Preliminary Lien Services

When contractors are not paid for their labor and materials on a construction project, they can resort to filing a mechanics lien. This legal recourse allows them to collect money from a property owner or general contractor, regardless of whether the work was performed on the property in question. The only catch is that you have to meet certain requirements and follow certain legal procedures in order to file a lien.

Mechanics Lien Requirements and Procedures

In order to protect your preliminary lien california rights, most states require you to send a preliminary notice before, during or near the end of work on a construction project. The purpose of these notices is to preserve your right to a mechanics lien claim for the work you have performed on a project and to give you an opportunity to resolve payment issues before filing a mechanics lien.

Preliminary Notices are a must for all subcontractors and suppliers who have not contracted directly with the property owner or general contractor. This document not only provides you with the information you need to pursue a lien, but it also signals to your employer that you are organized and prepared.

Several courts have ruled that incorrect or incomplete preliminary notices can jeopardize a contractor's ability to perfect their lien rights. One such case was a situation where a contractor constructed a building on one parcel of land, but the construction also included a sewer line that crossed another parcel. In this instance, the court found that the preliminary notice failed to properly identify the separate parcels impacted by the construction.

The law requires a pre lien notice to be served to the property owner, the general contractor, or other interested parties as required by state laws. It must be delivered in person or by certified, registered or express mail and include a return receipt. This process can be a challenge to accomplish, especially when dealing with multiple contractors.

LienItNow makes this process easier by offering an easy-to-use system that ensures that all the necessary paperwork is completed and filed correctly. We verify actual property ownership, financial lender information, bonding companies involved (if any), jobsite and general contractor information so that we can serve a timely preliminary notice on your behalf.

In some cases, we can even send a preliminary notice via certified mail to the property owner and general contractor on your behalf. This is particularly important for material suppliers who may not be on site or know the property owner or general contractor. Visit tis website to learn more about preliminary lien services.

The LienItNow system is easy to use, takes the guesswork out of filing a preliminary notice, and helps you get paid faster!

How to Serve a Preliminary Notice

When you receive the preliminary notice, you should compare it to the bill of materials. This way, you can make sure that the work was done as described in your contract and the preliminary notice. If not, you should have your contractor get a signed conditional release from the potential lien claimants before making payments to them on the construction project. Check it out here for more information related to this topic: https://en.wikipedia.org/wiki/Debt_collection.