Lien & Bond Rights in New York State 
 
Lien and Bond Rights in 
New York State

• 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.
   
• Private Mechanic’s Liens may 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 single family dwellings, the lienor must file within four months after the final performance of work or furnishing of materials.
   
• Private Mechanic’s Liens will expire one (1) year after the date of filing of the Notice of Lien 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 the owner, contractor and subcontractor must also be filed with the County Clerk 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 officer of the public corporation.
   
• Is a claim against the public funds allocated to the construction or demolition of the public improvement.
   
• Liens will expire one (1) year 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 file the same with the County Clerk or public corporation, as the case may be, serving a copy on the lienor.  The lien is discharged upon filing and service without Court order. Generally, the amount of the bond is required to be the amount of the lien plus 10%.

Notwithstanding the filing of the bond to discharge the lien, the lienor must bring an action to foreclose the private or public improvement lien in order to claim against the bond.
 
Payment Bonds
On State and municipal projects in the State of New York, including school district projects, 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, except that the time to commence an action to enforce a claim on a Miller Act bond is one year from the last labor or material on the job.

<< BACK

Subcontractors Association of Central New York  
© 2000, All rights reserved.

Email: info@sacny.com
Telephone: 315.474.2026
Fax: 315.474.0160