What are the rights of subcontractors when a contractor is paid?

In New Jersey, subcontractors have certain rights when a contractor is paid. These rights are outlined in the New Jersey Construction Lien Law. According to the law, subcontractors are entitled to a “prompt payment” of the money owed to them when the contractor is paid. This means that the subcontractor must be paid within the same time frame as the contractor. If the subcontractor is not paid in a timely manner, they have the right to file a lien against the property where construction was done. A lien is a legal document that gives the subcontractor the right to put a hold on any property that was worked on so they can receive payment. The lien remains in place until the subcontractor is paid in full. The lien gives the subcontractor the right to collect money from the contractor or property owner, and can be enforced in court if necessary. Subcontractors also have the right to get paid for any materials or labor they provide for the job. The contractor is responsible to ensure that all subcontractors are paid for their work before taking any money for themselves. In addition, if the contractor fails to pay the subcontractor, the subcontractor has the right to take legal action against the contractor to recover unpaid wages. Overall, subcontractors in New Jersey have certain rights when a contractor is paid for their work. These rights are protected under the New Jersey Construction Lien Law, giving subcontractors the ability to collect payment for their labor and materials.

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What are the rights of subcontractors when a contractor is paid?

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