Kentucky Mechanic's Liens on Kentucky Projects

Mechanic's lien rights give contractors, subcontractors, and suppliers a security interest in the property they improved when the normal payment process breaks down. The protection exists by statute, not by contract, and it operates independently of the payment terms in the construction agreement. But the protection is only available to parties who comply with every procedural requirement. Kentucky courts require strict compliance with the mechanic's lien statutes, and they have repeatedly held that substantial compliance is not enough.

The sections below explain how mechanic's lien rights work on commercial construction projects on private property in Kentucky, including who qualifies, what notice is required, how to file, and what happens if deadlines are missed. Residential projects and public projects have different rules and are not covered here. Public project payment protections are governed by KRS 376.210 through 376.260, and the procedures are materially different.

On this page:

• Who Can File a Mechanic's Lien

• Prelien Notice Requirements

• Leasehold Interests

• Filing the Lien Statement

• Notarization

• Mailing to the Property Owner

• Enforcement Deadline

• Bonding Off a Lien

• Strict Compliance

• Lien Waivers Under the Fairness in Construction Act

• Commercial Lien Timeline

Who Can File a Mechanic's Lien

Under KRS 376.010(1), any person who performs labor or furnishes materials for the improvement of real property has a lien on that property and the land on which it sits. The statute covers general contractors, subcontractors, sub-subcontractors, material suppliers, and equipment lessors. It also covers labor performed by teams, trucks, machinery, and mechanical equipment. The statutory definition of "supplies" includes the rental price of equipment and certain costs of keeping machinery in working condition, subject to the limitations and conditions set forth in KRS 376.010.

Licensed design professionals, including architects, engineers, and surveyors, who contract directly with the owner have lien rights under a separate statute, KRS 376.075.

The critical requirement is that the work must be performed "by contract with, or by the written consent of, the owner, lessee, contractor, subcontractor, architect, or authorized agent." For general contractors with a direct owner contract, this is straightforward. For subcontractors and suppliers further down the chain, lien rights still exist, but additional notice requirements apply.

Prelien Notice Requirements

Whether a prelien notice is required depends on the claimant's contractual relationship with the property owner.

Parties who contracted directly with the owner or the owner's authorized agent are not required to send a prelien notice. They may proceed to filing a lien statement, subject to the filing deadline discussed below.

Parties who did not contract directly with the owner must provide written notice to the property owner before a lien can arise. On a commercial project, meaning a project that is not an owner-occupied single or double family dwelling, the deadlines depend on the size of the claim:

Claims of $1,000 or less: notice must be sent within 75 days after the last item of material or labor is furnished.

Claims over $1,000: notice must be sent within 120 days after the last item of material or labor is furnished.

The notice must state the claimant's intention to hold the property liable and the amount for which a lien will be claimed. The statute permits proof that the notice was mailed to the owner's last known address, or to an authorized agent as permitted by statute. Claimants should retain clear proof of mailing, because compliance may later be contested.

For the majority of commercial subcontractors, the relevant deadline is 120 days because the claim will exceed $1,000. However, subcontractors with small material deliveries or limited scope trades should not assume the longer deadline applies.

Failure to send the required prelien notice is fatal to the lien. There is no cure and no exception.

Leasehold Interests

The 2023 amendment to KRS 376.010 updated the statute to include references to lessees, clarifying that lien rights can attach to a lessee's interest in the property. The amendment also provides that a lessee is not deemed the owner's authorized agent unless the owner has designated the lessee in writing for that purpose (KRS 376.010(1)(b)).

This matters on tenant improvement projects where the contractor's agreement is with the tenant rather than the building owner. When improvements are made by a lessee, a lien attaches to the lessee's interest. Whether the lien also extends to the lessor's fee interest depends on compliance with statutory provisions governing lease language and notice. KRS 376.010(3) provides a framework under which a lessor may limit or avoid lien attachment to the fee interest, provided the lease language and statutory notice requirements are satisfied.

Whether those conditions have been met requires review of the lease terms and the timing and content of any required statutory notice. The attachment of a lien to a lessor's interest should not be assumed without careful review of the governing documents and the statute.

Filing the Lien Statement

Whether or not a prelien notice is required, the claimant must file a formal lien statement with the county clerk in the county where the property is located. Under KRS 376.080(1), the lien statement must be filed within six months after the claimant ceases to labor or furnish materials.

The lien statement must include:

The amount due, with all just credits and set-offs known to the claimant.

A description of the property intended to be covered by the lien, sufficiently accurate to identify it.

The name of the property owner, if known.

The party that hired the claimant, their address, and their role (general contractor, subcontractor, etc.).

Whether the materials were furnished or the labor performed by contract with the owner or with a contractor or subcontractor.

The name and address of the claimant (and if a corporation, the name and address of the corporate process agent or another address where service of process can be accomplished).

Kentucky does not require a full legal property description. The statute requires only a description "sufficiently accurate to identify" the property. However, what counts as sufficiently accurate can vary by county, and some county clerks may require a legal description as a practical matter. The safest approach is to include the best description available, including the legal description if accessible.

The lien amount should not exceed the contract price. Attorney fees, collection costs, and other extraneous amounts should not be included in the lien claim, though they may be recoverable in an enforcement action.

Notarization

The lien statement must be "subscribed and sworn to" by the person claiming the lien or someone acting on their behalf. This means the statement must be notarized. Both the language used and the notarization itself are required.

In Prodigy Construction Corp. v. Brown Capital, Ltd., 525 S.W.3d 108 (Ky. App. 2017), the Kentucky Court of Appeals held that a lien statement using the phrase "in testimony thereof" rather than "subscribed and sworn to" was defective and void. The court held that the lien statute's specific language requirement controls, not the general rules of civil procedure.

The case illustrates how seriously Kentucky courts take the strict compliance standard. Having a Kentucky construction attorney review lien filings before submission to the clerk is a practical safeguard against defects that can void the lien entirely.

Mailing to the Property Owner

After filing the lien statement with the county clerk, the claimant must send a copy of the statement to the property owner by regular mail at the owner's last known address within seven days of filing. Under KRS 376.080(1), failure to mail the statement within that seven-day window dissolves the lien entirely.

The statute permits regular U.S. mail. However, because proof of compliance is critical and the consequence of failure is dissolution, sending the copy by certified mail with return receipt requested is the better practice. Regular mail satisfies the statute but leaves the claimant with no proof of mailing if the issue is contested.

Filing the lien statement with the clerk is not sufficient on its own. The mailing is a separate, standalone requirement.

Enforcement Deadline

Under KRS 376.090(1), a mechanic's lien is automatically dissolved unless the claimant files a lawsuit to enforce the lien within twelve months from the date the lien statement was filed with the county clerk. There is no extension for negotiation, mediation, or ongoing discussions. If suit is not filed within twelve months, the lien dissolves by operation of law.

If the lien statement is properly filed and the enforcement action is timely brought, the lien is valid and effective against any creditor of, or bona fide or other purchaser from, the owner of the property (KRS 376.090(2)).

Bonding Off a Lien

The property owner, or any contractor or other person in privity, can bond off a mechanic's lien at any time before judgment by filing a bond for double the amount of the claimed lien with good sureties approved by the county clerk (KRS 376.100). This removes the lien from the property while preserving the claimant's right to recover against the bond. The claimant can make the obligors on the bond parties to the enforcement action.

When a lien is bonded off, it is discharged from the property, but the underlying claim survives against the bond. The claimant must still enforce within the twelve-month deadline.

Strict Compliance

Kentucky courts have repeatedly held that the mechanic's lien statutes require strict compliance. The Court of Appeals stated in Prodigy that it had "specifically rejected arguments that the lien statutes should be liberally construed," citing Middletown Engineering Company v. Main Street Realty, Inc., 839 S.W.2d 274 (Ky. 1992) and 3D Enterprises Contracting Corp. v. Louisville & Jefferson County Metro. Sewer Dist., 174 S.W.3d 440 (Ky. 2005).

There is no room for substantial compliance, good faith efforts, or approximation. If the statute requires specific language, that language must be used. If the statute sets a deadline, that deadline is absolute.

The practical implication is that lien rights must be built into project administration from the start. Deadlines should be calendared when the project begins, not after the first unpaid invoice. Waiting until a payment dispute develops to evaluate lien compliance is how lien rights are lost.

Lien Waivers Under the Fairness in Construction Act

Kentucky's Fairness in Construction Act (KRS 371.400 et seq.) restricts certain lien waiver provisions in construction contracts. Under KRS 371.405, any provision that requires a contractor or subcontractor to waive the right to file a mechanic's lien before payment has been received is void and unenforceable.

This means an owner or general contractor cannot require a blanket prospective lien waiver as a condition of the contract. Lien waivers tied to specific payments actually received are enforceable. A general contract provision stating that the subcontractor waives all lien rights is not.

Blanket lien waiver language appears frequently in subcontracts and purchase orders, sometimes in boilerplate that is not reviewed closely. The provision is unenforceable under the Act, but many parties do not realize this and may attempt to rely on it.

Commercial Lien Timeline

The critical deadlines for perfecting and enforcing a mechanic's lien on a commercial private project in Kentucky are:

Prelien notice to owner (if no direct owner contract): Within 120 days after last furnishing labor or materials. Within 75 days if the claim is $1,000 or less.

Lien statement filed with county clerk: Within 6 months after ceasing to labor or furnish materials. Must be subscribed and sworn to (notarized). Must contain all required information under KRS 376.080.

Copy mailed to property owner: Within 7 days of filing with county clerk. Regular mail to last known address. Certified mail recommended.

Lawsuit to enforce lien: Within 12 months of filing the lien statement. Cannot be extended.

Practical Considerations for General Contractors

General contractors with a direct owner contract have a simpler path to lien perfection because no prelien notice is required. The primary risks are missing the six-month filing deadline, failing to include required information in the lien statement, and failing to mail the statement to the owner within seven days. These are process failures, not legal disputes, and they are preventable with proper project administration.

General contractors should also be aware that subcontractors and suppliers on their projects have independent lien rights. When downstream parties are not paid, lien claims against the project property create title problems and owner disputes that flow back to the general contractor regardless of fault.

Practical Considerations for Subcontractors and Suppliers

Subcontractors and suppliers who do not contract directly with the owner face the additional requirement of sending a prelien notice within the statutory deadline. Because this notice must be sent before the lien can arise, missing the deadline eliminates the lien right entirely with no opportunity to cure.

The most effective approach is to calendar the prelien notice deadline at the start of every project, based on the anticipated last date of furnishing. If a payment dispute develops, the prelien notice should be sent promptly rather than waiting to see whether the dispute resolves. Sending the notice preserves the right. Not sending it eliminates the right permanently.

Subcontractors should also confirm whether their contract contains a blanket lien waiver provision and understand that such provisions are unenforceable under Kentucky's Fairness in Construction Act.

This guide is for informational purposes only and does not constitute legal advice. Mechanic's lien law involves fact-specific analysis, and the applicable rules differ depending on the type of project, the parties involved, and the governing contracts. This guide addresses commercial projects on private property in Kentucky. Residential projects, public projects, and projects in other states are subject to different requirements. If you have a payment dispute on an active project, consult with a Kentucky construction attorney experienced in lien law before taking action.