When a general contractor or a subcontractor is not paid for their work on either commercial or residential property in New Jersey, construction liens can be very effective debt collection tools to prompt the property owner to pay what they owe. Although state law allows contractors to file liens on property for the value of their work performed, many contractors believe the process will be too difficult and simply fail to file them. Here is an explanation for you about why construction liens may be helpful when you are owed money for your work.
Who Can File
No matter what type of contractor you are, you are allowed to file a lien if a property owner is balking at paying for your work. This ability to file extends to both if you provided services or if you provided supplies for the project.
One of the biggest errors contractors make is wasting time sending invoices and bills to people who are obviously not intending to pay. The law provides strict deadlines for filing liens, so it is important to do so as soon as it is clear that payment is unlikely with other means. There are procedural differences between filing these liens on commercial, residential and public entity property. Commercial real estate liens must be filed no later than 90 days from the date of last work or the date of the provision of supplies. Residential real estate liens require some additional things, as do those filed on property owned by a public entity. The most important thing for you to remember is the importance of acting quickly so you do not lose your right to file. It can make the difference between whether you get paid.
Waiving Lien Rights Is Forbidden
Under the law of New Jersey, contracts that call for a waiver of a contractor’s right to file a lien in the event of nonpayment are invalid. This means a contractor can still file one even if their contract contains such a provision.
Contact a Collection Attorney About Construction Liens
When you have not been paid for the contracting work you performed for a property owner, you may need legal help to properly file your lien on the real estate in order to collect. To speak with a collections attorney at Snellings Law LLC about construction liens, call (973) 265-6100.