What is the purpose of a construction lien?

A construction lien serves the vital purpose of securing payment for work performed on a property. When contractors, subcontractors, or suppliers contribute labor or materials to a construction project and are not paid, they can file a lien against the property. This legal claim essentially means that the property cannot be sold or refinanced without first addressing the outstanding debt. The existence of a lien provides a level of security for those who have provided services or materials, ensuring they have a means to pursue payment.

This mechanism helps protect the rights of workers and suppliers in the construction industry, incentivizing property owners to fulfill their financial obligations. In cases where the payment is disputed or delayed, the lien acts as a powerful tool to enforce payment, often leading to quicker resolution or negotiations to settle debts. This is particularly important because it upholds the principle that those who contribute to a project should be compensated for their labor and materials.