Construction Notice Services
A preliminary notice is a legal document which must be served by most subcontractors and material suppliers and, in certain cases, by direct contractors, in order to record a mechanics lien, serve a stop notice, or make a payment bond claim. Failure to serve a preliminary notice may invalidate your right to pursue these statutory payment remedies. We provide you with all these services according to the provisions of the state of California.
Preliminary Lien Notices
Mechanic’s Lien Recording
PRELIMINARY LIEN NOTICES
In California Subcontractors are required to send a 20-day preliminary notice on all jobs over $400.00 (civil code 3098 section b), otherwise, the licensing board can fine you if you don’t process a Pre-Lien Notice at the start of a job. Although suppliers are not required to send a 20-day preliminary notice, but if they fail to do so, they waive all rights to file a mechanics lien at a later date.
A preliminary lien notice must be sent by certified mail within 20 days of first providing labor, services, or materials to a project. We have a system to give our customers efficient and accurately completed requests.
MECHANIC’S LIEN RECORDING
A Mechanic’s Lien is part of the California State Constitution and is a powerful collection tool in the construction industry. A Mechanic’s Lien provides any contractor a right of foreclosure of the property if they are not paid.
Stop notices are used in cases of state public work, and commercial/residential jobs when there is a financial lender.
Mechanics’ Liens cannot be filed on public works projects because land is publicly owned. A stop payment notice creates a lien on un-disbursed construction funds held by an owner or construction lender. If a stop payment notice claimant has not been paid, the claimant can serve a stop payment notice on an owner which requires the owner to withhold funds from a direct contractor or, on lender financed projects, serve a stop payment notice on a construction lender which requires the construction lender to withhold funds from an owner.
On all construction projects valued at more than $25,000, California Civil Code § 3247 requires a payment bond be posted. Any subcontractors or suppliers who are unpaid for work or materials furnished to a state or county construction project can bring a claim against the payment bond.
MILLER ACT BOND CLAIM
The Miller Act (codified at 40 U.S.C. §§ 3131-3134) requires a general contractor contracting with the federal government or a federal governmental entity for a construction project with a general or prime contract in excess of $100,000 to obtain both a performance bond and a payment bond from a surety acceptable to the officer awarding the contract. According to the Miller Act, these Performance Bonds and Payment Bonds (“PNP Bonds”) are to guarantee the performance of the general contractors’ contractual duties and the payment to subcontractors and material suppliers.
If you are told to release the lien by an attorney or judge after the lien has been paid or time frames have expired, and you do not do so, you may face penalties.
Once you receive payment and you no longer need the lien recorded, we can help you release your lien.