January 20, 2026
By R. Benjamin Peeler, IV
A subcontractor’s lien can be one of the biggest potential problems that a general contractor faces on a project. It can irreparably damage the relationship between the general contractor and owner, and almost always results in project delays, extra labor and material expenses, and even attorneys’ fees. Even the threat of a subcontractor filing a lien can cause significant damage to project’s workflow. Recognizing this problem, many unwary general contractors will try to include a provision in their subcontractor agreements which attempt to have subcontractors waive their lien rights before starting work. However, these contract provisions are unenforceable because a materialman’s lien rights cannot be waived by contract before the work has been performed.
Another scheme that general contractors use to avoid the possibility of subcontractors filing liens is to have the subcontractor(s) sign a lien waiver when he or she is paid, waiving his or her lien rights for the work they have already done. While this method may be effective, depending on the scope of the project and the number of subcontractors involved, it can create a high administrative burden, requiring the general contractor to keep a large volume of meticulous records, and can result in project delays if a subcontractor does not sign the waiver. Additionally, these lien waivers do not have immediate effect, and subcontractors have a window of time to file a lien even after signing the waiver.
A potentially more powerful- but less often used–tool in the general contractor’s belt for preventing subcontractor liens is a “Notice of Commencement”. Although a Notice of Commencement is required to be filed on all construction projects in Georgia by law, in practice this rarely happens because many owners and general contractors are unaware of this requirement. The Notice of Commencement is a simple form which is filed in the records of the county where the project is located and posted on the jobsite, which puts the public on notice that construction has begun. Among the information contained in the Notice of Commencement is the location of the project, the scope of the project, the parties involved, and the work being performed.
The greatest benefit to general contractors of filing a Notice of Commencement is that, once it is filed, subcontractors not in privity of contract with the general contractor must submit a “Notice to Contractor” to the general contractor within thirty days of first providing labor or materials. If the same issue does not submit a Notice to Contractor in this timeframe, he or she automatically lose his or her lien rights. In addition to being required by law, filing a Notice of Commencement creates an additional layer of safety between general contractors and potentially disreputable, unvetted subcontractors who are less likely to follow the law themselves by submitting a Notice to Contractor.
Although there are no foolproof ways to avoid subcontractor liens, wise general contractors make use of every avenue available to them to minimize the risk that one is filed against their projects. Having an experienced attorney draft legally binding agreements and advising on the ins and outs of legal notices can help minimize that risk. Whether you’re seeking counsel to help you avoid a lien being filed or need assistance with a subcontractor who has already filed a lien, the experienced attorneys at Flint, Connolly & Walker, LLP can assist you with all areas concerning your construction law questions.
R. Benjamin Peeler, IV is a senior associate attorney with Flint, Connolly, & Walker, LLP specializing in construction and business litigation, as well as intellectual property matters.