Glossary

Mechanic’s Lien

A legal claim filed by an unpaid contractor against a property for work performed or materials supplied.

A Mechanic's Lien is a statutory legal claim that unpaid contractors, subcontractors, suppliers, and laborers can file against a property to secure payment for work performed or materials supplied. Each state has its own mechanic's lien law with specific notice requirements, filing deadlines, and enforcement procedures. For general contractors, managing lien risk means collecting proper lien waivers with every payment, tracking preliminary notices from lower-tier subs and suppliers, and ensuring no lien claims attach to the property at final payment.

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