No, you generally cannot file a mechanics lien on a government project. Public property — whether owned by a federal agency, a state, a city, or a school district — is protected by a legal doctrine called sovereign immunity, which shields government assets from most private claims, including mechanics liens. This protection applies regardless of whether you are a general contractor, subcontractor, or material supplier. But that does not mean you have no recourse. Federal and state laws provide alternative payment protections — most notably payment bond claims under the Miller Act and state Little Miller Acts — that serve as the functional equivalent of lien rights on public work.
If you are a contractor or sub waiting on money from a government construction project, this article explains exactly what you can and cannot do, the deadlines you need to know, and how to protect your right to payment.
Key Takeaways
- Mechanics liens do not apply to government-owned property. Sovereign immunity prevents private parties from placing liens on public buildings, roads, schools, or infrastructure.
- Payment bond claims replace lien rights on public projects. The federal Miller Act and state-level Little Miller Acts require surety bonds on most public construction contracts, giving unpaid contractors a path to recovery.
- Deadlines are strict and short. Under the Miller Act, second-tier subcontractors and suppliers must send written notice within 90 days of their last day of work — miss it and you lose your claim.
- Some states offer stop-payment notices. In states like California, contractors on public projects can file a stop-payment notice to freeze funds the agency owes to the general contractor.
- Prompt payment laws may entitle you to interest. Federal and state prompt payment acts impose penalties when government agencies or prime contractors pay late.
Why You Cannot Lien Government Property
Sovereign Immunity Explained
Sovereign immunity is a legal principle inherited from English common law: the government cannot be sued or subjected to legal claims unless it consents to be. In the context of construction, this means a contractor cannot encumber government-owned land or structures with a mechanics lien — even if the contractor performed valid work and was never paid.
The reasoning is straightforward. A mechanics lien allows a claimant to force the sale of property to satisfy a debt. Allowing private parties to force the sale of a public school, a fire station, or a highway would disrupt government operations and public services. Courts have uniformly held that this is not permitted.
This applies at every level of government: federal, state, county, municipal, and special districts like school boards and water authorities.
What This Means in Practice
If you poured concrete for a new city hall and the general contractor has not paid you, you cannot record a lien against that city hall. If you installed HVAC systems in a federally funded VA hospital, you cannot lien the hospital. The property is off-limits.
This is a hard reality, especially for subcontractors and suppliers who may be two or three tiers removed from the government agency and have no direct contractual relationship with the entity writing the checks. But the law does offer other tools — you just need to know what they are and act fast.
The Miller Act: Federal Payment Bond Claims
How the Miller Act Works
The Miller Act (40 U.S.C. §§ 3131–3134) is the primary payment protection for contractors on federal construction projects. It requires any general contractor awarded a federal construction contract exceeding $100,000 to furnish two surety bonds:
- A performance bond, guaranteeing the contractor will complete the project.
- A payment bond, guaranteeing the contractor will pay its subcontractors and suppliers.
The payment bond is your replacement for a mechanics lien. If the general contractor fails to pay, you file a claim against the payment bond — not against the government property.
According to the Surety & Fidelity Association of America, surety companies paid out over $2.3 billion in construction bond claims in 2022 alone, underscoring how frequently these protections are actually used.
Who Can Make a Miller Act Payment Bond Claim
- First-tier subcontractors (those with a direct contract with the prime contractor) can file a bond claim without giving preliminary notice.
- Second-tier subcontractors and material suppliers (those who contracted with a first-tier sub, not with the prime) must send written notice to the prime contractor within 90 calendar days of the last date they furnished labor or materials.
Contractors beyond the second tier — a supplier to a supplier, for example — generally have no Miller Act claim rights.
Miller Act Notice and Filing Deadlines
| Requirement | First-Tier Subcontractor | Second-Tier Sub / Supplier |
|---|---|---|
| Preliminary notice to prime contractor | Not required | Required within 90 days of last furnishing |
| Lawsuit filing deadline | Within 1 year of last furnishing | Within 1 year of last furnishing |
| Where to file suit | U.S. District Court where the project is located | U.S. District Court where the project is located |
| Minimum contract threshold | $100,000 federal contract | $100,000 federal contract |
The 90-day notice window for second-tier claimants is unforgiving. There is no grace period, no substantial-compliance exception that courts apply reliably. If you miss day 90, your bond claim is likely dead.
State Little Miller Acts: Bond Claims on State and Local Projects
What Little Miller Acts Are
Every U.S. state has enacted its own version of the Miller Act — commonly called "Little Miller Acts" — requiring payment bonds on state-funded and often locally funded construction projects. These laws extend payment bond protections to contractors working on projects for state agencies, counties, cities, school districts, and other public entities.
The National Association of Surety Bond Producers reports that all 50 states and the District of Columbia have some form of Little Miller Act on the books, though the details vary significantly.
How They Differ State by State
Little Miller Acts are not uniform. Key differences include:
- Bond threshold amounts. Some states require bonds on all public projects; others set minimums (e.g., $25,000 in Texas, $50,000 in Florida, $100,000 in New York).
- Notice requirements. Some states require preliminary notice from all claimants; others only require it from second-tier and lower-tier parties.
- Notice deadlines. These range from 30 days to 90 days, depending on the state and the claimant's tier.
- Lawsuit filing deadlines. Typically between 6 months and 2 years from the claimant's last day of work.
Because these laws vary so widely, it is critical to check the specific statute in the state where your project is located. A deadline that works in California may not apply in Georgia.
State Little Miller Act Comparison (Selected States)
| State | Bond Threshold | Notice Deadline (Lower-Tier Subs) | Lawsuit Filing Deadline |
|---|---|---|---|
| California | $25,000 | 30 days (stop-payment notice) | 6 months after completion |
| Texas | $25,000 | By 15th day of 2nd month after work | 1 year after completion |
| Florida | $200,000 (full bond) | 45 days from first furnishing | 1 year from last furnishing |
| New York | $100,000 | No specific preliminary notice | 1 year from completion |
| Illinois | $50,000 | 60 days from last furnishing | 180 days from last furnishing |
Note: This table is a simplified overview. State laws change, and local projects may have additional requirements. Consult a construction attorney for your specific situation.
Stop-Payment Notices: An Alternative in Some States
What a Stop-Payment Notice Does
In certain states — California being the most prominent example — contractors and suppliers on public projects can file a stop-payment notice (formerly called a "stop notice") with the public agency. This notice instructs the agency to withhold funds from the general contractor's payment in the amount of the claimant's unpaid balance.
A stop-payment notice does not create a lien on the property. Instead, it freezes money that the agency has not yet released to the prime contractor. It functions more like a garnishment on the payment stream than a claim against the building itself.
How Stop-Payment Notices Work in California
Under California Civil Code §§ 9350–9364:
- Any subcontractor or supplier who has not been paid can serve a stop-payment notice on the public entity.
- A bonded stop-payment notice (backed by a surety bond equal to 125% of the claim amount) is stronger — the agency must withhold the funds.
- An unbonded stop-payment notice may or may not cause the agency to withhold funds, depending on the circumstances.
- The notice must generally be served before the agency makes final payment on the project.
Not every state has a stop-payment mechanism. Check whether your state's public works statutes provide this option. States that do offer some form of stop notice or fund-trapping remedy include California, Nevada, and a handful of others.
Prompt Payment Laws: Penalties for Late Payment
Federal Prompt Payment Act
Even without lien rights, contractors on public projects may be entitled to interest penalties when payments are late. The federal Prompt Payment Act (31 U.S.C. §§ 3901–3907) requires federal agencies to pay prime contractors within specific timeframes — typically 14 days after the agency receives a proper invoice for progress payments — and mandates automatic interest on late payments.
The interest rate is set by the U.S. Treasury and updates semi-annually. As of early 2026, the rate is approximately 5.5%.
For a deeper look at these rules and how they apply to vendors working with government agencies, see Prompt Payment Act: What Government Vendors Need to Know.
State Prompt Payment Laws
Most states have their own prompt payment statutes covering public construction projects. Many also include "pay-when-paid" restrictions that require prime contractors to pay their subs within a set number of days after receiving payment from the agency — commonly 7 to 30 days. Some states void "pay-if-paid" clauses entirely on public work.
According to a 2021 survey by the American Subcontractors Association, nearly 70% of subcontractors reported experiencing payment delays of 60 days or more on government projects — well beyond the timelines prompt payment laws contemplate.
When to Call a Construction Attorney
You should consult a construction attorney if any of the following apply:
- You are owed a significant amount on a public project and the prime contractor is not paying.
- You are approaching the 90-day notice deadline under the Miller Act or your state's equivalent.
- You are unsure which bond protections apply to your project.
- The general contractor has filed for bankruptcy, and you need to determine whether the payment bond surety is still liable.
- You are considering filing a stop-payment notice and need to understand the bonding requirement.
Construction payment law is jurisdiction-specific, deadline-driven, and highly technical. Missing a single notice deadline by even one day can permanently eliminate your right to recover. The cost of an attorney consultation is nearly always less than the cost of a lost claim.
How Contractors Can Manage Cash Flow While Waiting on Payment
Even when you do everything right — file the correct notices, preserve your bond claim rights, comply with prompt payment procedures — collecting payment on a public project can still take months. Legal claims against surety bonds are not fast processes. Stop-payment notices tie up funds but do not put cash in your account immediately.
This is the structural challenge of public construction work. Government agencies are not slow payers out of ill will — budgeting cycles, audit requirements, multi-layer approval chains, and retainage practices all contribute to timelines that are measured in months rather than weeks. For a closer look at what drives those timelines, read Government Vendor Payment Terms: What to Expect and How to Plan.
The practical impact on contractors is real. A 2023 report from the U.S. Small Business Administration found that cash flow shortfalls are the primary reason 82% of small businesses fail — and construction firms working on government projects are particularly exposed because of extended payment cycles.
Some contractors use lines of credit or traditional factoring to bridge the gap, though both carry costs and qualification hurdles. Another approach is early payment programs, where an approved invoice is purchased at a flat fee so the vendor gets paid in days instead of months. Programs like Lunch work specifically with government vendors — paying approved invoices in 1–3 business days at a flat cost, with no debt, no credit check, and no impact on the government agency's process or budget. That kind of predictable cash flow can keep a contractor operating while a bond claim or stop-payment notice works its way through the system.
Whatever approach you choose, the key is to plan for delayed payment before you start the project, not after the invoices are overdue. For practical strategies, see Cash Flow Management for Government Contractors: A Practical Guide.
Frequently Asked Questions
Can you file a mechanics lien on a city-owned building?
No. City-owned property is government property, and sovereign immunity prevents private parties from recording mechanics liens against it. If you are owed money on a city construction project, your recourse is typically a claim against the project's payment bond under your state's Little Miller Act, not a lien against the building.
What happens if a public project does not have a payment bond?
If the government entity failed to require a payment bond (or the project fell below the bond threshold), your options are more limited. You may still be able to pursue a breach of contract claim against the party that hired you, file a stop-payment notice (in states that allow them), or invoke prompt payment penalties. Consult a construction attorney — the absence of a bond does not necessarily mean you have no remedy.
How long do I have to file a Miller Act payment bond claim?
You must file suit in federal court within one year of the date you last furnished labor or materials to the project. If you are a second-tier subcontractor or supplier, you must also send written notice to the prime contractor within 90 calendar days of your last day of work. Missing either deadline can forfeit your claim entirely.
Does the Miller Act apply to state or local government projects?
No. The Miller Act applies only to federal construction contracts. State and local projects are covered by each state's own Little Miller Act, which has its own thresholds, notice requirements, and deadlines. Always confirm which law governs your specific project.
Can I still get paid quickly on a government project if I can't file a lien?
Yes, though the mechanisms are different. Prompt payment laws may entitle you to interest on overdue invoices. Payment bond claims give you a legal path to recovery. And for approved invoices that are simply waiting in the agency's payment queue, early payment programs like Lunch can convert those receivables to cash in 1–3 business days without taking on debt — giving you working capital while the standard process runs its course.