Mechanics' Liens
Construction projects and creditors’ rights can be puzzling. We know the law in Indiana and we have extensive experience in filing liens on state and local projects, foreclosing those liens, and recovering claims on bonded public projects.
Frequently Asked Questions
When must a subcontractor or materials supplier file a mechanics' lien in Indiana?
Within 90 days after last furnishing materials or labor on a commercial project; within 60 days after last furnishing materials or labor on a single or double family dwelling.
When must a subcontractor or materials supplier file a claim on a public project?
Generally, within 60 days after the claimant’s last furnishing of work on the project. There are four different statutes in Indiana governing subcontractors or materials suppliers’ claims on public works projects, so you should call us for specific details on a project.
How do I know if a project is a public or a private project?
Generally, public projects are characterized as using taxpayer dollars. Public projects would include any entity that has taxing authority under Indiana law such as airport authorities. Mechanics' liens cannot be filed on public property held for public use.
Are there special requirements for owner occupied dwellings?
Yes. Indiana law presumes that a homeowner is ignorant of subcontractor's or materials supplier's rights to hold a mechanics' lien on their house. For new construction, a pre-lien notice must be filed with the County Recorder’s office and served on the owner within 60 days of the first furnishing. On remodeling projects, a pre-lien notice must be served on the owner within 30 days of first furnishing.
What type of work or materials qualify for filing a mechanics' lien?
Generally, there must be some improvement to the real estate or buildings. A mechanics' lien cannot be filed in connection with trade fixtures which are easily movable to another location.
For how long is a mechanics' lien valid?
A mechanic’s lien claimant must file suit within one year of the date the mechanics' lien is filed with the County Recorder’s office. Otherwise, the mechanics' lien becomes null and void as a matter of law.
What if I am outside of my time limits for filing a mechanics' lien on a private project?
You could still provide a Notice to Owner of Potential Liability if there is any money in the hands of the owner due or to become due the general contractor. This is an additional remedy intended to allow materials suppliers and subcontractors an opportunity to get to contract proceeds.