PRELIMINARY NOTICES AND LIEN CLAIM
SERVICES
---------GENERAL INFORMATION: PRELIMINARY NOTICES
Preliminary notice, notice to owner, notice of right to
lien, materialman's notice, 20-day preliminary notice,
prelien notice. All synonyms for the same thing: It is
a letter to the owner of the construction project informing
him that you ( a subcontractor, supplier or equipment renter)
are on the job and need to get paid; that you are preserving
your right to file a claim of lien.
Most states permit suppliers, contractors, equipment renters,
etc. who participate in a construction project to protect
their receivable by filing a claim of lien. But first,
you have to comply with certain statutory requirements.
One frequent requirement is that you send a preliminary
notice to the property owner and/or general contractor.
This notice goes by different names in different states.
The deadline to send it also varies by state. But the idea
is always the same. If you are not working for the property
owner, you should send a preliminary notice and consider
it as Step 1 in the process. It goes by certified mail.
What the notice says also varies by state. There are great
resources for buying sample notices. If you are a do-it-yourselfer,
try www.TheContractorsGroup.com. The Fifty State Lien/Bond
Reference by Aspen Publishing is also a great tool and
only $350 for an annual subscription. Another plan is to
outsource the task. Levy - von Beck manages this task for
clients across the U.S. and for projects from Alaska to
Florida. We think outsourcing makes sense when you consider
that the statutes, forms, and deadlines
often change.