What type of lien is created when a construction company is not paid for work done on a property?

A mechanic's lien is specifically designed to protect construction companies and contractors who have performed work on a property but have not received payment. When a construction company completes a project or provides materials for a property and the owner fails to compensate them, the company can file a mechanic's lien against the property. This lien serves as a legal claim to the property for the amount owed, effectively giving the contractor the right to seek payment through the property's value.

The mechanic's lien is important because it incentivizes property owners to pay for services rendered and gives the construction company a means to recover costs through legal avenues. This type of lien is typically prioritized over other types of liens that may be against the property, making it a significant legal tool for contractors in ensuring that they receive payment for their labor and materials.