---
title: "Subcontractor Liens"
url: "https://legal.ge/en/service/real-estate-law-en/subcontractor-liens-en"
field: "Real Estate Law"
description: "Subcontractor security: pledge over movables (Art. 634), mortgage over land (635), forms (255) and partial remuneration (638). Legal.ge."
reviewed: "2026-07-09"
updated: "2026-10-14"
publisher: "legal.ge"
---

# Subcontractor Liens

> Source: legal.ge, https://legal.ge/en/service/real-estate-law-en/subcontractor-liens-en

## Subcontractor Security — What Does and Does Not Exist in Georgian Law

Protecting the value of work performed by a subcontractor in Georgian law begins with one important limitation: the institute of an automatic statutory lien, known in the construction practice of other countries, does not exist in the Georgian Civil Code. A subcontractor cannot, by the mere fact of performing the work, obtain a preferential right over the object — security is always established by transaction. The Code gives two real instruments: pledge over a movable (Article 634) and mortgage over the construction land plot (Article 635); alongside them remains the ordinary claim for remuneration. This page teaches the correct use of these three routes.

The practical consequence of this limitation is concrete: a subcontractor's claim without security is an ordinary claim for remuneration — it stands in line with the claims of all other creditors and is satisfied only through enforcement. Establishing security is therefore the most valuable clause of the subcontractor's contract: it takes the claim out of the queue and gives it preferential status.

The full text is available on legal.ge after signing in: https://legal.ge/en/service/real-estate-law-en/subcontractor-liens-en

### Does an automatic subcontractor lien exist?

No. Georgian law has no institute of automatic statutory lien; security is established by transaction — pledge over a movable (Article 634) or mortgage over the land (Article 635).

### When can a movable be pledged?

Under Article 634 — over a movable made or repaired by the contractor while it is in his possession for that purpose; the pledgee has the preferential right of satisfaction (Article 254).

### What are the types of pledge?

Under Article 255 — possessory pledge and registered pledge.

### Can a mortgage over land be demanded?

Yes — under Article 635, when a building or its parts are constructed, the contractor may demand a mortgage over the construction land plot.

### What happens on termination of the contract?

Under Article 638, on termination in the case provided by law the contractor may claim the part of the remuneration corresponding to earlier services, if the client has an interest in them.