Public WorksQuestion 487 of 1632

Why can an unpaid subcontractor NOT record a mechanics' lien against a completed public school building?

a.Mechanics liens were abolished in California long ago
b.Public property cannot be sold to satisfy a lien
c.Only the direct contractor may record a lien on the job
d.Liens are barred on any project costing over $25,000

Explanation

A mechanics lien works only because the property can be sold at foreclosure to satisfy the debt; land held for public use cannot be sold that way, so the lien has nothing to attach to, and the legislature substituted the payment bond of Civil Code §9550 and the stop payment notice. Mechanics liens are alive and well on private work, so the first option is simply false. Subcontractors and suppliers, not just the direct contractor, hold lien rights on private jobs. And no dollar threshold bars liens: the $25,000 figure is the point at which a public works payment bond becomes compulsory.

Law Reference: Civil Code §8000; §9550

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