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Preliminary Notice in Construction - What to Know

When you wish to file a lien in the construction business, you must follow the proper steps and file the paperwork properly. Sending a preliminary notice is one of the most important steps in the lien process.

If you’re in the construction business, you always want to complete the lien and notice process efficiently. This article will outline everything you need to know regarding a preliminary notice.

What Is a Preliminary Notice?

A preliminary notice is paperwork sent by a contractor to inform the customer of their work on a project. This notice is a crucial part of the mechanic’s lien law for a contractor to demand payment on a project.

This important step protects your right to file a lien if you don’t receive prompt payment for your work. The notice may also need to be sent to any creditors or parties involved with the payment process.

Benefits of Sending a Preliminary Notice

These are the benefits of sending out a preliminary notice to any of your clients.

Get Paid Faster
When you send a preliminary notice, the property owner is aware of all the work completed and all parties involved in the completion of the project. When they know everyone that is involved on the job site, there’s a higher chance everyone will be paid on time.

Preliminary notices provide more transparency regarding a project to the property owner and client. This gives more credibility to any invoices sent, thus making them a higher priority for sending payment.

Better Communication
Sending a preliminary notice keeps the property owner and client updated and promotes better communication. Whenever there is an efficient line of communication, the project and payment of the project will go much smoother.

It’s also important to understand the different types of preliminary notices.

Types of Preliminary Notices

There are different types of preliminary notices depending on what payment is needed for and the state where the project is being completed.

Notice to Owner
A preliminary notice is known as a notice to the owner in 13 different states on construction projects. These states are Arkansas, Colorado, Florida, Indiana, Kentucky, Louisiana, Maine, Missouri, Oklahoma, Oregon, Tennessee, Virginia, and Washington.

Notice of Furnishing
A notice of furnishing is what a preliminary notice is called in the following states: Michigan, Ohio, Pennsylvania, South Carolina, and South Dakota.

Notice to Contractor
A preliminary notice is known as a notice to the contractor in Georgia and Washington.

These are other terms for a preliminary notice:

* Notice of Right to Lien (AK, NV, OR, WI)
* Preliminary 20-day Notice (AZ, CA)
* Notice of Contract (MA, NC)
* Monthly Notice (TX)
* Notice to Owner Prior to Performance (AL)
* Notice of Unpaid Lien (AL)
* Notice to Property Owner (AZ)
* Disburser Notice (CO)
* Notice of Identification (MA)
* Notice of Subcontract (NC)
* 31-Day Notice (NV)
* Notice of Unpaid Balance and Right to Lien (NJ)
* Notice to Lien Agent (NC, VA)
* Notice of Possible Mechanic’s Lien (RI)
* Notice of Preconstruction Services (UT)
* Model Disclosure Statement (WA)
* Subcontractor Identification Notice (WI)
* Preliminary Notice of Right to Lien (WY)

Don’t be overwhelmed by the different types of names for a preliminary notice. They all entail the same process and will net you the same results. It’s important to remember to file this notice regardless of the name; it could mean the difference between being paid and not being paid! Nationwide Notice is here to help you with all your construction payment needs, no matter what kind of construction company you may have. As a professional lien and notice service company, Nationwide Notice specializes in heping construction companies secure their lien rights and provide customers with a lien release once the invoice is paid. You can find our full list of services here or check out this page to see what we are all about.

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