Understanding lien laws is the first step you need to take to protect your right to payment. The tricky part is figuring out the lien laws for the state your company operates in. If you work in Massachusetts and need to know the lien laws, this is the place for you. Here, we break down exactly what the state of Massachusetts requires for you to properly file a valid construction lien and bond claim.
How to File a Valid Lien in Massachusetts:
- You must have a written contract to have a lien.
- Place 1* Contractors must record a notice of contact with the Registry of Deeds in the county where the property is located. It must be filed the earliest of:
- Sixty (60) days after recording a notice of substantial completion;
- Ninety (90) days after recording a notice to termination; or
- Ninety (90) days after last work.
- Place 1* Contractors must also file a statement of account, this must be filed the earliest of:
- Ninety (90) days after recording a notice of substantial completion;
- One hundred and twenty (120) days after recording a notice of termination; or
- One hundred and twenty (120) days after last work.
- Place 1* Contractor must file suit within ninety (90) days of filing its statement of account. You must file a copy of the lawsuit in the registry of deeds as well, within thirty (30 days) of filing the suit.
- For Place 2* Contractors and below must record a notice of contact with the Registry of Deeds in the county where the property is located. It must be filed the earliest of:
- Sixty (60) days after recording a notice of substantial completion;
- Ninety (90) days after recording a notice to termination; or
- Ninety (90) days after last work.
- You must send the Owner and Place 1* Contractor a copy of the notice of contract that is filed.
- Place 2* and below Contractors must also file a statement of account; this must be filed the earlier of:
- Ninety (90) days after recording a notice of substantial completion;
- One hundred and twenty (120) days after recording a notice of termination; or
- One hundred and twenty (120) days after the last work was performed.
- Place 2* and below Contractors must file suit within ninety (90) days of filing the statement of account. You must file a copy of the lawsuit in the Registry of Deeds as well, within thirty (30) days of filing the suit.
- For Place 2* and below Contractors, claims are limited by the amount the Owner has left due to the Place 1* Contractor when the Owner receives the notice of contract. You can opt out of this limitation or your claim amount if you send a notice of identification to the Place 1* Contractor within thirty (30) days of the first time work was performed or materials supplied.
How to Have a Valid Bond Claim in Massachusetts:
- Bonds are required on all public projects of more than $25,000.
- You can have a bond claim regardless of your place in the construction food chain.
- Place 2* Contractors must file a lawsuit against the bond within one (1) year of the last work performed and/or materials supplied.
- Place 3* and below Contractors must give notice to the Place 1* Contractor of amounts they are owed within sixty-five (65) days of last work and/or materials supplied. Suit must be filed within one (1) year of last work performed and/or materials supplied.
- You can recover attorney fees.
If you work in Massachusetts, make sure to remember the laws listed above, and follow them to the letter. You deserve to be compensated, and a valid construction lien is the key to making sure you are. To learn Massachusetts' Lien Laws in depth, listen to this episode of The Quit Getting Screwed Construction Podcast. If you’d like someone else to take care of filing your lien or bond claim, and do it the right way, contact a professional Massachusetts lien lawyer who is experienced with construction law. Our sister company, The Cromeens Law Firm, has a lien and collections team ready to take care of it for you. Protect your business, and make sure you get paid for the work you do by enforcing your lien rights.
*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.