The Construction Act protects the supply of goods and services within a construction contract pyramid through liens, which arise as soon as there is a contract for work in bettering land. The Act applies when the following events occurred after July 1, 2018: the prime contract was entered into; the procurement process for the improvement began; or the lease was entered into, where the property in question was subject to a leasehold interest.
Where the Construction Act is engaged, the deadline to preserve a construction lien is 60 days from the occurrence of a triggering event. The following constitute triggering events under the Act:
- the last supply of materials or services;
- publication of a certificate of substantial performance;
- the completion of a contract;
- the completion of a subcontract;
- termination of a prime contract; and
- for subcontractors: completion or abandonment of the prime contract.
Following preservation of a construction lien by registering the lien on title to the subject property, the lien must then be “perfected” by issuing a statement of claim and certificate of action with the Superior Court of Justice. The certificate must also be registered against title to the property. The deadline to perfect is 90 days after the last date the lien could have been preserved, meaning 150 days total.
Our firm has experience in dealing with construction liens. Please call us for a free consultation.