A mechanics lien is a legal claim on a home or property filed by an unpaid contractor or material supplier. The lien attaches to real property, providing the unpaid party with a security interest in the property itself. If the claim is not settled, the lien may lead to foreclosure, forcing the sale of the property to satisfy the debt.

Often called a construction lien, it may also be referred to as a materialman’s lien (when filed by a supplier) or an artisan’s lien (when filed by a design professional or tradesman).

Mechanics liens are typically only available on private construction projects, like residential, commercial, or industrial projects. (On public projects, unpaid parties are typically able to recover payment by filing a bond claim.)

For most states the following parties are entitled to mechanics lien rights for the improvement of real property:

• Direct contractors
• Subcontractors
• Material suppliers
• Equipment lessors
• Design professionals
• Landscape gardeners

Steps To Securing a Mechanics Lien

Using Washington State as an example, securing and enforcing a mechanics lien for a project involves following specific legal steps to protect your right to payment. The process typically includes the following:

1. Notice to Owner: Subcontractors in Washington State must serve a Notice to Owner to the property owner and the prime contractor within 60 days from the first day of furnishing labor, materials, or services for the project. The NTO informs the property owner of your involvement in the project and preserves your right to file a mechanics lien if necessary.
2. Written Contract: Ensure you have a written contract with the prime contractor that outlines the scope of work, payment terms, and other project details. A written contract provides clarity and evidence of the agreed-upon terms between you and the prime contractor.
3. Project Documentation: Keep detailed records of all communication, changes, and activities related to the project. This documentation will be essential if any disputes or payment issues arise during the project.
4. Perform the Work or Provide Materials: Carry out the contracted work or supply materials for the construction project as agreed upon in the contract.
5. Monitoring Payment: Regularly track and monitor payment progress for your work. If payment issues arise, consider addressing them promptly through communication and negotiation.
6. File the Mechanics Lien: If payment is not received for the work provided, you may file a mechanics lien to secure your right to payment. To do so, you must complete and file a Claim of Lien form with the county auditor’s office in the county where the property is located. The lien must be filed within 90 days from the last day you provided labor, materials, or services to the project.
7. Serve the Lien Notice: After filing the mechanics lien, you must serve a copy of the lien on the property owner and the prime contractor within 14 days. Service can be accomplished through certified mail, return receipt requested, or by personal delivery with evidence of receipt.
8. Enforce the Mechanics Lien (If Necessary): If payment is still not received after filing the mechanics lien, you may need to enforce the lien by filing a lawsuit to foreclose on the lien within eight months from the date you filed the lien. This legal action initiates the process of selling the property to satisfy the debt owed.

It is crucial to comply with all applicable deadlines and requirements during the process of securing a mechanics lien as a subcontractor in Washington State. Working with a qualified attorney or a lien management service provider can ensure that you navigate the process correctly and protect your rights to payment effectively.