When filing a preliminary notice to a general contractor by a sub of a subcontractor. Is it a requirement to have the contract amount of the sub of the subcontractor included on the Preliminary Notice?
2 replies
Christy Serafini
Jun 18, 2020
If you have completed and Invoiced the full contact amount then yes you list that amount, If you have only done a portion of the contact you should list just the invoiced amount for that month.
It sounds like the above answer is targetted at monthly notices, so let's look at some other notices too.
If you're referring to the Notice of Contractual Retainage, no - that notice generally doesn't specifically require the contract amount appear. However, if you're referring to the Notice of Specially Fabricated Materials, then yes - the contract amount must appear. Texas Property Code § 53-058(c)(2) states that "the price of the order" must be included on that notice.
Of course, keep in mind that specialty material suppliers will still be entitled to some mechanics lien rights, even if the Notice of Specially Fabricated Materials isn't sent or is sent with incomplete information. By sending a Notice of Specially Fabricated Materials, a specialty material supplier preserves their right to lien for all materials fabricated for the job - regardless of whether they're delivered. But, § 53-058(f) states that materials that are actually delivered to the job site will still be lienable as long as the necessary monthly notices are sent. So, sending a Notice of Specially Fabricated Materials provides the greatest protection. But, regardless, the materials which are actually delivered to the job site will still be lienable as long as monthly notices are sent.
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