Subcontractor Rights in New Jersey: What to Do When the General Contractor Does Not Pay
You worked on a New Jersey construction project, met your deadlines, but now the general contractor isn’t paying. For subcontractors in New Jersey, this situation is more common than it should be, and the financial impact can be devastating.
The good news is that New Jersey law gives subcontractors real tools for pursuing payment, but those tools come with strict deadlines and procedural requirements that cannot be ignored. Our Red Bank construction lawyer explains your options when a general contractor fails to pay.
Your First Line of Defense: A New Jersey Construction Lien
When a general contractor doesn’t pay, a mechanic’s lien is often the most effective legal remedy for New Jersey subcontractors. A lien attaches directly to the property where the work was performed, preventing the owner from selling or refinancing until the debt gets resolved.
This gives local subcontractors leverage not just against the general contractor but against the property owner, even when the payment dispute is entirely between the sub and the GC. Under New Jersey’s Construction Lien Law, N.J.S.A. 2A:44A-1, subcontractors must meet specific requirements to preserve this right, including:
- File the lien claim within 90 days of the last date work, services, or materials were provided.
- Make sure to file the lien claim in the county where the property is located and serve it on the property owner within 10 days.
- Include accurate details about the contract, the work performed, and the amount owed.
- File a lien enforcement action in court within one year of recording the lien.
Missing any of these deadlines can invalidate your lien entirely, eliminating one of your strongest recovery options. The 90-day clock starts running from the last date you actually performed work or delivered materials, not from the date your invoice was due.
Other Options For New Jersey Subcontractors
A mechanic’s lien is a powerful tool, but it is not the only option available for unpaid subcontractors in New Jersey. Depending on the structure of the project and the contracts involved, other options worth considering include:
- Filing a NJ breach of contract claim against the general contractor.
- A claim against the project’s payment bond, if one exists.
- A prompt payment claim under New Jersey’s Prompt Payment Act, which entitles subcontractors to interest on overdue payments.
- Mediation or arbitration if the subcontract agreement includes a dispute resolution clause.
- A trust fund claim if the general contractor received payment from the owner but diverted funds away from subs and suppliers.
Keep detailed records of your contract, change orders, invoices, delivery confirmations, and all written communications with the general contractor to protect your rights to compensation.
Contact Our Experienced Red Bank Construction Lawyer Today
At Sanvenero & Cittadino Law Office, our Red Bank construction lawyer helps subcontractors file liens, pursue payment bond claims, and take the legal steps necessary to recover what they have earned under New Jersey law.
To discuss your options, contact us today and request a consultation. We represent clients in Shrewsbury, NJ; Monmouth County, NJ; Central New Jersey; and throughout New Jersey.
Source:
newjerseycommercialauthority.com/newjersey-construction-lien-law