Lien laws are full of different complexities and nuances in every single state. Knowing and understanding the specific rules in your state is imperative to make sure you are properly paid for your projects. We’re here to take away the complexity and confusion and give it to you straight. If you work in New Jersey and need to know the construction lien laws, this is the blog for you. Here, we break down exactly what the state of New Jersey requires for you to properly file a valid construction lien or bond claim.
How to File a Valid Lien in New Jersey:
- Only Place 3* and above Contractors have lien rights. The amount of any lien is limited by the amount the Owner has due to the
Place 1* Contractor when they receive notice you are owed money.
- You must file your lien within ninety (90) days of the last work and/or materials supplied.
- For residential projects: within sixty (60) days of the last work and/or materials supplied you must file a “Notice of Unpaid Balance and Right to File Lien” and a demand for arbitration with the American Arbitration Association. An Arbitrator will then hear your case and decide if you are entitled to a lien.
- For residential construction, you must file your lien within one hundred and twenty (120) days of the last work and/or materials supplied.
- Within ten (10) days of filing your lien, you must send notice of the lien that was filed to the Owner and Place 1* Contractor.
- You must file a suit to enforce your lien within one (1) year from the last work and/or materials supplied or within thirty (30) days of the letter demanding you enforce your lien.
How to Have a Valid Bond Claim in New Jersey:
- A Contractor or Material Supplier on a public project can have a lien on the funds due to the Place 1* Contractor.
- You must file a notice with the Municipal Clerk that you are furnishing work and/or materials within twenty (20) days of first work and/or materials supplied.
- You must file a lien with the public agency within sixty (60) days of the completion of the project.
- Bonds are also required on public projects.
- You must send the Surety a “statement of amount due” within ninety (90) days of last work and/or materials supplied. If you are Place 3* or below Contractor, you must send a copy to the Place 1* Contractor as well.
- You must file suit to enforce your bond claim within one (1) year of the last work and/or materials supplied.
If you work in New Jersey, filing a valid lien on time is the best security you have for making sure you are financially compensated for the work you do. To do this, you must be incredibly familiar with the rules listed above. If you’d rather have someone else take care of filing your construction lien or bond claims, and do it the right way, contact a professional New Jersey lien attorney who is experienced with construction law. Our sister company, The Cromeens Law Firm, has a 90% success rate of collections before having to foreclose on a lien, saving you costly legal fees. Protect your pay today! We’re here to help your business thrive.
*The “places” referenced in the rules above correlate to the Construction Food Chain Chart from Karalynn Cromeens’ book,
Quit Getting Stiffed. The chart can be found here to use when following these lien and bond rules.