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Lump Sum Contracts and Supplier Preliminary Lien Notices

CaliforniaPreliminary Notice

I am a GC in a lump sum contract with a property owner. My supplier wants to send a preliminary lien notice to the owner listing the purchase order amount. As I have entered a lump sum contract with the property owner I do not want the purchase order amount disclosed. What are my options?

1 reply

Dec 29, 2020

You don't have much of a choice. In California, for a preliminary notice to be valid, it must include a statement setting forth an "an estimate of the total price of the work provided and to be provided." One can quibble about whether "an estimate for the total price of the work provided and to be provided" is the same as the purchase order amount, but for all intents and purposes, from the supplier's perspective, it is one and the same. 

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