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Understanding Terminology in the Construction Notices World

Industry jargon is great for those who are familiar with it, but if you're new to the world of construction notices, you might not understand a lot of what you're dealing with. Fortunately, you're not alone. Several types of documents fall under the "construction notice" umbrella and they all have their purpose. Read on to learn more about them and other important terminology.

Project Progress Notices

Contractors or owners may be required to file public notice of a new construction project. This includes notifying people of both the beginning and end of the project, which is done by serving Notice of Commencement or Notice of Completion filings.

A Notice of Commencement informs property owners that a project is starting. It's only required in four other states besides Florida, and it doesn't even exist in 42 of the 50 states. This marks the beginning of the project formally, provides key information, and reduces the risk of lien filings.

A Notice of Completion signifies the end of a construction project. It includes implications for timelines to file mechanic's liens and information about the rights of suppliers and contractors. These are typically only used in states where Notices of Commencement are required.

Preliminary Notices

These are the most common types of construction notices that people know or hear about. They go by several names, and all refer to notices that are issues as a first, or preliminary, attempt, to communicate the details of a construction project:

* Notice to the Owner (NTO)
* X-Day Notice (Florida allows 45 Days)
* Construction Notice
* Notice to Contractor
* Pre-lien or Prelim Notice
* Notice of Furnishing

Sometimes these are errantly referred to as lien notices, but that's not what they are. A lien notice would be notifying an owner that a lien is being placed for nonpayment. This is just a notice that informs them that if payment isn't received, the sender reserves their right to file a lien.

Notice of Intent to Lien

Speaking of lien notices, that's another common type of construction notice. Also called a notice of intent to lien, this is issued when contractors or suppliers go unpaid for their work. A notice of intent to lien should be sent about 10 days before you actually file that lien. Essentially, it's a warning that if people don't pay their invoices, they're going to have a much bigger issue on hand.

This is not a mechanic's lien or notice of a mechanic's lien. Those are separate documents that are filed after the intent notice is sent. Some contractors assume that they send the Notice of Intent and that means they filed their lien, but this is incorrect.

Get Help with All Your Construction Notice Needs

Handling construction projects is a big task. Invoices and payments shouldn't be taking up valuable time and space, and they don't have to. Partner with Nationwide Notice to get support for all construction notices and a platform that makes it easy to ensure that your company gets paid. Reach out now to learn more!