Will Filing A Mechanics’ Lien Help Me Get Paid?

Editor’s Note: This is the fourth installment in an eight-part series of posts by Bill Gschwind, business and construction attorney and founder of Minnesota Construction Law Services. Bill brings years of experience helping contractors get paid without wasting time, leverage, or sanity.

When a customer refuses to pay, many contractors think their next move is obvious: file a mechanics’ lien. But what exactly does that mean—and does it actually help you collect?Let’s break it down.

A Mechanics’ Lien Is Not a Collection Tool—It’s a Security Tool

Think of a mechanics’ lien like a mortgage. It doesn’t guarantee you’ll get paid, but it ties your unpaid invoice to the property itself. That makes it a powerful legal right.In Minnesota, if you follow the rules, your lien may even override the homeowner’s bankruptcy protection. That means even if the customer files Chapter 7, your claim might survive when others don’t. That’s real leverage.But that leverage is only useful if it’s preserved correctly and used strategically.

Filing a Lien Doesn’t Magically Deliver a Check

Filing a mechanics’ lien puts pressure on the property owner. It can stall refinancing, delay sales, and alert mortgage holders. In most cases, that pressure is enough to force payment negotiations.

But a lien doesn’t create money where there isn’t any. And it doesn’t replace the need for a lawsuit. To enforce the lien – meaning to turn it into a judgment – you still need to file a lawsuit in district court within one year of your last work or delivery.

That’s an expensive and time-consuming process. So before filing, it’s important to understand what you’re trying to achieve – and whether a lien is the right path.

Know the Rules – or Risk Losing Your Rights

Mechanics’ liens are governed by strict rules. Miss one, and your lien may be invalid.

• Residential contractors must include the pre-lien notice required by Minnesota Statute § 514.011 in the written contract.
• Subcontractors and material suppliers must serve their pre-lien notice within 45 days of first furnishing labor or materials.
• Commercial general contractors don’t have to serve a separate notice if they have a direct contract with the owner. But there are exceptions. If the project is over a certain square footage (like public schools or industrial buildings), even GCs need to serve notice.

Our advice? Don’t rely on exceptions. Don’t try to thread the needle. Include a proper pre-lien notice in every contract. It’s one page of insurance that protects your biggest legal tool.

What a Lien Actually Does

Here’s where the lien shines: when you take the customer to court and win a judgment, a valid lien gives you the right to foreclose on the property. It turns an unsecured claim into a secured one.

This doesn’t mean you’ll have to kick someone out of their home. Most property owners will do whatever it takes to resolve the lien before it gets to that point. But knowing you could foreclose changes the balance of power.

In commercial jobs, a lien might prevent a property from selling or refinancing. That gives you leverage. In residential jobs, it creates urgency – especially if the homeowner wants to avoid long-term damage to their title.

And unlike most unsecured debts, a valid mechanics’ lien in Minnesota can survive bankruptcy. It’s one of the few tools that cuts through the homeowner’s financial defenses.

So Why Not File Every Time?

Because it’s not cheap.

Filing a lien and later foreclosing on it means court costs, attorney’s fees, and time. If the unpaid amount is small, the cost of enforcing the lien may outweigh the benefit. That’s why we evaluate each case carefully with our contractor clients.

In some cases, a strong demand letter backed by legal authority is enough to trigger payment. In others, we preserve lien rights and prepare for court. But it’s never one-size-fits-all.

The Bottom Line

A mechanics’ lien is a powerful tool—but only if you:

• Follow the notice rules
• File within the deadline
• Understand what you’re trying to accomplish

At MNCLS, we help owner-operated contractors use the lien process the right way. We don’t file liens just to look tough. We use them to secure your position and increase your odds of recovery.Before you file, let’s talk.

Coming Up Next:

Does It Really Matter What My Contract Says?We’ll look at how your contract—not just what’s in it, but how well you use it—can make or break your ability to avoid collections altogether.thanks