A mechanics lien is a security interest in real property, created by statute, that lets people who supplied labor or materials to improve the property claim payment from it. If unpaid, a lien claimant can, in principle, force a sale of the property to collect. On most public projects liens are not allowed; payment bonds protect subs and suppliers instead. Each state sets its own rules for notices, deadlines and forms, and missing a deadline can forfeit lien rights. This is general education, not legal advice.
Why it matters
A lien clouds the owner’s title and can block financing and sale, so owners and lenders work hard to avoid them. That is why pay apps require lien waivers, why GCs track sub-tier suppliers, and why preliminary notices get attention. For subs and suppliers, lien rights are their main leverage when payment stops.
Worked example
Illustrative: if CoreDry (a sub on Riverside Medical Center, sample data) goes unpaid on a disputed invoice, it may be able to record a lien against the property within its state’s deadline. The owner would then likely require the GC to remove it, often by bonding around the lien, before releasing further payments.
Common mistakes
- Assuming a GC payment to a sub eliminates the supplier’s lien rights.
- Missing state notice or filing deadlines.
- Treating liens as available on public work, where bond claims usually apply instead.
How os.construction handles it
We’re building notices, waivers and payments on one record so lien exposure by vendor is visible to PMs and accounting at the same time.