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A new bill proposed in New Jersey would adjust the state's lien laws to better serve the construction industry and its various participants.

The legislation revises the state's Construction Lien Law, which was originally passed in 1993, and in addition to clarifying certain terms pertaining to the meaning of "residential", also clarifies, and in some cases rearranges, procedures for the filing and amending of a lien claim as well as the calculation, distribution and enforcement of the lien fund. Other provisions amplify measures in the original law that govern the discharge of satisfied liens, codify court holdings on subjects like contract price, lien fund and lien claim, and further define the role of arbitrators in residential construction contract lien arbitrations.

According to Greg Powelson, director of NACM's Mechanic's Lien & Bond Services (MLBS), the overarching effect of the bill could potentially make it easier for construction creditors. "The bill revises some statutory language simply to make it easier for participants in the construction industry to use the law," he said. "It enhances application of the current statute and clarifies the procedures to be followed in order to process and perfect a construction lien claim."

The legislation was originally introduced in the state Assembly by Patrick Diegnan. While the state's legislative session is nearing its end and action on the bill isn't expected until after the New Year, a search continues for a Senate sponsor.

To follow the bill, numbered A4319, visit the New Jersey state legislature's website at www.njleg.state.nj.us. To learn more about NACM's MLBS, which provides up-to-date information on every state's lien and construction laws, click here.

Jacob Barron, NACM staff writer

 

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