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Is a prelim required to be sent to General Contractor each time we bill the Prime Subcontractor?

CaliforniaConstruction ContractJoint ChecksPreliminary Notice

General Contractor denied signing a JCA. They are insisting on issuing joint checks to us if supplier prelims (which we be our company, the Sub-Subcontractor). Please clarify if we are to prelim any particular way or special prelim needed for the GC for every billing or one time prelim that is typically sent out would suffice?

1 reply

Oct 23, 2020

In California the preliminary notice required to preserve your lien rights only needs to be sent once at the start of the project, and should be sent certified. It secures lien rights (if you are not paid) for any work performed within 20 days before the notice and through the end of the project. If the subcontract price increases through change orders by more than 10% during the project, it is a good idea to send an amended preliminary notice showing the increased contract price.

The Prime Contractor likely has the right to issue joint checks for the amounts invoiced to you by your materials suppliers, but this may depend on the specific terms and conditions contained within your subcontract. For projects of significant value, it may be worth it to retain an attorney to review the proposed subcontract before you sign, and the attorney could give you feedback on the terms and conditions or suggest areas you may want to negotiate. 

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