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How Did d Liens Start

In the United States, mechanics’ lien rights have existed since Thomas Jefferson started construction of Washington, D.C. in 1791. As the country grew and construction became increasingly vital to the growth of the nation, the various states enacted mechanics’ lien statutes to encourage construction while preventing owners from “enjoying the labor and materials furnished by others without compensation.

The term “mechanic” generally means one who performs skilled work, while the term “laborer” is more often applied to someone who primarily performs physical work at fixed wages with relatively little skill or special training.

Mechanics’ liens arise by operation of law, but require a contractual basis before there can be a valid Claim of Lien.

The statute has been modified a number of times since then and now extends to cover a wide variety of persons, including, among others, registered architects and engineers, contractors, subcontractors, materialmen, suppliers and others who provide labor, materials or services for the construction or improvement of real property.

A Claim of Lien

A Claim of Lien is an encumbrance against real property created by state law for the purpose of securing payment for labor, materials or services expended to improve that property.

Because owners are reluctant to pay for construction work in advance, so then construction lien laws were enacted to providing a means by which contractors and others performing work on credit could secure their right to payment through the recording of a Claim of Lien against the owner’s improved property they supplied materials, or services.

Lien claims can be very effective in assisting claimants to collect unpaid compensation. However, because statutory lien rights differ, many states require only substantial compliance and liberally construe their lien laws to further the public policy of securing payments to subcontractors, suppliers and laborers.

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