Reviewed September 7, 2026.
Lien Law § 8 lets a qualifying subcontractor, laborer or material supplier demand in writing the terms of the owner’s contract and the amount due or to become due under it. This can help identify the payment chain and investigate whether a lien fund exists.
Nonresponse is not an automatic guarantee
The statute addresses an owner’s refusal or neglect to provide the statement within thirty days, or a false statement. Its liability provision has additional conditions, including an unpaid claim, a judgment against the contractor or subcontractor and execution returned wholly or partly unsatisfied. Recovery concerns loss caused by the refusal, neglect or false statement. The statute also addresses liens for qualifying work or materials furnished after the demand.
The earlier article overstated the rule by suggesting that failure to answer alone made the owner liable for the entire subcontract balance.
Use the response as evidence to investigate
Compare the statement with the contract, changes, retainage, payment applications and records. Owner payment does not alone prove diversion, and owner nonpayment does not alone prove a valid mechanic’s lien. Each theory has further requirements.
A qualifying beneficiary may separately request trust records under § 76. Neither demand replaces timely filing, service or preservation of a lien, and neither automatically stops a limitation period.
Kushnick Pallaci PLLC assists clients throughout New York with New York construction debt collection. Contact 631-752-7100 or vtp@kushnicklaw.com.
Attorney Advertising. General information, not legal advice.
is there a certain form that has to be used as the statement of terms under lien law 8
ReplyDeleteThere is no specific form for responding to a Lien Law Section 8 demand in New York. The best way to respond is to read the statute and provide exactly the information that is required under the Statute. When in doubt, always consult a New York construction attorney.
ReplyDelete