Home>Levelset Community>Legal Help>Lien??

Lien??

Anonymous Sub-Subcontractor

I have received an order for equipment/services from a Contractor - who has an order directly from the West Goshen Sewer Authority. I am nervous they will not pay us - how can I protect our interests. Can I file a notice to lien when the order is signed so I can file a mechanics lien when they dont pay as contracted? This is a municipal project.

2 replies

Matt Viator

Construction Lawyer

Levelset Admin at Levelset

| 997 reviews

Oct 23, 2019

On projects owned by a state, county, or municipality, mechanics lien rights will generally not be available. Instead, these projects typically require that the project's contractor post a payment bond for the benefit of the subcontractors and suppliers providing work to the job. And, in Pennsylvania, payment bonds will be required on most projects exceeding $5,000. How do payment bonds protect subcontractors and suppliers? Mechanics lien rights allow a claimant to place a lien on the property, encumbering the property title. Because public jobs are done on publicly owned land, claimants typically aren't able to just place a lien on land owned by the public. Instead, public agencies require their contractors to post payment bonds. A payment bond can essentially be thought of as a pile of money or an insurance policy. If a subcontractor or supplier performs work but isn't paid for it, they'll generally be entitled to make a claim against that pile of money/policy in order to recover payment (rather than a lien claim). Levelset has written about this in detail, here: The Payment [Surety] Bond Claim Process: Requirements and Mistakes to Avoid. More on Pennsylvania bond claims For more information on Pennsylvania bond claims: Pennsylvania Bond Claim Overview.

The information presented here is not legal advice and should not be construed as such. Rather, this content is provided for informational purposes. Do not
act on this information as if it is advice. Further, this post does not create any attorney-client relationship. If you do need legal advice, seek the helSee More...See More...

0 people found this helpful

Helpful

lofh uids

rtydfg at Lodoof

Jul 12, 2022

I am similar problem and need help right now! Super Mario Bros

Report Spam