I am a subcontractor. I ordered materials from my supplier in December and equipment in January. My supplier filed the preliminary notice in January and claims that the preliminary notice only applies for the equipment purchases. Can suppliers file a preliminary notice on a specific purchase order, for instance, just for the equipment? If yes, how should that look on the preliminary notice? If the notice doesn't specify that it is for one particular Purchase Order, does that mean the notice applies to both materials and equipment? Please provide links as well. Thank you.
Yes, suppliers may file a preliminary notice on a specific purchase order.
A valid preliminary notice should contain a general description of the labor, equipment, and services to be provided. See Civil Code section 8202.
In the situation you have described, it may be that the materials were not included because they were delivered more than 20 days before the notice was given. See Civil Code section 8204. Only labor, services, and materials provided within 20 days before preliminary notice is given are covered by the notice. Id.
Preliminary notice is required once per contract. So if additional labor, services, or materials are added to an existing contract that does not trigger the need for further preliminary notice. But if a separate purchase order or agreement is negotiated for additional equipment or materials, a new preliminary notice is arguably needed.
However, even absent this additional preliminary notice, a supplier would have an argument that the additional work is an expansion of the existing agreement for the project. The supplier could also argue that based on earlier preliminary notice, the owner had actual knowledge of the supplier's provision of materials and equipment to the project, estopping the owner from raising preliminary notice as a defense.