In Plain English
Quick Answer
An early notice sent to the property owner and GC at the start of a project that protects your right to file a lien later.
Definition
Definition
A preliminary notice is a formal document sent by a subcontractor, sub-subcontractor, or material supplier early in a project—typically within 20 to 60 days of first furnishing labor or materials—that preserves the sender's right to file a mechanic's lien or bond claim later if they go unpaid. Requirements vary widely by state: some states require all parties to serve preliminary notices, while others require it only for parties without a direct contract with the owner. Failure to serve a timely preliminary notice can permanently extinguish lien rights in many jurisdictions.
Context
Why It Matters in Bidding
For subs and suppliers, the preliminary notice is the gatekeeper to lien and bond-claim rights, and missing the state deadline can permanently wipe out the ability to collect on unpaid work—a direct hit to cash flow and risk. Estimators and PMs should build notice tracking into project startup because the clock usually starts at first furnishing, not at non-payment. On the GC side, knowing who has served notice signals which lower-tier parties could lien the owner's property.
Example
Example
Within the state's deadline after delivering the first load of rebar, the supplier's office serves a preliminary notice on the owner, lender, and GC, preserving its lien rights months before any payment dispute arises on the project.
See Also
Related Terms
FAQ
Questions Contractors Ask
When must a preliminary notice be served?
Deadlines are set by state law and usually run from the date you first furnish labor or materials, commonly within 20 to 60 days. Some states protect work performed only within a look-back window before the notice, so serving early and promptly maximizes the amount you can later lien. Always verify the rule in the project's state.
Who needs to send a preliminary notice?
It varies by state. Some require nearly every party in the payment chain to serve, while others require it only from parties without a direct contract with the owner, such as second-tier subs and suppliers. General contractors with a direct owner contract are often exempt. Confirm the local requirement before relying on any exemption.
What happens if you miss the preliminary notice deadline?
In many states, a late or missing notice permanently extinguishes your right to file a mechanic's lien or bond claim, leaving only a breach-of-contract suit to recover payment. Because the consequence is severe and the deadline is short, claimants typically serve notice as a routine step at the start of every job.
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