Big Changes Are On The Horizon
Act 142 was signed in Harrisburg on October 14, 2014. This new legislation is set to take effect in less than a year, on January 1, 2017. It dramatically changes the approach Pennsylvania contractors, subcontractors and suppliers will be required to plan for and take in order to preserve their rights to file mechanics’ lien claims against any construction project with a total value in excess of $1.5 Million.
These $1.5M+ projects can become “searchable projects,” for which an owner can opt into a new online Construction Notices Directory being prepared by PA Department of General Services. If an owner opts into the Directory, it will give notice to everyone working on the site that the job is “searchable,” and property and project information will be uploaded to a website database. Once a project is entered into the database and notice is given to others working at the site, any contractor, sub or supplier who wishes to preserve its right to file a lien claim must enter its own particular information onto the database as well. Failure to do so by the contractor, sub or supplier will waive the ability to proceed with a mechanics’ lien claim should one be necessary down the road. Projects which start prior to 1/1/17 will not be affected.
Eastburn and Gray, PC is committed to keeping their clients up to date as the Construction Notices Directory is rolled out.
Author: Robert R. Watson, Jr.