Understanding Lien Law § 3 — and Why 2025–2026 May Be a Turning Point
New York’s mechanic’s lien law has long been one of the most powerful tools available to contractors, subcontractors, and suppliers seeking payment on construction projects. But proposed legislation now moving through Albany could meaningfully expand who is entitled to lien protection — and when.
At the center of this potential shift is New York Lien Law § 3, the statute that defines who gets a mechanic’s lien in the first place.
What Lien Law § 3 Provides Today
Under current law, Lien Law § 3 grants a mechanic’s lien to contractors, subcontractors, laborers, material suppliers, and similar trades who perform labor or furnish materials that improve real property, provided the work is done with the owner’s consent or at the owner’s request.
The statute is narrowly focused on physical improvements to real property, and courts have traditionally limited lien rights to those who directly contribute labor or materials to construction.
You can read the current statute in full here: New York Lien Law § 3
Some key features of the law as it stands now:
- A lien secures payment for labor performed or materials furnished in improving real property
- Liens must be filed within eight months of completion (or four months for single-family residences)
- New York remains an “unpaid balance” lien state, meaning a lien generally cannot exceed what the owner still owes under the prime contract
- The statute does not clearly protect professionals whose work facilitates construction but does not physically alter the property
This last point has created a recurring gap — particularly for architects, engineers, and attorneys involved in permitting and zoning.
The Proposed Amendment: Who May Be Added
That gap is now squarely in the Legislature’s sights.
During the 2025–2026 session, lawmakers introduced Assembly Bill A8346, which would amend Lien Law § 3 to expressly include certain professional services within the scope of mechanic’s lien protection.
You can review the bill text here: New York Assembly Bill A8346
If enacted, the amendment would extend lien rights to:
- Architects and engineers who provide professional services related to obtaining building permits, zoning approvals, or other governmental authorizations necessary for construction; and
- Attorneys whose legal services are directly tied to securing approvals that allow a project to proceed
Critically, the bill does not create blanket lien rights for all professional services. Instead, it targets work that is integral to enabling the physical improvement of real property.
Why This Change Matters
1. It Modernizes New York’s Lien Law
In today’s development environment, construction often cannot begin until extensive entitlement, zoning, and permitting work is completed. These services may take months — sometimes years — and often involve substantial fees.
Yet under current law, professionals performing this work frequently have no lien rights at all, even when their efforts directly unlock the project’s value.
The proposed amendment recognizes that reality.
2. It Changes Leverage in Payment Disputes
If architects, engineers, and permit-related attorneys gain lien rights, owners and developers will need to treat unpaid professional fees with the same seriousness as unpaid construction invoices.
That means:
- Increased pressure to resolve fee disputes early
- Greater risk exposure for owners if professional bills remain unpaid
- New considerations for lenders reviewing title and lien exposure
3. It Will Affect Contract Drafting and Risk Allocation
Assuming the bill becomes law, contracts will need closer scrutiny:
- How is “permit-related” work defined?
- When does lien eligibility attach?
- How should retainers, milestones, and payment schedules be structured to manage lien risk?
These questions will likely become standard in development-side negotiations.
What Is Not Changing (At Least Yet)
Even with this proposed expansion, many core lien law principles remain intact:
- New York still prohibits advance waivers of lien rights
- Filing, service, and enforcement deadlines remain strict
- Liens must still be foreclosed within one year unless extended
Professionals who may become newly eligible for lien protection will need to understand — and comply with — the same procedural rules that contractors already face.
Final Takeaway
If enacted, the proposed amendment to Lien Law § 3 would represent one of the most meaningful expansions of New York mechanic’s lien rights in decades.
For developers and owners, it means more parties with lien leverage.
For design professionals and certain attorneys, it could finally provide a statutory remedy for unpaid work that directly enables construction.
Either way, this is a change worth watching closely.