Dakota counties
Most often, the county Assessor's office is the 'go-to' resource for finding online lien-related information for construction project parcels, including ownership records, special warranty deeds, and more. Counties that we've not yet found online (those with '*') link to a Google search for your convenience.
Other Important Construction Links in South Dakota
Frequently Asked Questions (FAQs) on South Dakota Lien Processes for Contractors
Does South Dakota require a preliminary notice to preserve lien rights?
Not in all cases. A preliminary notice is not mandatory unless a Notice of Project Commencement has been filed by the Owner or Contractor. If one has been filed, second-tier subcontractors and material suppliers must serve a Notice of Furnishing within 60 days of last performing or supplying.
How long do I have to file a mechanics lien in South Dakota?
A lien claimant must file within 120 days of last furnishing labor or materials to the project, and must mail a copy of the lien statement to the property owner before filing.
Can an owner demand that I enforce my lien in South Dakota?
Yes. Once a lien is served, the owner can demand that you initiate a lien enforcement action within 30 days. If you fail to do so, the lien is forfeited.
What information must be included in a South Dakota lien claim?
The lien must be itemized and verified, listing amounts claimed, description of work or materials provided, and dates furnished. It must also state the last day of performance or delivery.
Is there a difference in lien rights for subcontractors or suppliers in South Dakota?
Yes. Second-tier or lower subcontractors and suppliers must serve a Notice of Furnishing if a Notice of Project Commencement was recorded. Otherwise, they risk losing lien rights.
We Set the Standard for the Construction Industry
Not only do we provide you with the tools, knowledge, and team to ensure you feel confident your rights are secured, but we're prepared for the trenches and ready to coordinate with your legal team when things "go sideways" on one of your projects.
