This is the page for articles about no lien clauses. No lien clauses are exactly what they sound like – they’re clauses in a construction contract that prohibit contractors or suppliers from filing a mechanics lien down the road.
Fortunately, very few states allow no lien clauses. Colorado and Nebraska are the two states that do allow them, and contractors need to be extra careful when reviewing contracts in those two states. If you live in a state that prohibits no lien clauses, you should also be aware of the laws surrounding the issue. That’s because contract owners who violate the laws against these clauses can face serious consequences, and in some states where the law is conflicting, the result is often a long, drawn-out, and expensive court argument.
The best course of action when dealing with a no lien clause varies depending on your circumstances, and no two contracts will ever be the same. That’s why recommend you do your research if you encounter one.
If you can’t find the answers you’re looking for on our blog, you can check out the Expert Center for help. Construction attorneys answer questions from contractors on the Expert Center to provide them with free legal advice that helps them form a game plan and secure payment on every project.
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