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a prelim release is dated through the invoice date or though the end of the month

California
Anonymous Contractor

We have a major project at my company. We have several prelims on this project I need to know if the releases for the prelims should they be dated through the date of the invoice or though the end of the month of that pay period?

1 reply

Partner at Flores Ryan, LLP
| 280 reviews
Jan 28, 2020
Under most circumstances you should not issue multiple preliminary notices for the same project. Preliminary Notice should be issued once, within 20 days of commencing work. This protects your lien rights for the balance of the project. Your releases on progress payments should correspond to a specific pay period and corresponding payment (or expected payment if the release is conditional). You are releasing your lien rights with respect to that pay period and progress payment only. Your release on final payment at the end of the project will release what is left. The period on the release should be the exact pay period. Anything broader may release your lien rights with respect to other pay periods that have not yet been paid.  
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