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Subcontractor's Monthly Notice to Preserve Lien Rights in New Hampshire

Mechanic's liens are governed by Chapter 447 of the New Hampshire Statutes.

In order to claim a mechanic's lien in New Hampshire (and most other states) for labor or materials, contractors, subcontractors, and suppliers must provide preliminary, or pre-lien notices to protect their right to claim a lien.

If a potential claimant (person authorized under this Chapter to claim a lien) performs labor, provides professional design services, or furnishes materials valued at $15.00 or more, by virtue of a contract with an agent, contractor or subcontractor of the owner, the person shall have a right to a lien, provided, that he or she gives notice in writing to the owner or an authorized representative that he or she shall claim a lien before performing the labor or furnishing the material for which it is claimed. NH RSA 447:5.

The subcontractor may also give notice after the labor is performed, the professional design services are provided, or the material is furnished, and the lien shall be valid to the extent of the amount then due or that may thereafter become due to the contractor, agent or subcontractor of the owner. NH RSA 447:6. The account required under RSA 447:8 may also be given when the notice is delivered to the owner. Id. The subcontractor may also deliver a copy of this notice to the general contractor.

Any person giving notice as provided in RSA 447:5-7 shall, as often as every 30 days, furnish the owner or authorized representative with an account, in writing, of the fees due and amount paid during the 30 days. Attach a detailed invoice if appropriate. The owner then sets aside a sufficient sum of money to cover the bill, but may wait for the general contractor to pay the subcontractor.

If the general contractor goes out of business or is otherwise unable to pay the subcontractor, the owner's liability depends on whether or not they still owe money to the general contractor. If the owner has an outstanding balance due to the general contractor, the subcontractor may claim a lien, but if the general contractor was paid in full, the subcontractor might be forced to take a loss. NH RSA 447:8.

This article is offered for informational purposes only and is not legal advice. This information should not be relied upon as a substitute for speaking with an attorney. Please speak with an attorney familiar with lien laws with questions regarding subcontractor notices or any other issues related to mechanic's liens in New Hampshire.