What is a lien in the context of construction?

A lien in the context of construction serves as a legal claim against a property to secure payment for work that has been performed or materials supplied. This legal tool provides a mechanism for contractors, subcontractors, or suppliers to ensure that they will be compensated for their efforts. If the property owner fails to pay for the services rendered, the lien allows these service providers to take legal action against the property, which may include selling the property at auction to recover the owed payments.

Understanding this concept is crucial for anyone involved in construction, as it protects the rights of workers and material suppliers in an industry where payment disputes can arise frequently. The emphasis on securing payment is foundational, and a lien is an essential process designed to foster fairness in financial transactions within construction projects.

The other options listed, while related to construction, do not accurately represent the function or definition of a lien. Contracts for future construction work focus more on establishing agreements rather than securing payment after work is done, a document proving ownership relates more to title and property rights than to payment, and a written agreement between contractors and subcontractors governs their working relationship rather than serving as a claim against property.