WHEN TO FILE A MECHANIC'S LIEN.
A mechanic's lien is the most powerful collection tool a construction subcontractor has, and most never use it correctly or in time. Here is when to file, what the deadlines look like, how the process works, and when to bring in a construction lien attorney to handle it.
Lien rights operate on a clock that starts before you know you have a problem. In most states a preliminary notice has to go out within 20 to 30 days of first furnishing work, and the lien itself has to be filed 60 to 120 days after last furnishing, depending on the state. Miss either window and the strongest collection tool you have is gone, however much you're owed. That's why the notice goes out on every job as standard practice rather than only on the jobs that go sideways.
WHAT IT MEANS.
A mechanic's lien is a legal claim recorded against the property you improved, which clouds the owner's title until the unpaid amount gets resolved.
WHERE IT GOES WRONG.
You waited too long and lost your lien rights
Lien rights come with strict filing deadlines, typically 60 to 120 days after last furnishing labor or materials depending on the state. Most subcontractors wait until the collection problem is obvious before thinking about a lien, and by then the deadline has passed. A lien right you can't use is worth nothing at all.
You don't know the deadlines in your state
Lien law is state specific. California has different rules than Texas. Florida has different rules than New York. Preliminary notice requirements, filing windows, and enforcement timelines all differ. Without knowing your own state's deadlines you're guessing, and guessing wrong on lien rights means absorbing the loss yourself.
You don't know how to file or what it costs
Most subcontractors know liens exist and have never filed one. The process, meaning preliminary notice, lien filing, and enforcement, comes with specific requirements and costs that most contractors have never researched until the week they urgently need one. That's the worst week to start learning.
THREE STEPS, AND THREE CLOCKS.
In most states a preliminary notice must be sent within 20 to 30 days of first furnishing work, and sending it preserves your right to lien later. Miss that window and you may lose all lien rights regardless of how much you're owed. It's the cheapest document in the whole process and the one most subcontractors skip.
When payment is overdue and escalation hasn't worked, file the lien before the deadline, typically 60 to 120 days after last furnishing depending on state. The filing is what turns your unpaid invoice into the owner's problem, because the lien clouds their title. Filing is a business decision, and it should be made on the calendar rather than on how the last phone call went.
A filed lien must be enforced within a specific timeframe, typically 6 to 12 months, or it expires. Enforcement means filing a lawsuit to foreclose on the lien. Most disputes settle well before that, which is the point: the credible threat of enforcement is what moves money, and it's only credible if the filing was done correctly.
SPM connects clients to a vetted construction lien firm when collections reach the lien stage. That firm handles preliminary notices, lien filings, and enforcement in the states where SPM clients work. A construction attorney sending the demand and filing the lien changes the GC's response in a way a subcontractor sending emails doesn't. It's an additional cost and it's not included in the SPM monthly fee.
The best lien strategy works automatically: preliminary notices sent on every project as standard practice, not only when a GC goes slow. SPM works with the lien firm to put a preliminary notice program in place for clients who want lien rights preserved on every project from day one. It costs almost nothing per job and it keeps every option open.
FLAT MONTHLY FEE. NO SURPRISES.
Three tiers, priced by your trailing twelve month revenue. Which one you're in depends on how much of the work you want off your desk. No hourly billing. No payroll. The one-time onboarding fee is right here in the table.
| Last 12 months revenue | Monthly fee | One-time onboarding |
|---|---|---|
| Under $1M | $1,900 to $3,300 | $1,000 |
| $1M to $3.5M | $2,600 to $5,300 | $1,500 |
| $3.5M to $6.5M | $3,800 to $8,300 | $3,000 |
| $6.5M to $9.5M | $5,100 to $11,800 | $4,500 |
| $9.5M to $12.5M | $6,100 to $14,900 | $6,000 |
| $12.5M to $15.5M | $7,400 to $17,650 | $7,500 |
| $15.5M to $18.5M | $9,400 to $22,400 | $9,000 |
| $18.5M+ | Quoted individually | Quoted individually |
The onboarding fee covers migrating your books back to the start of your last taxable year and getting you fully operational in 60 days. It's billed once, with your first invoice. It's the same for all three tiers. Your first month is prorated, and your monthly engagement starts on the first of the first full month.
Range reflects the three tiers below. Which one you're in depends on how much of the work you want off your desk. No payroll. No hidden line items. The onboarding fee is right here in the table.
You stop guessing.
You get the CFO work. Job costing built against the way you estimate, a 13 week cash forecast, monthly WIP, and a meeting every month that ends in decisions and never in a report.
Your bookkeeper still does the books.
Every job shows its margin while it is still open.
Everything in Core, plus the bookkeeping and bank reconciliations done for you, and the job costing and WIP software set up, loaded with your cost codes, and managed every month. Use your own online software, or move to ours and we cover it.
A bookkeeper we choose does the books and reconciliations. No payroll.
You approve, and the money side gets handled.
Everything in Strategic, plus a controller we choose who handles your bills and receivables for you the way an in-house controller would. They call vendors, pay the bills and keep the accounting current. We plan the cash flow first, and you approve every payment because it is your money.
A controller we choose does the payables and receivables. No payroll, no pay applications, no collections.
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