CONSTRUCTION LAW IN BERGEN AND PASSAIC COUNTIES: INTRODUCTION TO NEW JERSEY'S CONSTRUCTION LIEN LAW

For many years, a contractor's or subcontractor's opportunity to file a mechanic's lien was controlled by New Jersey's Mechanic Lien Law. This law placed upon a contractor the responsibility to file a pre-filing notice in order to perfect a construction lien. The pre-filing notice tended to create a level of distrust between the contractor and the landowner. In addition, the entire process was cumbersome, costly and consumed a lot of time.

In 1994, New Jersey's Legislature implemented the "Construction Lien Law." (Act). The Act was designed to accommodate a number of policy considerations included: (1) the need to secure payment for the contractors and other people who work construction projects; (2) protect the owners of real property from meritless claims; (3) streamline and simplifying the procedure needed to obtain a construction lien; and, (4) establish a special procedure for filing a construction lien on residential property.

Absent certain well-defined exceptions, the Act allows a contractor, subcontractor and the providers of services, materials or equipment, as well as, certain

professionals to file a construction lien against real property. The Act prohibits any effort to require a waiver of the right to file a construction.

In the blog postings that follow, I will identify the major issues associated with the filing of a construction lien in New Jersey. For more information, on this topic visit my website at www.ftlucianolaw.com where you can download my handbook titled "New Jersey's Construction Lien Law: A User's Guide".