The construction industry is full of payment risks. Whether you’re a contractor, subcontractor, or supplier, you may encounter slow pay, short pay, or no pay situations. Fortunately, California mechanics liens provide a powerful legal tool to help ensure that you receive payment for the work or materials you’ve provided. However, to fully benefit from lien protections, you must strictly follow the rules and deadlines set by California law.
Failing to meet critical deadlines, such as sending a 20-day preliminary notice or filing a mechanics lien within the required timeframe, can result in losing your lien rights entirely.
To help you stay compliant, this guide will break down the important deadlines and rules for mechanics liens in California.
Understanding the California Mechanics Lien Process
Before we dive into deadlines, it’s essential to understand the basic process of filing a mechanics lien in California.
- Send a 20-Day Preliminary Notice – This informs the property owner, general contractor, and lender that you are working on the project and expect payment.
- Complete Your Work – Once your work is finished, you are entitled to receive payment according to the contract terms.
- File a Mechanics Lien If Unpaid – If payment is not received, you can file a mechanics lien within the applicable deadline.
- Enforce the Lien – If the lien does not result in payment, you must file a lawsuit within 90 days to enforce the lien.
Each of these steps comes with specific rules and strict legal deadlines. Below, we outline these key deadlines to ensure that your lien remains valid and enforceable.
Preliminary Notice Requirements
What Is a Preliminary Notice?
A California 20-day preliminary notice is a legal document that must be sent at the beginning of a construction project to preserve your right to file a mechanics lien later. This notice informs the property owner, general contractor, and lender that you are supplying labor or materials and expect to be paid.
Who Must Send a Preliminary Notice?
In California, anyone who does not have a direct contract with the property owner must send a preliminary notice. This includes:
- Subcontractors
- Material Suppliers
- Equipment Rental Companies
- Laborers
- Design Professionals
Even general contractors must send a preliminary notice if a lender is involved in the project. If you are unsure whether a lender is financing the project, CNS can help you verify this information.
When Should the Preliminary Notice Be Sent?
The 20-day preliminary notice must be sent within 20 days of starting work or delivering materials.
If you miss this deadline, you can still send the notice, but your mechanics lien will only cover the work performed within 20 days before sending the notice. A lien might not protect any work completed before that timeframe.
How Should the Preliminary Notice Be Sent?
California law requires that the preliminary notice be sent by registered or certified mail, express mail, or overnight delivery by an express service carrier. It is advisable to keep proof of mailing in case you need to enforce your lien later. CNS maintains support for proof of service / mailing for all Prelims.
Mechanics Lien Deadlines
If you complete your work and do not receive payment, the next step is to file a mechanics lien. However, strict deadlines apply based on whether the property owner has recorded a Notice of Completion or Cessation.
For General Contractors (Direct Contractors)
- You have 90 days from project completion to file a mechanics lien.
- If the property owner records a Notice of Completion or Cessation, the deadline shortens to 60 days from the date of that notice.
For Subcontractors and Suppliers
- You have 90 days from project completion to file a mechanics lien if no Notice of Completion is recorded.
- If a Notice of Completion is recorded, you must file your lien within 30 days of the notice.
How to Determine “Project Completion”
Under California law, a project is considered complete when:
- The property owner accepts the work as finished.
- The project is substantially complete and ready for use.
- Work has stopped for 60 continuous days (if no work resumes).
- A notice of completion is filed
If you are uncertain whether the project is considered complete under California law, CNS can help you determine the correct deadline.
Enforcing a Mechanics Lien
Filing a mechanics lien does not automatically result in payment. If the lien does not prompt the owner or contractor to pay, you must take legal action to enforce the lien.
- In California, a mechanic’s lien must be enforced through a lawsuit prior to the 90th day after recording the lien.
If no action is taken within this timeframe, the lien becomes unenforceable, and you could lose your right to secure payment through the lien. - If 90 days pass and you have not enforced your lien, the property owner can demand that you release the lien, or they can file a lawsuit against you.
If you need to foreclose on a mechanics lien, CNS can refer you to an attorney specializing in construction lien law.
Common Misconceptions About Lien Deadlines
Many contractors and suppliers misunderstand California lien deadlines. Here are some of the most common mistakes:
1. “I Have 20 Days After Project Completion to Send a Preliminary Notice”
This is false. The 20-day preliminary notice must be sent within 20 days of starting work, not after finishing the project.
2. “I Don’t Need to Send a Preliminary Notice if I Have a Contract with the General Contractor”
Wrong! If you are a subcontractor or supplier and do not have a direct contract with the property owner, you must send a preliminary notice to protect your lien rights.
3. “I Can File a Lien at Any Time After Completion”
Not true. You must file a lien within 90 days of completion or 60/30 days if a Notice of Completion is filed. If you wait too long, you lose your right to file a lien.
How CNS Can Help
At CNS, we understand the complexities of California mechanics lien laws. Our services help you:
- Prepare and send preliminary notices within the correct timeframe.
- File mechanics liens accurately and on time.
- Verify addresses and project details to ensure compliance.
- Refer you to attorneys if you need to enforce a lien.
- Search to see if a Notice of Completion was filed or monitor the project if one is filed.
Conclusion
Mechanics liens are one of the most effective ways to ensure payment in the construction industry. However, missing critical deadlines can result in losing your right to file a lien.
To protect your payment rights, remember:
- Send a 20-day preliminary notice at the start of every project.
- File your mechanics lien within 90 days of project completion (or 60/30 days if a Notice of Completion is recorded).
- Take legal action within 90 days of filing your lien, or it will expire.
Navigating lien laws can be overwhelming, but CNS is here to help.
For assistance with preliminary notices or mechanics liens, contact CNS today at 800-366-5660.
Disclaimer: CNS is not a law firm. If you need legal advice, please consult an attorney.
