Was the General Contractor Paid? Using Lien Law §§ 8 and 76

Reviewed September 7, 2026.

An owner’s statement that the general contractor was paid should be checked against the contract and payment records. Two different statutory information rights may help, but neither makes a response infallible or extends a lien deadline.

Ask the owner about the contract and balance

Lien Law § 8 permits a qualifying subcontractor, laborer or material supplier to demand in writing the owner-contractor contract terms and the amount due or to become due. The statute provides consequences for refusal, neglect or a false statement after thirty days, subject to further conditions including an unsatisfied judgment against the contractor or subcontractor. It is not an automatic personal guarantee from the owner or a general requirement to supply every bank record.

Request trust records from the trustee

Section 76 permits a trust beneficiary, generally after its claim has been payable for thirty days, to elect inspection and copying of trust books or a verified statement. A proper written demand must identify the beneficiary, improvement, trust and unpaid claim and be personally served or sent by registered or certified mail. The response period is generally ten days, and ordinary requests are limited to once a month.

Trust records should address the statutory categories in § 75, rather than merely state that the account is empty. Reconcile the information with payment applications, transfers, changes, retainage and any disputed offsets. In litigation, discovery may provide further evidence.

Keep filing, service and preservation deadlines running on a separate calendar while investigating payment.

Kushnick Pallaci PLLC assists clients throughout New York with construction trust fund disputes. Contact 631-752-7100 or vtp@kushnicklaw.com.

Attorney Advertising. General information, not legal advice.