A Mechanic's Lien is a legal device, which, when filed properly, gives the lienor (contractor, subcontractor, or materialman) a legal claim against the real property upon which the project is located.

These differences include:

Private Lien:

• Filed in the County Clerk's office in the county of the project's location.
   
• Is a legal claim against the real property upon which the project is based.
   
• Liens must be filed at any time during the progress of work and furnishing of materials, or within eight months after the final performance of work or furnishing of materials, except that on single4amily dwellings, the lienor must file within four months after the final performance of work or furnishing of materials.
   
• Liens will expire one (1) year after the day of Notice of Lien has been filed unless (a) a Notice of Extension is filed extending the lien for an additional year, (b) an action is commenced to foreclose the lien, (c) or unless a court order is entered continuing the lien for a period not exceeding one year.
   
• Proof of service on owner, contractor and subcontractor must also be filed within 35 days.
   

Public Improvement Lien:

• Filed with the head of the public agency having charge of the construction and the State Comptroller or financial officers of the public corporation.
   
• Is a claim against the public funds allocated to the construction or demolition of the public improvement.
   
• Liens will expire six months after the date of filing the Notice of Lien Unless (a) a Notice of Extension is filed extending the lien for an additional year, (b) an action is undertaken to foreclose or (c) unless order is entered continuing the lien for a period not exceeding one year.
   
• Proof of service on Owner, contractor and subcontractor must also be filed with the Notice of Lien.

Property owned by the federal government is not subject to the New York State Mechanic's Lien Law.
 

Bonding Off a Lien

The owner or contractor may execute a bond with an insurance company (surety) and obtain an order from the New York State Supreme Court discharging the lien upon the filing of that bond. Generally, the amount of the bond is set at the amount of the lien plus 10%.

Notwithstanding the filing of the bond to discharge the lien, the claimant must bring an action to foreclose the private or public improvement lien in order to claim against the bond.
 

Payment Bonds

On municipal projects in the state of New York the prime contractor is required to file a labor and material bond with the municipality guaranteeing that all persons providing labor and materials will be paid.

On such bonded jobs, a subcontractor or supplier may file a claim against the bond if the contractor fails to make payment. In the event that the subcontractor or supplier does not have a direct contractual relationship with the contractor, then the claimant is required to provide notice of the claim to the prime contractor within 120 days of the last labor or material on the job.

A court action to enforce a claim against the bond must be commenced within one (1) year from the date on which final payment became due. Similar procedures pertain to federal projects under the Miller Act.

Please contact us if you are unable to access the forms provided in this section (RTF files), or if you have any questions regarding the usage of these forms.