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What can we do to ensure payment on this contract?

New JerseyMechanics Lien

I am a material supplier, our customer is a sub-contractor on a job located in West New York, NJ. We did Preliminary notices and invoice reminders but i guess we missed the deadline to file a lien. First material went out on Sept 18 2020 and last material was supplied on December 17, 2020. What can we do to ensure payment on this contract?

3 replies

Feb 12, 2021

You should still have time to file a lien. I am answering you on 2/12/2021, or 57 days after you last provided materials to the improved property on 12/17/2020. If the materials were for a residential project (house/condo/apartment) you would need to file the Notice of Unpaid Balance (the "NUB") within 60 days of the last date that materials were delivered to the improved property. That would be Monday (2/15/2021), so you would need to file that NUB immediately.

If it's for a commercial project, you have 90 days to file the lien in NJ. See: https://www.levelset.com/mechanics-lien/new-jersey-lien-law-faqs/#:~:text=Lien%20must%20be%20filed%20within,takes%20at%20least%2030%20days.&text=An%20action%20to%20enforce%20a,last%20providing%20labor%20or%20materials.

If you miss the lien deadline, NJ contractors, subcontractors and suppliers should always consider suing the nonpaying party under the Prompt Payment Act which awards attorney's fees plus interest on any payments which have been improperly withheld.

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Feb 12, 2021
You have 60 days from your last day of work to start the residential lien process, or 90 days if it was a commercial project. So you may still have some time. Make sure to retain all delivery tickets to show your past day of work and to prove delivery. A signed delivery ticket is evidence of the “contract as required by the lien law.
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Feb 16, 2021
Hi Carol, Besides filing your lien if you are not getting paid and prior to having to file suit, you could let a certified commercial collection agency licensed and bonded in NY and NJ collect the debt on a small contingency fee bases. If successful, you have no upfront of out of pocket expense and your problem account is resolved. If they don't collect, you owe nothing and you can still take them to court. Best regards, Steve Rauch
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