If you are a contractor, subcontractor or supplier and believe that you have been wrongfully denied payment for work performed on a construction job in New Jersey, the filing of a Construction Lien can be one of the most effective tools for obtaining payment. New Jersey has strict procedures to be followed for Construction Liens. We encourage our contractor clients not to delay when it comes to deciding whether to file a Lien. Failure to file a Lien on a commercial construction job within 90 days of the last date of work will result in the contractor being prohibited from filing a Lien. The deadlines for residential projects are even more demanding. Contractors have only 30 days to file a Notice of Intent to file a Lien. They must also file a Demand for Arbitration contemporaneous with the Notice. These procedures are complicated. The contractors should consult with attorneys before preparing any Liens.
Once a Lien is filed, if a legal action is not commenced within one year to enforce the Lien, the Lien is null and void. While these procedures may be cumbersome, they are effective. A Construction Lien has virtually the same impact on a property owner as a Mortgage or Judgment. Land owners dislike having Liens attached to their property, and if a general contractor is failing to pay a subcontractor, a Subcontractor’s Lien can be an effective tool for asserting leverage against a general contractor. Materialmen and suppliers are also eligible to file Liens under New Jersey’s Construction Lien laws.
If you have performed work on a residential or commercial construction project and believe that you have been wrongfully denied payment, act quickly and contact us to consult with one of our attorneys.