Construction Law Attorneys in Pittsburgh and Beaver County

Unconsolidated Pennsylvania Statutes
MECHANICS' LIENS (TITLE 49)
MECHANICS' LIEN LAW OF 1963
ARTICLE I. SHORT TITLE
§ 1101. Short title.
This act shall be known and may be cited as the "Mechanics' Lien Law of 1963
".

ARTICLE II. DEFINITIONS
§ 1201. Definitions.
The following words, terms and phrases when used in this act shall have the
meaning ascribed to them in this section, except where the context clearly
indicates a different meaning:

1. "Improvement"
includes any building, structure or other improvement of whatsoever kind or
character erected or constructed on land, together with the fixtures and other
personal property used in fitting up and equipping the same for the purpose for
which it is intended.
2. "Property"
means the improvement the land covered thereby and the lot or curtilage
appurtenant thereto belonging to the same legal or equitable owner reasonably
needed for the general purposes thereof and forming a part of a single business
or residential plant.
3. "Owner"
means an owner in fee, a tenant for life or years or one having any other estate
in or title to property.
4. "Contractor"
means one who, by contract with the owner, express or implied, erects,
constructs, alters or repairs an improvement or any part thereof or furnishes
labor, skill or superintendence thereto; or supplies or hauls materials, fixtures,
machinery or equipment reasonably necessary for and actually used therein; or
any or all of the foregoing, whether as superintendent, builder or materialman.
The term also includes an architect or engineer who, by contract with the
owner, express or implied, in addition to the preparation of drawings,
specifications and contract documents also superintends or supervises any
such erection, construction, alteration or repair.
5. "Subcontractor"
means one who, by contract with the contractor, express or implied, erects,
constructs, alters or repairs an improvement or any part thereof; or furnishes
labor, skill or superintendence thereto; or supplies or hauls materials, fixtures,
machinery or equipment reasonably necessary for and actually used therein; or
any or all of the foregoing, whether as superintendent, builder or materialman.
The term does not include an architect or engineer who contracts with a
contractor or subcontractor, or a person who contracts with a subcontractor or
with a materialman.
6. "Claimant"
means a contractor or subcontractor who has filed or may file a claim under
this act for a lien against property.
7. "Materials"
means building materials and supplies of all kinds, and also includes fixtures,
machinery and equipment reasonably necessary to and incorporated into the
improvement.
8. "Completion of the work"
means performance of the last of the labor or delivery of the last of the
materials required by the terms of the claimant's contract or agreement,
whichever last occurs.
9. "Labor"
includes the furnishing of skill or superintendence.
10. "Erection and construction"
means the erection and construction of a new improvement or of a substantial
addition to an existing improvement or any adaptation of an existing
improvement rendering the same fit for a new or distinct use and effecting a
material change in the interior or exterior thereof.
11. "Alteration and repair"
means any alteration or repair of an existing improvement which does not
constitute erection or construction as defined herein.
12. "Erection, construction, alteration or repair"
includes
(a) Demolition, removal of improvements, excavation, grading, filling, paving and
landscaping, when such work is incidental to the erection, construction,
alteration or repair;
(b) Initial fitting up and equipping of the improvement with fixtures, machinery
and equipment suitable to the purposes for which the erection, construction,
alteration or repair was intended; and
(c) Furnishing, excavating for, laying, relaying, stringing and restringing rails,
ties, pipes, poles and wires, whether on the property improved or upon other
property, in order to supply services to the improvement.
13. "Prothonotary"
means the prothonotary of the court or courts of common pleas of the county or
counties in which the improvement is situate.

ARTICLE III. RIGHT TO LIEN
§ 1301. Right to lien; amount.
§ 1302. Presumption as to use of materials.
§ 1303. Lien not allowed in certain cases.
§ 1304. Excessive curtilage.
§ 1305. Right to lien in case of noncompletion of work.
§ 1306. Consolidation or apportionment of claims.
§ 1307. Removal or detachment of improvement subject to claim.

§ 1301. Right to lien; amount.
Every improvement and the estate or title of the owner in the property shall be
subject to a lien, to be perfected as herein provided, for the payment of all
debts due by the owner to the contractor or by the contractor to any of his
subcontractors for labor or materials furnished in the erection or construction,
or the alteration or repair of the improvement, provided that the amount of the
claim, other than amounts determined by apportionment under section 306(b)
of this act, shall exceed five hundred dollars ($500).

§ 1302. Presumption as to use of materials.
Materials for use in or upon an improvement placed on or near the property or
delivered to the owner pursuant to a contract shall be presumed to have been
used therein in the absence of proof to the contrary.

§ 1303. Lien not allowed in certain cases.
(a) Persons Other Than Contractors or Subcontractors. No lien shall be allowed
in favor of any person other than a contractor or subcontractor, as defined
herein, even though such person furnishes labor or materials to an
improvement.

(b) Public Purpose. No lien shall be allowed for labor or materials furnished for a
purely public purpose.

(c) Conveyance Prior to Lien. If the property be conveyed in good faith and for a
valuable consideration prior to the filing of a claim for alterations or repairs, the
lien shall be wholly lost.

(d) Leasehold Premises. No lien shall be allowed against the estate of an
owner in fee by reason of any consent given by such owner to a tenant to
improve the leased premises unless it shall appear in writing signed by such
owner that the erection, construction, alteration or repair was in fact for the
immediate use and benefit of the owner.

(e) Security Interests. No lien shall be allowed for that portion of a debt
representing the contract price of any materials against which the claimant
holds or has claimed a security interest under the Pennsylvania Uniform
Commercial Code or to which he has reserved title or the right to reacquire title.

§ 1304. Excessive curtilage.
Where an owner objects that a lien has been claimed against more property
than should justly be included therein, the court upon petition may, after
hearing by deposition or otherwise, limit the boundaries of the property subject
to the lien. Failure to raise this objection preliminarily shall not be a waiver of
the right to plead the same as a defense thereafter.

§ 1305. Right to lien in case of noncompletion of work.
Except in case of destruction by fire or other casualty, where, through no fault
of the claimant, the improvement is not completed, the right to lien shall
nevertheless exist.

§ 1306. Consolidation or apportionment of claims.
(a) Consolidation of Claims. Where a debt is incurred for labor or materials
furnished continuously by the same claimant for work upon a single
improvement but under more than one contract, the claimant may elect to file a
single claim for the entire debt. In such case, "completion of the work" shall not
be deemed to occur with respect to any of the contracts until it has occurred
with respect to all of them.

(b) Apportionment of Claims. Where a debt is incurred for labor or materials
furnished by the same claimant for work upon several different improvements
which do not form all or part of a single business or residential plant, the
claimant shall file separate claims with respect to each such improvement, with
the amount of each claim determined by apportionment of the total debt to the
several improvements, and in such case, the amount of each separate claim
may be less than five hundred dollars ($500), provided that the total debt
exceeds five hundred dollars ($500). In no other case shall an apportioned
claim be allowed.

§ 1307. Removal or detachment of improvement subject to claim.
(a) Removal Prohibited; Effect.-No improvement subject to the lien of a claim
filed in accordance with this act shall be removed or detached from the land
except pursuant to title obtained at a judicial sale or by one owning the land
and not named as a defendant. Any improvement otherwise removed shall
remain liable to the claim filed, except in the hands of a purchaser for value.

(b) Restraint of Removal by Court.-The court may on petition restrain the
removal of the improvement in accordance with the Pennsylvania Rules of Civil
Procedure governing actions to prevent waste.

ARTICLE IV. WAIVER OF LIEN; EFFECT OF FILING
§ 1401. Waiver of lien by claimant.
A contractor or subcontractor may waive his right to file a claim by a written
instrument signed by him or by any conduct which operates equitably to estop
such contractor or subcontractor from filing a claim.

§ 1402. Waiver by contractor; effect on subcontractor.
A written contract between the owner and contractor or a separate written
instrument signed by the contractor, which provides that no claim shall be filed
by anyone, shall be binding; but the only admissible evidence thereof, as
against a subcontractor, shall be proof of actual notice thereof to him before
any labor or materials were furnished by him; or proof that such contract or
separate written instrument was filed in the office of the prothonotary prior to
the commencement of the work upon the ground or within ten (10) days after
the execution of the principal contract or not less than ten (10) days prior to the
contract with the claimant subcontractor, indexed in the name of the contractor
as defendant and the owner as plaintiff and also in the name of the contractor
as plaintiff and the owner as defendant. The only admissible evidence that such
a provision has, notwithstanding its filing, been waived in favor of any
subcontractor shall be a written agreement to that effect signed by all those
who, under the contract, have an adverse interest to the subcontractor's
allegation.

§ 1403. Release as waiver.
A release signed by the claimant shall not operate as a waiver of the right to file
a claim for labor or materials subsequently furnished, unless it shall appear
thereby that such was the express intent of the party.

§ 1404. Effect of credit or collateral.
The giving of credit or the receipt of evidence of indebtedness or collateral
otherwise than as provided in section 303(e) shall not operate to waive the right
to file a claim, but where credit is given, no voluntary proceedings shall be
taken by the claimant to enforce the lien until the credit period has expired.

§ 1405. Right of owner to limit claims to unpaid balance of contract price.
Where there has been no waiver of liens and the claims of subcontractors
exceed in the aggregate the unpaid balance of the contract price specified in
the contract between the owner and the contractor, then if the subcontractor
has actual notice of the total amount of said contract price and of its provisions
for the time or times for payment thereof before any labor or materials were
furnished by him, or if such contract or the pertinent provisions thereof were
filed in the office of the prothonotary in the time and manner provided in section
402, each claim shall, upon application of the owner, be limited to its pro-rata
share of the contract price remaining unpaid, or which should have remained
unpaid, whichever is greatest in amount at the time notice of intention to file a
claim was first given to the owner, such notice inuring to the benefit of all
claimants.

§ 1406. Right of subcontractor to rescind after notice of contract provisions.
Any provisions of a contract between the owner and the contractor, which
reduce or impair the rights and remedies of a subcontractor or which postpone
the time for payment by the owner to the contractor for a period exceeding four
(4) months after completion of the work, shall be grounds for recision by the
subcontractor of his contract with the contractor, unless such subcontractor
was given actual notice thereof prior to the time of the making of his contract
with the contractor, or the contract or the pertinent provisions thereof were filed
in the office of the prothonotary in the time and manner provided by section
402. Such recision shall not impair the right of the subcontractor to recover by
lien or otherwise for work completed prior thereto.

§ 1407. Contracts not made in good faith; effect.
A contract for the improvement made by the owner with one not intended in
good faith to be a contractor shall have no legal effect except as between the
parties thereto, even though written, signed and filed as provided herein, but
such contractor, as to third parties, shall be treated as the agent of the owner.

ARTICLE V. FILING AND PERFECTING CLAIM; DISCHARGE OF LIEN
§ 1501. Notice by subcontractor as condition precedent.
§ 1502. Filing and notice of filing of claim.
§ 1503. Contents of claim.
§ 1504. Amendment of claim.
§ 1505. Procedure for contesting claim; preliminary objections.
§ 1506. Rule to file claim.
§ 1507. Indexing claims, et cetera.
§ 1508. Priority of lien.
§ 1509. Effect of forfeiture of leasehold.
§ 1510. Discharge of lien on payment into court or entry of security.

§ 1501. Notice by subcontractor as condition precedent.
(a) Preliminary Notice in Case of Alteration and Repair. No claim by a
subcontractor for alterations or repairs shall be valid unless, in addition to the
formal notice required by subsection (b) of this section, he shall have given to
the owner, on or before the date of completion of his work, a written preliminary
notice of his intention to file a claim if the amount due or to become due is not
paid. The notice need set forth only the name of the subcontractor, the
contractor, a general description of the property against which the claim is to
be filed, the amount then due or to become due, and a statement of intention to
file a claim therefor.

(b) Formal Notice in All Cases by Subcontractor. 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:

the name of the party claimant;
the name of the person with whom he contracted;
the amount claimed to be due;
the general nature and character of the labor or materials furnished;
the date of completion of the work for which his claim is made;
a brief description sufficient to identify the property claimed to be subject to the
lien; and
the date on which preliminary notice of intention to file a claim was given where
such notice is required by subsection (a) of this section, and a copy thereof.

(d) Service of Notice. The notices 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.

§ 1502. Filing and notice of filing of claim.
(a) Perfection of Lien. To perfect a lien, every claimant must:

file a claim with the prothonotary as provided by this act within four (4) months
after the completion of his work; and
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 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.

§ 1503. Contents of claim.
The claim shall state:

the name of the party claimant, and whether he files as contractor or
subcontractor;
the name and address of the owner or reputed owner;
the date of completion of the claimant's work;
if filed by a subcontractor, the name of the person with whom he contracted,
and the dates on which preliminary notice, if required, and of formal notice of
intention to file a claim was given;
if filed by a contractor under a contract or contracts for an agreed sum, an
identification of the contract and a general statement of the kind and character
of the labor or materials furnished;
in all other cases than that set forth in clause (5) of this section, a detailed
statement of the kind and character of the labor or materials furnished, or both,
and the prices charged for each thereof;
the amount or sum claimed to be due; and
such description of the improvement and of the property claimed to be subject
to the lien as may be reasonably necessary to identify them.

§ 1504. Amendment of claim.
A claim may be amended from time to time without prejudice to intervening
rights by agreement of the parties or by leave of court, except that no
amendment shall be permitted after the time for filing a claim has expired which
undertakes to:

substitute a different property than that described in the claim; or
substitute a different party with whom the claimant contracted; or
increase the aggregate amount of the claim.

§ 1505. Procedure for contesting claim; preliminary objections.
Any party may preliminarily object to a claim upon a showing of exemption or
immunity of the property from lien, or for lack of conformity with this act. The
court shall determine all preliminary objections. If an issue of fact is raised in
such objections, the court may take evidence by deposition or otherwise. If the
filing of an amended claim is allowed, the court shall fix the time within which it
shall be filed. Failure to file an objection preliminarily shall not constitute a
waiver of the right to raise the same as a defense in subsequent proceedings.

§ 1506. Rule to file claim.
(a) Entry of Rule; Effect. At any time after the completion of the work by a
subcontractor, any owner or contractor may file a rule or rules, as of course, in
the court in which said claim may be filed; requiring the party named therein to
file his claim within thirty (30) days after notice of said rule or be forever barred
from so doing. The rule shall be entered by the prothonotary upon the judgment
index and in the mechanic's lien docket. Failure to file a claim within the time
specified shall operate to wholly defeat the right to do so. If a claim be filed, it
shall be entered as of the court, term and number of the rule to file the same.

(b) Effect of Claim Filed by Subcontractor. Where a claim is filed by a
subcontractor in response to such rule, the owner may give written notice
thereof to the contractor in the manner set forth by section 602 of this act, and
upon the giving of such notice the owner may avail himself of the remedies
provided by section 601 and 604 of this act and the contractor shall be subject
to the duties set forth by section 603 of this act.

§ 1507. Indexing claims, et cetera.
The prothonotary shall enter the claim, verdict and judgment upon the judgment
index and mechanic's lien docket against the owner. When a claim, verdict or
judgment is stricken, reversed or satisfied, or the name of a defendant is
stricken, or an action upon the claim to reduce it to judgment is discontinued,
or judgment is entered thereon in favor of the defendant, a note shall be made
on the judgment index.

§ 1508. Priority of lien.
The lien of a claim filed under this act shall take effect and have priority:

(a) In the case of the erection or construction of an improvement, as of the date
of the visible commencement upon the ground of the work of erecting or
constructing the improvement; and

(b) In the case of the alteration or repair of an improvement, as of the date of
the filing of the claim.

§ 1509. Effect of forfeiture of leasehold.
The lien of every claim shall bind only the interest of the party named as owner
of the property at the time of the contract or acquired subsequently by him, but
no forfeiture or surrender of a leasehold, or tenancy, whether before or after the
filing of the claim, shall operate to prejudice its lien against the fixtures,
machinery or other similar property.

§ 1510. Discharge of lien on payment into court or entry of security.
(a) Cash Deposit. Any claim filed hereunder shall, upon petition of the owner or
any party in interest, be discharged as a lien against the property whenever a
sum equal to the amount of the claim shall have been deposited with the court
in said proceedings for application to the payment of the amount finally
determined to be due.

(b) Pro-rata Allocation. In any case where the claim or claims are limited in the
manner and to the extent provided in section 405, the owner may deposit with
the court in separate proceedings a sum equal to the total allowable amount of
said claims determined in accordance with said section, whereupon the court,
on petition of such owner, shall order all of said claims discharged as liens
against the property, and the sum so deposited applied pro rata to the payment
thereof in the amounts finally determined to be due.

(c) Refund of Excess. Any excess of funds paid into court as aforesaid, over
the amount of the claim or claims determined and paid therefrom, shall be
refunded to the owner or party depositing same upon application for the same.

(d) Security in Lieu of Cash. In lieu of the deposit of any such sum or sums,
approved security may be entered in such proceedings in double the amount of
the required deposit, or in such lesser amount as the court shall approve,
which, however, shall in no event be less than the full amount of such required
deposit; and the entry of such security shall entitle the owner to have such
liens discharged to the same effect as though the required sums had been
deposited in court as aforesaid.

(e) Authority of Court. The court, upon petition filed by any party, and after
notice and hearing, may upon cause shown:

require the increase or decrease of any deposit or security;
strike off security improperly filed;
permit the substitution of security and enter an exoneration of security already
given.

ARTICLE VI. DUTIES AND REMEDIES OF OWNER AND CONTRACTOR ON
NOTICE OF INTENTION TO FILE OR ON FILING OF CLAIM BY
SUBCONTRACTOR
§ 1601. Owner's right to retain funds of contractor.
§ 1602. Notice to contractor of claim.
§ 1603. Contractor's duties on receipt of notice.
§ 1604. Additional remedies of owner.

§ 1601. Owner's right to retain funds of contractor.
An owner who has been served with a notice of intention to file or a notice of
the filing of a claim by a subcontractor may retain out of any monies due or to
become due to the contractor named therein, a sum sufficient to protect the
owner from loss until such time as the claim is finally settled, released,
defeated or discharged.

§ 1602. Notice to contractor of claim.
(a) An owner served with a notice as provided by section 601 may, and if he
has retained any funds due the contractor shall, give written notice thereof to
the contractor named.

(b) The notice shall state:

the name of the subcontractor, the amount of the claim and the amount
withheld, if any, by the owner;
that unless the contractor within thirty (30) days from service of the notice
settles, undertakes to defend, or secures against the claim as provided by
section 603, the owner may avail himself of the remedies provided by section
604.

(c) The notice may be given by the owner or his agent to the contractor
personally, or to the contractor's manager, executive or principal officer or other
agent, or if none of these persons can be found, by sending a copy of the
notice by first class, registered or certified mail to the contractor at his last
known office address.

§ 1603. Contractor's duties on receipt of notice.
Upon service of the notice provided by section 602, the contractor shall within
thirty (30) days from the contractor's receipt of notice:

settle or discharge the claim of the subcontractor and furnish to the owner a
written copy of a waiver, release or satisfaction thereof, signed by the claimant;
or
agree in writing to undertake to defend against said claim, and if the owner has
not retained sufficient funds to protect him against loss, furnish the owner
additional approved security to protect the owner from loss in the event the
defense should be abandoned by the contractor or should not prevail; or
furnish to the owner approved security in an amount sufficient to protect the
owner from loss on account of said claim.

§ 1604. Additional remedies of owner.
Should the contractor fail to settle, discharge or defend or secure against the
claim, as provided by this act, the owner may:

pay the claim of the subcontractor, upon which payment the owner shall be
subrogated to the rights of the subcontractor against the contractor together
with any instrument or other collateral security held by the subcontractor for the
payment thereof; or
undertake a defense against said claim in which case the contractor shall be
liable to the owner for all costs, expenses and charges incurred in such
defense, including reasonable attorneys' fees, whether said defense be
successful or not, but the undertaking of such defense shall not affect the right
of the owner to retain funds of the contractor under section 601 until the
[sub]contractor's claim is finally defeated or discharged.

ARTICLE VII. JUDGMENT; EXECUTION; REVIVAL
§ 1701. Procedure to obtain judgment.
§ 1702. Effect of judgment on right to personal action.
§ 1703. Appeal from judgment.
§ 1704. Satisfaction of claims; penalty for failure to satisfy.
§ 1705. Revival of judgment.
§ 1706. Execution upon judgment.

§ 1701. Procedure to obtain judgment.
(a) Practice and Procedure. The practice and procedure to obtain judgment
upon a claim filed shall be governed by the Rules of Civil Procedure
promulgated by the Supreme Court.

(b) Time for Commencing Action. An action to obtain judgment upon a claim
filed shall be commenced Within two (2) years from the date of filing unless the
time be extended in writing by the owner.

(c) Venue; Property in More Than One County. Where a claim has been filed in
more than one county as provided by section 502(b), proceedings to obtain
judgment shall be res adjudicata as to the merits of the claims properly filed in
the other counties. The judgment may be transferred to such other county by
filing of record a certified copy of the docket entries in the action and a
certification of the judgment and amount, if any. The prothonotary of the court
to which the judgment has been transferred shall forthwith index it upon the
judgment index and enter it upon the mechanics' lien docket.

(d) Limitation on Time of Obtaining Judgment. A verdict must be recovered or
judgment entered within five (5) years from the date of filing of the claim. Final
judgment must be entered on a verdict within five (5) years. If a claim is not
prosecuted to verdict or judgment, as provided above, the claim shall be wholly
lost: Provided, however, That in either case, if a complaint has been or shall be
filed in the cause and if the cause has been or shall be at issue, all time
theretofore or thereafter consumed in the presentation and disposition of all
motions and petitions of defendants, substituted defendants and intervenors in
the cause, and in any appeal or appeals from any order in the cause, from the
date of perfection of such appeal to the date of return of the certiorari from the
appellate court to the court of common pleas, shall be excluded in the
computation of the five (5) year period herein provided.