New Jersey Notice Requirements

Residential Construction — Notice of Unpaid Balance and Right to File Lien (NUB)

Under the New Jersey Construction Lien Law, all lien claimants on residential construction projects must file a Notice of Unpaid Balance and Right to File Lien (commonly referred to as the NUB) as a prerequisite to filing a construction lien. The NUB must be filed 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.

The NUB must be served on the property owner by certified mail, return receipt requested, or by personal service. The notice must identify the claimant, the amount of the unpaid balance, a description of the work performed or materials furnished, and the property against which the lien may be filed. Failure to timely file and serve the NUB results in the loss of lien rights on residential projects.

The NUB serves a dual purpose: it provides the property owner with formal notice of the unpaid claim and preserves the claimant's right to file a construction lien. The owner can use the information in the NUB to withhold funds from the contractor to protect against lien claims.

Commercial Construction — No Preliminary Notice Required

New Jersey does not require any preliminary notice or Notice of Unpaid Balance on commercial construction projects. Lien claimants on commercial projects may proceed directly to file a construction lien claim within 90 days after the last date the claimant provided work, services, material, or equipment under N.J.S.A. 2A:44A-3.

The distinction between residential and commercial construction is significant. Residential construction is defined under the statute as work on an owner-occupied dwelling of no more than three units. All other construction is treated as commercial for lien purposes. Claimants must correctly classify the project type to determine which notice requirements apply.

Although no preliminary notice is required on commercial projects, claimants should still maintain detailed records of the dates and scope of work performed, materials furnished, and amounts owed. These records are essential for preparing an accurate and enforceable lien claim.

Service Requirements for the NUB

The Notice of Unpaid Balance and Right to File Lien must be served on the property owner using one of the methods prescribed by statute. New Jersey requires service by certified mail, return receipt requested, or by personal service. These methods ensure that the owner receives actual notice of the claim.

Claimants should retain proof of service, including the certified mail receipt or an affidavit of personal service. The return receipt card provides evidence of delivery and the date on which the owner received the notice. This documentation is critical in the event the timeliness or validity of the NUB is challenged.

• Service must be by certified mail, return receipt requested, or personal service
• The NUB must be served on the property owner
• The 60-day deadline runs from the earlier of last furnishing or completion, acceptance, or termination
• Retain the certified mail return receipt card as proof of service
• The NUB must identify the claimant, unpaid balance, description of work, and the property

Public Works — 90-Day Notice of Claim on Payment Bond (N.J.S.A. 2A:44-143 et seq.)

On New Jersey public works projects involving contracts exceeding $100, subcontractors and suppliers who are not in direct contractual privity with the general contractor must serve a notice of claim on the payment bond within 90 days after the last date of furnishing labor, materials, or equipment. This notice must be served on the public entity and the general contractor under N.J.S.A. 2A:44-143 et seq.

New Jersey requires payment bonds on virtually all public construction contracts, as the statutory threshold is only $100. This broad requirement ensures that subcontractors and suppliers on public works have a surety remedy in place of the mechanic lien rights that are not available against public property.

The notice of claim should identify the claimant, the amount owed, the project, and the bond. Failure to serve the notice within 90 days may result in the loss of payment bond claim rights for claimants not in direct privity with the prime contractor.

Anti-Waiver Protections (N.J.S.A. 2A:44A-38)

New Jersey law provides strong anti-waiver protections for construction lien rights. Under N.J.S.A. 2A:44A-38, any provision in a contract or agreement that purports to waive the right to file a construction lien is void and unenforceable. This protection ensures that lien rights cannot be bargained away through pre-construction contract negotiations.

The anti-waiver provision applies to all construction contracts, whether residential or commercial. Contractual clauses such as no-lien agreements, lien waivers executed before work is performed, and similar provisions are unenforceable under New Jersey law. Only a lien waiver executed after the work has been performed and payment has been received is valid and enforceable.

Lien Amount Limitations

Under the New Jersey Construction Lien Law, the amount of a construction lien filed by a subcontractor or supplier is generally limited to the amount the owner owes the general contractor at the time of service of the lien claim. This limitation protects the owner from paying more than the contract price for improvements to the property.

However, if the owner has made payments to the contractor in violation of the Construction Lien Law, the lien amount is not subject to this limitation. This exception prevents owners from making accelerated or improper payments to a contractor in an attempt to defeat lien claims by subcontractors and suppliers. Claimants should investigate the payment history between the owner and contractor when preparing their lien claim.