When professionals are not paid for their labor or materials provided on a public construction project, filing a lien can be an effective way to pursue the payment they are owed.
A public project is any improvement of real property belonging to the state or a public corporation. Because public property cannot have a lien placed directly on it, as on a private project, New York law provides a public improvement lien, which attaches to contract funds rather than the property itself. Subcontractors, suppliers, laborers, and other contributors can file a public improvement lien to enforce their right to payment, but the lien must be filed according to specific requirements and deadlines.
Filing Deadlines and Who Can File
A public lien must be filed within 30 days of project completion and acceptance by the public entity. The lien should be filed with both the head of the department in charge of construction and the financial officer of the public owner. There is no filing fee for a public lien. Meeting this deadline is critical to ensure the lien is properly recorded.
It’s important to note that on a public project, certain parties cannot file a lien. General contractors, as well as architects or engineers who have a direct contract with the public owner, are not allowed to file public liens.
Required Information for Your Lien
A public improvement lien requires much of the same information as a private lien, including:
- The name and address of the lienor
- Name of the contractor or subcontractor to whom labor or materials were provided
- Amount claimed due and the dates when the labor was performed or materials were supplied
- A description of the public improvement
- A general description of the work performed
- Signature and sworn verification
- Proof of service
Notice must be provided to the contractor or subcontractor whose funds are subject to the lien. Proof of service of this notice must be included with the lien filing or submitted at the same time.
How Long Your Lien Remains Valid
A public improvement lien is effective for one year from the date of filing. It can be extended for an additional year, but beyond that, any further extensions require a court order.
Protecting Your Right to Payment
For professionals working on public projects, public improvement liens are a vital tool to protect payment rights. Because the process has specific requirements and short deadlines, careful attention to detail is essential. Filing correctly can be the difference between recovering payment and losing out.
These guidelines provide a general overview, but the rules for public project liens can be complex. Our Construction Law team can help you navigate the process and ensure your rights are protected.