Monday, August 20, 2012

Wondering when your public lien deadline starts to run? Try asking.

The deadline to file a mechanic's lien in New York on a private project are fairly straight forward.  A lienor has 120 days (4 months) to file a mechanic's lien against a single or two family home.  The time to file the lien runs from the day when the lienor last provided labor or materials to the project.  A lienor has 8 months to file a mechanic's lien against any other private project in New York.  The time to file a lien, again, runs from the day when the lienor last provided labor or materials to the project.  Finally, the time within which a lienor may file a mechanic's lien for retainage only is 90 days from the day that the retainage became due.

However, a lien on account of public improvement has nothing to do with the date when the lienor last provided labor or materials to the project.  Instead, the time runs from the date when the public entity that ran the project issued a certificate of completion and acceptance.  This is a date that can often be very difficult for a subcontractor or materialman to determine.  The certificate of completion and acceptance can be issued 5 days after the last provided labor or materials or 5 years after the lienor last provided labor or materials.

Luckily for the prudent subcontractor or materialman, Lien Law Section 11-A gives them the statutory right to demand that the public entity provide them with written notice of the completion and acceptance of the project.  The public entity must provide the demanding party with such notice within five (5) days of the day that the project is completed and accepted.  Lien Law Section 11-A sets for the method and manner for serving the demand so be sure to follow the statute or consult with your construction attorney prior to serving the demand.  It would be wise for all subcontractors and materialmen on public projects to customarily send out the demand at the beginning of the job.

Vincent T. Pallaci is a partner with the New York law firm of Kushnick Pallaci PLLC.  With offices in Buffalo and Long Island Kushnick Pallaci PLLC provides legal services to the construction industry in every county in New York.  Mr. Pallaci can be reached at (631) 752-7100 or vtp@kushnicklaw.com.

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