Mechanics Lien vs. Bond Claim: When to File Each (2026 Guide)
A mechanics lien is the unpaid contractor's remedy on a private construction project — recorded against the property title and foreclosed to force payment. A bond claim is the unpaid contractor's remedy on a public construction project, where mechanics liens are not allowed because government property is exempt from private liens. The federal Miller Act and every state's Little Miller Act require payment bonds on public projects so unpaid claimants have an alternative recovery path. The two remedies are mutually exclusive — choose based on whether the project owner is private or public.
What Is a Mechanics Lien
A mechanics lien is a statutory security interest recorded against private real property to secure payment for labor, services, or materials furnished to improve that property. When a contractor, subcontractor, or supplier is unpaid, recording the lien clouds the property's title — the owner cannot sell, refinance, or clear title until the lien is resolved. If payment is still not made within the state's enforcement window, the lien claimant files a foreclosure lawsuit to force a sale of the property and recover from the proceeds. Mechanics liens are creatures of state statute. Every state has its own mechanics lien act with distinct deadlines, notice requirements, and procedural rules. California's lien law lives in Civil Code §§ 8000 et seq. Texas's is in Property Code Chapter 53. Illinois's is the Mechanics Lien Act at 770 ILCS 60. The most important limitation on mechanics liens is that they only attach to private property. Federal property is immune under sovereign immunity. State, county, city, and other governmental property is statutorily exempt from mechanics liens in every state.
What Is a Bond Claim
A bond claim is a claim made against a payment bond posted by the prime contractor on a public construction project. Because mechanics liens cannot be filed against government property, lawmakers created a substitute remedy: require the prime contractor to post a payment bond before any work begins, and let unpaid subcontractors and suppliers recover from the bond surety instead of from the property itself. The federal Miller Act (40 U.S.C. §§ 3131-3134) is the original payment bond statute. Enacted in 1935, it requires every prime contractor on a federal construction contract over $150,000 to furnish a payment bond for the protection of subcontractors and suppliers. When a Miller Act prime fails to pay a sub or supplier, that party files a bond claim and ultimately a federal lawsuit against the surety in the U.S. District Court for the district where the contract was performed. Every state has adopted a Little Miller Act — a state-level analog covering state and local public works projects.
How Mechanics Liens Differ From Bond Claims
The most important conceptual difference is what you are actually pursuing. With a mechanics lien, the property is your security — if the lien is not paid, the property is sold to satisfy your claim. With a bond claim, the bond surety is your security — if the bond claim is not paid, the surety pays out under the bond contract or the surety is sued. The property never enters into a bond claim. The bond never enters into a mechanics lien. A mechanics lien is filed with the county recorder, county clerk, or circuit court depending on the state. A bond claim notice is served on the prime, the surety, and (in many states) the public agency. Mechanics liens are enforced by foreclosure lawsuits in state court. Bond claims are enforced by lawsuits against the surety in either federal or state court.
When to File a Mechanics Lien vs. a Bond Claim
The threshold question is always the same: who owns the underlying real property? If the recorded fee owner is a private party — an individual, corporation, partnership, LLC, religious organization, private school, or private hospital — the project is private and the remedy is a mechanics lien. If the recorded fee owner is a government entity or instrumentality — the United States, a state, a county, a city, a school district, a public university, a port authority, a transit authority, a public housing authority, a state hospital — the project is public and the remedy is a bond claim. Public-private partnership (P3) projects, ground-lease deals, and BOT infrastructure can create gray areas. When in doubt, identify the recorded fee owner of the underlying real property — the deed at the county recorder's office controls. If the government holds title to the land, the project is public and the bond claim path applies even if a private developer is operating the asset under a 99-year lease.
Miller Act and Little Miller Act Deadlines
Under the federal Miller Act, a subcontractor or supplier in direct contract with the prime contractor can file suit against the payment bond at any time after 90 days from last furnishing, but no later than 1 year from last furnishing. A second-tier claimant (someone in contract with a first-tier subcontractor, not the prime) must additionally serve written notice on the prime contractor within 90 days of last furnishing as a condition of bond claim rights. Suit is filed in the United States District Court for the district where the contract was performed. State Little Miller Act deadlines vary. The notice window is most commonly 90 days from last furnishing, but some states use 60, 120, or 180 days. Suit-filing windows are typically 1 year from acceptance or completion, but several states use shorter windows. Pennsylvania requires a bond on public contracts over $10,000 — the lowest threshold in the country. Virginia requires a bond on state contracts over $500,000 — meaning a $400,000 state university job may have no bond at all.
Common Mechanics Lien vs. Bond Claim Mistakes
The most common mistakes: filing a mechanics lien on a public project (a recorded lien against government-owned land is a legal nullity in every state); missing the Miller Act 90-day notice as a second-tier claimant (notice must be in writing, must state the amount claimed, and must be sent by certified mail); misidentifying the project type on P3 deals (the recorded fee owner of the underlying real property controls); assuming the bond exists without verifying it (under-threshold public contracts often have no bond at all); and confusing the notice deadline with the suit deadline (sending notice satisfies only the first deadline — the suit-filing deadline runs separately). The Mechanics Lien Management State System routes the user to the correct remedy at the start of every deadline calculation based on the public or private status of the owner.
Frequently Asked Questions
What is the difference between a mechanics lien and a bond claim?
A mechanics lien is a security interest recorded against private real property when a contractor, subcontractor, or supplier is unpaid. A bond claim is a claim made against a payment bond posted on a public construction project, where mechanics liens are not allowed because government property cannot be encumbered. The remedy on a private project is a lien against the land. The remedy on a public project is a claim against the bond surety. They are mutually exclusive.
Can you file a mechanics lien on a federal government project?
No. Federal property is immune from private liens under sovereign immunity. The Miller Act (40 U.S.C. §§ 3131-3134) requires prime contractors on federal contracts over $150,000 to post a payment bond. Subs and suppliers must file a Miller Act bond claim against that bond — notice within 90 days of last furnishing for second-tier claimants, suit within 1 year.
Can you file a mechanics lien on a state or city public project?
No. Mechanics liens cannot be filed against publicly owned land in any state. Every state has a Little Miller Act requiring payment bonds on state and local public works projects above a stated threshold. A claimant who attempts to lien public property has no enforceable claim and may waive bond claim rights if the bond claim deadline passes during the failed lien attempt.
What is the deadline to file a Miller Act bond claim?
Under the federal Miller Act, suit may be filed at any time after 90 days from last furnishing but no later than 1 year from last furnishing. Second-tier claimants must additionally serve written notice on the prime contractor within 90 days of last furnishing. Suit is filed in U.S. District Court for the district where the contract was performed.
How do I know if a project is public or private for lien purposes?
Identify the recorded fee owner of the underlying real property. Public ownership (federal, state, county, city, school district, public authority) means bond claim. Private ownership (individual, corporation, partnership, LLC, private institution) means mechanics lien. The deed at the county recorder controls — even if a private developer operates the asset under a long-term lease.
Can you file both a mechanics lien and a bond claim on the same project?
Generally no — they are mutually exclusive because they apply to different project types. The narrow exception is private projects where the prime has voluntarily posted a payment bond (often required by lenders). In that case, claimants may have both lien rights and a separate bond claim against the surety, and may pursue both simultaneously.
What is a Little Miller Act?
A state statute that mirrors the federal Miller Act for state and local public works projects. Every state has adopted some version. Bond thresholds range from $10,000 (Pennsylvania) to $500,000 (Virginia state). Notice and filing deadlines vary by state — most use a 90-day notice window from last furnishing.