When contractors in Florida complete work but don’t get paid, a mechanic's lien can be a valuable tool for recovering the money owed. Our firm works closely with contractors, subcontractors, and suppliers to help them protect their rights. Understanding how and when to file a mechanic's lien is essential.
Keough Law, PLLC can walk through the critical details contractors need to know about filing a mechanic's lien for unpaid work in Orlando, Florida. We'll also explain why paying attention to business law requirements is vital to a successful lien claim.
Mechanics' Liens Under Florida Law
A mechanic's lien is a legal claim placed on a property by someone who has supplied labor, materials, or services and hasn’t been paid. Under Florida's Construction Lien Law, contractors have specific rights to record a lien if they meet certain conditions.
The purpose of a mechanic's lien is simple: it provides a form of security for those who have improved real property. It allows unpaid parties to seek compensation directly from the property's value if necessary. Because a mechanic's liens affect property titles, they must comply strictly with Florida statutes.
We advise contractors to view a mechanic's liens as part of a broader business law strategy. Protecting rights up front often saves considerable time, energy, and expense later.
Who Can File a Mechanic's Lien in Florida?
Several categories of construction professionals are eligible to file a mechanic's lien in Florida. These include:
General contractors
Subcontractors
Material suppliers
Equipment rental companies
Laborers
One important point is that only those who have a direct or indirect contract with the property owner—or with someone else on the project—may file. That means lower-tier subcontractors might have lien rights, but they must take additional steps, such as providing a Notice to Owner early in the process.
This area of business law can get technical quickly, which is why we recommend consulting with legal counsel before relying solely on lien rights for payment.
Steps to Filing a Mechanic's Lien
Filing a mechanic's lien in Florida requires following several strict steps. Missing even one can jeopardize the entire claim.
Here are the primary steps contractors need to complete:
Send a Notice to Owner (NTO): In most cases, those not in direct contract with the owner must send an NTO within 45 days of starting work or delivering materials.
Record the Claim of Lien: The lien must be recorded in the county where the property is located within 90 days of completing work.
Serve the Owner: A copy of the lien must be served on the property owner within 15 days of recording the lien.
File a Lawsuit: If payment doesn’t occur, a lawsuit to enforce the lien must be filed within one year of the lien’s recording date.
Because the deadlines are unforgiving, we emphasize keeping organized and thorough project records. In business law, good documentation is often the difference between winning and losing a claim.
What Must Be Included in the Lien
Florida law specifies what information a Claim of Lien must contain. It must be prepared carefully and include:
The name and address of the lienor (the person or business claiming the lien)
The name of the party with whom the lienor contracted
A description of the services or materials provided
A description of the property sufficient for identification
The amount owed
The claim must also be notarized. Errors in the content or timing of a lien can make it invalid. Given the strict nature of Florida's business law standards, contractors shouldn’t view the lien process as a simple administrative task.
Common Mistakes That Invalidate Liens
Even experienced contractors sometimes make avoidable mistakes when filing liens. Some of the most common issues we see include:
Missing filing deadlines
Failing to send a timely Notice to Owner
Incorrect property descriptions
Overstating the amount claimed
Filing a lien for unlicensed work
Florida courts tend to interpret lien rights narrowly. That means any mistake, no matter how minor it may seem, can cause a court to strike the lien entirely.
Understanding these pitfalls is critical for contractors who want to use mechanic's liens as an effective tool for recovering unpaid amounts.
Protecting Lien Rights from the Start
We often counsel contractors to start thinking about lien rights at the very beginning of a project. Waiting until payment issues arise may leave contractors scrambling against tight deadlines.
Some ways to protect lien rights include:
Sending a Notice to Owner on every project, even if the law might not strictly require it
Keeping detailed daily records of work performed and materials supplied
Confirming that business registration and contractor licensing are in good standing
Using clear, written contracts with payment terms spelled out
A proactive approach often strengthens lien claims and positions contractors for better overall outcomes in business law disputes.
How Property Owners Can Contest Liens
Owners aren’t without defenses when faced with a mechanic's lien. They can:
Contest the lien by filing a Notice of Contest of Lien
Demand a lawsuit be filed within 60 days
Bond off the lien by posting a surety bond
Challenge the lien’s validity based on errors or fraud
Understanding these potential defenses helps contractors prepare for disputes. If an owner contests a lien, having detailed documentation and strong legal counsel becomes even more important.
Business law principles favor those who act quickly and diligently when defending their rights.
Foreclosing on a Mechanic's Lien
If payment still doesn’t happen after filing the lien, the next step is often foreclosure. Filing a lawsuit to foreclose a mechanic's lien is similar to a mortgage foreclosure. The contractor asks the court to order the sale of the property, with proceeds used to pay the debt.
Foreclosure is a serious action that usually requires an attorney's involvement. Florida’s court system has strict rules about how these cases move forward.
Before deciding to foreclose, contractors should evaluate:
The strength of their lien
The property's value and any prior encumbrances
The costs of litigation versus the potential recovery
Business law practice often involves balancing legal rights with practical realities.
Waiver and Release of Lien Rights
During construction projects, property owners and general contractors often request lien waivers as a condition of payment. Florida recognizes two main types of waivers:
Conditional Waivers: Effective only upon actual receipt of payment
Unconditional Waivers: Effective immediately, regardless of whether payment clears
Contractors must read waiver documents carefully. Signing an unconditional waiver without receiving funds can mean losing lien rights permanently.
We always advise reviewing any lien waiver with a business law attorney before signing to avoid unintended consequences.
Special Issues for Subcontractors and Suppliers
Subcontractors and suppliers face unique issues when dealing with mechanic's liens. They often have more steps to complete, such as sending Notices to Owner and tracking multiple layers of payment obligations.
Some best practices for subcontractors and suppliers include:
Tracking all Notice to Owner deadlines carefully
Confirming who owns the property
Identifying all parties in the chain of contracts
Using consistent billing practices that document the delivery of goods and services
In business law disputes, the details matter. Subcontractors and suppliers who act systematically often protect their rights more successfully.
Mechanic's Liens and Business Law Considerations
Mechanic's liens should never be viewed in isolation. They’re part of a contractor's broader business law rights and obligations.
Contractors should consider how liens interact with:
Contractual payment terms
Change orders and extras
Retainage provisions
Project close-out procedures
By integrating lien rights into overall business law planning, contractors can reduce payment disputes, maintain better client relationships, and support long-term growth.
Alternatives to Filing a Mechanic's Lien
Sometimes, filing a lien isn’t the best first move. Other options may resolve payment disputes more quickly and with less cost.
Alternatives include:
Direct negotiation with the property owner or general contractor
Mediation through a neutral third party
Filing a breach of contract lawsuit without relying on lien rights
Using collections services where appropriate
When deciding between filing a lien or pursuing alternatives, contractors should weigh the costs, risks, and benefits. Each situation is unique, and business law strategies should be tailored accordingly.
Mechanic's liens remain one of the most powerful tools contractors have to recover payment for labor and materials. However, because Florida law imposes strict requirements, contractors must approach the lien process with care.
At our firm, we work closely with contractors, subcontractors, and suppliers to help protect their rights and recover what they’re owed. Mechanic's liens are just one part of a broader business law strategy that promotes strong, sustainable contracting businesses.
Contact Keough Law, PLLC Today to Get Started
Get the help you need by working with Keough Law, PLLC. We serve Orlando, Florida, as well as Orange County, Osceola County, Hillsborough County, and Pinellas County. If you have questions about protecting your payment rights or need help filing a lien, get in touch with us at Keough Law, PLLC today.
