Section 3.7.27 Design Professionals and Lien Priority

• Library: Construction Law Practice Manual 3rd Edition 2016

§ 3.7.27 Design Professionals and Lien Priority

All mechanics’ lien claimants, including design professionals, share equal priority against other encumbrancers as of the date that labor was first commenced or materials were first furnished to the project.²²⁶ However, a construction lender’s mortgage or deed of trust that is recorded within ten days after labor was first commenced or materials were first furnished is given priority over mechanic’s liens.²²⁷ All mechanics’ lien claimants on a project share the same priority, and therefore share pro rata in the proceeds of the mechanics’ lien foreclosure sale.²²⁸ The public policy behind this provision is that those who provide their services later in the construction process should not be disadvantaged as against those who have performed earlier.

Although professional services, especially design services, are largely performed before construction commences on the project site, the mechanics’ lien law states that a lien for...