NC S864

Expands the definition of "improve" to include off-site design, fabrication, and labor for prefabricated materials customized for specific real property projects, effective January 1, 2013.

Requires service of mechanics lien claims on property owners and contractors (when applicable) in addition to filing with the clerk of superior court; establishes approved service methods and addresses, effective January 1, 2013.

Reforms lien waivers by requiring statutory forms for partial and final waivers; partial waivers do not alter lien effective dates, and waivers are conditional on actual receipt of funds unless stated otherwise, effective January 1, 2013.

Modifies mechanics lien and payment bond procedures for subcontractors, including requirements for notice of subcontract forms and contractor's project statements to be provided to lower-tier subcontractors before agreements are enforceable, effective January 1, 2013.

Makes furnishing false statements about sums due for labor or materials a Class 1 misdemeanor, unfair trade practice, and grounds for contractor license disciplinary action; establishes 120-day notice requirement for payment bond claims by non-directly-contracted parties.