In California, contractors, subcontractors, material and equipment suppliers who improve real property have a powerful tool to collect unpaid amounts: the mechanics lien. Under the California Civil Code, a properly filed lien can force payment. This guide explains the exact steps required under California law for privately funded projects (public works follow different rules). Click here to record your mechanics lien now.

Step 1: Serve a Preliminary Notice

California Civil Code requires nearly everyone except the prime contractor with a direct contract with the owner to serve a Preliminary Notice within 20 days of first furnishing labor or materials. Even direct contractors should serve one because the legal owner is often an LLC, trust, or different entity than the person who hired you.

Key requirements:

Serve no later than 20 days after first furnishing (if served late, you only protect amounts earned in the 20 days before service plus everything after).
Serve by certified mail to the owner (or reputed owner), general contractor, and construction lender (if any).
Use the exact statutory form language in Civil Code § 8202 or a substantially similar notice.
Include an “Notice to Property Owner” warning box in bold if the contract is for residential work with the owner living in the home (four units or fewer).

Failing to serve a valid Preliminary Notice almost always destroys your lien rights unless you qualify for a rare exception.

Consequences of skipping it: no lien rights for the missed period.

Step 2: Serve a Notice of Intent to Lien

California does not legally require a Notice of Intent to Lien, but it is the single most effective collection tool available. It warns the owner and general contractor that a lien will be filed on a date certain unless payment is made.

Best practices:

Give at least 10 days’ notice before recording.
State the exact amount due, describe the work/materials, and name the hiring party.
Attach invoices and proof of delivery.

The majority of Notices of Intent result in payment without ever recording a lien.

Step 3: Record the Lien

If payment is still not received, record a Claim of Mechanics Lien with the county recorder in the county where the property is located.

Deadlines:

90 days from substantial completion of the entire project, OR
90 days from the owner records a Notice of Completion or Cessation (shortens to 60 days for originals, 30 days for subs if Notice of Completion is recorded).
If no Notice of Completion/Cessation, everyone has 90 days from actual completion.

Contents of the lien:

A statement of demand after deducting all just credits and offsets.
Name of the owner or reputed owner.
General description of labor/materials furnished.
Name of the person who hired you.
Description of the site sufficient for identification.
Claimant’s address.
Proof of service affidavit showing Preliminary Notice was served.

Recording fees are usually $90–$150 for the first page plus $3–$10 per additional page (varies by county).

The lien must be verified (notarized) and recorded before the 90-day deadline expires. Missing the deadline by even one day kills the lien forever.

Removing or Bonding Off the Lien

Once recorded, the lien is difficult and expensive to remove without payment. The owner’s options are:

Pay the claimant.
Record a surety bond for 125% of the lien amount - this is also called "wrapping" around the lien.
File a petition to release the property because the lien is frivolous or clearly excessive

Most owners choose the bond route because it clears title immediately and shifts the fight to the bond.

Step 4: Foreclose the Lien (Enforcement)

A mechanics lien in California automatically expires 90 days after recording unless a foreclosure lawsuit is filed. This is a hard deadline—no extensions.

Key foreclosure points:

Must file a lawsuit in superior court to foreclose.
Attorney representation is mandatory; you cannot represent yourself for lien foreclosure if you are a business entity.
All other lien claimants and the owner must be named.
The court will order a foreclosure sale if you win.

Because of the short 90-day window and high attorney fees (often $15,000+), foreclosure is rare. Most cases settle once the complaint is filed.

Special California Rules You Must Know

Residential jobs (owner-occupied, 4 units or fewer): Additional bold “Notice to Property Owner” warning required on Preliminary Notice stating the lien could lead to forced sale of the home.
Laborers: Individual workers have lien rights even if their employer already has one.
Design professionals (architects, engineers, surveyors): Separate 90-day lien deadline from when their services are completed.
Stop Payment Notice: Alternative remedy (especially useful against construction lenders) that freezes undisbursed loan funds.

Practical Tips from California Practitioners

Calendar every deadline in at least three places.
Serve Preliminary Notices on Day 1 of the job—never wait.
Keep detailed records of every delivery and day worked.
Use certified mail with return receipt for every notice.
Send the Notice of Intent early—10 days minimum, 20 days is better.
If the owner claims defective work, respond in writing and preserve evidence.

Conclusion

California mechanics lien law is strict, technical, and unforgiving. One missed deadline or incorrect form destroys the lien entirely. However, when the steps are followed precisely—Preliminary Notice on time, Notice of Intent, timely recording, and foreclosure action within 90 days—the mechanics lien remains one of the most effective payment security devices in construction.

Protect your company: serve the Preliminary Notice on every job, document everything, and act quickly when payment problems arise. Your right to payment is only as strong as your compliance with California’s exact requirements.