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Lien Lawaka: mechanic's lienaka: materialman's lien

Construction Lien

In Plain English

A legal claim filed against a property when someone who worked on it hasn't been paid.

Definition

A construction lien is a statutory encumbrance placed on real property by a contractor, subcontractor, or supplier who has not been paid for labor or materials that improved the property. Once recorded in the county property records, a construction lien clouds the property's title and can prevent the owner from selling or refinancing until the lien is satisfied or bonded over. Lien laws, deadlines, and priority rules vary significantly from state to state.

Why It Matters in Bidding

Construction liens are a contractor's and supplier's strongest collection tool and a serious risk owners price into projects. For estimators and project teams, lien rights hinge on strict deadlines and notice requirements that vary by state, so understanding them protects payment on every job and influences how subs and suppliers are vetted and paid.

Example

After going 90 days unpaid on a retail buildout, a drywall subcontractor records a construction lien against the property for the value of its labor and materials, clouding title until the GC releases payment.

Related Terms

Mechanic's LienLien WaiverLien Release

Frequently Asked Questions

Contractors, subcontractors, material suppliers, and often equipment lessors who improved the property may file, subject to state law. Deadlines are strict and vary widely, frequently measured from last furnishing of labor or materials. Many states also require a preliminary or pre-lien notice early in the job to preserve the right to lien.
Owners can pay the claim and obtain a lien release, dispute and litigate the lien, or bond it off by posting a surety bond that transfers the claim from the property to the bond. Requiring conditional and unconditional lien waivers with each payment is the most common preventive practice.
Yes, signing a lien waiver releases lien rights for the work and amount stated. Conditional waivers take effect only once payment clears, while unconditional waivers release rights immediately. Subcontractors should match waiver type to payment status and avoid signing unconditional waivers before funds are actually received and good.

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