Do you like money? We’d be surprised if your answer wasn’t “Yes!” Construction liens are a tool created to protect the money you are owed and your right to financial compensation. Educating yourself on the lien laws for your specific state is an integral step in securing your pay. We’re here to take away the complexity and confusion and give it to you straight. If you work in Indiana and need to know the lien laws, this is the place for you. Here, we break down exactly what the state of Indiana requires of you to properly file a valid construction lien or bond claim.
How to File a Lien in Indiana:
- You must be a Place 3* or above Contractor to have lien rights in Indiana.
- You must prove that materials were actually used in the construction of the property to have a lien. If the materials are delivered, there is a presumption that they were used at that project.
- For any single and double family houses that are Owner-occupied, you must send a notice to the Owner within thirty (30) days of first labor or delivery of materials.
- New residential construction projects must send the Owner a notice within sixty (60) days of first work performed or material supplied. This same notice must be filed in the County Recorder’s Office in the county where the property is located.
- You must file a Notice of Intention to hold a mechanic’s lien, within sixty (60) days of your last work and/or material supplied on residential property and ninety (90) days after you last performed work and/or materials supplied for all other projects.
- This Notice of Intention to hold a mechanic’s lien must be verified and filed by an Indiana licensed attorney.
- The county will send the Owner a copy of the Notice of Intention to hold a mechanic’s lien.
- You must file suit on Notice of Intention to hold a lien within one (1) year of it being filed or your right to lien will expire. If the Owner demands that you file suit within thirty (30) days, you must do so or your right to lien will expire.
- Do have a right to recover your attorney fees.
- You can have a lien on funds due to the Place 1* Contractor, the only requirement is to send notice to the Owner while they still have funds due to the Place 1* Contractor.
How to Have a Valid Bond Claim in Indiana:
- A bond is required on any public project over $200,000.
- You must send notice of your claim to:
- the public body having the work done;
- the General Contractor; and
- the Surety within sixty 60 days of your last work and/or material supplied.
- You have to wait thirty (30) days from when you sent your notice to file suit to enforce your claim.
- You must bring suit to enforce your bond claim within one (1) year after final settlement with the General Contractor for the project.
If you work in Indiana, it is imperative that you understand and retain the information above. Your lien rights are in place to protect your right to payment, and you should never have to work for free. If you want someone else to take care of filing your lien and bond claims, and do it the right way and contact an experienced Indiana lien lawyer who knows construction law. Our sister company, The Cromeens Law Firm, has a 90% success rate of collections before having to foreclose on a lien, saving you costly legal fees. Fortify the future of your business by filing your liens the right way.
*The “places” referenced in the rules above correlate to the Construction Food Chain Chart from Karalynn Cromeens’ book,
Quit Getting Stiffed. The chart can be found here to use when following these lien and bond rules.