Construction-Lien Law in New Jersey
Many states, like New Jersey, allow contractors and mechanics to place a lien against the property they are working on to secure payment for services rendered. This practice is referred to as a "construction lien" or a "mechanic's lien."
Other People Are Reading
-
Work Rendered
-
Under the New Jersey Construction Lien Law, a contractor, subcontractor or supplier who provides materials, labor, services or equipment pursuant to a contract has the right to place a lien against the job site to ensure payment for labor or materials provided. This right is absolute, meaning that the contract between the worker or supplier and the property owner does not have to expressly allow a lien. Liens can be attached as needed and at the discretion of the worker.
Limitations
-
The construction lien is limited to the value of the labor performed, or materials or equipment furnished. The value for the labor performed plus the cost of the materials and equipment are determined by the prices listed in the contract. If prices are not listed in the contract, average labor rates and costs apply. Further, the value of the labor performed, or materials or equipment furnished, must also have been determined in accordance with the contract and based upon the contract price. This means that additional work cannot be included in the lien, nor can higher prices.
-
Prohibited Liens
-
The New Jersey Construction Lien Law prohibits liens from being attached in a few conditions. For example, a lien cannot be attached if the jobs involves a public entity, such as government buildings or public schools. Additionally, with regard to work performed solely within a unit in a condominium or co-op, the lien can only be attached to that specific unit and that individual owner's interest. A lien cannot be attached against the entire condominium or co-op structure if work has only been performed inside a unit.
Timeliness
-
A lien claim must be filed within 90 days of completion, or the last day work or supplies were provided if the project was not completed. The claim must be signed, acknowledged and verified under oath by the person making the claim or, in the case of a company making a claim, by a partner or authorized officer.
-
