I know that I am always talking about the importance of filing a lien if you are unpaid for labor or materials supplied to a construction project. Liens are the best protection when a contractor or material supplier is not paid. The thing to remember is that the steps to be taken to have a valid lien are different in each state. This article will tell you what steps have been taken to have a valid lien in Pennsylvania.
The first thing to note about Pennsylvania lien laws is that only general contractors, subcontractors, sub subcontractors and material suppliers have lien rights. Architects and engineers only have lien rights if they superintend or supervise the project in some way.
For my material supplier clients, it is important to note that you only have lien rights if the material is delivered to the property. It does not matter if the material is actually used, but you must prove delivery to the project.
General Notice Requirements.
A subcontractor, sub subcontractor and material suppliers must send an intent to lien to the owner 30 days before the lien is filed. The notice must contain:
- The name of the person/company making the claim.
- The name of the person/company that the claimant contracted with or was hired by.
- The amount claimant is due.
- A description of the work and/or materials provided.
- The date the work was completed and/or the dates the materials were delivered.
- A description of the the property that the lien will be filed against.
After the lien is filed, the owner must be personally served notice of the lien by a Sheriff within 30 days of the lien being filed. The affidavit of service must also be filed within 20 days of the owner being served with notice of the lien.
For Projects Costing $1,500,000 or More
Pennsylvania allows owners of projects costing over $1,500,000 to register with the Construction Notices Directory. This is optional to the owner, but if the project is registered all subcontractors, sub subcontractors and material suppliers must file a notice of furnishing with the Construction Notices Directory with in 45 days of first work or first supplying materials.
When the Lien must be filed
All liens must be filed within 6 months after the completion of the work and/or last delivery of materials for which the lien is claimed. The lien must contain the following information:
- Claimants name and whether it is a general contractor, subcontract, sub subcontract or material supplier.
- The name and address of the owner.
- The date of completion of claimants work or last materials supplied.
- The name of the person/company that claimant was hired by and the date the notices were sent.
- A general statement of the type of work done and/or materials supplied.
- A detailed statement of the amount that is owed for work and materials supplied.
- The total amount the claimant is owed.
- Legal description and address of the property that the lien is being filed against. When does the lien expire?
A lawsuit to enforce the lien must be filed within two years from the date the lien was filed, or the lien expires. Also, note that a claimant cannot recover attorney fees for having to file and enforce a lien.
What to hear more about what it takes to have a valid lien in Pennsylvania listen to our podcast about Pennsylvania liens.
