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A mechanic's lien is a legal document used by contractors, subcontractors, and suppliers to secure payment for work completed on a construction project. Filing a mechanic's lien essentially states that:
- You're owed money for services provided
- You're expecting payment by a specific date
- You'll proceed with litigation if you don't receive payment by that date
While a lien is in place, it restricts the owner from selling, refinancing, or transferring the property without paying you. That pressure makes liens one of the most powerful payment tools available—especially for subcontractors and suppliers.
Mechanic's lien laws vary significantly by state, with different rules governing who can file a lien, what notices are required, and timelines for filing and enforcement. This guide covers the essentials of South Dakota's mechanic's lien laws to help you protect your right to payment.
Not required
If Notice of Project Commencement is filed by the owner, second-tier subcontractors and suppliers to subs must file a Notice of Furnishing no later than 60 days after last furnishing
If Notice of Project Commencement is filed by the owner, must file a Notice of Furnishing no later than 60 days after the last labor—unless the lien amount is less than $2,000
Not required
Not required
Not required
Within 120 days after last furnishing of labor, materials, services, or equipment
Within 120 days after last furnishing of labor, materials, services, or equipment
Within 120 days after last furnishing of labor
Within 6 years after the date of the last item listed in the filed lien statement
Within 6 years after the date of the last item listed in the filed lien statement
Within 6 years after the date of the last item listed in the filed lien statement
Unpaid contract balance, including approved change orders
Unpaid value of labor, materials, services, or equipment furnished to the project
Unpaid value of labor performed on the project
Governed by S.D. Codified Laws Chapter 44-9, South Dakota's mechanic's lien rights apply only to private construction projects. If you're unpaid on public work, you must handle this via a payment bond claim under South Dakota's public works bond rules (not a lien against public property).
South Dakota's mechanic's lien process is fairly straightforward, but there are two statutory quirks that affect lien rights and enforcement timing:
- Property owners in South Dakota may file and post a Notice of Project Commencement at the job site, which can impose additional notice requirements on lower-tier contractors, suppliers, and laborers.
- South Dakota also allows owners (or contractors) to serve a written demand that can shrink the lien enforcement deadline from six years to just 30 days. Miss this, and your lien can be canceled.
With this framework in mind, let's dive into the rest.
Under S.D.C.L. § 44-9-1, mechanic’s lien rights extend to the following parties who furnish lienable contributions to a qualifying private project:
- General (original) contractors
- Subcontractors and sub-subcontractors of any tier
- Material suppliers (including suppliers to subcontractors)
- Equipment lessors (equipment furnished for the improvement)
- Laborers and tradespeople
- Service providers contributing to the improvement, including utilities like water, gas, and electricity
South Dakota lien rights cover labor, services, equipment, and furnished materials that directly contribute to the “improvement, development, or operation” of the property.
Here are some examples of what’s considered lienable and what isn’t.
Lienable Work in South Dakota
- Construction, alteration, repair, or removal of buildings and structures
- Sitework tied to an improvement, like grading, filling, excavating, and similar work
- Ditches, drains, wells, cisterns, reservoirs, and similar work on the property
- Sidewalks, curbs, gutters, paving, sewer, pipe, conduit work in/on the property or the adjoining half of the abutting street/alley
- Work on railways and utility lines (telegraph, telephone, electric light, power), including related structures and fixtures
- Work on mines, mining claims, and oil/gas wells or springs
Non-Lienable Work in South Dakota
- Work on public projects
- Work not connected to improving, developing, or operating the property
- Repairs ordered solely by a tenant or lessee that do not bind the property owner
- Work on an improvement after a non-authorizing interest holder serves/posts a valid notice of nonliability
- Work performed after lien rights have expired
Before filing a lien in South Dakota, make sure you’ve met any notice or preliminary requirements that apply to your role (see table above).
Deadline to File
All claimants must file a lien statement within 120 days after doing the last work or furnishing the last item of skill, services, materials, or machinery, or the lien “ceases” (S.D.C.L § 44-9-15).
Filing Requirements
- Filing location: File the lien statement with the register of deeds in the county where the improved premises are located (or the county attached for judicial purposes).
- Form requirements: South Dakota provides a statutory lien statement that must include:
- Notice of intention to claim and hold a lien, and the amount
- Statement that the amount is due for the work, materials, services, or equipment furnished, and what improvement it was for
- Names and addresses of the claimant (you) and the party who hired you
- Dates of first and last furnishing by the claimant
- Property description sufficient to identify it
- Owner name and address (best information available at the time)
- Itemized statement of the account
- If you are a sub-subcontractor or supplier to a subcontractor, the filing must also include a copy of your Notice of Furnishing per S.D.C.L. § 44-9-53.
- Verification: Must be verified by oath of someone with knowledge of the facts stated.
- Filing fee: Standard fees apply, but vary by county.
Service Requirements
Before filing, the claimant must mail a copy of the lien statement to the property owner by certified or registered mail and attach the mailing receipt to the filed lien statement (S.D.C.L. § 44-9-17).
Recording a lien preserves your rights—but enforcement is how you get paid. Here’s what you must do to ensure you enforce your lien in South Dakota.
Enforcement Requirements
- Enforcement deadline: You must enforce the lien (by complaint or answer) within six years after the date of the last item included in your claim statement. If the owner serves a written demand for you to commence suit, the lien enforcement deadline shrinks to 30 days after service. Miss this, and your lien can be wiped out.
- Filing location: File the foreclosure action with the Circuit Court in the county where the property (or parts of it) is located.
- Additional filing: At the beginning of the action, the claimant must also file a Notice of Pendency of Action with the register of deeds of the county where the property is located.
- Lien priority: Lien priority in South Dakota depends on the situation. When against the owner, the lien generally attaches and takes effect from the time the lien claimant first furnishes labor or materials to the premises. But when against a purchaser, mortgagee, or encumbrancer, no lien attaches before the actual start of the improvement.
Lien Release Requirements
Once the debt is resolved, the lienholder must sign and provide a Satisfaction of Lien to the owner—either before two witnesses or a public notary—and record it with the county register of deeds within 10 days after written demand. Failure to do so may make the lienholder liable for damages, attorneys’ fees, and a statutory penalty.
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South Dakota’s lien statutes do not clearly bar liens based on licensing status. However, licensing issues can still create defenses or payment problems under other laws, especially if the work required a license. If licensing could be an issue on your project, it’s worth confirming before relying on lien leverage.
Yes. South Dakota lien rights extend to parties furnishing labor or materials at the request of a contractor or subcontractor—not just those hired by the owner directly.
Yes, on enforcement. Under S.D.C.L. § 44-9-26, South Dakota allows the owner, contractor, or agent to serve a written demand requiring the lienholder commence a foreclosure lawsuit. If that demand is served, the lienholder generally has 30 days to sue (as opposed to the standard six years) or the lien can be forfeited and cancelled.
No. South Dakota does not require a notice of intent to lien before filing a mechanic’s lien.
Usually no. A preliminary notice is only required if the owner files and posts a Notice of Project Commencement. When that happens, sub-subcontractors, suppliers to subcontractors, and laborers with claims of $2,000 or more must send a Notice of Furnishing—by certified or registered mail—no later than 60 days after the last furnishing of labor or materials.
If no Notice of Project Commencement is filed and posted, no preliminary notice is required (S.D. Codified Laws § 44-9-53).
There is no statutory lien waiver form in South Dakota, so parties are free to use any format they choose. To ensure complete compliance, we recommend brushing up on the specific rules in our South Dakota lien waiver guide before your next project.
A South Dakota mechanic’s lien may cover the unpaid value of lienable labor, services, materials, or equipment furnished to the project.
Liens may include:
- Labor performed on the project
- Materials or supplies incorporated into the improvement
- Equipment or machinery furnished for use on the project
- Interest on the lien amount, at the maximum rate allowed by law
- Skill or services furnished for the improvement (including items like electricity, water, and gas)
Liens generally may not include:
- Attorneys’ fees or court costs (unless later awarded by the court)
- Administrative, delay, or consequential damages
- Amounts unrelated to the actual improvement
No, a written contract is not required. Mechanic’s lien rights can arise from written or oral agreements, or from work performed at the request of the owner or a GC. That said, a written contract is strongly recommended, as it makes it easier to prove scope, pricing, and the amount owed if the lien is challenged.
Disclaimer: This guide is for informational purposes only and does not constitute legal advice. Always consult with a qualified construction attorney in your state regarding specific legal matters before taking any action that could affect your lien rights.