An Unlicensed General Contractor Can Jeopardize a Subcontractor’s Lien

Reviewed September 7, 2026.

A subcontractor’s private mechanic’s lien normally depends on the relevant unpaid funds upstream. A home improvement licensing defect in the general contractor’s contract can therefore affect the subcontractor even if the subcontractor delivered the promised labor or materials.

In Kamco Supply Corp. v. JMT Bros. Realty, LLC, 98 A.D.3d 891 (2012), the owner established that the general contractor lacked the required New York City home improvement license, rendering the home improvement contract unenforceable. With no direct contract between owner and claimant, there was no enforceable upstream payment obligation to support the claimant’s lien. The First Department affirmed dismissal.

Check both licensing and the contract chain

Verify the relevant entities’ licenses for the jurisdiction, work and dates involved. Determine whether there is a direct owner agreement, which contract supports the lien, and whether the asserted licensing rule actually applies. The decision should not be expanded into a claim that every subcontractor on every project loses every remedy whenever a licensing question arises.

A lost lien does not resolve all possible contract, payment bond or trust fund claims. Those remedies have their own requirements and may be affected by the claimant’s own licensing status. Investigate them promptly rather than assume either that recovery is guaranteed or that no options remain.

Kushnick Pallaci PLLC assists clients throughout New York with mechanic’s lien enforcement and defense. Contact 631-752-7100 or vtp@kushnicklaw.com.

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