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Preliminary Lien Notices

 

A preliminary lien notice is a notification sent to the project owner or general contractor that a party on a construction project is reserving their right to file a mechanic’s lien in the event of non-payment. In most states, this notice is required in order to preserve lien rights. Here's a good  read about  california preliminary lien notice, check it out!  

 

Preliminary Lien Notices Can Save You Time and Money

 

While not all states require construction participants to send a preliminary notice before filing a mechanics lien, it’s common practice in most jurisdictions. The information included in a preliminary notice may vary by state, but it usually includes the name of the notifying party, their company and the project owner or general contractor.

 

In many cases, a preliminary notice can also be used to communicate the amount of work and materials provided by the notifying party in the early stages of the project. This can help speed up payment processes as well. To  gather more awesome ideas on this company, click here to get started. 

 

The Notification of a Mechanics Lien

 

If the notifying party is providing labor or materials, a preliminary lien notice can be issued in order to secure their rights to file a mechanic’s lien on the project later. The notice can also be a way to communicate the amount of work and materials provided to the project’s owner or general contractor. Kindly visit this website https://www.wikihow.com/File-a-Lien  for more useful reference. 

The Preliminary 20-Day Notice is Essential for California Constructors

 

Unlike most other states, California requires construction participants to send a preliminary twenty-day notice before a mechanic’s lien can be filed. The notice must be given to the property owner, the prime contractor (GC), the construction lender and the surety, if any.

 

The notice can be delivered in person, via certified mail or by express mail or overnight delivery with proof of receipt. The notice must be given not more than 20 days after the first furnishing of labor or materials on a project. However, if you’re late in sending your notice, the longer you wait, the less time you have to claim payments due.

 

This deadline is important for California contractors, because failure to send a timely preliminary lien notice can make it difficult for you to claim payments under a mechanics lien or bond. In addition, it can cause you to lose out on your lien rights for some of the work you do on a job.

Building Relationships With Your Clients and Getting Paid Faster

 

Many construction project participants are reluctant to send preliminary notices, fearing it will damage relationships with clients. But research shows that nearly 83% of notifying parties are happy with the communication and find them helpful.

 

If you’re a subcontractor, supplier or other notifying party, you can use Flexbase to simplify and automate the process of sending preliminary notices in your jurisdiction. Our software automatically generates error-free forms, submits your documents on your behalf and keeps you up to date with when payments are due. Schedule a free demo today to see how Flexbase can help you overcome the challenges of getting paid on construction projects.