Kushnick | Pallaci PLLC Attorney At Law

Construction Law FAQ - New York Mechanic's Liens, Contracts, Disputes, and Property Damage

You must file a mechanic’s lien against a commercial property within four (4) months of the last time that they provided labor and materials to the project.

 

You must file a mechanic’s lien against a public project within thirty (30) days of the time that the project is accepted by the public entity.

A mechanic’s lien is valid for a period of one (1) year. Commercial liens may be extended once without a court order by filing an extension of lien before the original Notice of Mechanic’s Lien expires. Liens on residential and public projects cannot be extended without a Court order.

The mechanic’s lien only provides you with a secured interest in the project or the public fund that the mechanic’s lien was filed against. If you want to use your mechanic’s lien to get paid, you must “foreclose” on the mechanic’s lien.  Lien foreclosure involves filing a lawsuit to enforce your lien rights.  If you would like more information on the foreclosure process please contact us.

 A mechanic’s lien may be “bonded” under the Lien Law by the owner or the general contractor in order to remove the lien from the real property or the public fund.  A bond involves posting a discharge bond in the amount of 110% of the face value of your mechanic’s lien.  The mechanic’s lien then is removed from the real property or the public fund and is attached to the discharge bond.  The discharge bond does not extinguish your lien: it simply moves the lien from the property or the public fund to the bond.  You can still enforce your mechanic’s lien after it has been bonded by foreclosing upon the lien.  Your lien will also still expire if it is not extended or foreclosed upon within the proper time frame.

Pursuant to Lien Law §38, you are permitted to demand that your subcontractor (the lienor) provide you with a verified statement itemizing the mechanic’s lien within five (5) days.  Take note that Lien Law §38 has very particular service requirements.  Contact us for more information on serving a demand pursuant to Lien Law §38.

The subcontractor has two options.  First, the subcontractor can serve a demand on the general contractor pursuant to Lien Law §76 and demand either a verified statement of the books and records for the project or demand an opportunity to personally inspect the books and records.  Second, the subcontractor can serve a demand pursuant to Lien Law §8 upon the owner and demand the terms of the contract between the owner and the general contractor as well as demand a statement of the amount left due thereunder.  Both Lien Law §76 and §8 have very particular service requirements.  Contact us for more information on serving a demand pursuant to Lien Law §76 or Lien Law §8.

Absolutely. Foreign corporations can file mechanic’s liens on commercial, residential or public projects within the State of New York. However, the foreign corporation, if it does not maintain an office within the State of New York, must list the name of its attorney, who must have an office within the State of New York, on the mechanic’s lien.

Yes. However, in order to proceed with the lien foreclosure action the foreign corporation must register with the New York Secretary of State

A mechanic’s lien must be properly prepared and filed within strict deadlines and in compliance with New York Lien Law requirements. Errors can invalidate the lien.
👉 Learn more: https://www.nyconstructionlaw.com/mechanics-liens/

A lien must be enforced within a specific time period or it will expire. Missing this deadline can eliminate your rights.
👉 Learn more: https://www.nyconstructionlaw.com/mechanics-lien-foreclosure/

If a lien expires without being extended or foreclosed, it becomes unenforceable and cannot be used to recover payment.

Yes, subcontractors and suppliers generally have lien rights, even without a direct contract with the owner.
👉 Learn more: https://www.nyconstructionlaw.com/mechanics-liens/

If a lien is intentionally overstated, it can be reduced or discharged and may expose the lienor to liability.
👉 Read more: https://www.nyconstructionlaw.com/when-mechanics-liens-backfire-a-harsh-lesson-in-willful-exaggeration/

Construction litigation involves disputes over payment, contracts, delays, defects, and project performance.
👉 Learn more: https://www.nyconstructionlaw.com/construction-litigation/

Yes. Liability depends on the contract, scope of work, and evidence of defects.
👉 Learn more: https://www.nyconstructionlaw.com/construction-defect-claims-and-litigation/

Arbitration is a private dispute resolution process, while litigation occurs in court. Each has strategic advantages depending on the contract.
👉 Learn more: https://www.nyconstructionlaw.com/construction-arbitration/

Key provisions include scope of work, payment terms, change orders, delays, insurance, and dispute resolution.
👉 Learn more: https://www.nyconstructionlaw.com/construction-contract-drafting-review/

Yes, but they often require modification to reflect project-specific risks and New York law considerations.

You should document the damage immediately, notify the responsible parties, and take steps to protect your rights.
👉 Learn more: https://www.nyconstructionlaw.com/excavation-litigation-underpinning-litigation-property-damage-litigation/

Liability depends on the work performed, precautions taken, and contractual relationships.

Cracking, settlement, water intrusion, and structural issues are common.

It allows a property owner to obtain court-ordered access to a neighboring property for construction work.
👉 Learn more: https://www.nyconstructionlaw.com/construction-license-access-agreement/

In many cases, yes—or you may need a court order.

Scope of access, duration, insurance, indemnity, and damage protections are among the many provisions necessary to protect you.  

New York has very specific and strict statutory rules for how construction payments must be handled and distributed.  Construction funds must be used for project-related expenses. Misuse can result in liability.
👉 Learn more: https://www.nyconstructionlaw.com/trust-fund-diversion-class-action-litigation/

Yes, in certain circumstances individuals can be held personally liable.

A contract provision that limits recovery for delays, often subject to exceptions.

Still Have Questions About Your Situation?

Construction issues are fact-specific. If you are dealing with a payment dispute, property damage, or contract issue, you can speak directly with an attorney who handles these matters every day.

Call (631) 752-7100 or contact us here:
https://www.nyconstructionlaw.com/contact/

Have Problems But Can't Consult Anyone?

Kushnick | Pallaci PLLC Attorneys At Law​

Need Help With a Legal Issue on a New York Construction Project?

From contracts, to payment application disputes to construction defect claims we can help.  We can often assess your situation and your options during a free initial consultation. Contact us at (631) 752-7100 or (212) 752-7155 to schedule an appointment or contact us via the web by clicking here.