In a recent decision, the Third Circuit Court of Appeals held that a mechanic’s lien filed by an unpaid supplier against a construction project, after the contractor through whom the materials were furnished filed for bankruptcy protection, was voidable. However, the Court noted that this doesn’t apply if applicable state law permitted the lien to relate back to a date prior to the filing of the petition. Under the laws of most states, perfected mechanics' liens do in fact relate back to the first day on which the lienor furnished labor, materials, or equipment to the construction project. This holding has particular significance to contractors and suppliers in the construction industry, who typically furnish materials or perform work on a project under an agreement where retainage is withheld and payment for the work performed is not due until 45 or 60 days later and too often after the contractor has filed for bankruptcy protection.