New Jersey § 2a:44-128

§ 2a:44-128.

a. Any person who, as laborer, mechanic, materialman, merchant or trader, or subcontractor,

in pursuance of or conformity with the terms of any contract for any public improvement

made between any person and a public agency as defined in N.J.S.2A:44-126 and authorized by law to make contracts for the making of public improvements, performs

any labor or furnishes any materials, including the furnishing of oil, gasoline or

lubricants and vehicle use, toward the performance or completion of any such contract,

shall, on complying with the provisions of subsection b. of N.J.S.2A:44-128 , N.J.S.2A:44-132 and N.J.S.2A:44-133 , have a lien for the value of the labor or materials, or both, upon the moneys due

or to grow due under the contract and in the control of the public agency, to the full value of

the claim or demand. The lien may be filed and, to the extent of the amount due or to grow due under

the contract, shall become an absolute lien to the full value of the labor performed

or materials furnished in favor of every person and his representatives and assigns

employed by or furnishing materials to the contractor or subcontractor. No public agency shall be required to pay a greater amount than the contract price

of the labor performed and materials furnished or the value thereof when no specific

contract is made with respect to the same by the contractor or subcontractor, respectively. b. Any person who may seek to assert a lien under subsection a. of this section shall,

within 20 days of the first performance of work or performance of work or delivery

of labor or materials to a subcontractor, file with the municipal clerk, the chief

financial officer of the county or the chairman of the commission, board or authority,

whichever is appropriate, written notice that he or she has furnished labor or materials

to the subcontractor. The notice shall contain the name, address and telephone number of the person providing

the labor or materials, the name and geographical location of the public improvement

for which the labor or materials have been supplied, the name of the subcontractor

to which the labor or materials have been supplied, a description of the labor or

materials supplied, and the date that the labor or materials were first supplied to

the subcontractor. The officer of the public agency shall maintain a separate file for all written

notices which shall be available to the public for inspection and copying during regular

business hours. Failure to provide this written notice as required within 20 days of the first performance

of work or delivery of labor or materials to the subcontractor shall be a bar to secure

a lien for the labor or materials provided, unless there is money owing from the contractor

to the subcontractor to whom the labor or materials were provided, in which case the

lien shall be limited in value to a sum not greater than the money owing from the

contractor to the subcontractor. The public entity with which the notice required by this section is filed may charge

an inquiry fee for information contained in the notice to any person, including the

contractor. The inquiry fee shall be reasonable and shall be set to reflect the cost to the

public entity of retrieving the information. Notwithstanding the provisions of this section to the contrary, if a notice is filed

after the 20-day period, the person so filing may assert a lien under subsection a.

of this section for any labor or materials provided on or after that filing date. No additional notice shall be required for work or materials provided under the same

public improvement contract subsequent to the initial notice, notwithstanding that

the work and materials may be provided under a separate contract or purchase order. Written notice shall be substantially in the following form: NOTICE OF THE DELIVERY OF LABOR OR MATERIALS In accordance with the terms and provisions of the “Municipal Mechanics‘ Lien Law,” N.J.S. 2A:44-125 et seq. , notice is hereby given that: 1. (Name of person supplying labor or materials) of (address of person supplying labor

or materials) has on (date) provided to (name of subcontractor) the following: (description

of labor or materials). My telephone number is (telephone number of person supplying labor or materials). 2. The (description of labor or materials) were provided for the (name of public improvement)

in (name of municipality), New Jersey. Signed: _________ For: __________ Individual, firm or corporation _________ c. Funds received by a contractor and paid to a subcontractor or supplier for work

performed or labor or materials supplied pursuant to a contract for any public improvement

shall be applied only to amounts due and owing for work performed or labor or materials

supplied for such public improvement. Any subcontractor or supplier who knowingly applies such payment received from the

contractor on the public improvement to amounts due and owing for work performed or

labor or materials supplied on a construction project other than the public improvement

and then claims a lien on the public improvement for non-payment shall forfeit all

lien rights under this title. A subcontractor or supplier forfeiting his lien rights pursuant to this section

shall be liable for all damages incurred by any contractor as a result of the misapplication

of such funds, including attorney's fees, and shall be liable for all court costs

and reasonable legal expenses, including attorneys' fees, incurred by the contractor

in defending or causing the discharge of the lien claim.