How to Use Mechanic’s Liens in Nevada to Ensure Payment on Projects

Mechanic’s liens are a powerful legal tool for contractors, subcontractors, suppliers, and others who provide labor or materials for construction projects in Nevada. These liens provide security by creating a legal claim against the property you worked on, ensuring that you can collect payment for your services.

At May Brock Law Group, we help protect contractors, subcontractors, suppliers, and others with their mechanic’s liens needs. Here’s a guide on how to properly use mechanic’s liens in Nevada to secure payment on your projects.

1. Understand Who is Eligible to File a Mechanic’s Lien

In Nevada, a variety of parties involved in a construction project can file a mechanic’s lien, including:

• General contractors
• Subcontractors
• Material suppliers
• Equipment lessors
• Laborers
• Architects, engineers, and surveyors

If you provided work, materials, or professional services for a project and were not fully paid, you may have the right to file a lien.

2. Serve a Preliminary Notice

In Nevada, a Preliminary Notice of Right to Lien must be served in many cases. This notice informs the property owner, general contractor, and lender (if applicable) that you may assert a lien if you are not paid. Here’s what you need to know about the preliminary notice:

• Timing: It must be served within 31 days of first providing labor, services, or materials to the project.
• Recipients: It must be served on the property owner, the prime contractor, and, if applicable, the construction lender.
• Exceptions: Contractors directly in contract with the property owner are generally not required to file a preliminary notice.

Failing to serve the preliminary notice within the required time frame could invalidate your lien rights, so it’s critical to act quickly.

3. File a Mechanic’s Lien

If payment issues arise, filing a mechanic’s lien is your next step. Here’s how to proceed:

• Timing: You must file your lien within 90 days of either (a) the completion of the project, (b) the completion of your work on the project, or (c) the date work ceased on the project.
• Where to File: File the lien with the county recorder in the county where the property is located.
• Contents of the Lien: Your lien must include:
  • A statement of the amount owed
  • A description of the work or materials provided
  • A legal description of the property
  • The name of the property owner
  • The name of the party that hired you (e.g., the general contractor)

The lien ensures that your claim is publicly recorded and secures your right to be paid by attaching your claim to the property itself.

4. Serve the Mechanic’s Lien

After filing the mechanic’s lien, you must serve it on the property owner within 30 days of filing. Proper service is essential to preserve your lien rights, and Nevada law provides specific guidelines on how the lien must be delivered, including by personal service or certified mail.

5. Enforce the Mechanic’s Lien (Filing a Lawsuit)

If the lien does not result in payment, you may need to enforce your lien by filing a lawsuit. To do this:

• Timeline: You must file a lawsuit to enforce your lien within 6 months from the date of filing the lien. Failing to do so may cause your lien to expire.
• Outcome: If you win the lawsuit, the court may order the sale of the property to satisfy your claim, ensuring that you receive the payment you’re owed.

6. Lien Release Upon Payment

Once you receive payment for the work or materials, you are required to file a Lien Release. This document officially removes the lien from the property, and it’s important to ensure this step is completed to avoid future legal issues.

7. Avoiding Common Mistakes

• Timeliness: Missing deadlines for serving a preliminary notice, filing the lien, or enforcing the lien can invalidate your claim.
• Accuracy: Ensuring that your lien is properly filed, with correct details about the project, the property, and the amount owed, is crucial for the lien’s enforceability.
• Communication: Throughout the process, maintain communication with the property owner and contractor. In some cases, simply providing the preliminary notice can prompt timely payment.

8. Seek Legal Guidance

While the mechanic’s lien process is designed to help you secure payment, it can also be complex. Working with a Nevada construction attorney can ensure you follow the right procedures and meet the necessary deadlines. An attorney can also assist with filing the lawsuit to enforce the lien if it becomes necessary.

Conclusion

In Nevada, mechanic’s liens offer a powerful legal remedy for contractors, subcontractors, and suppliers to secure payment for their work on construction projects. By understanding the proper steps, deadlines, and requirements, you can use this tool effectively to protect your financial interests and ensure you get paid for the work you’ve completed. If you’re facing payment issues, it’s critical to act promptly and follow Nevada’s lien laws carefully.

Helping Contractors Get Paid through Mechanic’s Liens

If you need help in recording a Mechanic’s Lien or have questions about the mechanic’s lien process in Nevada, we are here for you. Please contact us at 702-960-1270 or online to schedule a consultation and discuss your rights.