Construction Alert: NOTICE! Pending Changes to Pennsylvania's Mechanics' Lien Law

more+
less-

In order to promote full disclosure and identification of subcontractors (defined as both first and second tier subcontractors) who potentially might have a lien claim on a commercial construction project in Pennsylvania, State Representatives Thomas H. Killion, Mike Turzai, Ron Miller, and Mark Mustio have introduced House Bill No. 1602, proposing changes to Pennsylvania’s Mechanics’ Lien Law. The primary gist of the bill is to impose notice requirements on both project owners and subcontractors. The proposed notice requirements are comparable to those that have long-existed in the lien laws of other states.

If the Bill is passed in its current form, an owner desirous of “flushing out” potential subcontractor lien claimants would have the option of filing a “Notice of Commencement” with the Prothonotary of the Court of Common Pleas of the county in which the project is located. The Notice of Commencement would have to be filed with the Prothonotary and conspicuously posted at the project site prior to commencement of construction work. The owner would also be required to deliver a copy of the Notice of Commencement to the project’s general contractor within seven days of filing of the Notice of Commencement with the Prothonotary. Should the owner fail to so deliver the notice to the general contractor, then the requirement for a subcontractor to file a “Notice of Furnishing” (as discussed below) in order to retain its lien rights would be voided.

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Published In: Administrative Agency Updates, Civil Procedure Updates, Civil Remedies Updates, Construction Updates, Commercial Real Estate Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Schnader Harrison Segal & Lewis LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »