Utah Lien Frequently Asked Questions

What is a mechanics’ lien claim?

Utah lien law statutes provide broad mechanics’ lien rights to contractors, subcontractors, and all persons performing any services or furnishing or renting any materials or equipment, including licensed architects and engineers who have rendered professional services on a project. All persons who have a direct contract with a project owner are deemed to be “general contractors” and all others are deemed to be “subcontractors”. A lien filed with regard to work performed on a privately owned property will attach to and encumber the fee simple ownership of the property.

Who can file a Mechanics’ Lien Claim?

Contractors as well as subcontractors, sub-subcontractors, and suppliers including architects and engineers may file a lien in the state of Utah.

Are pre-notices for a Mechanics’ Lien Claim required?

All suppliers and subcontractors, regardless of the tier in which they fall, must file a “preliminary notice” of their involvement on the project to preserve their lien rights. Suppliers and subcontractors must file a preliminary notice within 20 days after commencement of the claimants work or the date of which it first furnishes materials or equipment or, if later, 20 days after the filing of a notice of commencement.

When should a Mechanics’ Lien Claim be filed?

On construction projects for which no notice of completion is filed with the registry, a notice of lien must be recorded no later than 180 days after the date of final completion of the “original contract”. In cases where the notice of completion is filed with the registry, the lien notice must be filed no later than 90 days after the date of the notice of completion is filed but in no case later than 180 days from final completion. “Final completion” is defined by statute as follows:

• the date on which a permanent certificate of occupancy is issued;

• the date of final inspection by the governing public agency;

•  if no certificate of occupancy or final inspection is required by governmental entities, the date on which there remains no substantial work to be completed to finish; or

• in situations where the original contractor is terminated prior to completion, and no certificate of occupancy or final inspection are issued, the last date on which substantial work was performed under the original contract.

How much does it cost to file a Mechanics’ Lien Claim?

LienItNow.com prepares, files and serves Utah Mechanics’ Liens for a fee of $250.00.

Do I need a written contract?

No.  Oral contracts are sufficient if you have sufficient documentation to show the existence of an agreement or that you performed the work for which you are liening.

How does filing a Mechanics’ Lien Claim help me get my money?

On a private project, the mechanics’ lien places an encumbrance on the property that makes it difficult to resell or re-finance the property without first removing the lien.

What is a Stop Notice and why should it be filed?

LienItNow.com prepares and serves Utah Stop Notices for a fee of $100.00.  A Stop Notice is a notification that has the ability to enhance the effectiveness of a mechanic’s lien. A Stop Notice, or a notice to withhold funds, is sent to the company that is financing or funding the construction funds for a project. Once that company receives the Stop Notice, that company has notice that it should withhold sufficient money to satisfy the stop notice claim. The purpose of the Stop Notice is to provide the lender, financiers or funders of the construction project notice that there is money owed to a contractor, subcontractor or supplier so that an inquiry can be made as to why that money is not being paid.

What is an Amendment to a Mechanics’ Lien Claim?

LienItNow.com prepares, files and serves Utah Amendments to Mechanics’ Lien Claims for a fee of $225.00.  Amendments to a mechanics’ lien claim are often needed when something about the claim changes.  Common changes to a lien claim are increases or reductions in the amount due to the lienor, or a change to the last date of work.

When should a Discharge of Mechanics’ Lien claim be filed?

LienItNow.com prepares, files and serves Utah Discharges of Mechanics’ Lien Claims for a fee of $75.00.  Once the lienor has been paid the amount contained in its lien claim, or has come to an agreement that requires the lien claim to be removed from the property records, a Discharge of Mechanics’ Lien Claim should be filed.

How much does it cost to file an Extension of a Mechanics’ Lien Claim?

LienItNow.com prepares, files and serves extensions of Mechanics’ Lien Claims for a fee of $75.00.  All lien claims expire after a certain period of time, and filing an extension of the mechanics’ lien claim prolongs the expiration date.  Utah law, however, does not permit an extension of mechanics’ lien claims.

Can I file a Bond Claim on the Project?

LienItNow.com prepares, files and serves Utah Bond Claims for a fee of $250.00.  Bond claims can only be filed on a project where the owner, contractor or subcontractor has obtained a payment bond to ensure that every contractor receives payment for the work performed on the Project.  The payment bonds issued by sureties for construction projects have specific timing requirements, but most require claimants to submit claims against the bond within sixty to ninety days from the claimants’ last date of work.  Bond claims are as or more effective than a lien claim because the payment bond acts as a guarantee that payment will be made for work properly completed.

Do I need to file a Pre-Notice to make a claim against a payment bond?

LienItNow.com prepares, files and serves Utah Pre-Notices for bond claims for a fee of $50.00.  Depending on the terms of the payment bond, pre-notices may or may not be required.  LienItNow.com recommends that, prior to or immediately after starting work or delivering materials to a project, subcontractors and suppliers, file a pre-notice that it is a potential beneficiary of the construction project’s bond.