How to Secure Payment on Georgia Construction Projects: A Quick Guide to Liens and Bond Claims

If you’re a contractor, subcontractor, or supplier in Georgia’s commercial construction industry, the risk of not getting paid is unfortunately part of doing business. Whether you’re furnishing materials or performing labor, you deserve to be compensated for your work. So, what legal tools are available when payment delays—or outright nonpayment—occur?

In Georgia, your most powerful remedies are materialmen’s liens (also called mechanics’ liens) and payment bond claims. This article explains the difference between the two, when to use them, and how to protect your rights from the start of a project.

What Is a Materialmen’s Lien?

A materialmen’s lien is a legal claim filed against real property to secure payment for labor, services, or materials furnished to improve that property. In Georgia, it gives unpaid contractors and suppliers a legal path to force the sale of the property to recover the money owed.

Who Can File a Lien in Georgia?

You may file a lien if you are:

• A general contractor

• A subcontractor or sub-subcontractor

• A material supplier

• A laborer

• A professional service provider (e.g., architects, engineers)

When to Use a Lien

Liens are used on private construction projects—including commercial buildings, office parks, shopping centers, and multi-family developments.

What Is a Payment Bond Claim?

A payment bond is a surety bond typically required on public construction projects (such as schools, roads, and government buildings). When you work on a publicly owned project, Georgia law prohibits placing a lien on the public property—but you can file a claim against the payment bond posted by the general contractor.

Who Can File a Bond Claim?

Generally:

• First-tier subcontractors

• Second-tier subcontractors

• Material suppliers to the prime contractor or to first-tier subs

Bond rights are powerful—but strictly procedural, so understanding the deadlines is critical.

Key Differences: Lien vs. Bond Claim

Step-by-Step: Filing a Materialmen’s Lien in Georgia

To preserve and enforce your lien rights in Georgia, you must follow these strict steps and deadlines:

1. Send a Preliminary Notice (if required)

If you’re not in direct contract with the owner, you may need to send a Notice to Owner and Notice to Contractor within 30 days of first providing labor or materials.

2. File the Lien

You must file your lien within 90 days of the last date you supplied labor or materials to the project.

3. Perfect the Lien

Filing the lien isn’t enough. You must also:

• File a lien enforcement action (lawsuit) within 365 days from the date the lien is filed; and

• Record a Notice of Filing of Action within 30 days after filing suit.

Missing any of these steps invalidates your lien.

Step-by-Step: Filing a Payment Bond Claim in Georgia

For public projects over $100,000, Georgia law (O.C.G.A. § 13-10-1) requires contractors to post a payment bond. Here’s how to make a claim:

1. Send a Notice of Claim

You must provide a written notice of claim to the general contractor and surety within 90 days from your last day of work on the project.

This notice must all of the statutory requirements including (but not limited to) the following:

• The amount claimed

• The nature of the labor or materials provided

• Identification of the project

2. File a Lawsuit (If Unpaid)

If the bond claim is not resolved, you must file a lawsuit or, depending upon your contract, perhaps a demand for arbitration within one year from the completion of the project or from the date the final payment became due.

Common Mistakes That Jeopardize Your Claim

Even experienced contractors can make missteps that destroy their ability to collect:

• Missing deadlines (the #1 cause of failed lien or bond claims)

• Failing to send proper notices

• Using incorrect legal descriptions

• Not keeping good documentation of invoices and project timelines

By working with a construction law firm early in the process, you can protect your rights before payment problems begin.

How to Protect Your Payment Rights from Day One

Whether you’re working on a commercial office buildout or a municipal infrastructure project, you can take proactive steps:

1. Incorporate lien/bond language in your contracts

2. Keep a detailed payment log of all work performed and materials delivered

3. Send notices early and track deadlines

4. Use conditional and unconditional lien waivers strategically

5. Consult legal counsel before disputes arise

Why Hire a Georgia Construction Law Firm?

Securing payment is not just about knowing your rights—it’s about enforcing them effectively. Our firm helps Georgia contractors, subcontractors, suppliers, and professionals with:

• Filing and perfecting materialmen’s liens

• Making timely and proper bond claims

• Negotiating payment disputes

• Taking legal action to collect what you’re owed

Our team specializes in commercial construction law, and we understand the nuances of Georgia’s lien and bond statutes. In fact, we have a free 28-page booklet on Georgia’s lien law.  To claim your free copy, click here! Whether you’re located in Atlanta, Savannah, Augusta, Macon, or anywhere else in the state, we can help you secure payment and move forward with confidence.

Need Help Getting Paid? Contact Us Today.

If you’ve been left unpaid on a Georgia construction project, don’t wait until it’s too late. Contact our office to schedule a consultation with an attorney who specializes in payment bond claims and materialmen’s liens.

We’re here to protect what you’ve worked for.