Mechanic's Liens & Payment Bonds

Construction runs on credit: suppliers deliver materials and subcontractors work before they are paid. A mechanic's lien and payment bonds are legal tools to protect that payment. Both sides, contractors and property owners, need to understand how they work.

• Contractors
• Subcontractors
• Homeowners

What is a mechanic's lien?

A lien is a legal claim against a property for unpaid work or materials that improved it. If it is not resolved, it can lead to foreclosure and sale of the property. In many states, subcontractors and suppliers can place a lien even if the owner paid the general contractor.

Who can file

• General contractors, subcontractors and suppliers of labor and materials, and sometimes designers.
• Rules about who qualifies, the notices required and the time limits vary a great deal by state. Missing a deadline can lose the right.
• An individual worker's unpaid wages are usually handled through wage claims rather than liens. See Wage Theft and Small Claims for Wages.

Typical steps for a claimant

1. Preliminary notice: early in the job, many states require subs and suppliers to send notice to the owner and general contractor to keep lien rights.
2. Record the lien in the county records within the deadline after the last work, often 60 to 120 days or more.
3. Serve notice to the owner as required.
4. Sue to enforce the lien within a short period, often within months to a year or so.

For property owners

• Check that your contractor is licensed and pays subs and suppliers. See Hiring Contractors
• Get lien waivers (conditional and unconditional) from the contractor, subs and suppliers with each payment
• Keep records of payments and contracts
• If you receive a preliminary notice, take it seriously and ask the contractor to confirm payment
• Do not make final payment until all waivers are in hand
• If a lien is filed, talk to a construction attorney. You may be able to bond around it

Payment bonds on public projects

• Public property generally cannot be liened. Instead, contractors must provide a payment bond that guarantees payment of subs and suppliers.
• On federal projects the Miller Act requires bonds on contracts over a set amount, and many states have "Little Miller Acts" for state work.
• Claimants must follow strict notice and filing deadlines on bonds too.

Last updated: October 8, 2026