Montana Lien Frequently Asked Questions

What is a Construction Lien Claim?

Liens filed on private property or on funds relating to a public project are known as Construction Liens. When a lien is filed with regard to work performed on privately owned property, it attaches to and encumbers the fee simple ownership of property. When a lien is filed with regard to work performed on a publicly or government owned property, it attaches to the fund of money which the public agency has allocated for a project. The reason for this is that you cannot force the sale of publicly owned land (public agencies mean any county, city, town, township, public commission, public board or other municipality authorized by law to make contracts for the making of any public improvement in any city, town, township or other municipality).

Who can file a Mechanics’ Lien Claim?

Contractors, as well as subcontractors, sub-subcontractors and suppliers who have a contract with a general contractor or a subcontractor can file a lien.

Are pre-notices for a Mechanics’ Lien Claim required?

Pre-notices are not required for contractors who have direct contracts with the owner, wage earners, on projects relating to dwellings of 5 or more families or on commercial projects.

For residential projects, subcontractors and suppliers must give notice no later than 20 days after the date on which services or materials are first furnished. That period is extended to 45 days on residential projects where funding is provided by a bank and secured by a lien, mortgage or encumbrance, unless it is owner-occupied.

Can you file a Mechanics’ Lien Claim without a pre-notice?

Contractors can file without a pre-notice, but subcontractors, sub-subcontractors and suppliers must file a pre-notice prior to filing a lien or the lien extends back only to the preceding 20 days.

When should a Mechanics’ Lien Claim be filed?

How much does it cost to file a Mechanics’ Lien Claim?

LienItNow.com prepares, files and serves Montana Mechanics’ Liens (which includes a written notice of intent to claim a lien, if necessary, as well as a verified statement of lien) for a fee of $250.00.  Pre-notices are not included in the $250.00 price, but can be filed for a fee of $50.00.

Do I need a written contract?

No.  Oral contracts are sufficient if you have sufficient documentation to show the existence of an agreement or that you performed the work for which you are liening.

How does filing a Mechanics’ Lien Claim help me get my money?

On a private project, the construction lien places an encumbrance on the property that makes it difficult to resell or re-finance the property without first removing the lien. On a public project, the filing of a lien freezes the fund of money that has been allocated for the public project, thus reducing or sometimes even stopping the flow of payments to the offending contractor until the lienor is paid.

What is a Stop Notice and why should it be filed?

LienItNow.com prepares and serves Stop Notices for a fee of $100.00. A Stop Notice is a notification that has the ability to enhance the effectiveness of a mechanic’s lien. A Stop Notice, or a notice to withhold funds, is sent to the company that is financing or funding the construction funds for a project. Once that company receives the Stop Notice, that company has notice that it should withhold sufficient money to satisfy the stop notice claim. The purpose of the Stop Notice is to provide the lender, financiers or funders of the construction project notice that there is money owed to a contractor, subcontractor or supplier so that an inquiry can be made as to why that money is not being paid.

What is an Amendment to a Mechanics’ Lien Claim?

LienItNow.com prepares, files and serves Montana Amendments to Mechanics’ Lien Claims for a fee of $225.00.  Amendments to a mechanics’ lien claim are often needed when something about the lien claim changes.  Common changes to a lien claim are increases or reductions in the amount due to the lienor, or a change to the last date of work.

When should a Discharge of Mechanics’ Lien claim be filed?

LienItNow.com prepares, files and serves Montana Discharges of Mechanics’ Lien Claims for a fee of $75.00.  Once the lienor has been paid the amount contained in its lien claim, or has come to an agreement that requires the lien claim to be removed from the property records, a Discharge of Mechanics’ Lien Claim should be filed.

How much does it cost to file an Extension of a Mechanics’ Lien Claim?

LienItNow.com prepares, files and serves extensions of Mechanics’ Lien Claims for a fee of $75.00.  All lien claims expire after a certain period of time, and filing an extension of the mechanics’ lien claim prolongs the expiration date.  Montana law, however, does not permit an extension of mechanics’ lien claims.

Can I file a Bond Claim on the Project?

LienItNow.com prepares, files and serves Montana Bond Claims for a fee of $250.00.  Bond claims can only be filed on a project where the owner, contractor or subcontractor has obtained a payment bond to ensure that every contractor receives payment for the work performed on the Project.  The payment bonds issued by sureties for construction projects have specific timing requirements, but most require claimants to submit claims against the bond within sixty to ninety days from the claimants’ last date of work.  Bond claims are as or more effective than a lien claim because the payment bond acts as a guarantee that payment will be made for work properly completed.

Do I need to file a Pre-Notice to make a claim against a payment bond?

LienItNow.com prepares, files and serves Montana Pre-Notices for bond claims for a fee of $50.00.  Depending on the terms of the payment bond, pre-notices may or may not be required.  LienItNow.com recommends that, prior to or immediately after starting work or delivering materials to a project, subcontractors and suppliers, file a pre-notice that it is a potential beneficiary of the construction project’s bond.