Time Limits for Subcontractors
The Lien Act categorizes parties who improve real property based upon their relationship to the property. Typically, the owner is the party who owns the property in question and the original contractor is the party with whom the owner directly contracts for the design or construction of improvements to the property. A subcontractor is a person or organization that enters into a contract with an original contractor to improve the owner’s property on behalf of the original contractor. By definition, a subcontractor does not have a direct contract with the owner. The Lien Act affords rights to subcontractors, but also imposes certain strictly construed timing requirements.
Generally, a subcontractor must:
- Single Family Residences - the subcontractor must provide notice to the owner of the subcontractor’s intent to record a lien within 60 days of the subcontractor’s last date of lienable work
- All Other Private Property - the subcontractor must provide a notice to the owner of the subcontractor’s intent to record a lien within 90 days of its last date of lienable work
- Record Lien - the subcontractor must record its mechanics lien claim with the recorder of deeds for the county in which the improved property is located within four months of its last date of lienable work
- File Suit - the subcontractor must file a lawsuit to foreclose upon the lien within two years of its last date of lienable work
Note, the failure to provide the 60 or 90 day notice may not be fatal to a subcontractor’s lien claim if the subcontractor is shown on the general contractor’s sworn statement, but the lien will likely be limited to the amount shown, if any.