2007 Issue

UTAH ENGINEERS COUNCIL JOURNAL 15 is located. This places potential purchasers and lenders on notice that there is a claim against that property superior to any rights they might obtain. Since that knowledge restricts an owner’s ability to freely dispose of the property by sale or mortgage, it is desir- able for the owner to remove the lien as soon as possible. Therefore, the real usefulness of a mechanic’s lien is not in the ability to place an encumbrance on the property, but in the ability to foreclose the lien, force the sale of the property, and receive payment for the debt from the proceeds of the sale. A properly perfected mechanic’s lien can be a useful tool that may give lien claimants considerable leverage in collecting monies due. Mechanic’s lien rights arise from Utah statute. Although it has been modified many times, the mechanic’s lien law is one of the oldest statutes in the state. It was enacted in 1898 and the legislature has amended it through the years. Among those amend- ments, the law has evolved such that the term “mechanic” includes not only laborers, but also contractors, subcontractors, suppliers, and design professionals. Engineers as Lien Claimants Engineers, like architects and other profes- sionals, do a considerable amount of work on construction projects. Unlike contractors or suppliers, the work that these individuals per- formhas little or no visual evidence on the land of such work taking place unless the project is constructed. Consequently, for many years, thosewho rendered professional services related to a construction project were not entitled to mechanic’s liens. This has changed. Utah law currently provides that “li- censed architects and engineers and artisans who have furnished designs, plats, plans, maps, specifications, drawings, estimates of cost, surveys or superintendence, or who have rendered other like professional service, or bestowed labor, shall have a lien upon the property upon or concerning which they have rendered service . . . for the value of the service rendered.” Utah courts have extended the mechanic’s lien rights of design professionals to include those who prepare plans and specifications in anticipation of construction, even though the project is never built. Filing and Perfecting a Mechanic’s Lien Mechanic’s lien rights are subject to strict timeframes for filing a notice of lien and com- continued on page 16