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	Bond: Preliminary Notice required prior to commencing of work if no direct contract with contractor furnishing the bond. Funds: Preliminary Notice required within 20 days of first furnishing labor or materials.	Bond: Within 1 year from last furnishing labor or materials - lawsuit 90 days after sending claim, but no more than 1 year after last furnishing labor or materials. Funds: Any time prior to the completion/acceptance of the total work or 60 days thereafter - Lawsuit within 60 days of completion/acceptance of the total work.
	Bond: Preliminary Notice required prior to commencing of work if no direct contract with contractor furnishing the bond. Funds: Preliminary Notice required within 20 days of first furnishing labor or materials.	Bond: Within 1 year from last furnishing labor or materials - lawsuit 90 days after sending claim, but no more than 1 year after last furnishing labor or materials. Funds: Any time prior to the completion/acceptance of the total work or 60 days thereafter - Lawsuit within 60 days of completion/acceptance of the total work.Lawsuit to enforce the claim is due within 60 days of the work's completion / acceptance.

New Jersey Public Project Frequently Asked Questions

Who Is Protected?

On public projects in New Jersey, there are two potential types of protection: a claim against a contractor’s bond, and a lien claim against the contract funds.

As against the contractor’s bond, the parties entitled to make a claim are 1^st and 2^nd tier subcontractors and material suppliers (suppliers to suppliers are not entitled to protection.

As against the contract funds, the parties entitled to file a lien are 1^st and 2^nd tier subcontractors, or suppliers to the general contractor or 1^st or 2^nd tier subcontractors.  Note, however, that this remedy is not allowed for public projects involving the state or state agencies – it is only allowable when the contracting public agency is “county, city, town, township, public commission, public board or other municipality.”

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When is the Deadline to File a Lien/Make a Claim?

A claim against the contractor’s bond must be received within 1 year from the date of last furnishing labor or materials to the project.  However, a suit to enforce such claim must be initiated more than 90 days – but no longer than 1 year from the last furnishing of labor and materials.  To be protected, then, the claimant should send the lien claim no later than 90 days prior to 1 year after last furnishing labor or materials. ­­

A lien on the contract funds may be filed at any time prior to the completion or acceptance of the work, until no later than 60 days following the completion or acceptance of the work.

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Who Should Receive the Lien/Claim?

A claim against the contractor’s bond must be provided to the surety and to the general contractor.  There is no specific provision as to how this claim must be provided to the surety and general contractor, but best practice would likely be to send the claim via certified mail.

A claim against the contract funds must be filed with the chairman (or other head officer), or clerk or secretary of the public entity that entered into the contract.

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When is the Deadline to Initiate Suit, or, How Long is My Lien Effective?

An action to enforce a claim on the contractor’s bond must be initiated more than 90 days after providing the claim to the surety and the general contractor, but less than 1 year after the claimant’s last furnishing of labor or materials to the project.

An action to enforce a lien against the contract funds must be initiated within 60 days after the completion or acceptance of the entire project.

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What Must the Lien/Claim Include?

A claim against the contractor’s bond must only include a statement of the amount due.  It is probably advisable to include at least a description of the project, and the name of the claimant, general contractor, and contracting party, as well.  The claim does not need to be verified, but it is probably advisable for the claimant to at least sign the claim.

A lien on the contract funds must include: 1) the claimant’s name and address; 2) the amount claimed and from whom the amount is due; 3) if amount is not due, the date it will become due; 4) name of person to whom labor or materials were furnished and their role in the project; 5) the nature of the public work; 6) the name of the general contractor and the name of the public entity; 7) statement that labor and or materials were provided and actually used in the project; 8) verification by claimant or claimant’s agent.

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New Jersey Public Project Preliminary Notice FAQs

Do I Need to Send a Preliminary Notice?

Contractor’s Bond:  All claimants who do not have a direct contractual relation to the contractor furnishing the bond must send a preliminary notice.

Contract Funds:  All claimants must provide preliminary notice prior to filing a lien on the contract funds.

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When do I Need to Send a Preliminary Notice?

Contractor’s Bond:  Preliminary notice must be given prior to the commencing of work.  If the notice is given late, all is not necessarily lost, but the notice will only cover labor or materials from the date on which the notice was given.

Contract Funds:  Preliminary notice must be received no later than 20 days after the date of first furnishing labor or materials to the project.  If the notice is given late, all is not necessarily lost, but the notice will only cover labor or materials from the date on which the notice was given.

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What if I Send the Preliminary Notice Late?

For preliminary notices on both claims on the contractor’s bond and against the contract funds, giving preliminary notice late is generally not fatal to the claim.  The notice only works from the date the notice is received, however.

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How Should the Preliminary Notice be Sent?

Contractor’s Bond:  Preliminary notice must be sent by certified mail (or other method of delivery provided that the claimant has proof of the delivery of the notice).

Contract funds:  The preliminary notice of a claimant making a claim on the contract funds must be filed with the either the municipal clerk, the chief financial officer of the county or the chairman of the commission, board or authority.

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To Whom Must the Preliminary Notice be Given?

Contractor’s Bond:  Preliminary notice must be provided to the general contractor.

Contract funds:  Preliminary notice must be filed with the either the municipal clerk, the chief financial officer of the county or the chairman of the commission, board or authority.

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