Lien Law Section 38 and Lien Law Section 76: What Rochester Contractors Should Know

Reviewed September 7, 2026.

Rochester contractors may encounter two different Lien Law demands after a payment dispute. A Section 38 demand concerns a filed lien; a Section 76 request concerns construction trust records. One is not a substitute for the other.

Section 38: explain the mechanic’s lien

Under Lien Law § 38, an owner or contractor may demand a verified statement identifying the labor or materials, their values and the contract terms supporting a lien. The initial response period is five days. A missing or insufficient response can lead to an order compelling compliance, followed by a further cancellation application if that order is not obeyed.

Section 76: examine construction trust records

An eligible trust beneficiary may choose to inspect and copy trust records or receive a verified statement under Lien Law § 76. Generally, the claim must have been payable for at least 30 days, requests may not be made more often than monthly, and the statute provides a ten-day response period. The request must properly identify the beneficiary, project, trust and unpaid claim and be served personally or by registered or certified mail.

Keep separate deadline and document checklists

Identify the demand received, preserve proof of service and review the relevant records promptly. A lien claim and an Article 3-A trust claim can coexist in an appropriate case, but have different elements, parties and time limits. An unpaid bill alone does not establish trust diversion.

Kushnick Pallaci PLLC handles lien itemization disputes and construction trust claims throughout New York from its Long Island and New York City offices. Call 631-752-7100 or consult the current contact page.

Attorney Advertising. General information, not legal advice.