If a contractor, supplier, subcontractor, laborer or equipment lessor does not receive payment for a job performed in Indiana, they may then file for what is known as a mechanic’s lien. This is a way to possibly speed up payment, as well as protect their own interests. Indiana is a state with strong lien rights, which can be helpful in obtaining payment by any party in a residential project, state-regulated utility project, commercial, or industrial projects.
There are set deadlines for filing a mechanic’s lien, depending on the type of project. For residential projects, the deadline to file is 60 days from the last day services were provided. For all other projects, the deadline to file is 90 days from the last date of service.
A mechanic’s lien must include the legal description of the property, which can be obtained from the county auditor. When filing on a residential project, a Preliminary Notice to Owner of Mechanic’s Lien Rights is only required when the filer is not in direct contact with the owner. It is not typically required in utility, commercial, or industrial projects. Where the notice is required, it must be sent by certified mail within 30 days of the date materials or labor were first furnished.
Once a mechanic’s lien has been obtained, it must be filed with the county recorder in order to become valid. An attorney can assist you in completing the necessary paperwork, ensuring all set deadlines are met, and getting the lien properly recorded. Further collection activity may then be discussed.