Wisconsin Lien Frequently Asked Questions

What is a mechanics’ lien claim?

Under Wisconsin law, lien rights extend to all participants in the construction process including surveyors, architects, contractors, engineers and subcontractors and, finally, suppliers. When a lien is filed with regard to work performed on privately owned property, it attaches to and encumbers the fee simple ownership of property.

On public projects, Wisconsin law provides first tier subcontractors with the right to file a lien, not against the property, but rather upon unpaid project funds.
 

Who can file a Mechanics’ Lien Claim?

Under Wisconsin law, any proper lien claimant, regardless of what level they fall in the chain of construction have lien rights. That includes sub-subcontractors and lower tier sub-subcontractors, architects and engineers.

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

In Wisconsin, the lien law contains very specific notice requirements that are strictly enforced by the courts. First, a preliminary notice must be given by every prime contractor who has contracted or will contract with any subcontractor or materialmen within 10 days after the first labor or materials are furnished. While there are exceptions to this notice requirement, the purpose of the preliminary notice is to protect owners of relatively small projects.

Further, the preliminary notice is required of lien claimants, other than prime contractors. Pre-lien notices must be given to the owner or the owner’s agent within 60 days after the lien claimant furnishes its first labor or materials for the improvement.

In addition to the preliminary notice, every lien claimant must provide written notice upon the project owner of its intent to file a lien claim. This notice of intent must be served at least 30 days before the actual filing of the lien claim.

When should a Mechanics’ Lien Claim be filed?

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

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

Do I need a written contract?

No.  Oral contracts are sufficient.

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 Wisconsin 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 Wisconsin 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 Wisconsin 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.  Wisconsin 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 Wisconsin 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 Wisconsin 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.