THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY KILLION, TURZAI, MILLER AND MUSTIO, MAY 25, 2011

REFERRED TO COMMITTEE ON LABOR AND INDUSTRY, MAY 25, 2011  

AN ACT

Amending the act of August 24, 1963 (P.L.1175, No.497), entitled

"An act to codify, amend, revise and consolidate the laws

relating to mechanics' liens," further providing for formal

notice by subcontractor as condition precedent and for filing

and notice of filing of claim.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Sections 501 and 502 of the act of August 24,

1963 (P.L.1175, No.497), known as the Mechanics' Lien Law of

1963, amended June 29, 2006 (P.L.210, No.52), are amended to

read:

Section 501. [Formal] Notice [by Subcontractor as Condition

Precedent].--

(a)  Notice of Commencement.

(1)  Not later than fifteen (15) days after the contractor

physically commences work on the property, the owner, agent of

the owner or the contractor may file a notice of commencement

with the prothonotary of the court of common pleas in the

judicial district in which the project is located. The notice

must include all of the following:

(i)  Name, address and telephone number of the contractor.

(ii)  Name and location of the project being constructed.

(iii)  Legal description of the property upon which the

improvements are being made.

(iv)  Name and address of the true owner of the property.

(v)  Name and address of the person other than the owner at

whose instance the improvements are being made, if that person

is not the true owner of the property.

(vi)  Name and the address of a surety for the performance

and payment bonds.

(2)  The owner or contractor must conspicuously post a copy

of the notice at the project site at the time that physical work

commences upon the property.

(3)  The owner must deliver a copy of the notice of

commencement to the contractor within seven (7) days after the

notice is filed.

(4)  The contractor must give a copy of the notice to a

subcontractor that makes a written request. If a contractor

fails to comply with this paragraph within ten (10) days of

receipt of the written request, this section shall not apply to

the subcontractor that made the request.

(b)  Notice of Furnishing. If a notice is filed under

subsection (a)(1) and posted under subsection (a)(2), a

subcontractor that is not in direct privity with the owner and

that performs work or services or provides material or equipment

in furtherance of an improvement to property must, as a

condition of retaining lien rights under section 301,

substantially comply with all of the following to file a notice

of furnishing:

(1)  Subject to paragraph (4)(ii), the subcontractor must

serve the notice upon the owner within twenty (20) days after

first performing work or services or first providing materials

or equipment in connection with the improvement of the property.

(2)  The notice must be served in one of the following

manners:

(i)  Certified mail to owner's address.

(ii)  Personal delivery to the owner. Evidence of delivery

must be an acknowledgment signed by the owner.

(3)  The notice must contain, at a minimum, the following:

(i)  A general description of the labor, skill, materials,

fixtures, machinery or tools furnished and the estimated price.

(ii)  Name and address of the person supplying items in

subparagraph (i).

(iii)  Name and address of the person that contracted for the

items in subparagraph (i).

(iv)  A description sufficient to identify the property which

is being improved.

(3)  Notice must be substantially in the following form:

Notice of Furnishing

(For use in connection with improvements to property other

than public improvements)

TO:                                 

(Name of owner)

(Address of owner)

Please take notice that the undersigned is performing

certain work or labor or furnishing certain materials

to                       (Name and address of other contracting

party) in connection with the improvement to the real property

located at                       . The labor, work or materials

were performed or furnished first, or will be furnished first on

(date).

WARNING TO OWNER: THIS NOTICE IS REQUIRED BY THE PENNSYLVANIA

MECHANICS' LIEN LAW. IF YOU HAVE ANY QUESTIONS ABOUT YOUR RIGHTS

OR DUTIES UNDER THESE STATUTES YOU SHOULD SEEK LEGAL ASSISTANCE

TO PROTECT YOU FROM THE POSSIBILITY OF PAYING TWICE FOR

IMPROVEMENTS TO YOUR PROPERTY.

(Name and Address of Lien Claimant

By

(Name and capacity of party signing for lien claimant)

(Address of Signing Party)

(Date)

(4)  Filing of a notice under this subsection preserves the

lien rights of a subcontractor in compliance with this act as

follows:

(i)  For amounts owing for work and services performed and

materials and equipment furnished from the date the work or

services were first performed or materials or equipment were

first furnished through the date of service of the notice of

furnishing and thereafter.

(ii)  A notice delivered outside the time frame under

paragraph (1) preserves the right to file a lien which is only

enforceable for the services or materials furnished within the

period of twenty (20) days before the date on which notice is

given.

(5)  If a subcontractor does not substantially comply with

this subsection, the subcontractor forfeits the right to file a

lien claim.

(b.1)  Time Period of Formal Notice. No claim by a

subcontractor, whether for erection or construction or for

alterations or repairs, shall be valid unless, at least thirty

(30) days before the same is filed, he shall have given to the

owner a formal written notice of his intention to file a claim,

except that such notice shall not be required where the claim is

filed pursuant to a rule to do so as provided by section 506.

(c)  Contents of Formal Notice. The formal notice shall

state:

(1)  the name of the party claimant;

(2)  the name of the person with whom he contracted;

(3)  the amount claimed to be due;

(4)  the general nature and character of the labor or

materials furnished;

(5)  the date of completion of the work for which his claim

is made;

(6)  a brief description sufficient to identify the property

claimed to be subject to the lien.

(d)  Service of Notice. The notice provided by this section

may be served by first class, registered or certified mail on

the owner or his agent or by an adult in the same manner as a

writ of summons in assumpsit, or if service cannot be so made

then by posting upon a conspicuous public part of the

improvement.

Section 502.  Filing and Notice of Filing of Claim.--

(a)  Perfection of Lien. To perfect a lien, every claimant

must:

(1)  file a claim with the prothonotary as provided by this

act within [six (6)] four (4) months after the completion of his

work; and

(2)  serve written notice of such filing upon the owner

within one (1) month after filing, giving the court, term and

number and date of filing of the claim. An affidavit of service

of notice, or the acceptance of service, shall be filed within

twenty (20) days after service setting forth the date and manner

of service. Failure to serve such notice or to file the

affidavit or acceptance of service within the times specified

shall be sufficient ground for striking off the claim.

(b)  Venue; Property in More Than One County. Where the

improvement is located in more than one county, the claim may be

filed in any one or more of said counties, but shall be

effective only as to the part of the property in the county in

which it has been filed.

(c)  Manner of Service. Service of the notice of filing of

claim shall be made by an adult in the same manner as a writ of

summons in assumpsit, or if service cannot be so made then by

posting upon a conspicuous public part of the improvement.

Section 2.  This act shall apply as follows:

(1)  The amendment of section 501 of the act shall apply

to contracts entered into or renewed on or after the

effective date of this paragraph.

(2)  The amendment of section 502(a)(1) of the act shall

apply to claims for work completed on or after the effective

date of this paragraph.

Section 3.  This act shall take effect January 1, 2012.