What is the purpose of a construction lien?

The primary purpose of a construction lien is to secure payment for work done on a property. When contractors, subcontractors, suppliers, or laborers provide materials or services for a construction project and are not compensated, they may file a lien against the property. This legal claim ensures that if the property owner does not pay for the work, the claimant can seek compensation by forcing the sale of the property or receiving payment from the proceeds if a sale occurs. Construction liens are particularly important in the construction industry, as they establish the right of the service provider to be compensated for their contributions, encouraging all parties to uphold their financial obligations to one another.

The other options, while related to the construction process, do not directly address the lien's essential function. Outlining building regulations, providing timelines for construction, or specifying material requirements may be part of contractual agreements or local ordinances but do not serve the same purpose of securing payment as a construction lien does.