We were recently awarded a contract that has more than one general contractor. We are one of the general contractors. Our question is, do we need to send a preliminary notice if we are not the general contractor for all of the work?
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Jun 18, 2020
Under California law, the mechanics lien statutes do not use the distinction of "general contractor." Instead, they use the designation of "direct contractor" or "prime contractor." These terms, under Cal. Civ. Code §8018, are defined as a contractor who has a direct contractual relationship with an owner.
So, looking at the preliminary notice requirements under §8200(e)(2)A claimant with a direct contractual relationship with an owner or reputed owner is required to give preliminary notice only to the construction lender or reputed construction lender, if any.
Therefore, if you were hired directly by the property owner, then you will only be required to send a preliminary notice if there is a lender on the project to secure your right to file a mechanics lien.
For more information, see: The Ultimate Guide to California's 20-Day Preliminary Notice
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Jun 18, 2020
When the California law says "owner", do they mean the owner of the property or the owner of the project who has agreement with the property owner?
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Jun 18, 2020
The owner refers to the owner of the actual property, not the project manager. This can be an individual or a legal entity such as an LLC or corporation. For public works projects, this will be the public entity or agency that contracted the work.
If you're having trouble finding the property owner on your project, this article may prove helpful: Why Can't I Find the Property Owner on My California Construction Project?
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Jun 18, 2020
We are doing work for an LLC, however, they do not own the property but they are contractually the owner of the project. Would we send a preliminary notice to them if we have a direct contractual relationship with the LLC?
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Jun 18, 2020
Whether the LLC was hired as a project manager or is a tenant commissioning work on the owner's property, mechanics lien laws are ultimately about the property itself. So it's a good idea to send notices to everyone up the contracting chain, especially the owner of the property.