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Can a security guard company put a mechanics lien on a property for non payment from a GC?

New YorkMechanics LienRecovery OptionsRight to Lien

Wasn’t paid by GC for guard services during construction phase

2 replies

Mar 6, 2019
Whether or not specific work qualifies for mechanics lien protection in New York oftentimes comes down to whether the work produced a permanent improvement to the property. This is true for work related to the construction project, work required by the construction project or associated rules, and the construction project work itself. In fact, New York has determined that the installation of things like solar panel systems and vibration monitoring systems do not constitute "permanent" improvements, so don't qualify for mechanics lien protection.

In the case of security guard services, there is actually case law directly on point. In 270 Greenwich Street Associates LLC v Patrol and Guard Enterprises, Inc., 2010 N.Y.Slip Op., 31667(U), (Sup. Ct. N.Y. Co. 2010)the court noted that:

"[A] contractor’s services, even if necessary to carry out a construction project, are lienable only if they directly produce a ‘permanent improvement’ in underlying real property."

The court then determined that security guard services required by code in order for construction to proceed were not lienable because they “did not directly permanently improve the Property.”

Even when mechanics liens do not provide the path to collect money due, there are other alternatives. Suit can likely be filed pursuant to various causes of action, or other collection efforts could be employed. I hope that you are able to get paid what you are owed.
1 person found this helpful
Jul 12, 2022
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