Does the date labor/materials first delivered go off of the manufacturing date or the date work begins?

1 week ago

For our company we require a 25- 50% deposit to begin manufacturing material. We do not start manufacturing until we have received the non-refundable deposit. When tracking deadlines, would I go off of the date we placed the product into production (which is also the date we received the payment) or would it be the date we physically start working on the job site (which can be 1 month to a year after material has been produced)?

Senior Legal Associate Levelset

California’s preliminary notice deadline is based on the first date when labor or materials are furnished to the project. Unlike some other states, California doesn’t have specific regulations or requirements which apply to those who specially fabricate or manufacture materials. So, suppliers of specialty materials will still generally follow the same rules as those who supply common materials to the job site.

Of course, it makes sense to send notice earlier than that when materials are being specially fabricated or manufactured. That way, everyone’s aware of the work being performed while it’s underway – not just when it’s furnished to the project. And, as Levelset has written before, California preliminary notices may be sent early.

For a little more discussion on material suppliers and first furnishing dates, here’s a great resource: Lien Rights for Material Suppliers: First Furnishing Date Delivery Date or Shipping Date? Does it Matter for Lien Deadlines?

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