It’s not always easy to receive the gold you’ve earned in the Camellia State. Alabama, like all other states, has mechanics lien laws to help construction workers and suppliers like you get paid. Like all other states, Alabama mechanics lien and Alabama construction lien laws are also confusing and complicated. So you need to know how the law works to be able to properly file a Alabama lien and protect your right to be paid. Here are 5 things you need to know about the Alabama lien laws as reported to NLB busy our network of Alabama construction attorneys and Alabama construction lawyers to successfully file your next lien.
WHO CAN FILE ALABAMA MECHANICS LIEN
Generally, every state has laws that limit who can file a mechanics lien and a payment bond claim, and Alabama liens are not the same to perfect. You need to know how and when to take the required steps. The pre-lien or preliminary notice requirements are different for each state on Private, Public, and Federal Projects. When you send the notice to the owner, preliminary notice, or pre-lien notices are also different for a supplier, sub, GC, or design professional.
SCHEDULE A NO-COST INITIAL CALL WITH NLB’S GENERAL COUNSEL TO GET STARTED
National Lien & Bond professional lien providers and Alabama construction lawyers have helped subs and suppliers get paid on over 26,000 projects since 1986. NLB is here to help you learn what steps you need to take and when to send a notice or lien to secure your job funds on every project.
When you download a summary that may not be current or the deadlines and steps are confusing to follow. NLB offers every sub and supplier the ability to get answers you need to get paid!
You are invited to set up an appointment with general counsel to discuss the details of how and when to take the steps you need to get paid on every project Click Here.
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NOTICE OF RIGHT TO LIEN
Your first step in protecting your lien rights is typically to serve notice of your right to file a mechanic’s lien, often referred to as the “Preliminary Notice”. It must be served on the owner and the general contractor. Unless you are working directly for the general contractor. If the owner obtained a loan to fund the project, you must also serve the notice to the construction lender. The Preliminary Notice timing shown is not always mandatory but will afford maximum protection for liens.
This notice may be served when you begin supplying materials to the project. If you miss the statutory date, you may in some states still serve the notice to capture remaining funds as state law typically bit not always provides. Notice (Statutory Form) to owner, contractor, construction lender & person with whom the claimant has contracted within a date certain from the time you began work, or in some times before you start and in others when you completed work.
The notice may either be served by certified mail, return receipt requested, or personally served on each of the parties. If you file a lien, you need to provide proof of this service by affidavit and proof of mail delivery. The notice typically includes a description of the work or goods you will provide, the estimated total price of the work or goods you will provide, and the statutorily required statement.
PREPARING THE ALABAMA MECHANICS LIEN
Every mechanics lien typically must contain the owner’s name, a general description of the property and location, the name of the hiring party, the first and last date of work a description of the work performed, and the amount of money owed. The lien may also include other statutorily required statements and best practices require a lien to be prepared by a lawyer in the project state.
FILING AND SERVING THE ALABAMA MECHANICS LIEN
According to the mechanics lien law, after your notices are served timely the lien must be filed in the county recorder’s office in the county where the property is located. The lien may either be served by certified mail, return receipt requested, or personally served on each of the parties. If you file a lien, you may in several states need to provide proof of this service by affidavit and proof of mail delivery.
FINAL THOUGHTS
Even if circumstances change, it is never too late to start a dialogue with the owner and GC Click Here to set up an appointment with general counsel to discuss the details of your initial consultation. If you properly perfected all the required steps you can likely start a foreclose action on the lien, sue the surety on a bond or sue for collection and other remedies. Property owners and competing creditors may try to block your path, but if you followed the law, you will have placed yourself in a strong secured position against your adversaries. To learn how to secure all your receivables Click Here to set up an appointment with general counsel to discuss the details of securing your company’s entire receivables on private public and federal construction projects both in the USA or around the world.
Frequently Asked Questions
What is the Alabama 'unpaid balance' lien for sub-tier claimants?
Alabama distinguishes between two types of mechanics liens: (1) FULL LIEN (Ala. Code § 35-11-210) — available to direct contractors in privity with the owner, attaches to the full value of the improved property; (2) UNPAID BALANCE LIEN (Ala. Code § 35-11-218) — available to sub-tier claimants (subcontractors, suppliers), limited to the amount the owner still owes the GC at the time of filing. The unpaid balance lien is weaker than the full lien because it depends on the owner's cumulative payments to the GC. If the owner has already paid the GC in full, sub-tier claimants may have no recovery from the property.
Does Alabama require a preliminary notice before filing a mechanics lien?
Sub-tier claimants must give the owner a Notice of Unpaid Balance under Ala. Code § 35-11-218 BEFORE the unpaid balance lien attaches. The notice must specify the amount owed and identify the sub-tier claimant. Direct contractors do not need to give the Notice of Unpaid Balance because their lien is the full lien under § 35-11-210, not the unpaid balance lien. Alabama's notice system is unique among U.S. states — it determines the SCOPE of the lien (full vs unpaid balance), not just whether it can be filed.
What is the deadline to file an Alabama mechanics lien?
Under Ala. Code § 35-11-215, the Statement of Lien must be filed with the probate court in the county where the property is located within: (1) 6 MONTHS after the date of last furnishing, for direct contractors; (2) 4 MONTHS after the date of last furnishing, for sub-tier claimants. The deadlines run from LAST furnishing, not from project completion. Missing the deadline permanently bars the lien.
What is the deadline to file an Alabama mechanics lien foreclosure suit?
Under Ala. Code § 35-11-222, the foreclosure action on an Alabama mechanics lien must be commenced in circuit court within SIX MONTHS after the date of filing the Statement of Lien. The 6-month foreclosure window is shorter than Illinois's 2 years and longer than California's 90 days. The deadline is a strict statute of limitations that cannot be tolled. Failure to file within 6 months extinguishes the lien automatically by operation of law.
What contents are required on an Alabama Statement of Lien?
Under Ala. Code § 35-11-213, the Statement of Lien must contain: (1) a verified statement of the claim; (2) the name of the owner of the property; (3) a description of the property sufficient for identification; (4) the amount due after credits; (5) the dates of first and last furnishing; (6) a description of the labor or materials furnished; (7) the name of the party who employed or hired the claimant. Verification (sworn affidavit) is mandatory — unsworn statements are unenforceable.
Are attorney's fees recoverable on Alabama mechanics lien claims?
Generally no — Alabama follows the American Rule. Attorney's fees are recoverable only where: (1) the underlying subcontract or supply agreement contains an enforceable fee-shifting clause; (2) the Alabama Prompt Payment Act (Ala. Code § 41-16-3) applies on public contracts and provides limited fee-shifting; (3) bad-faith claim handling by an insurer or surety can support common-law fee recovery. Pre-work contract review to include fee-shifting clauses is critical for Alabama contractors.
How does National Lien & Bond help with Alabama mechanics liens?
National Lien & Bond files Alabama mechanics liens for unpaid contractors, subcontractors, suppliers, and equipment lessors. For Illinois-based engagements, Hal Emalfarb's firm at Emalfarb Swan and Bain handles strategic coordination. For Alabama-jurisdiction matters, NLB connects unpaid contractors with vetted Alabama construction-payment attorneys who handle the Notice of Unpaid Balance service under Ala. Code § 35-11-218, the 4-month or 6-month Statement of Lien filing under § 35-11-215, and the 6-month foreclosure suit under § 35-11-222. NLB's 50-state deadline-tracking system prevents the missed-deadline forfeitures that cause most Alabama lien losses. Contact NLB for a free initial consultation.