While use of the term “groundbreaking” in a construction law article may want for originality, it is an accurate description for recent amendments to the Pennsylvania Mechanics’ Lien Law. The amendments—signed into law on Oct. 14, 2014—will change the way liens are obtained. The law is set to go into effect in 2017, provided a state-operated website is operational by the end of this year.
Lien Law 101
As most members of the construction industry know, the lien statute permits contractors, subcontractors, and suppliers to secure payment for labor and materials they have supplied to a construction project with a lien on the property they improved. Because subcontractors and suppliers do not contract directly with the property owner and the owner is often not aware of all those performing work on the property, the current lien statute contains many strict filing requirements that serve to protect owners’ rights.
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