New Jersey Construction Lien Deadlines

Residential Construction — 60-Day NUB and Lien Filing Timeline

On residential construction projects in New Jersey, the lien claimant must first file and serve the Notice of Unpaid Balance and Right to File Lien (NUB) within 60 days of the last date materials were delivered or services performed, or within 60 days after completion, acceptance, or termination of the contract, whichever is earlier, under N.J.S.A. 2A:44A-6.

After the NUB has been properly served, the claimant may then file a construction lien claim. The lien claim on a residential project must be filed within 90 days after the last date the claimant provided work, services, material, or equipment. The NUB is a prerequisite to the lien claim. Failure to timely serve the NUB eliminates the right to file a construction lien on residential projects.

Claimants on residential projects must carefully track two separate deadlines: the 60-day NUB deadline and the 90-day lien filing deadline. Both deadlines run from the claimant's last date of furnishing, but the NUB deadline is shorter and must be met first.

Commercial Construction — 90-Day Lien Filing Deadline (N.J.S.A. 2A:44A-3)

On commercial construction projects, the construction lien claim must be filed within 90 days after the last date the claimant provided work, services, material, or equipment under N.J.S.A. 2A:44A-3. No NUB or other preliminary notice is required on commercial projects.

The 90-day period begins to run from the claimant's last date of furnishing labor, services, materials, or equipment to the project. It is critical to accurately determine and document the last date of furnishing, as failure to file the lien within 90 days results in the complete loss of construction lien rights on commercial projects.

New Jersey courts strictly enforce the 90-day deadline. The clock runs from the claimant's last day of billable work under the contract. Punch list items, warranty call-backs, and other gratuitous return visits do not extend the last date of furnishing. The safe trigger date is the last day of work actually invoiced under the original contract or an executed change order.

Definition of Residential vs. Commercial Construction

The distinction between residential and commercial construction is critical under the New Jersey Construction Lien Law. Residential construction is defined as work on an owner-occupied dwelling of no more than three dwelling units. All other construction, including work on multi-family buildings with four or more units, commercial buildings, industrial facilities, and non-owner-occupied properties, is classified as commercial.

The classification of a project as residential or commercial determines whether a NUB is required, whether disputes go to arbitration or Superior Court, and other procedural requirements. Misclassifying a project can result in a failure to comply with the correct notice and filing requirements, potentially resulting in the loss of lien rights.

Lien Claim Recording Location and Procedures

The construction lien claim must be filed with the office of the County Clerk in the county where the property is located. New Jersey uses a county-based recording system, so the lien must be filed in the correct county clerk's office.

The lien claim document should include the following information:

• The name and address of the lien claimant
• The name and address of the property owner
• The name and address of the general contractor or party with whom the claimant contracted
• A description of the real property against which the lien is claimed, sufficient for identification
• The amount claimed to be due for labor, services, materials, or equipment
• A description of the labor, services, materials, or equipment furnished
• The dates of first and last furnishing

Lien Amount Limitations and Owner Protections

The amount of a subcontractor's or supplier's construction lien is generally limited to the amount the owner owes the general contractor at the time of service of the lien claim under the New Jersey Construction Lien Law. This limitation ensures that the owner is not required to pay more than the total contract price for the improvement.

If the owner has made payments to the contractor in violation of the statute, the lien amount is not subject to this limitation. Violations include payments made after the owner has received a NUB or lien claim, or payments made without obtaining proper lien waivers. This exception incentivizes owners to comply with the payment provisions of the Construction Lien Law.

Claimants should carefully calculate the lien amount and be prepared to demonstrate the amount owed. Overstating the lien amount may subject the claimant to penalties and sanctions under New Jersey law.

Service of the Lien Claim on the Owner

After filing the construction lien claim with the County Clerk, the claimant must serve a copy of the lien claim on the property owner. Service must be by certified mail, return receipt requested, or by personal service. This requirement ensures that the owner has actual notice of the lien encumbrance on the property.

Claimants should serve the lien claim promptly after filing and retain proof of service. The date of service on the owner is significant because it establishes the point at which the lien amount is measured against the balance owed by the owner to the contractor.