The document summarizes amendments made to New Jersey's Construction Lien Law in 2011. Key changes include clarifying definitions, revising forms for notices, lien claims and affidavits, and amplifying provisions for calculating and discharging satisfied liens. Highlights of revisions to the law are presented, including changes affecting residential construction projects, statutory forms, and calculating the amount of a lien claim.

1. Amendments to New Jersey’s Construction Lien Law Moderators: Frank Araps and Daniel Guadalupe Presenters: Deanna Koestel and Matthew Sontz The material provided herein is for informational purposes only and is not intended as legal advice or counsel.

3. Opening Remarks and Comments on the New Legislation By: Frank T. Araps, Esq.

8. 2011 Construction Lien Law: Changes and Updates By: Deanna Koestel

17. Three Tiers of Liens Tier 1 2 3

34. The Lien Fund First Tier Maximum Lien a) Earned Contract Price less Payments (including retainage) Second Tier Maximum Lien Lesser of a) ( not crediting advances ) or b) Earned Sub-contract Price less Payments ( including retainage) Third Tier Maximum Lien Lesser of a) or b) or Earned Sub-subcontract Price less Payments ( including retainage)

38. Amendments to the Construction Lien Law: Residential Provisions By: Matthew Sontz

75. New Developments: Leaseholds; Public Property; Priority of Mortgages; Penalties; Amendment of Lien; Suit to Enforce; and Discharge of Lien Claim and Posting Bond By: Frank Araps

80. Three Tiers of Liens Owner Contractor Subcontractor Supplier Supplier Sub-sub Lease X 3 2 1 Tier

83. Property Leased from Public Entity Public Entity Contractor Subcontractor Supplier Supplier Sub-sub Lease X 3 2 1 Tier

84. Priorities – N.J.S.A. 2A:44A-10 Owner Contractor Subcontractor Supplier Supplier Sub-sub Mortgage Lender

104. Priorities – N.J.S.A. 2A:44A-22 Public Entity Contractor Subcontractor Supplier Supplier Sub-sub Lease Mortgage Lender/Bonds 3 2 1 Tier

120. Potential Issues with the New CLL By: Daniel Guadalupe

125. Potential Issues with the New CLL 2A: 44A-2 “ Supplier” means any supplier of material or equipment, including rental equipment, having a direct privity of contract with an owner, community association, contractor or subcontractor in direct privity of contract with a contractor. But: “ Second tier lien claimant” means a claimant who is, in relation to a contractor: (1) a subcontractor; or (2) a supplier . “ Third tier lien claimant” means a claimant who is a subcontractor to a second tier lien claimant or a supplier to a second tier lien claimant. Definition of Supplier does not include “supplier to supplier.” But under definitions of second and third tier lien claimants, it appears that suppliers to suppliers can file liens. See N.J.S.A. 2A:44A-9 (lien fund = discusses first, second and third tier lien claims)

131. Question & Answer Session Thank you for coming!