Mechanic's Liens: Securing Payment in Construction
What Is a Mechanic's Lien?
A mechanic's lien (also called a construction lien or materialman's lien) is a legal claim against a property by a contractor, subcontractor, or supplier who provided labor or materials for improvements to that property but was not paid. The lien attaches to the real property itself, giving the claimant a secured interest that can ultimately force a sale of the property to satisfy the debt.
Mechanic's liens are one of the most powerful payment remedies available in construction.
Who Can File a Mechanic's Lien?
- General contractors
- Subcontractors
- Sub-subcontractors (in many states)
- Material suppliers
- Equipment rental companies (in some states)
- Architects and engineers (in some states)
- Laborers
How the Process Works
- Preliminary notice — Many states require a preliminary notice early in the project to preserve lien rights
- Non-payment occurs — The claimant performs work or delivers materials but is not paid
- Lien filing — The claimant records the lien with the county recorder within the statutory deadline
- Enforcement deadline — The claimant must file a lawsuit to enforce the lien within a separate statutory period
- Resolution — The lien is either satisfied through payment, released by agreement, or enforced through foreclosure
Critical Deadlines
Missing a deadline can permanently destroy your lien rights:
- Preliminary notice: Often required within 20-30 days of first furnishing labor or materials
- Lien filing: Typically 60-120 days after completion (varies greatly by state)
- Enforcement lawsuit: Usually 6-12 months after lien recording
What Property Owners Should Know
A mechanic's lien can cloud your property title and prevent sale or refinancing. To protect yourself:
- Require lien waivers with each payment
- Verify that subcontractors are being paid by the general contractor
- Consider joint check agreements for major subcontractors
When to Consult a Lawyer
Mechanic's lien laws are highly state-specific with strict deadlines. Consider consulting a construction attorney at the first sign of a payment dispute to preserve your rights.
This article is for informational purposes only and does not constitute legal advice. Consult a licensed attorney for guidance specific to your situation.