Fundamentals of Lien Laws: What Every Contractor Should Know

In this blog, we’ll explore the fundamentals of lien laws to help you understand how to safeguard your right to payment on construction projects.

What Are Lien Laws?

A mechanics lien is a legal tool that allows construction professionals to claim a security interest in a property they’ve helped improve. This claim ensures that if payment is withheld, the lienor has a legal avenue to enforce their rights—potentially even forcing the sale of the property to recover unpaid amounts.

Lien laws are designed to balance the interests of property owners and those working on or supplying to construction projects. When followed correctly, these laws provide a structured process for securing and enforcing payment rights.

Who Has Lien Rights?

Lien rights vary slightly by state, but in general, they apply to a wide range of construction participants:

• Contractors who have a direct contract with the property owner.

• Subcontractors and sub-subcontractors performing labor or furnishing materials.

• Material suppliers, even those who do not visit the job site.

• Equipment lessors who provide machinery used on the project.

In some states—including Florida—design professionals like engineers or architects may also have lien rights if their work directly improves the property. The key factor is contributing to the physical improvement of the real property, either through labor, services, or materials.

Key Steps to Securing Lien Rights

1. Serve a Notice to Owner (NTO)

If you do not have a direct contract with the property owner, Florida law requires that you serve a Notice to Owner. This notice must be received—not just mailed—within 45 days of first furnishing labor or materials. A common mistake is assuming that the postmark date counts, but it doesn’t. If it arrives on Day 46, you’ve lost your lien rights.

To ensure compliance:

• Send the Notice to Owner via certified mail with return receipt.

• Use a reliable service provider like SunRay to track and document delivery.

2. Record the Lien

You must record your lien within 90 days of your last day of work or material delivery—not your last invoice. The lien can be recorded even if the job isn't fully complete, as long as the work you're liening for is finished. Importantly, if retainage is owed, it must also be liened within this same 90-day window—no exceptions.

3. Serve a Copy of the Lien

After recording, Florida law requires you to serve a copy of the lien on all parties listed in the Notice of Commencement within 15 days. While failure to serve the lien copy doesn't invalidate the lien, it’s still a statutory obligation with potential consequences.

4. Contractor’s Final Affidavit (CFA)

Contractors with direct contracts must deliver a Contractor’s Final Affidavit at least 5 days before initiating a lien foreclosure lawsuit. This affidavit must:

• Be notarized.

• List the contract amount, amount paid, and unpaid balance.

• Include names and amounts owed to any unpaid subs or suppliers.

This step is often overlooked, yet it is required to proceed with a foreclosure suit.

5. File a Lien Foreclosure Lawsuit

If payment still isn’t made, you must enforce the lien by filing a lawsuit within 1 year of recording. This deadline is strict—there is no option to amend or refile once it passes. That said, you shouldn’t wait until the last moment. Enforcement actions started within 30–60 days of non-payment typically result in faster resolutions. If the lien is contested, your deadline to file suit may be only 60 days rather than 12 months.

Understanding Bond Claims vs. Liens

On certain public or private projects, a payment bond is posted to protect subcontractors and suppliers. When a bond is in place, your claim is against the bond—not the property.

In such cases, the appropriate remedy is a Notice of Non-Payment, which must:

• Be sent within 90 days of last furnishing labor or materials.

• Be signed and notarized.

• Include specific details about the unpaid amount and the bonded project.

Bond claims and lien claims are not interchangeable, and each has its own requirements and enforcement mechanisms.

Common Lien Law Mistakes (Traps to Avoid)

Many lien claims fail not because the work wasn’t performed—but because of avoidable mistakes. Here are the most common traps:

• Relying on mailing date instead of receipt date for the NTO. If it arrives late, your rights are gone.

• Not liening retainage. Even withheld funds must be liened within 90 days.  

• Waiting for total project completion. Only lien completed work—and do so within 90 days of it.

• Assuming rights are automatic. Lien rights are preserved only when specific legal steps are taken.

• Using billing or invoice dates to calculate deadlines. Always use actual work or delivery dates.

Best Practices for Preserving Your Rights

To avoid losing your rights and payments, follow these best practices:

Use a professional lien service like SunRay. We track critical dates, ensure documents are served correctly, and help you stay compliant. Additionally, maintain organized records that clearly show your first and last work dates, delivery receipts, and communications related to payment.

Also, never send an unconditional waiver unless you've been paid. Florida law allows for conditional releases—use them to protect your rights while facilitating payment.

When in doubt, consult a construction law attorney early. It’s far easier (and cheaper) to avoid a mistake than to try fixing one after rights have been lost.

Key Takeaway

Lien laws exist to protect your ability to get paid—but only if you understand and use them properly. By taking timely action, serving the correct notices, and avoiding common pitfalls, you can secure your rights and reduce the risk of payment issues on any construction project. Don’t leave your money on the table. Learn the rules, use them effectively, and act before deadlines pass.

FAQs: Fundamentals of Lien Laws

What is a mechanics lien and how does it work?
It’s a legal claim filed against a property to secure payment for labor, services, or materials provided. If unpaid, the lienor can pursue foreclosure to recover funds.

Who is eligible to file a lien on a construction project?
Contractors, subcontractors, suppliers, equipment lessors, and sometimes design professionals, depending on the state.

What is the Notice to Owner, and who needs to send it?
A Notice to Owner informs the property owner that you’re working on the project and may file a lien if unpaid. It must be served by those without a direct contract with the owner, within 45 days of starting work.

How soon must I file a lien after completing work?
You must record a lien within 90 days of your last work or material delivery—not your last invoice date.

What happens if I miss the 45-day or 90-day deadlines?
You lose your lien rights entirely. There are no extensions, not even for retainage.

Is a lien still valid if I didn’t finish the job?
Yes. You can file a lien for the portion of work completed—even if you're still on-site working on other tasks.

What’s the difference between a lien and a bond claim?
A lien attaches to private property; a bond claim is made against a payment bond. The process and documentation differ significantly.

What is a Contractor’s Final Affidavit?
This notarized statement is required before suing to foreclose a lien. It lists all unpaid parties and amounts owed and applies only to contractors with a direct contract with the property owner.