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Do we need to re-Prelim a job if the estimated dollar amount for the job increases beyond what we initially provided?

California

Sometimes, we are never given a dollar amount from our customer for the job and we provide Levelset with only what materials we have charged on the job so far, or it ends up being quite a bit higher than the amount the customer provides. As time has gone on, there have been conflicting opinions about this situation from Levelset. Can you clarify for us?

1 reply

Feb 9, 2022

The law says you should give your best good faith estimate of the labor and materials you will be providing on a project at the time you send out your Preliminary Notice. If you now know that this number has increased by a substantial amount, the best practice is to send out a new Amended Preliminary Notice to the owner, the GC, and the lender (if any). I’m happy to answer any questions you have about this.

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