Attention project owners, developers, contractors, and equipment renters: A significant change is moving through Pennsylvania’s legislature that could directly affect your financial exposure and risk management practices. House Bill 1319 (HB 1319) proposes to expand lien rights under the Mechanics’ Lien Law of 1963 to cover rented equipment.

The Gap in Current Law

The Mechanics’ Lien Law has long protected those who supply labor and materials to construction projects. But equipment suppliers have been left in a gray area. Heavy machinery, cranes, large generators, and scaffolding are indispensable to completing major projects, yet rental companies frequently lack a clear right to file a lien when unpaid.

Consider a contractor renting a hydraulic crane for a large-scale data center project. The crane is the backbone of the job: Without it, generators cannot be set, chillers cannot be placed, and structural work slows to a crawl. Yet if the contractor defaults, the rental company is left exposed. Because the crane is not permanently incorporated into the finished structure, current law often denies the supplier lien protection. The result: Despite providing equipment as critical as any building material, rental companies remain uniquely vulnerable to nonpayment.

What HB 1319 Does

HB 1319 seeks to close this loophole by explicitly expanding the definition of “materials” to include rented equipment. Under the bill, rental suppliers would gain the same lien rights as traditional material suppliers. Whether a crane is lifting steel beams or stationed on-site for weeks, the company that provided it could pursue lien rights if unpaid.

This adjustment creates both a practical and legal shift. It aligns lien protections with the realities of modern construction, where rented equipment is as essential as bricks, steel, or lumber.

Implications for Owners and Developers

Greater Financial Responsibility

If your contractor fails to pay an equipment rental supplier, that supplier could now lien your project.

Increased Due Diligence

Owners will need to obtain lien waivers not only from contractors and material suppliers but also from rental companies.

Contract Adjustments

Agreements should require contractors and subcontractors to cover equipment rental obligations promptly and to provide waivers from their rental vendors. 

Implications for Equipment Rental Companies

Clear Path to Recovery

With lien rights, rental firms finally gain a reliable tool for debt collection, giving them leverage equal to other suppliers.

End of the Loophole

Contractors can no longer exploit statutory ambiguity to delay or avoid payment for rented machinery. 

Stronger Negotiating Position

With lien rights in hand, rental companies will be in a better position to negotiate payment terms and enforce timely compliance. The threat of a lien makes invoices harder to ignore, improves cash flow predictability, and reduces the need for costly collection efforts.

What Is Next

HB 1319 has momentum. Having passed the House of Representatives, it is now before the Senate Judiciary Committee. While the timing of final action remains uncertain, strong legislative support suggests a real chance of enactment.

This is not a minor technical correction—it is a meaningful change to Pennsylvania’s construction landscape. For owners and developers, proactive preparation is critical: update contract terms, tighten waiver practices, and monitor payment flows. For rental companies, the bill offers long-awaited recognition of their indispensable role and a direct path to payment security.

Stay alert. Preparing now could save substantial costs and disputes later.