What does a lien represent in utility construction?

A lien in utility construction represents a legal claim that a contractor or subcontractor can place on a property to secure payment for work performed or materials provided. When a contractor completes work on a project but has not been compensated, they may file a lien against the property to ensure that they have a right to collect owed funds. This legal claim means that if the property owner fails to pay, the contractor may have the ability to force the sale of the property or take legal action to recover the amount owed.

Understanding liens is crucial in utility construction because they help protect the financial interests of those who contribute labor and materials to a project, ensuring that service providers can seek recompense in a structured legal framework.