You completed the job perfectly—installed improvements in the form of labor, services, building materials, and supplies on schedule or delivered quality materials to the site; yet, weeks have passed, and your invoices remain unpaid. This frustrating scenario often happens across Utah’s construction industry.
Fortunately, contractors have a powerful legal remedy: the mechanic’s lien. For anyone caught in payment disputes, understanding this tool can save your business from financial hardship.
What is a mechanic’s lien?
A mechanic’s lien is a legal claim that secures payment for labor, services, or materials used to improve real property, and it’s automatically created when a worker, contractor, subcontractor, or supplier provides work or materials. It creates a security lien interest in the property and puts pressure on property owners by clouding their title. If they still do not pay, you can take legal steps to force a property sale to collect your money.
Key deadlines you cannot miss
Utah’s lien laws follow strict timelines that courts enforce without exception. You must file preliminary notices within 20 days of providing first labor, services, or materials. If you miss this deadline, you may jeopardize your rights to recovery or forfeit your lien rights entirely.
Generally, you must file the actual mechanic’s lien within 180 days after project completion or 90 days after filing a notice of completion—whichever comes first.
Who can file a mechanic’s lien in Utah?
The law protects those involved in improving property: general contractors, subcontractors, material suppliers, equipment lessors, architects, engineers, and even laborers. If you have contributed to improving a property’s value, you likely have lien rights. However, certain conditions need to be met before such parties prevail in a successful lien claim.
The filing process simplified
Filing requires following a sequence of events (compliance with the SCR) and then making sure you mechanic’s lien complies with the statutory requirements. Namely, the property owner’s name, property description, the contracting parties, the amount owed and details about services provided, including the date of first and last work. The lien must be recorded with the county recorder where the property is located, with proper notice to all interested parties within the statutory time frame. While the process might seem straightforward, even small errors may impact and adversely affect your claim.
What happens after filing?
Filing a lien puts immediate pressure on the property owner to pay you. If they still do not pay, you must take the next step. You have 180 days from filing your lien to start foreclosure action.
When legal guidance matters
While understanding these basics helps, mechanic’s lien laws contain numerous technical requirements and exceptions. Seeking experienced legal counsel helps you protect your rights throughout the process. Their guidance might just make the difference between a successful payment recovery and an invalid claim.