If a supplier and subcontractor both file 20 day pre lien’s wont the costs on the job look inflated?

2 weeks ago

I am a material supplier who has a customer, the subcontractor who is claiming that the lender will be
confused if we are both pre liening for material. The sub claims that cost of the project will look inflated and scare the lender off.

Attorney Hunt Ortmann Palffy Nieves Darling & Mah, Inc.
20 reviews

No. The lender should be sophisticated enough to know that there are going to be preliminary notices issued at every tier and that lower tier amounts will be incorporated into higher tier amounts. Remember, you must identify with whom you have contracted with in your preliminary notice. The lender will be able to see that the material supplier’s contract is with the sub and thus should not double count.

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