WHAT WORK OR MATERIALS CONSTITUTE A MECHANICS' LIEN?  

Only work or materials that are included within a state's statutes on mechanics' liens may constitute a mechanics' lien on an owner's property. Most courts have held that in order for work or materials to constitute a lien, they must be an integral part of the construction on the owner's property and not ancillary to the construction. Some courts have held that where work that may constitute a mechanics' lien is combined with work that may not constitute a mechanics' lien, the mechanics' lien is void.

Most states allow a claim for a mechanics' lien for repairs to an owner's property. If the repairs are permanently attached to the owner's property or if they are integrated into the owner's property, the repairs constitute a mechanics' lien.

If work to an owner's property involves the removal or demolition of the property, the removal or demolition work generally does not constitute a mechanics' lien.

If work to an owner's property involves off-site improvements, such as utility services or easement work, they may constitute a mechanics' lien if they benefit the owner's property.

Although traditional landscaping services, such as mowing or maintenance, do not constitute a mechanics' lien, services such as excavation, clearing land, grading, or planting may constitute a mechanics' lien. The issue is whether the service has a fixed time of completion in order to commence the running of a statute of limitation. If the service is continuous, the statute of limitations does not commence to run.

If materials are delivered to a work site, they may constitute a mechanics' lien, even if they were not used for a particular project. There is a presumption that the materials will be incorporated into an owner's property once they are delivered to the property. The owner has the burden of proving that the materials were not incorporated into his or her project. However, the person who delivered the materials must prove that the materials were delivered to the work site.

Some states provide that specially fabricated materials constitute a mechanics' lien, even if they were never used in or delivered to a work site. Specially fabricated materials, which can only be used on a specific work site, are different from specially ordered materials, which may be used on another work site. If the materials cannot be used on another work site, they may constitute a mechanics' lien. However, the materials must be part of a manufacturing process and not a raw material for the manufacturing process.

Some states allow rental equipment to constitute a mechanics' lien if the rental equipment is used for a construction project on an owner's property. In those states, however, a lessor must actually perform the labor that is associated with the rental equipment and must not merely lease the equipment to the owner who provides his or her own labor for the rental equipment. Also, if the rental equipment is not consumed by the construction project, that is, if the rental equipment can be used on another project, it may not constitute a mechanics' lien.

Overhead, insurance, taxes, and profit generally do not constitute a mechanics' lien. However, if such items are included in a contract with an owner or if they constitute part of the labor that is furnished by a contractor, they may constitute a mechanics' lien.