Menu

Can I file a lien

PennsylvaniaCollections

GC Refuse to pay for the work already complete, is a 42k from which 90% of the work have been already completed and he had only pay us 27K and is refusing too pay us the remaining

2 replies

Dec 20, 2021

As a subcontractor you may record a lien if you sent preliminary notice to the owner within 20 days of commencing your work. You may do so within 90 days of project completion by all trades, or if a notice of completion is recorded, within 30 days of that notice. If you did not give preliminary notice, you may still be eligible to record a lien if you can demonstrate that the project owner had actual knowledge of your work from commencement of your work on the project. In this situation there is a potential argument that the owner would be estopped from invalidating a lien based on lack of preliminary notice due to the owner's actual knowledge.

0 people found this helpful
Helpful
Dec 21, 2021
Under Pennsylvania law, you have the right to file a mechanics' lien claim to recover amounts owned for labor or materials furnished in connection with an improvement to real property. To be valid, a mechanics' lien claim must be filed within 6 months of the last date when a subcontractor last furnished labor or materials on the project. There are, however, two conditions precedent or other earlier requirements that you may also have to satisfy as a subcontractor in order to file a mechanics lien. First, as a subcontractor, you must first provide the owner with a formal document known as a Notice of Intent to File Mechanics' Lien Claim at least 30-days prior to filing your mechanics' lien claim. A failure to provide this Notice will result in a forfeiture of your right to file a mechanics' lien. Also, if the Project you are working on has a value in excess of $1.5 million, the Owner has the right to file/post a notice on the Pennsylvania Construction Notices Directory. If such a Notice is posted, all subcontractors/suppliers must file/post their own Notice of Furnishings on the Directory within 45 days of the first day when they supplied labor or materials on the Project. A failure to file this Notice will, likewise, result in a forfeiture of the right to file a mechanics' lien. Due to the complexity of this process in Pennsylvania and the fact the strict compliance with the mechanics lien law is required to file and perfect a lien, we always recommend that contractors/subcontractors retain or at least consult with a construction lawyer before attempting to file a lien.
0 people found this helpful
Helpful