According to Greg Powelson, president of NACM’s Mechanic’s Lien & Bond Services, the New York State Legislature is considering a bill that would allow suppliers and contractors to file a mechanic's lien for retainage within 90 days after the date that the retainage was due to be released. The bill passed the assembly on May 3, 2011 and has been delivered to the Senate for consideration.
“This is an amendment that will be a welcome addition if passed,” said Powelson. “Currently, suppliers and contractors must file their lien on the project regardless of whether the retainage is all that is left within the current strict statutory time frames (4 months for single family dwellings and 8 months for all other private projects). The lien can often create problems for the supplier or contractor that is still on the job because the owner will demand removal of the lien even though the lienor had no choice but to lien or waive its lien rights. This new statute could allow the unpaid supplier or contractor to continue to wait for retainage without risking waiving his right to lien.”
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