A mechanic's lien is a security interest in the property title for the benefit of those who have supplied labor or materials that improve the property. Mechanics liens protect general contractors developing a property, as a security to protect against instances of nonpayment.
Although mechanics liens exist in every state, the rules they follow can vary from state to state. In this blog, we'll review the high-level information you need to know about mechanics liens in New York.

Building development projects typically fall into one of two buckets: private or public. Depending on which type of project you are working on, your mechanics lien may have different stipulations.

For private projects, claimants have a right to a mechanics lien in New York, if they have a contract with the owner, general contractor, or subcontractor of the general contractor. Claimants can also have a right to a mechanics lien if their customer is a subcontractor of a general contractor. However, second-tier material suppliers are not entitled to a lien.
On private projects in New York, no preliminary notice is required for claimants on the owner, general contractor, or any other qualified party.

In New York, a claimant's lien claim on private projects must be filed at a courthouse within 8 months of the last date that labor or material was furnished on the project. There is one exception for single-family residential developments; these claims must be made within 4 months of the last date of labor or materials furnished.
The claimant must send notice of filing and a copy of the lien within 30 days of filing. Proof of service must be filed with the county within 35 days of submitting.

A mechanics lien foreclosure action lawsuit must be commenced within one year of the lien claim being filed at the courthouse. It is sometimes possible to extend this deadline, but approval from the courthouse will be needed.

On public projects in New York, the general contractor is required to furnish a performance and payment bond if the contract is $200,000 or more. In New York, it's recommended to verify that the performance and payment bond has been furnished before beginning work on a public project.
On public projects, claimants are not allowed to assert a claim if the claimant's customer is a sub-contractor of the general contractor. On public projects in New York, no preliminary notice is required for claimants on the owner, general contractor, or any other qualified party

* If a claimant has a contract with the general contractor, the claimant is not required to serve a final bond claim notice to any party.
* If the claimant has a contract with a subcontractor of the general contractor, written notice on the claim to the general contractor must be submitted within 120 days of work rendered. This must be served by registered mail.

A claimant's lawsuit against a payment bond must be commended within a year after the public project is deemed "completed and accepted" by the public owner.

New York has provisions that set up a trust for funds relating to a construction project. Funds on a project held by the owner, contractor, or subcontractor are considered assets and entered to a fund. The fund is held for the payment of claims of nonpayment from contractors and laborers.
The trust fund is very helpful in cases where a claimant's customer is in receivership or bankrupt. Trust fund claims can be filed on public and private projects in New York, and don't require the claimant to have a valid mechanics lien.

Lien rights are given in New York for the reasonable value of rental equipment. However, this is only active for the period of use
If you need to get a client to agree to a mechanic's lead, the process can be as simple as reaching out to Nationwide Notice, Inc. and letting us help you get the money you are owed. In the event of non-payment, having an option like a mechanic's lien can help. If you have a construction company and need help getting your construction payments, that is where Nationwide Notice, Inc. comes in. We are a full and self-service preliminary notice and lien service company specializing in assisting construction companies to protect their receivables. Call us today or reach out to us on our website for help. You can also learn about what makes us different on this page to get started.