New Jersey Construction Lien Law

September 11, 2012 | No Comments
Posted by Sean Regan

As private development and building recovers you should keep in mind that the New Jersey Construction Lien law changed last year.  In 2011 Gov. Christie signed into law significant amendments.  A few key highlights you might want to keep in mind are as follows:

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New Law         Old Law
(COMMERCIAL).  Time in which to file a lien – 90 days from last completing work.  N.J.S.A.2A:40A-6.        No change.
(RESIDENTIAL).  Time in which to file a lien – 60 days for Notice of Unpaid Balance (“NUB”), 120 days to complete arbitration and to file lien from last completing work.  N.J.S.A.2A:40A-21.  A NUB and arbitration are additional requirements for RESIDENTIAL.  A NUB must be filed, and a request for arbitration must be made within 60 days from last completing work.  Arbitration must be completed before filing a lien, all within 120 days.        Ninety days.
Keep in mind that a lien claimant still needs a written contract.  The new law states the contract must be “signed by the party against whom the lien claim is asserted”
Another thing you should keep in mind as business picks up is the Prompt Pay Act – Owners are required to pay General Contractors within 20 days of request for payment, or specify the reasons for rejection in writing.  General Contractors are required to pay subs within 10 days of receipt of funds from the Owner for the performance of the subs’ work.  Subs are required to pay sub-subs within 10 days of receipt of payment from the General Contractor.The Act allows for attorneys’ fees, interest at prime plus 1% if not complied with.

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