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

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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 first class mail.
  • Document storage is key for long projects and lien-right validation.
  • Not all projects are created equal - requirements can differ by project type.
  • Lien documents are organic and grow or shrink with your project.

Quick Tips

  • Manage change orders and lien rights together to protect your lienable amount.
  • Capture every dollar you put toward a project to minimize potential loss.
  • Track lien waivers and payments carefully to avoid waived recovery rights.
  • Prefer Conditional Waivers and avoid Unconditional Waivers when possible.
  • Conditional waivers transfer to unconditional once funds are authenticated.

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