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Is there a NC preliminary notice of lien to owner required when the contract is under 30,000?

North CarolinaConstruction Contract Preliminary Notice

Is there a NC preliminary notice of lien required when the contract is under 30,000? Also is there a lien notice required to be included NC roofing/construction contracts? If not is there a preliminary notice we can put in our NC contract that meets the criteria for the notice to the lien agent and or owner regardless of the amount, from day one of signing the contract?

3 replies

Feb 27, 2020

As you mention above, North Carolina construction businesses must send a Notice to Lien Agent for jobs of $30,000 or more. This notice cannot be included in the contract. The notice must be sent to the lien agent - and that lien agent (i.e. a title insurance company) is not a party involved in the contract, so they must be put on notice separately. If the GC files a Notice of Contract, then their subs and suppliers should file a Notice of Subcontract in order to preserve their right to lien on the job. This notice must be sent to the project's GC - so, if you were hired directly by the GC, then there may be some opportunity to include that notice in the contract. The form for that notice can be found at § 44-A23(b)(2) - or you can download a free, downloadable template here: North Carolina Notice of Subcontract Form. As you mentioned above, there's value in sending preliminary notice even when notice might not be required. And, including a notice in a contract with a customer may provide some value. However, to provide the most benefit, a preliminary notice should be sent to the property owner, GC, and any other higher-tiered party working on the project - not just the customer. Merely including a preliminary notice in the contract wouldn't help to notify others that you're working on the job. As a result, the benefits of project transparency and improved communication won't be realized - and a preliminary notice can't help to fight off against the issues that cause slow payment.

Additional resources on North Carolina preliminary notice requirements

For further discussion on North Carolina preliminary notices, these articles should help: - North Carolina Preliminary Notice Guide and FAQs - North Carolina Preliminary Notice: Everything You Need to Know

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Feb 28, 2020

Thanks but is there a notice required for liens under $30,000 when roofing contractor is in direct contact with the property owner? I could not find anything on your website or in your answer referencing liens of that nature.

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Mar 2, 2020

For jobs under $30,000: North Carolina direct contractors typically won't have any notice requirements. A direct contractor can file a Notice of Contract, though that'd really only be valuable for situations where subs and suppliers will be used since it'd limit their lien rights. As mentioned above, jobs under $30,000 will usually not have a lien agent - and Notice to Lien Agent won't be required if there isn't a lien agent on the job. But, it may still be worth double-checking with the owner to ensure that there's no lien agent on the job.

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