One of the most powerful legal protections available to California contractors and subcontractors is the mechanics lien. When a client refuses to pay, delays payment unreasonably, or simply doesn’t have the money to pay you, a mechanics lien gives you a legal claim against the property itself — forcing payment as a condition of selling or refinancing the property. But mechanics liens in California are procedurally complex, with strict deadlines that must be met or the right is lost forever. This guide explains everything you need to know to protect your payment rights on every California project.
What Is a Mechanics Lien?
A mechanics lien (also called a construction lien or materialman’s lien) is a legal claim recorded against a property by contractors, subcontractors, or material suppliers who performed work or provided materials for that property but weren’t paid. The lien attaches to the property’s title, which means the owner cannot sell or refinance the property without resolving the lien. In California, mechanics lien rights are established by the Civil Code, sections 8000 through 9566. These laws protect everyone in the construction payment chain — from prime contractors to second-tier subs to material suppliers.
The Most Critical Step: The Preliminary Notice
Here’s where most contractors lose their lien rights without realizing it: in California, in order to preserve your mechanics lien rights, you must serve a Preliminary Notice on the owner, the general contractor (if you’re a sub), and the construction lender (if any) within 20 days of first furnishing labor, services, equipment, or materials to the project. Miss the 20-day window and you lose your lien rights for the work done before you served the notice (you preserve rights for work done after service, but not before). This means you can lose months of lien-able work just by being late.
Preliminary Notices must be served by certified mail or personal service. The notice must include specific statutory information: your name and address, the name of the person who hired you, the jobsite address, a description of the labor or materials furnished, and an estimate of total value. There are Preliminary Notice services and software platforms that handle this automatically for a small fee — for contractors doing multiple projects, this automation is well worth the cost.
Do Prime Contractors Need to Serve Preliminary Notice?
Prime contractors (those with a direct contract with the owner) are not required to serve a Preliminary Notice to preserve their lien rights on private works projects. However, they must still comply with all other lien procedures. On public works projects, the preliminary notice rules differ — contractors on public works projects typically must follow stop payment notice procedures rather than mechanics liens (you can’t lien government-owned property).
Recording the Mechanics Lien
If you’re not paid and you’ve properly served your Preliminary Notice, the next step is recording the mechanics lien with the County Recorder’s office in the county where the property is located. The lien must be recorded within specific deadlines. For prime contractors: within 90 days after completion of the work of improvement. For subcontractors and suppliers: within 90 days after completion of the work of improvement or within 30 days after the recording of a Notice of Completion (whichever is earlier). These are hard deadlines — missing them forfeits your lien rights entirely.
The mechanics lien itself must contain specific information required by California Civil Code Section 8416: claimant’s name and address, name of person who hired the claimant, description of the work or materials, the last date labor or materials were furnished, a description of the property (legal description and street address), the amount claimed after offsetting any credits, and a statement of acknowledgment signed under penalty of perjury.
Foreclosing on a Mechanics Lien
Recording a mechanics lien doesn’t automatically get you paid — it creates a cloud on title that pressures the owner to resolve the debt. If the owner still doesn’t pay, you must file a lawsuit to enforce (foreclose) the lien within 90 days of recording the lien. If you miss this window, the lien becomes unenforceable. Foreclosure lawsuits require an attorney — consult a construction attorney well before the deadline to evaluate your case.
Releasing a Mechanics Lien
Once you’ve been paid in full, you’re obligated to record a Release of Mechanics Lien with the County Recorder promptly. Failure to release a satisfied lien is a misdemeanor in California. When accepting final payment, you’ll typically be asked to sign an Unconditional Lien Release — make sure you only release your lien after funds have cleared, not before. There are four types of lien releases in California: Conditional Waiver on Progress Payment, Unconditional Waiver on Progress Payment, Conditional Waiver on Final Payment, and Unconditional Waiver on Final Payment. Use the right one for your situation.
Mechanics Liens and Your Bookkeeping
From a bookkeeping perspective, outstanding mechanics liens should be tracked in your accounts receivable records. In QuickBooks, maintain notes on each outstanding invoice’s lien status — when Preliminary Notice was served, when the lien was recorded, and the lien’s expiration deadline. Clean, accurate invoicing and accounts receivable tracking is essential for lien enforcement — you need to show exactly what was owed, when it was earned, and that it remains unpaid.
Frequently Asked Questions
Can I file a mechanics lien for the retention amount?
Yes. Retainage is part of your contract price and is lienable just like any other unpaid amount. The lien deadline runs from the completion of the work of improvement, not from when the retainage was due. Make sure your lien includes any unreleased retainage in the amount claimed.
What if I don’t know the property owner’s exact legal name?
You can look up the property owner information in the county assessor’s records online. For the Preliminary Notice and mechanics lien, use the exact name as shown on the assessor’s records. If in doubt about the legal owner, use a lien service or consult a construction attorney to ensure proper identification.
For more information, see our guide on CSLB licensing and compliance.
For more information, see our guide on managing accounts receivable.
For more information, see our guide on invoicing best practices.
For more information, see our guide on retainage in construction contracts.
Protect Your Payment Rights — And Keep Clean Books
Bookkeeping Champs helps contractors throughout Los Angeles and Ventura County maintain the clean accounts receivable records and invoice documentation needed to support lien enforcement. Call (818) 679-4451 for a free consultation.
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