Guidance for Georgia Contractors, Subcontractors & Commercial Property Owners
In Georgia’s booming construction market—particularly in metro Atlanta—mechanic’s liens are one of the most powerful legal tools available to contractors, subcontractors, and material suppliers. At the same time, they are among the most misunderstood. Whether you’re building a commercial development, handling a renovation, or managing multiple subcontractors, understanding how mechanic’s liens work is essential to protecting your rights and avoiding costly disputes.
Both contractors and property owners have significant interests at stake. Missing a deadline, filing incorrect paperwork, or ignoring a lien can lead to payment delays, litigation, stalled projects, or clouded title issues.
Below is a clear, practical overview of what each side needs to know.
1. What Is a Mechanic’s Lien in Georgia?
A mechanic’s lien is a legal claim filed against property by contractors, subcontractors, laborers, or suppliers who have not been paid for work performed or materials supplied. The lien attaches to the property itself, not just the person or business who owes the money.
In Georgia, mechanic’s liens are governed by O.C.G.A. § 44-14-360 et seq., and the law requires strict compliance with deadlines and filing requirements. Even small errors can invalidate a lien claim.
2. Key Deadlines Contractors Must Follow
Mechanic’s lien rights are powerful—but they are also time-sensitive. In Georgia:
• 90 Days to File the Lien
Contractors, subcontractors, and suppliers must file the lien:
- Within 90 days of the last day labor or materials were furnished,
not the invoice date or contract date.
• 30 Days to Send the Required Notice
If filing a lien, the claimant must send a Notice of Lien to:
- The property owner
- The general contractor (if applicable)
This notice must be sent within 30 days of filing.
• 365 Days to File a Lawsuit to Enforce the Lien
A mechanic’s lien is not self-executing. It expires unless the claimant:
- Files a lawsuit to enforce the lien within 1 year of the lien filing, and
- Files a Notice of Commencement of Action within 30 days after the lawsuit is filed
Missing any of these steps can cause lien rights to be lost permanently.
3. What Property Owners Need to Know About Liens
Mechanic’s liens can create significant challenges for property owners, including:
- Delays in refinancing or selling the property
- Clouds on the title that must be cleared
- Potential litigation
Owners should take an active role in understanding and managing lien exposure.
Notice of Commencement
Filing a Notice of Commencement at the start of the project can:
- Limit who can file liens
- Require subs and suppliers to give a Notice to Contractor/Owner
- Improve transparency about who is working on the project
This is an essential step for property owners and general contractors.
Right to Contest the Lien (Affidavit of Nonpayment or Lien Discharge Bond)
Owners can dispute lien claims that are:
- Incorrect
- Invalid
- Fraudulent
- Already paid
Options include:
- Filing a Lien Discharge Bond
- Filing an Affidavit of Nonpayment under Georgia law
- Negotiating a settlement
- Challenging the lien in court
The sooner an owner responds, the easier it is to resolve.
4. How Mechanic’s Liens Impact Contractors
For contractors and subs, mechanic’s liens are often the strongest tool available to secure payment—especially if dealing with:
- Slow-paying owners or contractors
- Disputed change orders
- Work delays
- Project shutdowns
- Underfunded construction budgets
A properly filed lien can:
- Create immediate leverage
- Encourage faster payment
- Protect cash flow
- Provide priority over other creditors
However, improperly filed liens can expose contractors to legal liability, so professional guidance is essential.
5. How Mechanic’s Liens Impact Property Owners
From the owner’s perspective, liens can quickly complicate a project. Even if the owner has paid the general contractor, unpaid subs or suppliers can still file liens under certain circumstances.
Consequences may include:
- Clouded title
- Increased legal fees
- Project delays
- Difficulty obtaining financing
- Forced payment to clear invalid or disputed claims
Managing lien exposure proactively protects the project and the property’s long-term value.
6. Why Hiring a Business Litigation & Construction Attorney Matters
Mechanic’s lien disputes move quickly, and mistakes are costly. A knowledgeable Atlanta construction and litigation attorney can:
For Contractors
- Ensure lien deadlines are met
- Prepare and file correct lien documentation
- Advise on notices, claims, and dispute strategy
- File or defend lien enforcement lawsuits
- Negotiate payment resolutions
For Property Owners
- Review lien claims for validity
- File responses, affidavits, or discharge bonds
- Remove invalid liens
- Represent the owner in negotiations or litigation
- Protect the property’s title and financial interests
Because lien law is technical and strict, having experienced counsel can save substantial time, money, and risk.
Conclusion
Whether you are a contractor seeking payment or a property owner trying to protect your investment, understanding mechanic’s liens is essential in Georgia’s active construction industry. Clear processes, strict deadlines, and knowledgeable legal guidance are key to keeping projects running smoothly and safeguarding long-term growth.
Contact Our Atlanta Construction & Business Litigation Team
At Stone & Bellus, PC, we represent contractors, subcontractors, suppliers, design professionals, and commercial property owners throughout Atlanta and the state of Georgia. Our team handles mechanic’s lien filings, disputes, and enforcement actions with precision and a deep understanding of the construction industry.
