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A mechanic's lien is a legal document used by contractors, subcontractors, and suppliers to secure payment for work completed on a construction project. Filing a mechanic's lien essentially states that:
- You're owed money for services provided
- You're expecting payment by a specific date
- You'll proceed with litigation if you don't receive payment by that date
While a lien is in place, it restricts the owner from selling, refinancing, or transferring the property without paying you. That pressure makes liens one of the most powerful payment tools available—especially for subcontractors and suppliers.
Mechanic's lien laws vary significantly by state, with different rules governing who can file a lien, what notices are required, and timelines for filing and enforcement. This guide covers the essentials of New Jersey's mechanic's lien laws to help you protect your right to payment.
Commercial: Not required
Residential: Required to file a Notice of Unpaid Balance (NUB) within 60 days of last furnishing, and initiate arbitration within 10 days of filing the NUB
Commercial: Not required
Residential: Required to file a Notice of Unpaid Balance (NUB) within 60 days of last furnishing, and initiate arbitration within 10 days of filing the NUB
Commercial: Not required
Residential: Required to file a Notice of Unpaid Balance (NUB) within 60 days of last furnishing, and initiate arbitration within 10 days of filing the NUB
Not required
Not required
Not required
Commercial: Within 90 days of last furnishing
Residential: Within 10 days of the arbitration award, but not later than 120 days after last furnishing
Commercial: Within 90 days of last furnishing
Residential: Within 10 days of the arbitration award, but not later than 120 days after last furnishing
Commercial: Within 90 days of the last day of labor
Residential: Within 10 days of the arbitration award, but not later than 120 days after the last day of labor
Within 1 year of last furnishing or within 30 days of receiving a written demand to sue
Within 1 year of last furnishing or within 30 days of receiving a written demand to sue
Within 1 year of last furnishing or within 30 days of receiving a written demand to sue
Unpaid earned contract amount
Unpaid contract balance, limited by the lien fund
Unpaid wages earned, limited by the lien fund
Construction Lien Law, N.J.S.A. 2A:44A-1 through 2A:44A-38, governs mechanic's lien rights in New Jersey. These rules apply only to private construction projects. Public works follow New Jersey's separate bond-claim process.
New Jersey has two major quirks that set it apart from other states:
- Lien requirements and filing deadlines change depending on whether the project is commercial or residential.
- Liens are limited by New Jersey's "lien fund" rules, which cap recovery based on how much money remains unpaid upstream at the time the lien is served.
A written contract is required to file a lien in New Jersey. Unlike many states, New Jersey's statute explicitly requires that work, services, materials, or equipment be furnished under a written contract. This applies to all tiers—GCs, subs, and suppliers alike.
In New Jersey, mechanic’s lien rights apply to anyone who provides work, services, material, or equipment to a private project under a written contract for the improvement of real property.
What’s more, only claimants within the first three tiers of the private-project construction chain have mechanic’s lien rights. Anyone further removed from the owner does not (N.J.S.A. 2A:44A-3).
Here are the roles—and corresponding tier placements—for folks who generally have mechanic’s lien rights in New Jersey:
- First-tier claimants (direct contract with the owner), such as:
- General (original) contractors
- Certain licensed design professionals contracted directly with the owner
- Second-tier claimants (contract with a first-tier contractor), including:
- Subcontractors
- Material suppliers
- Equipment rental companies (for equipment actually used on site)
- Third-tier claimants (contract with a second-tier subcontractor), including:
- Sub-subcontractors
- Suppliers to subcontractors
Laborers also have mechanic’s lien rights under New Jersey law. Their recovery is subject to the lien fund and is generally tied to the tier of the contractor or subcontractor that employed them.
New Jersey uses these tiers to determine how much a claimant can lien (from the lien fund) based on where they sit in the contracting chain.
Under N.J.S.A. 2A:44A-2, lienable work must contribute to an “improvement” of the property—meaning any physical change or construction activity that permanently enhances or alters the real estate.
Here are some examples of what’s considered lienable and what isn’t.
Lienable Work in New Jersey
- Construction, alteration, repair, or demolition of buildings or structures
- Sitework, excavation, grading, drainage, and landscaping
- Installation of fixtures and building systems
- Materials incorporated into the improvement
- Equipment or rental equipment actually used on site
- Licensed professional design services tied to the improvement
- Labor performed under a written contract
Non-Lienable Work in New Jersey
- Work on public projects
- Work performed without a written contract
- Fuel for vehicles or equipment
- Claimants outside the first, second, or third tier
- Warranty, maintenance, or post-completion service calls
Filing a lien on commercial jobs in New Jersey is a bit more straightforward than filing one on a residential job. The latter requires all claimants to submit a preliminary Notice of Unpaid Balance (NUB), followed by an extra arbitration step that doesn’t apply to commercial liens. Take a look.
Deadline to File
- Commercial projects: All claimants must file a lien claim within 90 days after last furnishing labor, materials, services, or equipment
- Residential projects: All claimants must:
- File a preliminary NUB within 60 days of last furnishing.
- Initiate arbitration within 10 days of filing the NUB.
- File the lien claim within 10 days of receiving the arbitrator’s determination and no later than 120 days after last furnishing.
Filing Requirements
- Filing location: File the lien claim with the county clerk’s office where the property is located.
- Form requirements: All lien claims—commercial or residential—must include the following info (per N.J.S.A. 2A:44A-8):
- The claimant’s name and address
- The property owner’s name
- The hiring party’s name (GC or sub)
- A description of the improvement
- The amount due
- The dates you began and last provided work
- Residential only: A certification that arbitration was completed
- Verification: Signed, notarized, and verified under oath.
- Filing fee: Set by each county clerk (typically $15–$30, depending on the number of pages).
Service Requirements
Within 10 days after recording the lien, claimants must serve a copy on the owner (and hiring party, if different) by personal service or mail as permitted under N.J.S.A. 2A:44A-7.
Recording a lien preserves your rights—but enforcement is how you get paid. Here’s what you must do to ensure you enforce your lien in New Jersey.
Enforcement Requirements
- Enforcement deadline: You must file a foreclosure lawsuit within one year of your last furnishing, or within 30 days after receiving a written demand from the owner to commence suit.
- Filing location: File the enforcement action in the Superior Court for the county where the property is located.
- Additional filing: After filing suit, you must also record a Notice of Lis Pendens with the county clerk, notifying the public that the property is subject to a lien foreclosure action. This also preserves your priority during litigation.
- Lien priority: New Jersey doesn’t use “first to file” priority. Recovery is based on the state’s tier system and the available lien fund. If multiple claimants are in the same tier, the court distributes the lien fund proportionally based on the size of each claim (“pro rata”).
Lien Release Requirements
Once the lien has been paid (or has otherwise been resolved), it must be formally released with the county clerk. The lien claimant must file a discharge certificate within 30 days of payment or satisfaction, or within seven days of written demand (see N.J.S.A. 2A:44A-30 through 2A:44A-33).
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Not usually. New Jersey’s lien rights (N.J.S.A. 2A:44A-3) only apply to work performed under a valid written contract, and work performed without a required license typically renders the contract unenforceable. It’s best to ensure that you (and anyone else you’ve hired on the job) are properly licensed before relying on lien rights.
Yes, but only the enforcement deadline. After a lien is filed in New Jersey, an owner (or other interested party) may force the lien claimant to commence a foreclosure action within 30 days by serving a written demand to commence suit. If the claimant fails to do so, the lien is forfeited and must be discharged. (N.J.S.A. 2A:44A-14)
No, New Jersey does not require a separate Notice of Intent to Lien.
It depends on the job type:
- For commercial work: New Jersey does not require a preliminary notice before filing a lien.
- For residential work: All first- through third-tier claimants must file a Notice of Unpaid Balance (NUB) within 60 days of last furnishing and start mandatory arbitration within 10 days of filing the NUB. Without either of these steps, you lose your lien rights on residential jobs.
No, New Jersey doesn’t provide a statutory lien waiver form. However, every state has its own set of lien waiver rules; brush up on New Jersey’s in this handy lien waiver guide.
In New Jersey, you can lien for the unpaid value of labor, materials, equipment, or professional services you provided to the improvement. The lien amount must reflect:
- The earned but unpaid contract balance for work performed
- Approved extra work or change orders that fit the written contract
- For laborers, wages earned
You can’t include attorneys’ fees, interest, or other damages unless the court orders you to do so.
Your lien is also limited by the lien fund, which caps how much a claimant can recover based on how much money is still owed upstream (from the owner to the GC, from the GC to their subs, etc.) when the lien was filed.
In practice, this means your lien may be reduced—or eliminated—if the owner has already paid the next party in the contracting chain in full. The court enforces this cap to prevent the owner from paying twice for the same work.
Yes. Unlike many states, New Jersey’s statute explicitly requires that the work, services, materials, or equipment be furnished under a written contract. This applies to all tiers—GCs, subs, and suppliers alike.
Disclaimer: This guide is for informational purposes only and does not constitute legal advice. Always consult with a qualified construction attorney in your state regarding specific legal matters before taking any action that could affect your lien rights.