In most states, the law provides design professionals, contractors, and material suppliers with special lien rights to provide them with security in the event of an up-chain payment default. The contractor’s lien (or mechanic’s lien) has priority over several other types of previously recorded liens, making it a powerful tool in any payment dispute. However, it is important for contractors to understand that, because these liens grant special rights, they have a limited life and obtaining one requires strict compliance with statutory and common law procedures. Often, these procedures are not well-known to those who are inexperienced in preparing and filing them.
For most of my career, I have been advising clients on the proper use, preparation and filing of contractor liens. I have filed countless mechanic’s liens and I frequently lecture to both attorneys and contractors on the rules, procedures, priorities, and potential pitfalls of the process. Additionally, I understand when it is worthwhile for a client to invest in obtaining a mechanic’s lien, and when it is not. My goal is to steer clients toward liens only when it will increase their chances of getting paid and improve their negotiating position.