What is a mechanics lien?

A mechanics lien is fundamentally a legal claim against a property due to unpaid work or materials provided in the course of construction or improvement. When a contractor, subcontractor, or supplier provides services or materials and does not receive payment, they may file this lien to secure payment for their work. The lien gives the claimant a security interest in the property, allowing them to seek payment through the property itself if necessary, which can result in a forced sale of the property to satisfy the debt.

This type of lien serves as a powerful tool in the construction industry, ensuring that those who contribute to a project are compensated, and it also underscores the importance of contract compliance and payment within construction projects. The other choices do not accurately describe a mechanics lien: bonds are financial instruments used to ensure performance or payment; contracts are agreements between parties; and insurance serves to mitigate risks, but does not function to secure payment for services rendered in the manner that a mechanics lien does.