Mechanic’s lien
In the United States, a mechanic’s lien is a legal guarantee that ensures payment for labour or materials that have been supplied to improve property. Originally developed in relation to motor vehicles, mechanics were allowed to place a lien on the vehicles title if they were not paid for repair works.
However, the use of liens has subsequently widened and they are now sometimes referred to as construction liens, property liens, materialman's liens, supplier's liens and so on, and they are filed when payment has not been received for work done or goods or services provided.
In relation to property, liens appear in public property records and ‘travel with the land’, meaning that when property is bought and sold the lien is still attached to the land. This can make it difficult for property owners to complete a sale, if money is still owed to a contractor, and banks and lenders may be unwilling to refinance or lend against properties with liens attached. This can give property owners the incentive to have the issue settled and the lien removed.
Subcontractors and suppliers can also use liens as leverage to obtain payment from contractors. This can help, for example, in the event of the contractor going into liquidation.
The rules applying to costs that can be included in a lien vary from state to state, but generally, only costs relating to labour, goods and services that have improved the property are accepted. It is not usually possible for legal fees, punitive or qualitative damages to be included in the lien as these are not classed as having improved the property.
The claimant must file a court action to enforce the lien within an specified period of time, otherwise it becomes invalid. A Release of Lien can be sought from the lien holder if they have not brought an action, since this still has the potential of hindering the passing on of the property to a new owner.
[edit] Find out more
[edit] Related articles on Designing Buildings Wiki
Featured articles and news
UK Net Zero Carbon Buildings Standard V1 published
Free-to-access technical standard to enable robust proof of a decarbonising built environment.
Prostate Cancer Awareness Month
Why talking about prostate cancer matters in construction.
The Architectural Technology podcast: Where it's AT
Catch up for free, subscribe and share with your network.
The Association of Consultant Architects recap
A reintroduction and recap of ACA President; Patrick Inglis' Autumn update.
The Home Energy Model and its wrappers
From SAP to HEM, EPC for MEES and FHS assessment wrappers.
Future Homes Standard Essentials launched
Future Homes Hub launches new campaign to help sector prepare for the implementation of new building standards.
Building Safety recap February, 2026
Our regular run-down of key building safety related events of the month.
Planning reform: draft NPPF and industry responses.
Last chance to comment on proposed changes to the NPPF.
A Regency palace of colour and sensation. Book review.
Delayed, derailed and devalued
How the UK’s planning crisis is undermining British manufacturing.
How much does it cost to build a house?
A brief run down of key considerations from a London based practice.
The need for a National construction careers campaign
Highlighted by CIOB to cut unemployment, reduce skills gap and deliver on housing and infrastructure ambitions.
AI-Driven automation; reducing time, enhancing compliance
Sustainability; not just compliance but rethinking design, material selection, and the supply chains to support them.
Climate Resilience and Adaptation In the Built Environment
New CIOB Technical Information Sheet by Colin Booth, Professor of Smart and Sustainable Infrastructure.
Turning Enquiries into Profitable Construction Projects
Founder of Develop Coaching and author of Building Your Future; Greg Wilkes shares his insights.