In Plain English
Quick Answer
An official notice filed at the start of a project that establishes when construction began and sets lien deadlines.
Definition
Definition
A notice of commencement is a document filed by a property owner or general contractor at the start of a construction project that establishes the official project commencement date and informs all lien claimants of the project's existence. In states that require it (such as Florida and Georgia), filing a notice of commencement is a prerequisite for the owner to assert defenses against lien claims. It also triggers the deadline by which subcontractors must serve preliminary notices to preserve their lien rights.
Context
Why It Matters in Bidding
In states that require it, the notice of commencement anchors the entire lien-protection timeline that subs and suppliers depend on to get paid. Estimators bidding subcontract work in those states need to know the filing date because it starts the clock for serving preliminary notices, and a missed preliminary notice can quietly destroy lien rights on an otherwise profitable job.
Example
Example
Before starting a Florida hotel renovation, the general contractor files and posts the notice of commencement, and the drywall sub's project coordinator uses that recording date to calendar its preliminary notice to owner so the sub keeps its lien rights intact.
See Also
Related Terms
FAQ
Questions Contractors Ask
Who files the notice of commencement?
It is typically filed by the property owner, though the general contractor or an authorized agent may handle it. In states that require it, the document is recorded in public land records and often posted at the jobsite so subcontractors and suppliers can locate the owner, lender, and project information they need.
How does a notice of commencement affect a subcontractor's lien rights?
Its recording date generally starts the clock for lower-tier parties to serve preliminary or pre-lien notices. Subcontractors and suppliers who fail to serve that notice within the statutory window can lose the ability to lien the project, even if the work was performed and remains unpaid.
Is a notice of commencement required in every state?
No. It is a creature of specific state lien statutes, with Florida and Georgia among the states that use it. Many states have no such document at all. Because requirements and deadlines vary, parties should confirm the rules of the project's state rather than assume a uniform national practice.
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