Lien Filing and/or Service after Labor or Materials Supplied.įormal Notice-All subcontractors and sub-subcontractors must serve a Formal Notice of their intention to file a lien on the owner at least 30 days before filing Lien Claim. All potential lien claimants may need to file a Notice of Furnishing within 45 days after first supplying labor or material, if the project cost is over one and a half million dollars ($1,500,000) and the owner has filed a Notice of Commencement. This usually means a contractor can inexpensively preserve rights. After these requirements are met, however, no further action is necessary for two years. An affidavit of service then must be filed with the court within 20 days after service of the written notice to the owner. Within one month after the initial claim filing, written notice of the filing of the lien must be served on the owner. For all claimants, the Lien Claim must be filed in court within six months of the claimant’s last work.
In Pennsylvania, lien rights extend to general contractors, subcontractors and sub-subcontractors (contractors and suppliers who have a direct contract with subcontractors).Ī notice of intent to lien to an owner is due 30 days before the Lien Claim is filed for subcontractors and sub-subcontractors. General contractors can waive lien rights for lower tier subcontractors by filing a “Stipulation Against Liens” on most residential projects and on all projects if the general contractor posts a payment bond. Any owner can also protect itself from paying for the project twice by recording a copy of the general contract with the court before any work is performed on the project. However, in most owner-occupied residential projects, the owner will have a defense of payment to a subcontractor lien if the owner has paid the general contractor in full. The owner does not have an automatic “defense of payment” against mechanic’s liens on commercial projects in Pennsylvania. If an owner files a Notice of Commencement, then all potential lien claimants that wish to preserve lien rights must file a Notice of Furnishing within 45 days after first supplying labor or material to the project. Owners of projects costing more than over one and a half million dollars ($1,500,000) have the option of filing a Notice of Commencement of construction. In addition, lien rights for new construction will also survive any foreclosure or sale of the property, except foreclosure on an acquisition loan or construction loan. Generally, the mechanic’s lien for new construction will have priority over all liens on the property, except an acquisition loan or construction loan. The mechanic’s lien has a high priority compared to many other liens on the property because it usually “relates back” to the time when work visibly commences. Pennsylvania has a fairly powerful mechanic’s lien statute. Right to Retain Funds from General Contractorĭistinctive Features of the Law in Pennsylvania.Stipulation against Liens by the General Contractor.Priority between Different Mechanic’s Liens.Priority over Construction Loans, Credit Line Mortgages and Open-End Mortgages.Contracts to Alter or Repair Existing Structures.Priority between Mechanic’s Liens and Other Liens.Description of Labor or Materials FurnishedĭEFENSE OF PAYMENT: OWNER’S RESPONSIBILITY FOR PAYMENT TO SUBCONTRACTORS.Description of the Improvement and Property.
Multiple Contracts-Deadlines for Open Account SuppliersįORMAL NOTICE OF INTENT: ALL SUBCONTRACTORS.Supplying Additional Labor or Materials to Extend Time.Completion of Project and Claimant's Last Work.Practical Application and General Recommendations.
NOTICE OF COMMENCEMENT & NOTICE OF FURNISHING