If we provide materials and labor for both general contractors and sometimes directly for a homeowner, what are our prelien requirements?
We supply both materials and labor sometimes via a contract with a general contractor, and sometimes with our own contract directly to a homeowner. Some management members believe that when we are supplying labor and materials directly to a homeowner a prelien is not required to retain our lien rights here in California. Can you please clarify is that is accurate? Also what about the notifying Lender requirements when employed via a general contractor versus a homeowner?
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For those with a direct contract with the owner, Cal. Civ Code §8200(e)(2) states that any claimant with a direct contractual relationship is required to give preliminary notice only to the construction lender if any. This changed back in 2012, and we actually wrote a whole article on the new notice requirements for direct contractors. If there is not a lender on the project, then those with direct contracts with the property owner have no preliminary notice requirements.
On the other hand, suppliers that are working under a contract with a general contractor are required to send a preliminary notice to a few different parties; including the owner, the prime (general) contractor, and the construction lender (if there is one).
Hopefully, this cleared up things a bit. If you still have more questions feel free to post here again or you can also check out our Ultimate Guide to California 20-Day Preliminary Notices.