Legal Services

Mechanic's Liens and Bond Claims: Protecting Your Right to Get Paid

Mechanic’s Lien
  • Used on private projects
  • Filed against property to secure payment
  • Requires specific pre-lien notices and filing deadlines
  • Can lead to foreclosure action if not resolved
Bond Claim
  • Used on public projects
  • Filed against a payment bond to recover unpaid amounts
  • Must follow government contract and bonding requirements
  • Claims are paid through the bonding company
  • Mechanic’s liens increase payment recovery rates by 50% compared to unsecured claims.
  • Public project contractors rely on bond claims because mechanic’s liens are not allowed on government properties.
  • Improperly filed liens are a leading cause of construction litigation, making legal guidance essential.

A 2023 industry report found that contractors who file mechanic’s liens are paid 3x faster than those who rely on collection efforts alone. Ensuring that you file correctly and on time is critical to securing payment.

Q: What is a mechanic's lien, and how does it work?

A mechanic’s lien is a legal claim against a property for unpaid construction work or materials. It prevents the property owner from selling or refinancing until the debt is resolved.

Q: Who can file a mechanic's lien?

General contractors, subcontractors, suppliers, laborers, and design professionals may be eligible to file a lien, depending on state laws.

Q: What are the deadlines for filing a mechanic's lien?

Deadlines vary by state and project type but can range from 30 to 180 days after work completion. Missing deadlines can void lien rights.

Q: What is a bond claim, and when should I file one?

A bond claim is a legal demand for payment from a surety bond when a contractor fails to pay subcontractors or suppliers on a public project.

Q: What happens if a mechanic's lien is ignored?

If unpaid, the lienholder may file a foreclosure lawsuit, forcing the sale of the property to recover funds.

Q: Can a mechanic's lien be removed?

Yes. Liens can be removed if they are improperly filed, paid off, or successfully challenged in court.

An example of construction law litigation from Grae & Grae LLC
  • Construction Payment Experts: We have a proven track record of helping contractors recover unpaid funds.
  • State-Specific Knowledge: Our team understands the complex lien and bond claim laws in your jurisdiction.
  • Fast & Efficient Filing: We ensure timely, accurate submissions to preserve your lien rights.
  • Aggressive Payment Recovery: We negotiate settlements, enforce liens, and litigate when necessary.

Secure Your Right to Payment, Act Now