What to Know About Mechanics’ Lien in New York

A mechanics’ lien in New York is an everyday legal tool for contractors, subcontractors, material suppliers, and lawn caretakers to ensure they are rightfully paid for their work. These liens have become a regular occurrence between construction companies and those they do business with. So, you may be asking: How do I get paid?

What You Need to Know

Filling a lien is basically saying that the owner of a project hasn’t paid their bill. Mechanics’ liens in New York can be filed in regard to residential, commercial, or public projects where services have been provided.

It seems a little too good to be true. It’s not. Mechanics’ liens are similar to other financial tools like a mortgage note on a home. Once a lien has been filed on a residential or commercial project, and the lien goes unpaid, it becomes difficult to resell or refinance the property in question.

Liens can impact public projects similarly. The way it works is any funds subject to the lien become frozen. That way the money is unable to be spent on other projects or materials that might be vital to move forward. Unpaid liens prove to be production stoppers when it comes to public projects.

Pay Special Attention to the Form

Filling out the lien form is the most important part of the process. Mechanics’ liens are subject to New York Lien Law. This means that there are strict guidelines in place when filling out a lien.

Any small mistake can jeopardize the validity of a lien. If a lien proves to be invalid, then it means you will not recover any unpaid bills for your services.

New York Mechanics’ Lien Deadlines 

Each type of project has different deadlines for when a lien must be filed. Once again, the deadlines are just as important as the form. One day over and you will not receive compensation. Below is a list of deadlines for each project:

• Single-Family Residential Projects: 4 Months since last furnishing services
• Commercial Projects: 8 Months since last furnishing services
• Public Projects: Any time before completion, no later than 30 days after completion

Finding an Attorney

New York mechanics’ liens are a vital protection for contractors who conduct business in the state. As mentioned before, ensuring a lien form is completed correctly and on time is the most important step.

If it’s not done correctly, then your work and effort will have been done at little or no cost. One big project with no payment could cost you your company or ability to take on larger projects.

That is why it’s important to have an experienced construction litigation lawyer on your side. If you have the right attorney then you can ensure that you and your company are protected before, during, and after the lien process.

For more information about Mechanics Liens, or other questions about construction litigation, send us a message or fill out the free form below