A concrete supplier (Vulcan) was owed money by a subcontractor (HLW) who received payment from the general contractor (Raus) but didn't pay suppliers. Vulcan filed a lien and tried to garnish retention funds held by Raus. The court ruled that once an owner pays for construction work, those funds automatically become a trust for all suppliers and workers in the payment chain. The IRS could not claim the retained funds even though HLW owed back taxes, because HLW had no legal interest in money held in trust for suppliers.
Retention funds held by contractors are legally protected as a trust for all suppliers and workers—the contractor cannot use them for other purposes or let creditors seize them
File your lien promptly and consider garnishment of retention funds if you're not paid; courts will enforce your right to those funds ahead of other creditors like the IRS