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Can a job be prelien for a higher dollar amount then estimated job?

CaliforniaPreliminary Notice
Anonymous Equipment Lessor

We have a customer that is hauling approximately 1,500 tons into our Landfill, estimating $ 102,000.00, I created a prelien with an estimate of $ 120,000.00, but they still keep on hauling more material into our site, so far they have a balance of $ 126,000.00. I would like to know if we can prelien the job for a higher amount of what they estimated, please advise. Thank you, Nancy Rodriguez

2 replies

Principal at Lanka & Hanna
| 12 reviews
Apr 26, 2021
More information would be needed to accurately answer this question, most importantly, how you decided to use $120K as your preliminary notice amount. This area of the mechanics lien laws (preliminary notices and in particular amounts) is highly complex and fact specific, you should consult with a lawyer to ensure you are best protecting your rights.
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Attorney at Carlton & Alberola
| 93 reviews
Apr 27, 2021
My understanding is that your prelim needs to be based on some sort of rational calculation. So long as you have done that, you should be fine, as the Code requires only one 20-day prelim be served. That said, if you see the cost is exceeding your original calculations, there is no harm in serving an amended 20-day prelim. Good luck.
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