Philadelphia Construction Law Blog

In July of this year, we reported on a change to the Pennsylvania Mechanic’s Lien Law that revised the statute to give priority to construction loans secured by open-end construction loan mortgages. The revisions also broadened the definition of cost of construction to cover a range of things – to include attorneys’ fees and accounting fees – which are part of the costs incurred to build the project. This marks a significant change in the law which can be reviewed further in our previous blog post here.

Earlier this month, the Pennsylvania Superior Court for the first time issued some very important analysis of the lien priority amendments to the Mechanic’s Lien Law in Commerce Bank/Harrisburg, N.A. v. Kessler.