To better protect your right to be paid for your work, you need to learn the lien laws for the state you live and work within. Filing your construction liens, the right way is the only way to protect yourself financially when you have yet to be paid for a project you’re working on. We’re here to take away the complexity and confusion and give it to you straight. If you work in Maryland and need to know the lien laws, this is the spot for you. Here, we break down exactly what the state of Maryland requires of you to properly file a valid lien and bond claim.
How to File a Valid Lien in Maryland:
- To file a lien in Maryland, the amount of work or the construction of the building or buildings being repaired, rebuilt, or improved in the Place 1* contract must be 15% or more of the property’s value.
- If materials are delivered to the site, a lien is established even if they are not used at the project.
- If materials are picked up by a Contractor for a specific project, that proves a lien unless it can be established that they were not used at the project.
- For single-family houses, a lien will be limited to the amount of money the Owner has left that is due to the Contractor when they receive the notice of lien.
- You must send notice of amounts due to the Owner within one hundred and twenty (120) days of your last work and/or materials supplied.
- A lien can only be established by court order.
- You must file a Petition to Establish a Mechanic’s Lien in the Circuit Court in the county where the property is located. This petition must be filed within (180) days of your last work and/or materials supplied.
How to Have a Valid Bond Claim in Maryland:
- Place 4* and above Contractors have bond claim rights on public works projects.
- Place 3 & 4* Contractors must give notice to the Place 1* Contractor ninety (90) days after the last work done and/or materials supplied.
- Suit must be filed within (one) 1 year of the public body accepting the work (final completion). Suit needs to be filed against the bond company.
If you work in Maryland, learning the laws above is a necessary first step in protecting your right to payment. Take advantage of your lien rights—they exist to give you leverage and help you get paid what you are owed! If you’d like someone else to take care of filing your lien and bond claims, and do it the right way, contact an experienced Maryland lien attorney 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 your future and file 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.