Bond Claims vs. Mechanics Liens: Which One Do You Need?

You did the work. You bought the materials. And now someone is not paying. You know you have legal options, but should you file a mechanics lien, make a bond claim, or both? These two payment protection tools serve similar purposes but work in fundamentally different ways. Choosing the wrong one can cost you time and money. Choosing the right one can get you paid.

What Is a Mechanics Lien?

A mechanics lien is a legal claim you file against a property. When you improve a property through labor or materials and do not get paid, the lien gives you a security interest in that property. The property owner cannot sell or refinance until your lien is resolved.

Mechanics liens are available on most private construction projects. They are powerful because they create direct pressure on the property owner, even if your contract was with a general contractor or another subcontractor.

Key characteristics of mechanics liens:

Filed against the property itself, not against a person or company
Available on private construction projects in all 50 states
Subject to strict deadlines that vary by state (often 60-90 days from last work)
Require preliminary notices in many states
Can lead to foreclosure of the property if unpaid
Must typically be enforced through a lawsuit within a set timeframe

What Is a Bond Claim?

A bond claim is a claim against a surety bond. On many public construction projects and some large private projects, the general contractor is required to purchase a payment bond. This bond is essentially an insurance policy that guarantees subcontractors and suppliers will be paid.

When you are not paid on a bonded project, you file a claim against the bond rather than against the property. The surety company that issued the bond investigates the claim and pays valid claims up to the bond amount.

Key characteristics of bond claims:

Filed against the surety bond, not the property
Required on most public projects (federal, state, and local government)
Available on private projects only if the owner required a payment bond
Subject to their own notice and filing deadlines
Do not create a lien on the property
The surety company investigates and pays valid claims

The Critical Difference: Public vs. Private Projects

Here is the most important rule to remember: you cannot file a mechanics lien on a public project. Government-owned properties like schools, roads, courthouses, and public utilities are immune from liens. This is why payment bonds exist on public projects. They replace the lien right you would have on a private job.

On a private project, you typically have the right to file a mechanics lien. You may also have the right to make a bond claim if the project has a payment bond, though most private residential and small commercial projects do not.

On a public project, a bond claim is usually your only option for payment protection. The federal Miller Act requires payment bonds on all federal projects over $35,000. Most states have similar "Little Miller Acts" for state and local projects.

Comparing the Two: Key Differences

Who Pays?

Mechanics lien: The property owner is ultimately responsible. Even if the GC failed to pay you, the property owner's property is encumbered. This creates pressure on the owner to resolve the payment dispute.

Bond claim: The surety company pays. The surety then seeks reimbursement from the contractor who failed to pay you. The property owner is typically not involved.

Deadlines

Both tools have strict deadlines, but they differ:

Mechanics lien deadlines vary dramatically by state. Some states give you 60 days from your last day of work. Others give you 90 days, 120 days, or even longer. Many states also require preliminary notices within a set number of days from your first day of work.

Bond claim deadlines are typically governed by the bond terms and applicable statutes. Federal Miller Act claims require notice within 90 days of your last day of work, with a lawsuit filed between 90 days and one year after last work. State bond claim deadlines vary.

Enforcement

Mechanics lien enforcement requires filing a lawsuit to foreclose on the property, typically within 6-12 months of filing the lien. If you do not enforce within the deadline, the lien expires.

Bond claim enforcement involves filing a claim with the surety company. If the surety denies your claim, you can file a lawsuit against the surety. The process is often faster than lien foreclosure because the surety has a financial incentive to resolve claims quickly.

Notice Requirements

Mechanics liens often require a preliminary notice early in the project. If you skip the preliminary notice in a state that requires one, you may lose your lien rights entirely.

Bond claims also require notice, but the rules depend on the bond terms, the applicable statute, and whether you have a direct contract with the bonded contractor or are a lower-tier subcontractor.

When to Use Each

Use a mechanics lien when:

The project is on private property
You want maximum leverage against the property owner
There is no payment bond on the project
You have met all notice requirements for your state

Use a bond claim when:

The project is a public (government) project
The project has a payment bond
You want to avoid a lien foreclosure lawsuit
The property owner is not the party who owes you

Use both when:

The private project has a payment bond
You want to maximize your payment protection
State law allows both remedies simultaneously

Do Not Miss Your Deadlines

Whether you choose a mechanics lien, a bond claim, or both, the deadlines are non-negotiable. Miss a preliminary notice by one day, and you could lose your rights entirely. Miss a filing deadline, and your claim expires.

LienShield tracks deadlines across all 56 U.S. jurisdictions and sends alerts before your windows close. Upload your project details and LienShield calculates every critical date automatically, so you never miss a deadline that costs you your payment rights.

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