Understanding Preliens, Establishing Your Right to Lien, and How National Lien Services Can Help

What are Construction Prelien Notices?

Establishing your right to lien during a project can be a tricky process – especially depending on which state you are working in and your role on the project.

Construction notices (20 day preliminary notices / notice to owner /preliens) are documents that are dictated by state statutes with regard to content, font size, service requirements, and time frames and can be either "proactive" or "reactive".
What's the difference?

Proactive State

A construction notice MUST be sent at the beginning of your work to establish the right to file a mechanic's lien or bond claim.
Examples: Arizona, California, New Mexico

Reactive State

A construction notice or notice of intent to lien MUST be served at the end of your work on the project and before you file a mechanic’s lien or bond claim.
Examples: Colorado, Texas, Oklahoma

Construction Notices 101:

Common Document Names:

  • Prelien
  • Preliminary 20 Day Notice
  • Preliminary Notice
  • Notice to Owner
  • Construction Notice
  • Notice of Furnishing
  • Notice of Right to Lien

Keep in Mind:

  • Each state will have differing time frames, statutorily required verbiage, formats, etc… to establish the right to lien
  • Some states leverage online portals to complete the requirement for service
  • Document service is different by state – some require certified mail, some allow for first class mail – all should rely upon the Certificate of Mailing to prove service
  • Document storage is key – you can be on a project for months or years – keeping your documents in order with regard to lien rights is vital
  • Not all projects are created equal – different processes and requirements may be needed depending on the type of project you’re on – even in the same state
  • Lien documents are organic and grow or shrink with your project – a simple “set it and forget it” approach won’t benefit you in the long run
 

Quick tips:

  • Manage your change orders and lien rights in the same action – change orders may also alter your "lienable" dollar amount at the end of the project – often, time frames are in play here as well
  • Capturing every dollar you put toward a project is important to minimize any potential loss toward the end
  • Keep an eye on your lien waivers and payments – You can’t look to a lien to collect money you’ve already been paid or waived
  • Lien Waivers: Send Conditional Waivers and try to avoid Unconditional Waivers at all costs – once it’s waived, it’s gone
  • Note: a Conditional Waiver will automatically transfer to an Unconditional Waiver once funds have been authenticated to your account

What we do:

  • Research your project: We will fully research the project’s responsible parties and ensure they are captured on your construction notice accurately
  • Prepare your documents: We will complete your construction notices and ensure they are in compliance with your state’s requirements
  • Mail your construction notices: We hand deliver all documents to the USPS for acceptance and acknowledgement of receipt and guarantee mailing of your construction notices within statutory guidelines
  • Store your documents: Our system allows us to have your paper documents secured and stored on our site – as well a an electronic copy of all of your documents on our servers
Want to discuss how we can best help you? Contact Us

Learn About Our Other Services:

media_00020.jpg