Arkansas Mechanic Lien Enforcement Deadlines

Private Works — 15-Month Suit Deadline

Under Arkansas law, a mechanic lien claimant must file suit to enforce the mechanic lien within 15 months after the mechanic lien is filed (recorded). This 15-month deadline applies to all private works mechanic lien claims, whether residential or commercial construction, and regardless of whether the claimant is a contractor, subcontractor, or materialman.

Failure to commence a lawsuit within 15 months of recording the mechanic lien results in the automatic expiration of the mechanic lien. The property is then released from the mechanic lien encumbrance, and the claimant loses all secured rights against the property.

The 15-month period begins on the date the mechanic lien is recorded with the circuit clerk, not from the date of last furnishing or the date the mechanic lien document was prepared. Claimants should carefully track this deadline from the actual recording date.

Railroad Property — One-Year Enforcement Deadline (§18-44-403)

For mechanic liens on railroad property, Arkansas provides a shortened enforcement deadline of one year from the accrual of the claim under AR Code Ann. §18-44-403. This is shorter than the standard 15-month suit deadline that applies to other private works mechanic liens.

Because no mechanic lien filing requirement exists for railroad property, the one-year period runs from the accrual of the claim rather than from the date of mechanic lien recording. Claimants with railroad property claims should act promptly to avoid missing this shortened deadline.

Public Works — Payment Bond Suit Deadlines (§18-44-508 & §22-9-403)

Arkansas public works payment bond claims present a complex statute of limitations issue. Under the traditional rule of AR Code Ann. §18-44-508, suit on the payment bond must be filed within 6 months after final payment on the contract.

However, AR Code §22-9-403 provides an alternative one-year deadline for filing suit. The statute of limitations for public works bond claims is currently in question due to amendments to §22-9-403 without corresponding amendment to §18-44-508.

For contracts with the Arkansas State Building Services, the time period may be extended to 12 months from the date final payment is made under AR Code Ann. §18-44-503(b). Claimants on public works projects should consult with legal counsel to determine the applicable deadline given the statutory inconsistencies.

• Traditional deadline: 6 months after final payment under §18-44-508
• Alternative deadline: 1 year under §22-9-403
• Arkansas State Building Services contracts: up to 12 months from final payment under §18-44-503(b)
• Statute of limitations is currently in question due to amendment inconsistencies between statutes

Religious & Charitable Organization Bond Claims (§18-44-504(b))

For projects involving religious or charitable organizations, a payment bond of at least 100% is required for contracts exceeding $1,000 under AR Code Ann. §18-44-504(b). No preliminary notices are required for these bond claims.

If the required bond is not filed with the County Recorder of Deeds, a mechanic lien is available for the unpaid amount of the claim. Suit on the payment bond for religious or charitable organization projects must be filed within 6 months from the date of completion of the project.

Attorneys' Fees in Enforcement Actions

In private works mechanic lien enforcement actions, attorneys' fees are recoverable if payment was not remitted within 20 days of notice. A separate notice for attorney fees allows for their inclusion in the mechanic lien enforcement action.

For public works projects, attorneys' fees may be recoverable under certain circumstances. The availability of attorney fee recovery in public works bond claims depends on the specific statutory provisions applicable to the project and the terms of the payment bond.

Consequences of Missing Enforcement Deadlines

Missing an enforcement deadline in Arkansas results in the complete loss of the secured claim against the property or bond. For private works, the mechanic lien expires and the property is released from encumbrance. For public works, the right to recover against the payment bond is extinguished.

Even after the mechanic lien or bond claim rights expire, the underlying debt may still be recoverable through a standard breach of contract or unjust enrichment action, subject to the applicable statute of limitations for those claims. However, the secured priority and bond protection are permanently lost.