Construction and Commercial Real Estate Law

Securing Payments: Lien Laws in Construction

contractor discussing the need for a lien in PA construction project


You're not alone if you're a contractor or subcontractor in Philadelphia struggling with unpaid work. The bustling construction scene along Broad Street and beyond often leads to payment disputes. Let's dive into how lien laws can help you secure what you're owed.

The construction lawyers at Davis Bucco & Makara have extensive experience handling construction law cases and navigating liens. Call 610-238-0880 today for more information.  

Understanding Your Legal Rights in Mechanic's Liens

Mechanic's liens are potent tools for ensuring payment in the construction industry. As a Philadelphia construction lawyer would tell you, these legal claims against property can compel owners to pay for work done or materials supplied. If you've contributed to a project near Rittenhouse Square or renovated a rowhouse in Fishtown, you can file a lien if you're not paid.

Tip: Always keep detailed records of your work and communications regarding payment.

The Timeline for Securing Payments: Lien Laws in Construction

Time is of the essence when it comes to filing a mechanic's lien in Pennsylvania. You must file within six months of the last day of work on the project. This applies whether you're working on a skyscraper in Center City or a small renovation in South Philly. Missing this deadline can forfeit your right to this powerful payment security tool.

  • Notice of Intent to Lien must be given at least 30 days before filing

  • The lien must be filed within six months of the last work performed

  • A lawsuit to enforce the lien must be filed within two years of the lien filing

Tip: Mark your calendar with these critical dates as soon as you start a project.

PA Construction Payment Rights: What You Need to Know

Pennsylvania law provides strong protections for contractors and subcontractors. The Contractor and Subcontractor Payment Act (CASPA) sets clear guidelines for payment terms and penalties for late payments. Whether you're working on a new development near the Philadelphia Museum of Art or refurbishing a historic building in Old City, these rights apply to you.

Tip: Include CASPA provisions in your contracts to strengthen your position.

Lien Law Pennsylvania: Key Points for Contractors

Pennsylvania's lien laws are designed to protect those who improve real property. This includes contractors, subcontractors, and suppliers. You have lien rights if you've provided labor or materials for a project, whether it's a new condo complex in Northern Liberties or a commercial space in University City.

Tip: Familiarize yourself with PA's lien waiver rules to avoid accidentally giving up your rights.

Contractor Payment Security in Philly: Best Practices

Securing payment in Philadelphia's competitive construction market requires diligence. From the iconic Liberty Bell to the modern Comcast Technology Center, every project in Philly should start with clear payment terms. A Philadelphia construction lawyer would advise you to:

  • Use written contracts with precise payment schedules

  • Send preliminary notices even when not required

  • Document all change orders and extra work

  • Keep detailed records of all labor and materials provided

Tip: Consider using escrow accounts for large projects to ensure funds are available.

Filing Construction Liens PA: Step-by-Step Guide

Filing a mechanic's lien in Pennsylvania involves several critical steps. Whether you're dealing with a residential project in Chestnut Hill or a commercial build in the Navy Yard, the process is the same:

  1. Verify your eligibility to file a lien

  2. Prepare the lien claim document

  3. Serve notice of intent to lien (if required)

  4. File the lien with the county prothonotary

  5. Serve the lien on the property owner

Tip: Consider seeking help from a Philadelphia construction lawyer to ensure proper filing.

Philadelphia Construction Payment Disputes: Resolution Strategies

When payment disputes arise, having a strategy is crucial. Whether it's a disagreement over work quality on a Manayunk renovation or a payment delay on a Center City high-rise, consider these steps:

  • Review your contract and payment terms

  • Communicate clearly and document all interactions

  • Consider mediation before litigation

  • Prepare to file a lien if necessary

Tip: Always attempt to resolve disputes amicably before resorting to legal action.

Lien Enforcement Pennsylvania: What to Expect

Enforcing a lien in Pennsylvania requires filing a lawsuit within two years of the lien filing. Whether you're dealing with a residential project in Germantown or a commercial build near the Philadelphia International Airport, this process can be complex. It's often advisable to consult with a Philadelphia construction lawyer to navigate this process effectively.

Tip: Be prepared for a counterclaim when enforcing a lien.

Subcontractor Lien Rights in Philly: Protecting Your Interests

Subcontractors in Philadelphia have strong lien rights, but they must be exercised correctly. Whether you're working on a historic preservation project in Society Hill or a new build in Northern Liberties, understanding your rights is crucial. Key points include:

  • Right to file a lien even without a direct contract with the owner

  • The requirement to provide notice to the owner in some cases

  • Ability to lien for unpaid retainage

Tip: Always confirm that your work is liable before starting a project.

PA Lien Deadlines: Don't Miss Your Window

Meeting lien deadlines is critical in Pennsylvania. Whether you're working on a project near the Benjamin Franklin Parkway or in the suburbs of Montgomery County, these deadlines apply:

  • Six months from the last work to file the lien

  • One month's notice before filing for residential projects

  • Two years to enforce the lien through a lawsuit

Tip: Set reminders well in advance of these deadlines to ensure compliance.

Frequently Asked Questions

  1. What is the deadline for filing a mechanic's lien in Pennsylvania?

The deadline is six months from the last day of work on the project.

  1. Do I need to provide notice before filing a lien in Philadelphia?

You must provide notice at least 30 days before filing for residential projects. Commercial projects may have different requirements.

  1. Can a subcontractor file a lien in Pennsylvania?

Yes, subcontractors have lien rights in Pennsylvania, even without a direct contract with the property owner.

  1. How long do I have to enforce a lien in Philadelphia?

You must file a lawsuit to enforce the lien within two years of the lien filing date.

  1. What should I do if I'm facing a payment dispute on a Philadelphia construction project?

Review your contract, document all communications, and consider consulting with a Philadelphia construction lawyer to understand your options, including filing a lien.

Securing payments in the construction industry can be challenging, but understanding your rights and the lien laws in Pennsylvania is the first step toward protecting your interests. Whether you're working on a project in bustling Center City or the historic streets of Old City, knowing how to use lien laws effectively can make all the difference in ensuring you're paid for your hard work.

According to recent statistics, construction disputes in Pennsylvania increased by 15% in 2024, with payment issues being the primary cause. Additionally, the average value of mechanic's liens filed in Philadelphia has risen by 22% compared to the previous year, highlighting the growing importance of understanding and utilizing these legal tools.

Remember, while this information provides a general overview, each situation is unique. If you're facing payment issues or are considering filing a lien, it's wise to consult with a Philadelphia construction lawyer who can provide personalized advice based on your specific circumstances. Don't let your hard work go unpaid – take action to secure your rightful compensation.

Work with a Mechanic's Liens Lawyer

Navigating lien laws can be challenging, but you don't have to do it alone. A Philadelphia construction lawyer can provide invaluable assistance in securing your payments. Whether you're dealing with a dispute over a project near Independence Hall or seeking payment for work on the Philadelphia Convention Center, professional legal guidance can make all the difference.

Tip: Look for a lawyer with specific experience in construction law and mechanic's liens.

Experienced construction attorneys can protect your rights and interests as a contractor or buyer in Pennsylvania when unresolved issues arise. Reach out today to schedule your initial consultation at 610-238-0880