Protecting the Right to Payment for Work Performed

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Contractors, subcontractors, and suppliers deserve to be paid for the work and materials they provide. When payment does not come, Pennsylvania law may allow those who contributed labor or materials to a construction project to place a mechanic’s lien against the property.

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A mechanic’s lien can be a powerful tool for recovering unpaid construction bills. It creates a claim against the improved property itself and can place significant pressure on an owner, contractor, or other responsible party to resolve a payment dispute.

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At McGowan Legal LLC, we represent contractors, subcontractors, property owners, and others involved in mechanic’s lien and construction-payment disputes throughout Western Pennsylvania and across the Commonwealth.

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What Is a Mechanic’s Lien?

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A mechanic’s lien is a statutory lien against real property arising from unpaid labor or materials used to improve the property. Pennsylvania’s Mechanics’ Lien Law generally permits qualifying contractors and subcontractors to assert lien rights for debts arising from construction, alteration, or repair work.

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Generally, the amount of the lien claim must exceed $500. Whether lien rights exist, however, depends on the nature of the project, the claimant’s relationship to the project, compliance with statutory notice requirements, and other circumstances.

A mechanic’s lien is different from an ordinary breach-of-contract claim. Instead of seeking recovery solely against the person or company that failed to pay, a properly perfected lien creates an encumbrance against the real estate that was improved.

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That can have serious consequences for the property owner. An unresolved lien may interfere with the sale or refinancing of the property and, if successfully reduced to judgment and enforced, can potentially result in a judicial sale of the property.

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Pennsylvania Mechanic’s Lien Deadlines

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Pennsylvania's mechanic’s lien procedures contain strict deadlines. Missing one can result in the loss of lien rights even when the underlying debt is otherwise valid.

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In most cases, a mechanic’s lien claim must be filed with the prothonotary in the county where the property is located within six months after completion of the claimant’s work. After filing, the claimant generally must serve notice of the filing on the property owner within one month and file proof of that service as required by statute.

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Subcontractors face additional requirements. A subcontractor generally must provide the property owner with formal written notice of its intention to file a mechanic’s lien at least 30 days before filing the claim. The notice must contain specific information concerning the claimant, the amount owed, the work or materials provided, and the property.

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Because these deadlines can overlap, waiting until the end of the six-month filing period can create problems. Contractors and subcontractors dealing with significant unpaid invoices should consider their lien rights well before the filing deadline approaches.

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Notice of Furnishing and Large Construction Projects

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Additional requirements may apply to certain larger Pennsylvania construction projects.

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Pennsylvania maintains a State Construction Notices Directory for qualifying “searchable projects.” For projects subject to these provisions, a subcontractor may be required to file a Notice of Furnishing within 45 days after first performing work or providing materials when a Notice of Commencement has been properly filed and posted. Failure to comply can affect the subcontractor’s lien rights.

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These notice requirements make it particularly important for subcontractors and suppliers to evaluate potential lien rights early rather than waiting until a payment dispute has developed.

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Who Can File a Mechanic’s Lien?

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Pennsylvania mechanic’s lien rights may be available to parties including:

• General contractors who contract directly with the property owner;

• Subcontractors performing qualifying work;

• Certain sub-subcontractors;

• Material suppliers; and

• Other parties furnishing qualifying labor or materials for an improvement.

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Not every unpaid construction-related debt creates lien rights. The claimant's relationship to the owner or general contractor, the type of labor or materials supplied, the nature of the property, and compliance with Pennsylvania's statutory requirements can all affect whether a valid lien exists.

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Special rules also apply to certain residential properties. For example, Pennsylvania law limits a subcontractor's lien rights against certain owner-occupied or residential properties when the owner has already paid the general contractor in full.

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Filing and Enforcing a Mechanic’s Lien

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Filing the lien is not necessarily the end of the process.

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A properly filed mechanic’s lien secures the claimant's asserted interest against the property, but further legal proceedings may be necessary if the debt remains unpaid. Under Pennsylvania law, an action to obtain judgment on the lien generally must be commenced within two years after the lien claim is filed, unless the owner agrees in writing to extend that period.

Depending on the circumstances, a construction-payment dispute may involve both mechanic’s lien proceedings and separate claims for breach of contract, unjust enrichment, or other available causes of action.

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McGowan Legal can evaluate the available methods of recovery and pursue an approach designed to obtain payment efficiently rather than treating the lien process in isolation.

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Challenging an Improper Mechanic’s Lien

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Mechanic’s lien disputes do not only involve contractors seeking payment. Property owners may also need representation when a lien is improperly filed.

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A mechanic’s lien can create substantial problems for an owner attempting to sell, refinance, or otherwise deal with the property. But the filing of a lien does not establish that the claimant is actually entitled to the money demanded.

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A lien may be subject to challenge based on issues such as untimely filing, defective notice or service, failure to comply with statutory requirements, work that does not qualify for lien protection, incorrect identification of the property or parties, payment of the underlying obligation, or disputes concerning the amount actually owed.

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McGowan Legal represents property owners seeking to challenge, reduce, discharge, or otherwise resolve mechanic’s lien claims as well as contractors and subcontractors seeking to enforce them.

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Mechanic’s Lien Representation in Western Pennsylvania

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Construction disputes often involve substantial amounts of money and strict procedural requirements. Acting quickly can preserve options that may disappear as statutory deadlines pass.
 

McGowan Legal LLC assists clients with mechanic’s lien matters involving residential and commercial properties in Pittsburgh, Allegheny County, and communities throughout Western Pennsylvania, as well as matters elsewhere in Pennsylvania.
 

Our representation may include evaluating lien rights, preparing required notices, filing mechanic’s lien claims, pursuing payment after filing, enforcing existing liens, defending property owners against disputed liens, and pursuing related breach-of-contract claims.
 

Speak With a Pennsylvania Mechanic’s Lien Attorney
 

If you performed construction work and have not been paid—or if a mechanic’s lien has been filed against your property—McGowan Legal LLC can evaluate your rights and available options.
 

Mechanic’s lien claims are particularly time-sensitive. Contact McGowan Legal LLC to discuss a Pennsylvania mechanic’s lien or construction-payment dispute and determine the appropriate next steps.