
Properly Licensed Contractors, Suppliers, Equipment Lessors and Deign & Engineering Professionals MUST all send Preliminary 20-day notices on both Private jobs and State Public jobs in order to protect lien rights and bond claim rights for public jobs.
1. Preliminary 20-day Notices - send by 20th day of the earliest of the delivery date of materials or the date physical labor begins.
2. Mechanics Lien - record within 120 days from project completion or within 60 days if a Notice of Completion is recorded.
3. Bond Claim - to be sent by the 90th day of your last day on the job.
NOTES:
-Owner-Occupied residences - You must have a written agreement with the owner of the property to have lien rights. Still suggested that prelien is sent as property could become an investment property.
- Preliminary Notices sent late (after your 20th day on the job) , will protect you beginning 20 days back from the date the notice was served (mailed). If you have been off the job more than 20 days when you send your prelien, you have NO lien rights; however it can be advantageous to send a preliminary notice late even if you have no lien rights, as the recipients often are concerned by the notice and make payments. There is no penalty for sending a preliminary notice late.
-Suppliers of suppliers have NO lien rights.
- Project "Completion" is the earliest of the following events:
1. Thirty days after final inspection and written final acceptance by the governmental body which issued the building permit for the building, structure or improvement.
2. Cessation of labor for a period of sixty consecutive days, except when such cessation of labor is due to a strike, shortage of materials or act of God.
3. If no building permit is issued, completion is the last date on which any labor, materials, fixtures or tools were furnished to the property.
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