A construction lien, also known as a mechanic's lien or a materialman's lien, is a legal claim that can be filed by contractors, subcontractors, suppliers, or other parties who have provided labor, materials, or services for a construction project. The lien is a way to ensure that the parties who have contributed to the project are paid for their work, even if the property owner fails to make payment.
A construction lien gives the lienholder a security interest in the property where the work was performed. This means that if the property owner fails to pay for the work, the lienholder may be able to force the sale of the property in order to collect the money owed. The lien provides the lienholder with a legal claim on the property, which takes priority over other claims against the property, such as a mortgage or other liens.
In order to file a construction lien, the lienholder must typically follow specific procedures and deadlines set forth by state law. This may include filing a notice of intent to lien, filing a lien claim, and taking other steps to enforce the lien.
Construction liens can be a powerful tool for contractors and other parties to ensure that they are paid for their work. However, they can also be complex and involve significant legal requirements. It is recommended that parties seek the advice of a qualified attorney if they are considering filing a construction lien or if they are facing a lien filed against their property.