A construction project kick-off is often met with a sigh of relief. It means funds will flow through the entire ecosystem of laborers, contractors, subcontractors and material suppliers. But the euphoria can quickly fade when progress payments are not made and the relationship with the client heads south.
Mechanic's liens on private California projects
Under the California Constitution, labor and material suppliers contracted on a private construction project — with the property owner, prime contractor, subcontractor or their agents — are equipped with a powerful legal tool: the construction lien, or mechanic's lien. Filing one ensures the construction company gets paid. Even if the work is not completed or the workmanship is in dispute, if the property is improved and the contractor isn't paid for that improvement, the contractor can file a mechanic's lien for non-payment of services rendered.
A lien gets the owner's attention
A construction lien can lead to foreclosure on real estate in order to collect money owed. Because of the serious nature of this lien, property owners will typically fight hard to save their assets. Strict adherence to the process and timelines is absolutely crucial — if the lien is challenged in court, you risk an expensive legal headache. When involved in a construction dispute, it is essential to seek counsel from a construction attorney who specializes in mechanic's liens.
Preliminary Notice — within 20 days
The Preliminary Notice outlines the work to be done and preserves the contractor's right to file a lien. The claim of a lien can only extend to work performed up to 20 days before the notice was served (Cal. Civ. Code § 3114). If filed late, the claimant loses any days of services performed outside that 20-day window. The property owner must always be served a Preliminary Notice, even if labor is not directly contracted with them.
Notice of Nonresponsibility — within 10 days
If the property owner rejects the proposed work, they must record and post a Notice of Nonresponsibility within 10 days of receiving the Preliminary Notice (Cal. Civ. Code § 3129). This is the first action an owner can take to protect against liability.
Claim of lien and lawsuit — two 90-day periods
The original contractor has up to 60 days after a notice of completion or cessation, or 90 days without any notice on file, to record a claim of lien (Cal. Civ. Code § 3115). Subcontractors and suppliers generally have a 90-day window. If the lien doesn't prompt payment, the claimant then has 90 days to file a lawsuit to enforce it — miss that window and the lien can become 'stale' and unenforceable, potentially exposing the contractor to a penalty.
Our firm focuses on construction litigation including California mechanic's liens, stop notice claims, payment bond claims, bidding disputes, contract negotiation and breaches of contract throughout California, guiding clients at every stage of a project.
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