Construction Blog

A bill making its way through the 2026 Georgia legislature attempts to discourage frivolous construction liens by requiring offending claimants to pay fines and attorneys’ fees. Mechanics and materialmen liens are a constant concern for owners and contractors on commercial construction projects due to the financial and legal consequences that can arise from the cloud on the owner’s title of the property. A bill recently passed by the House could give potential lien claimants additional pause before filing a lien. Georgia House Bill 676 would amend Georgia lien law to include a new statute (O.C.G.A. § 44-14-361.6) that would impose a fine for frivolously filed liens, as well as allow for the recovery of attorneys’ fees and costs against the lien claimant.

If signed into law, the new amendment would subject a lien claimant to a $1,500 fine per lien filed if the lien is “made without substantial justification” or “is not made in good faith” or “is made with malice or wrongful purpose.” The proposed fine would be in addition to any attorneys’ fees or costs that could be imposed against the lien claimant in actions challenging the legitimacy of the liens.

This newly proposed statutory provision is intended to give owners (and prime contractors) more leverage when combating illegitimate liens filed on construction projects by subcontractors and suppliers. While a fine of only $1,500 may not be steep enough on its own to meaningfully discourage the filing of potentially unlawful liens, the proposed amendment provides a way to recover attorneys’ fees and costs against the lien claimant – a new legal remedy which has not been available under existing lien laws. 

On February 9, 2026, Georgia House Bill 676 “crossed over” to the Senate to be considered for passage by the Georgia Assembly. Chamberlain Hrdlicka will continue to monitor this bill and provide updates as the legislative session progresses.