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Change in prelim amount later in the job (i.e. change orders)?

CaliforniaPreliminary Notice

What if you prelim a job for lets say an initial contract amount of $200,000. And then you get a change order (later in the job) for a substantial amount, lets say $500,000. Do you prelim again? And if so do you calculate the new total, or just send it with the new change order amount?

2 replies

Feb 2, 2022
You don't have to submit a new Preliminary Notice when there is a large change order, but if the change order represents a significant change in your scope of work, you may wish to send a new notice, just so the Owner and Lender know that there has been a substantial change in your participation in the Project.
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Feb 9, 2022

The safest thing to do from a legal standpoint if the project size for you increases by that much is to send out (or have LevelSet send out for you) an Amended Preliminary Notice to the owner, GC, and lender (if any) that gives the new total cumulative amount. That way the other parties can’t come back later and try to argue that they didn’t know how much work you were doing. I’m happy to answer any questions you have about this.

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