Few things are more frustrating than completing work on a construction project and not getting paid. Whether you are a contractor, subcontractor, supplier or other construction professional, unpaid invoices can create serious financial strain and disrupt your business operations. Fortunately, you’re not out of legal options.
A construction lien can be a powerful tool for securing payment when you have not been paid for work, services or materials provided on a project. Used correctly, it transforms an unpaid invoice into a secured debt backed by real property.
How a construction lien works
A construction lien is a legal claim against property for unpaid work. While the lien doesn’t automatically result in payment, it creates an encumbrance on the property that can complicate refinancing, selling or transferring ownership. Property owners often have a strong incentive to address valid payment claims because of such consequences.
Who can file a construction lien?
New Jersey law extends lien rights to a broad class of claimants. This includes general contractors, subcontractors, sub-subcontractors and suppliers of materials or equipment. If your work or materials contributed to the improvement of real property, you likely have standing to file.
Meeting New Jersey’s legal requirements
Construction liens are highly technical, with strict deadlines, notice requirements and filing procedures that must be followed carefully. There’s little room for error. Even a minor mistake in preparing or filing lien documents can jeopardize your claim. Missing a critical deadline or failing to include required information may result in the loss of lien rights altogether. If you have not been paid for your work on a construction project or are dealing with a payment dispute, seeking legal guidance is essential to making the most of such legal tools and protecting your financial interests.
