I represent the owner (school district) for new construction projects. We have hundreds of prelims filed on each job. When we record the NOC, are we also required to notify all subs who filed prelims with a certified copy of the NOC? If so, what is the point of the separate $2 notice? Is there any repercussion besides extending the date to file a claim?
Yes, in California property owners need to send a Notice of Completion to the parties who submitted preliminary notices. In states where NOC are used, it can affect the release of retainage, the deadline to file a mechanics lien, and the warranty period. In California, filing a NOC can shorten the deadline to file a lien from 90 days down to 60 or even 30 days, depending on the role on the project. Therefore, the NOC shortens the time frame in which general contractors, material suppliers, or subcontractors may file a mechanics lien in California , and when they must act. The NOC cuts the deadline in half!
A property owner that fails to provide a notice of completion to contractors that provided a 20 day preliminary notice loses the effectiveness of the notice against that party.