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September 28, 2016

NOTICE: DGS is working on the “Mechanics Lien” Online Directory

Pennsylvania’s Department of General Services (DGS) is in the process of establishing an online “State Construction Notices Directory” (Directory) by January 2017. Under Act 142, an owner (or GC acting on behalf of an owner) may register its project via a “Notice of Commencement.” If a Notice of Commencement is filed, then any subcontractor (including suppliers and sub-subcontractors) must file a “Notice of Furnishing” on the Directory’s website within 45 days of the subcontractor first performing work at the site or first supplying materials.

If a subcontractor fails to file a Notice of Commencement within the first 45 days, the Act provides that the subcontractor waives its lien rights. 

To preserve its lien rights, subs must monitor the Directory to determine if the project on which it is working is registered (meaning the owner filed a Notice of Commencement). If it is, the subcontractor will have to file its Notice of Furnishing on the Directory as well. The Directory will also permit (but not require) a subcontractor to file a “Notice of Nonpayment” if the subcontractor has not been paid. The owner will be able to see if a subcontractor has filed a Notice of Nonpayment, and, perhaps, take action to remedy that.

Take a look at DGS’s presentation on the proposed directory:  2016-08-12-design-presentation-2014-act-142-compliance-review-002