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Can I file a construction lien during the COVID-19 Pandemic?

New Jersey

I'm a general contractor and I finished a job for a medical office space early September 2020. Due to the pandemic and the doctor just opening his business, I told him he could pay me by October 30, 2020, which was just under 2 months after the work was completed. He proceeded to tell me that he was selling a machine and then was opening a credit card and that he would pay me but just needed a little more time. By December he said business was really slow and he didn't get the credit card approval, and then had to sell his house. He assured me that he would pay as soon as his house sold, but that happened in February and now he said he needs another month. I didn't know about filing a construction lien and the time frame before, but I am hoping there are extensions due to COVID-19.

2 replies

Mar 20, 2021

Unfortunately, it would appear that your rights to file a lien on the project have already expired. For non-resdiential projects in New Jersey, a claimaint is required to file a lien claim "within 90 days following the date the last work, services, material or equipment was provided for which payment is claimed" per N.J.S.A. 2A:44A-6(a)(2). The timing requirements for filing a lien are strictly construed against claimants. I have heard of no instance wherein the statutory deadline to file a line was extended on account of the COVID-19 pandemic.  

However, even if you have lost the right to lien the real property, you could still have other viable causes of action, including a complaint for breach of contract and violation of the Prompt Payment Act which entitles plaintiff's to interest on improperly withheld payments AND makes the slow-paying owner responsible for your legal fees. If you wish to still collect this debt, please contact me or another NJ attorney who understands how to provide contractors with efficient legal counsel.     

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Mar 23, 2021
Unfortunately, you may be out of time to file the lien. Typically a lien must be filed 90 days from the last day of work on a commercial project. The clerks offices have been filing liens as they come in. While there is some delay in the clerk's office in terms of getting them filed when they come in, it is likely that a court would rule that you would’ve had to at least send the lien to the clerk for filing within the 90 days. With that said, you still have your rights to sue for breach of contract even if you may not be able to file a lien.
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