Depending upon which state you live in, they are potentially going to require that all construction participants send a preliminary notice to whoever the general contractor, as well as the owner, of a particular property is in order to help secure the rights for them to file a mechanics lien. This is going to be the case for both commercial and residential projects.
In case you were not aware of what a preliminary notice was, it essentially going to be part of the payment process for any construction that is going to happen. What this means is that just about every construction project is going to require that preliminary notices are sent out, which are often times referred to as pre lien notices, or even the notice to the owner. These are going to normally be sent out in the very early stages of the construction project so that they are able to notify any and all other parties that may be involved in the project.
In fact, most states are actually going to require that all subcontractors and suppliers, send out a preliminary notice to every and all key stakeholders in the project so that they are able to secure the lien rights.
What is Included with a Preliminary Notice?
When it comes to preliminary notices, they are going to include all of the important information that notifies a party that another party has decided to hire them, as well as all of the property owner’s information, as well as the general contractor’s information. While each of the preliminary notices is going to vary depending upon the state that you live in, this notice is also going to more than likely notify you that each of the party’s is expecting to be paid, as well as what they are expecting to be paid.
Requirements for Preliminary Notices
While most states are going to require that all participants in the construction project are to send preliminary notices to both the general contractor of the job and the owner of the property in order for them to secure the mechanics lien rights, this is only going to be for commercial and residential projects. Essentially, securing these lien rights is going to be very important as this is going to be the very best tool that construction participants are able to use in order to secure their payment. Visit how to file a mechanics lien if you need more help.
In an industry where having late payments is just about an everyday event, whenever a company is able to take the steps to minimize any of the financial risk that they are going to experience, it is going to be a very special thing. Without these lien rights, the people who are involved with the construction project are essentially not going to have any way of combating any non-payment other than trying to file a lawsuit, which is more than likely going to be a very time consuming and expensive course to go down. By filing a mechanics lien, the construction participants are essentially ensuring that they are going to be paid for all of the projects that they do.