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NJ mechanical lien

I'm a customer and I've paid my general contractor according to our contract in full. However, the contractor claims there are overages or additional services he performed not covered by the original/change order and is trying to get more money from us. I terminated his services because he was not showing up at the job and not available whenever I try to reach him. He didn't finish the job in entirety and left many loose ends which cost me money to clean up so I can pass inspection. Can he file a mechanical lien against me even though I've paid him in full according to the contract but is now saying there were additional services/ overages not covered? He never communicated the additional services and cost as something outside of the contract until after we terminated him.

2 replies

Jul 27, 2021

Your contractor can and might send/file a Notice of Unpaid Balance and subsequent mechanic's lien against you, as long as there is an underlying contract and written evidence of the change orders. However (separately), New Jersey regulations applicable to Home Improvement Contractors are extensive and very particular - and that includes as to change order writings and sign-offs by the consumer. A violation of a material/meaningful/non-administrative regulation can constitute a per se violation of the New Jersey Consumer Fraud Act and entitle you to treble damages, attorney's fees and costs if you suffer a resulting, "ascertainable" loss. Again, this is a separate issue from a mechanic's lien. So, you might consider writing to the contractor and advising that you consider his change order history, which lacked communication with you and informed acceptance by you, to be a violation of applicable regulations and the New Jersey Consumer Fraud Act entitling you to to damages - and that if he further demands payment on monies he is not entitled to and threatens to pursue the matter, you will retain an attorney to pursue a Consumer Fraud lawsuit against him. That ... might put an end to it. Alternatively, moving from defensive to offensive, if you have actually suffered damages (and you may have from what you posted), you might consider consulting an attorney anyway - who would perhaps make an affirmative demand on the contractor to settle for your losses.

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Jul 31, 2021

In New Jersey, a contractor can only file a lien for services performed under a written contract signed by the owner and/or a change order that is also signed. If the additional monies sought are not memorialized in a written change order, then they should not be lienable. With that said, the contractor can try to go through the residential lien process and attempt to file the lien, and the owner would have to oppose that action. Ultimately, the contractor should not have lien rights for any unsigned change orders.

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