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Home>Levelset Community>Legal Help>If we only rent equipment, such as port-a-potties, hand tools, etc., then are we allow to file liens?

If we only rent equipment, such as port-a-potties, hand tools, etc., then are we allow to file liens?

New MexicoRight to Lien

We are renting multiple port-a-potties to a company that is doing some construction work in New Mexico. We are providing no services to the construction work itself.

1 reply

Mar 3, 2020
Generally, in order for mechanics lien rights to arise, the lien claimant must provide some permanent improvement to the project property - whether that be through their labor, materials, or the equipment they've provided to the project site. Regarding portable toilets - while they're a necessity for most job sites, I'm not sure that providing them would give rise to lien rights due to their (intentionally) temporary nature. To be sure, consulting with a New Mexico construction attorney might provide a little clarity there. As for hand tools - seemingly, that may well serve as a sound basis for mechanics lien rights. Under § 48-2-2 of the New Mexico mechanics lien statute, lien rights are available to "Every person performing labor upon, providing or hauling equipment, tools or machinery for or furnishing materials to be used in" the project. So, providing tools would seem to be explicitly covered by New Mexico mechanics lien rights. Regardless of whether a mechanics lien can or will be filed, though, it's a good idea to send preliminary notices and to follow any relevant preliminary notice requirements. Preliminary notices improve communication, transparency, and collaboration on all projects - and they'll typically speed up payment, even if notice isn't required. Further discussion here: Why You Should Send Preliminary Notice Even If It’s Not Required.
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