⚡ Quick Answer: When Must You File a Mechanics Lien in California?
90 days after completion of work, or 60 days if Notice of Completion filed, or 30 days if Notice of Cessation filed.
Critical: You MUST serve preliminary notice within 20 days of first furnishing labor or materials. Miss these deadlines and you lose ALL lien rights permanently.
📥 Free Lien Law Resources
Get these downloadable resources to protect your payment rights:
Lien Deadline Calculator
Excel calculator that auto-calculates your deadlines
Preliminary Notice Template
California 20-day notice template ready to fill
Lien Waiver Checklist
Track all subs/suppliers for lien waivers
Why Lien Law Matters (The Hard Truth)
Construction is the only industry where you deliver millions in labor and materials before getting paid. That's insane. Lien laws exist to protect you, but most contractors don't use them properly until it's too late.
What's at stake:
- Your ability to collect payment (obviously)
- Priority in bankruptcy proceedings
- Legal leverage in disputes
- Your cash flow and business survival
Mechanics Lien Basics
A mechanics lien (or construction lien) is your legal right to attach a claim to property when you haven't been paid for work performed. It's powerful—but only if you follow the rules exactly.
How Liens Work
- You provide labor/materials to a construction project
- You serve preliminary notices (timing matters!)
- You're not paid according to contract terms
- You file a mechanics lien against the property
- Property owner must pay or the lien clouds their title (can't sell/refinance)
- You can foreclose on the lien if still unpaid (force sale of property)
The Lien Timeline (California Example)
Timing is EVERYTHING. Miss a deadline by one day, lose your rights.
- Must be served within 20 days of first furnishing labor/materials
- Required for EVERYONE except direct contractors with owner
- Sent to: Property owner, GC, and lender (if known)
- Certified mail + proof of service
- Progress photos with dates
- Daily logs of work performed
- Signed delivery tickets for materials
- Change order approvals
- Correspondence about payment
- Not legally required in most states
- But usually gets you paid immediately
- Shows you're serious and know the law
- Give them 10 days to respond
- 90 days after completion of work (California)
- 60 days if Notice of Completion filed
- 30 days if Notice of Cessation filed
- File with county recorder
- Serve on property owner within 15 days of filing
- 90 days to file lawsuit to foreclose on lien
- Or negotiate payment and release lien
- Lien expires if you don't file suit in time
- Preliminary Notice: 20 days from first work = miss this, lose ALL lien rights
- Mechanics Lien: 90 days from completion = miss this, can't file lien
- Foreclosure Suit: 90 days from lien filing = miss this, lien expires
Who Can File a Lien?
| Party | Can File? | Requirements |
|---|---|---|
| General Contractor | ✅ Yes | Direct contract with owner, no preliminary notice needed |
| Subcontractor | ✅ Yes | Must serve preliminary notice within 20 days |
| Material Supplier | ✅ Yes | Must serve preliminary notice within 20 days |
| Equipment Rental | ✅ Yes | Must serve preliminary notice within 20 days |
| Design Professional | ✅ Yes | Architects, engineers (if contracted for construction) |
| Laborer (Employee) | ⚠️ Limited | Can file, but unusual (usually handled by prime contractor) |
Payment Bonds (The Alternative to Liens)
On public projects and many large private projects, you can't lien the property. Instead, there's a payment bond.
When Bonds Are Required
- All public projects (federal, state, county, city)
- Private projects over $7,500 (in some states)
- Owner-required (many sophisticated owners require bonds)
Types of Bonds
- Payment Bond
- Guarantees subs/suppliers get paid
- Replaces lien rights on public projects
- Must serve notice within specific timeframes
- Performance Bond
- Guarantees work gets completed
- Protects owner if contractor defaults
- Doesn't help you get paid as a sub
Making Bond Claims
Get bond info from GC or project owner. You're entitled to a copy.
Timing varies by project type (15-90 days). Don't guess—verify exact deadlines.
Submit formal claim to surety with supporting documentation.
Surety investigates. Either pay up or you sue the bond.
Common Lien Mistakes (That Cost You Everything)
1. Not Serving Preliminary Notice
The Result: Zero lien rights. Contract breach claim only (much weaker).
2. Wrong Property Address
The Result: Lien is invalid. No do-overs.
3. Missing Deadlines
The Result: Miss 90-day deadline by 1 day = permanent loss of rights.
4. Improper Service
The Result: Notice not legally served. Lien rights lost.
5. Incorrect Amount
The Result: Lien deemed fraudulent. Criminal penalties possible.
6. Not Recording Properly
The Result: Lien invalid. Deadline passes while you fix it. Game over.
Best Practices (From a CPA + Contractor)
For Every Project
The CPA's Lien Workflow
- Day 1: Add project to lien tracking system (spreadsheet minimum, software better)
- Day 10: Serve preliminary notice (gives you buffer before 20-day deadline)
- Monthly: Review A/R aging, identify late payments
- Day 30 late: Phone call + follow-up email
- Day 45 late: Notice of Intent to Lien (registered mail)
- Day 60 late: File mechanics lien
- Day 90 late: Consult attorney about foreclosure
Lien Waivers (The Other Side)
When you're the one paying, you need waivers to protect against double payment.
Types of Waivers
| Waiver Type | When Used | What It Means |
|---|---|---|
| Conditional Progress | With each progress payment | Waives rights IF check clears |
| Unconditional Progress | After check clears | Waives rights immediately |
| Conditional Final | With final payment | Waives ALL rights IF final check clears |
| Unconditional Final | After final payment clears | Waives ALL rights immediately |
- Never sign unconditional waiver before check clears
- Only waive amounts actually paid, not full invoice
- Read "through date" carefully—don't waive future work
- Cross out provisions waiving claims beyond lien rights
- Some states have statutory waiver forms—use them
State-by-State Differences (Major Ones)
Lien law is state-specific. Here are key differences to watch:
- California: 20-day preliminary notice, 90-day lien deadline
- Texas: 15th day of 2nd month notice, retention required
- Florida: Notice to Owner required, very strict compliance
- New York: Notice of Lending required, complex rules
- Pennsylvania: No preliminary notice on private projects
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📚 Related Resources
📋 Playbooks
📊 Benchmarks
Additional Resources
- State Construction Law Websites - Each state's contractor board
- Levelset (formerly zlien) - Lien tracking software and resources
- AGC/ABC Legal Departments - Association resources
- Construction Attorneys - Find one BEFORE you need one
- CFMA - Financial management perspective on lien issues
📅 Join us at CFMA SV: Lien Law 2026 event on February 11, 2026. Register here →
👤 About the author: Written by a licensed CPA and CFMA Silicon Valley board member who's navigated million-dollar lien disputes and built the financial systems that prevent them.