Contractor's Lien Law and Legal Definition

A contractor's lien is a lien that arises by operation of law, independently of the express terms of any contract. It springs out of the obligation to pay for the stipulated labor and the promised materials, when furnished, provided the contractor shall give the notice required by statute. [Richmond & I. Constr. Co. v. Richmond, N. I. & B. R. Co., 68 F. 105 (6th Cir. Ky. 1895)]

The following is an example of a state statue (Vermont) on contractor's lien.

9 V.S.A. § 1921. “When a contract or agreement is made, whether in writing or not, for erecting, repairing, moving or altering improvements to real property or for furnishing labor or material therefor, the person proceeding in pursuance of such contract or agreement will have a lien upon such improvements and the lot of land on which the same stand to secure the payment of the same.”