Lien & Bond Claim Masterclass: Everything They Don’t Tell You (But Should!) – Massachusetts Webinar

In this webinar hosted by SunRay Construction Solutions and legal expert Jessica Murphy, contractors, subcontractors, and suppliers in Massachusetts will get the knowledge of the most important rules, deadlines, and best practices contractors should know to protect their payment rights in Massachusetts.

Why an Executed Contract Matters

One of the most important requirements for securing mechanic's lien rights in Massachusetts is having an executed contract.

A signed contract is always preferred, but Massachusetts law also recognizes certain alternatives to traditional signatures. For example:

• Email confirmation approving the work

• Typed names in signature fields

• Electronic signatures such as DocuSign

These forms of acceptance may still qualify as a legally enforceable agreement. However, having a properly signed contract remains the safest and strongest option.

Contractors should also ensure the agreement clearly includes:

• Contract price

• Scope of work

• Project address

• Property owner information

• Change order procedures

For time-and-materials contracts, documenting pricing becomes especially important because lien amounts must be supported with accurate records.

Why Project Information Is Critical

Many payment disputes become difficult because project details were never properly documented.

SunRay recommends that every contract clearly identify:

• Full project address

• Zip code

• Property owner name

• General contractor

• Subcontractors involved

• Supplier relationships

Descriptions such as “the Dunkin’ Donuts on Main Street” are not sufficient for mechanic's lien purposes. Contractors need precise property details to properly record and enforce a lien.

Understanding the hierarchy of the project is equally important. Contractors should know:

• Who hired them

• Whether there are intermediary subcontractors

• Who owns the property

• Who must receive legal notices

These details directly impact lien filing requirements and notice obligations.

Massachusetts Mechanic's Lien Deadlines

Massachusetts mechanic's lien law requires strict compliance with statutory deadlines.

Missing even a single deadline can invalidate an otherwise legitimate claim.

Notice of Contract

A Notice of Contract can be recorded as soon as the contract is executed.

Many contractors wait until payment problems arise, but proactive filing often provides stronger protection, especially on:

• Large-value projects

• New customer relationships

• High-risk jobs

For subcontractors, notice must also be delivered to the property owner.

90-Day Deadline

If contractors choose to wait before filing, the Notice of Contract generally must be recorded within:

90 days from the last date of work

This timeline applies to work performed under the same contractor.

Statement of Account

After recording the Notice of Contract, contractors must file a Statement of Account within:

120 days from the last date of work

Filing Suit

The final step is filing a lawsuit to enforce the lien.

This must occur within:

90 days after recording the Statement of Account

These deadlines are absolute. Courts in Massachusetts strictly enforce compliance.

Important Exceptions to Know

Massachusetts mechanic's liens apply only to private property.

Contractors cannot place mechanic's liens on:

• Public buildings

• Government-owned land

• Quasi-public property

Instead, public projects are typically protected through payment bonds.

Condominium Restrictions

Condominium projects create another common issue.

Contractors generally cannot lien condominium common areas such as:

• Hallways

• Roads

• Shared facilities

• Entire building systems

However, work performed directly inside an individual condominium unit may still qualify for lien rights.

This becomes especially important for MEP contractors working on shared infrastructure systems.

Bond Claims on Public Projects

For public construction projects, payment rights are typically protected through bond claims rather than mechanic's liens.

Massachusetts public bond claims fall under Chapter 149, Section 29.

Who Must Provide Notice?

If a contractor does not have a direct contract with the general contractor, written notice may be required.

This commonly affects:

• Sub-subcontractors

• Suppliers to subcontractors

These parties must provide written notice within:

65 days from their last date of work

Direct subcontractors generally do not need to provide this notice but must still file suit within:

1 year from the last date of work

Why Contractors Should Always Request the Bond

Contractors working on public projects should always request a copy of the bond at the start of the project.

Not all bonds provide payment protection.

There is a major difference between:

Performance Bonds

These protect the project owner.

Payment Bonds

These protect contractors, subcontractors, and suppliers.

Contractors should verify:

• The bond is valid

• The project matches the bond

• Their work falls within the covered scope

There have been cases where contractors relied on bonds that applied to entirely different projects.

Common Mechanic's Lien Mistakes to Avoid

1. Failing to Keep Delivery Records

Delivery slips and signed proof of delivery are critical evidence.

Without documentation, contractors may struggle to prove materials were actually delivered to the project site.

2. Ignoring Change Orders

Even though Massachusetts allows some contract modifications without formal documentation, written change orders remain a best practice.

Written records help prevent disputes over:

• Scope increases

• Pricing adjustments

• Project delays

• Time extensions

3. Waiting Too Long to Act

Many contractors wait until the last moment before filing a lien.

This creates unnecessary risk because filing requires gathering:

• Contracts

• Property information

• Deed records

• Party details

• Payment records

SunRay recommends evaluating lien rights well before the 90-day deadline approaches.

The Right Way to Exchange a Lien Release for Payment

One of the biggest mistakes contractors make is releasing lien rights before payment fully clears.

According to Massachusetts construction attorneys, wire transfers are often the safest form of payment because funds become immediately available.

Even certified checks can create problems because:

• Checks can be fraudulent

• Banks may take up to 14 days to clear funds

• Contractors may lose lien deadlines while waiting

Contractors should never allow critical filing deadlines to expire based solely on an uncleared payment.

Be Careful with Final Lien Waivers

Final lien waivers deserve close review.

A lien waiver should only waive lien rights necessary to process payment.

However, some documents attempt to include broader language releasing:

• Delay claims

• Extra work claims

• Pending disputes

• Additional legal rights

Contractors should carefully review all waiver language before signing.

Best Practices for Protecting Payment Rights

To strengthen mechanic's lien and bond claim protections, contractors should:

• Use signed contracts whenever possible

• Clearly identify project owners and addresses

• Document all change orders

• Track last dates of work

• Keep delivery records

• Request payment bonds early

• Monitor lien deadlines carefully

• Avoid releasing rights before funds clear

Being proactive is far easier than trying to recover payment after deadlines pass.

How SunRay Helps Contractors Protect Their Rights

Managing mechanic's lien deadlines and bond claims manually can quickly become overwhelming, especially for contractors handling multiple projects.

SunRay Construction Solutions helps contractors streamline:

• Mechanic's lien filings

• Notice tracking

• Bond claim management

• Deadline monitoring

• Compliance documentation

By automating critical filing processes, contractors can reduce risk and improve their chances of getting paid faster.

Final Thoughts

Mechanic's liens and bond claims remain some of the most powerful payment protection tools available to construction professionals in Massachusetts.

But these rights only work when contractors strictly follow the rules.

Proper contracts, accurate project documentation, timely filings, and careful payment handling all play a critical role in protecting revenue and avoiding unnecessary legal disputes.

For contractors, suppliers, and subcontractors, understanding these rules early can prevent costly mistakes later.

Common Questions Contractors ask About Mechanic's Liens and Bond Claims in Massachusetts

What is the deadline to foreclose after filing a mechanic's lien in Massachusetts?

After filing a mechanic's lien in Massachusetts, contractors must complete several legal steps before foreclosure can happen. This includes recording the Notice of Contract, filing the Statement of Account, and filing a lawsuit to enforce the lien. The lawsuit itself must also be recorded with the Registry of Deeds.

Once litigation begins, the claimant must win the case in court. If successful, the court may order the property to be sold through a sheriff’s sale. In reality, foreclosure is relatively rare because mechanic's liens are powerful enough that most disputes are resolved before the property is actually sold.

What happens if the property is sold before the lien is recorded?

If the property is sold before the mechanic's lien is recorded, the lien generally becomes invalid because the original owner no longer owns the property.

However, if the Notice of Contract was recorded before the sale, the new owner typically takes the property subject to the lien. There are also rare cases involving fraud or collusion where courts may intervene if a property was intentionally transferred to avoid lien claims.

This is why contractors are encouraged to record lien notices as early as possible rather than waiting until the last moment.

Do contractors need to release an invalid lien if the property was already sold?

Technically, if a lien was recorded after the property changed ownership, the lien is ineffective. Whether a formal release is required often depends on whether the new owner, title company, or another party requests it.

To avoid these complications, contractors should closely monitor project timelines and ownership changes while protecting their lien rights early in the process.

Can delay damages be included in a mechanic's lien claim?

No. In Massachusetts, mechanic's liens generally only cover the value of labor, services, or materials provided to the project.

Delay damages, lost profits, and similar claims are not typically recoverable through the mechanic's lien itself.

Can attorney’s fees or interest be included in a mechanic's lien amount?

Attorney’s fees and contractual interest usually cannot be recovered directly through a mechanic's lien claim unless specifically allowed under a separate contract.

For example, if a contractor’s agreement includes an 18% interest provision or attorney’s fee clause, those rights apply against the party they contracted with — such as a subcontractor or general contractor — not necessarily against the property owner.

Can filing fees or additional costs be recovered through a mechanic's lien?

Mechanic's liens are generally limited to the unpaid value of labor and materials supplied to the project. Filing fees, administrative expenses, and other related costs are not typically recoverable as part of the lien amount itself.

However, these amounts may sometimes be pursued separately through breach of contract litigation.

How do contractors recover damages beyond the mechanic's lien amount?

When contractors need to recover additional damages such as:

• Delay damages  

• Contractual interest  

• Lost profits  

• Attorney’s fees  

They typically pursue a separate lawsuit against the party they directly contracted with.

This often happens alongside the mechanic's lien enforcement action. While the lien protects payment rights against the property, the contract lawsuit seeks recovery of additional financial damages from the responsible party.

Why are mechanic's liens considered so powerful?

Mechanic's liens create a legal claim against the property itself. Because unresolved liens can interfere with refinancing, property sales, and ownership transfers, property owners and contractors are often motivated to resolve disputes quickly.

In many cases, the pressure created by the lien leads to payment negotiations long before foreclosure becomes necessary