As construction projects often span multiple jurisdictions throughout the metropolitan Washington area, commonly known as the DMV, understanding the differences in mechanic’s lien laws in Washington, D.C., Maryland, and Virginia is essential for contractors, subcontractors and suppliers seeking to protect their payment rights. Each jurisdiction has unique requirements and timelines that can significantly impact the enforceability of a lien. This article provides a high-level comparison to help you navigate these nuances effectively.

Mechanic’s liens are powerful tools that contractors, subcontractors, and suppliers can use to secure payment for their work on construction projects. By placing a lien on the property where labor is furnished or materials supplied, they gain leverage in recovering payment if an owner or general contractor fails to fulfill their financial obligations. However, navigating mechanic’s lien laws can be challenging, particularly in the metropolitan Washington area, where jurisdictions border each other but operate under different rules.

In Washington, D.C., Maryland, and Virginia, mechanic’s lien requirements differ in key aspects, such as filing deadlines, documentation, and eligibility criteria. Failing to meet these requirements can lead to the loss of lien rights and, ultimately unpaid work. Below, we outline the key elements of mechanic’s liens in each jurisdiction and provide tips on managing liens when working throughout the region.         `

Mechanic’s Liens in D.C.

Washington, D.C., while having have some similarities with Maryland and Virginia, does have some unique rules governing mechanic’s liens, making it essential for contractors and subcontractors working in the city to understand these requirements. Here are the primary components of D.C. mechanic’s lien law:

• Eligibility: Contractors, subcontractors, and material suppliers are generally eligible to file a lien in D.C., provided they have a direct contractual relationship with the property owner or the general contractor.
• Filing Deadline: In D.C., a lien must be filed within 90 days from the date of last labor furnished or material supplied on the project. The last date does not mean the date that the lien claimant last provided labor or materials. It is the last date that any contractor or supplier provided labor or materials. Therefore, a contractor could have completed its work many months before it files a lien if other contractors are still working on a project. This deadline is strict and missing it can lead to the forfeiture of lien rights.
• Required Documentation: To file a mechanic’s lien, a claimant must submit a detailed statement of the amount due and the services or materials provided, along with a description of the property. The claimant must also provide proof that it is in good standing to work in D.C. and that its business license is current as of the date that the lien is filed. It’s advisable to maintain clear and accurate records throughout the project to avoid issues with documentation.
• Judicial Requirements: D.C. requires a court action to enforce the lien within 180 days of filing. Failure to initiate this action results in the lien’s expiration, underscoring the importance of timely legal action.

Mechanic’s liens in D.C. can be challenging to navigate, especially with strict filing deadlines and the need for judicial enforcement. Contractors should work closely with an attorney to ensure compliance with these rules.

Mechanic’s Liens in Maryland

Maryland’s mechanic’s lien law has its own set of rules, and in some ways, is much more exacting than neighboring jurisdictions:

• Eligibility: Unlike D.C., Maryland allows contractors, subcontractors, and material suppliers, irrespective of whether there is a direct relationship with an owner or general contractor, to file a lien. However, subcontractors must give preliminary notice to the property owner to protect their lien rights if they lack a direct contract with the owner.
• Filing Deadline: Maryland mandates that mechanic’s liens be filed within 180 days after completing the work or providing materials. In some cases, this longer deadline offers contractors more flexibility compared to D.C.
• Notice Requirements: One unique aspect of Maryland’s law is the Notice of Intention to File a Lien requirement, particularly for subcontractors. This notice must be sent within 120 days of the last date of work to establish lien rights. General contractors are exempt from this notice but should still document the project’s timeline carefully.
• Enforcement Process: In Maryland, a mechanic’s lien does not automatically enforce payment. A court hearing is held to determine whether a lien claimant is entitled to a temporary lien until a lawsuit is filed to enforce a lien. Also, a lien claimant must show that it has improved a new structure to 15% of the total property value or 25 % of the property when work is done for a tenant to even qualify for a lien.

Maryland’s longer filing timeline can be advantageous, but the notice requirements demand diligence. Contractors working in Maryland should maintain clear records and, if necessary, consult with legal counsel to meet all filing requirements.

Mechanic’s Liens in Virginia

Virginia’s mechanic’s lien process differs in that multiple timelines must be considered:

• Eligibility: Virginia’s lien law covers contractors, subcontractors, and material suppliers, that are authorized and that have performed at least $150 of work on a property.
• Filing Deadline: In Virginia, a mechanic’s lien must be filed within 90 days of the last day of the month in which work was performed and if a claimant has committed all its work, within 90 days from the last date worked on a project.  Also, any lien that is filed cannot include sums for work performed more than 150 days from the last date of work prior to the lien filing. This tight deadline underscores the importance of prompt action.
• Documentation Requirements: The lien must include a detailed account of labor and materials provided and must be itemized. Proper documentation is crucial, as mistakes can invalidate the lien.
• Preliminary Notices and Enforcement: While preliminary notices are not required in Virginia, it’s recommended that contractors maintain open communication with property owners. To enforce the lien, legal action must be taken within six months of filing or within 60 days after project completion, whichever is later.

Virginia’s strict filing requirements can be unforgiving. Contractors should pay close attention to the timelines and documentation to ensure their lien rights are protected.

Key Differences and Considerations

Working across D.C., Maryland, and Virginia requires a nuanced understanding of each jurisdiction’s requirements. Here are some of the primary differences to keep in mind:

• Filing Deadlines: D.C. and Virginia have 90-day filing windows, while Maryland offers 180 days. Virginia’s deadlines are further complicated by the “last day of the month” requirement.
• Notice Requirements: Maryland requires subcontractors to issue a Notice of Intention, while D.C. and Virginia do not have this requirement.
• Enforcement: All three jurisdictions require judicial actions within a specific timeframe to enforce a lien, while Maryland’s enforcement process also involves court approval for a temporary lien.

Jurisdiction	Filing Deadline	Preliminary Notice	Enforcement Requirement
D.C.	90 days	Not required	Judicial action within 180 days
Maryland	180 days	Required for subcontractors within 120 days	Court petition required
Virginia	90 days or 150 days	Not required	Judicial action within six months

This quick reference can be a valuable tool for contractors working across multiple jurisdictions.

Best Practices for Managing Mechanic’s Liens Throughout the DMV

Given the complexities of mechanic’s lien laws in the D.C. metro area, consider these best practices to stay compliant:

• Maintain Detailed Records: Keep comprehensive records of timelines, contracts, and project costs. Accurate documentation supports lien claims and protects against disputes.
• Stay Informed of Local Laws: Lien laws are subject to change, so staying updated on each jurisdiction’s requirements is crucial.
• Seek Legal Guidance: Consulting an attorney with experience in mechanic’s liens can help ensure compliance and avoid costly mistakes, particularly when working in multiple jurisdictions.

Conclusion

Understanding the differences in mechanic’s lien laws across D.C., Maryland, and Virginia is essential for contractors seeking to secure payment. Each state has unique requirements, and failing to adhere to them can result in lost lien rights. By staying organized, informed, and proactive, contractors can protect their payment rights and minimize risk when working in the Greater D.C. area.

If you have questions about a mechanic’s lien or other real estate and construction matters, please contact Juanita Ferguson at (703) 284-7243 or jferguson@beankinney.com.

This article is for informational purposes only and does not contain or convey legal advice. Consult a lawyer. Any views or opinions expressed herein are those of the authors and are not necessarily the views of any client.