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Sending more material after initial notice?

For work done in Alabama, we noticed that the dollar amounts of supplies need to be listed on the Alabama Notice to Owner. If we presume that the amount listed on the letter was the amount that was billed at the time of sending out the NTO, what if more material is billed on this job after the notice goes out? Would that impact our ability to lien for the full amount billed if it is more than what went out on the notice? Second, if we list a contract amount on the NTO for residential work, should the contract amount be used on the NTO, or should we use what has been billed at time of notice?

1 reply

Oct 16, 2019

There's generally no need to send an updated or revised preliminary notice - and Alabama's mechanics lien statute doesn't specifically require one, either. As long as the estimate sent on the given notice was accurate and made in good faith at the time it was sent, the notice will generally be effective, even if there's some change in the project later on. Levelset discusses that principle here: Is it OK to Send Revised Preliminary Notices? Does it Affect My Deadlines? As for which amount should appear on the notice - the amount billed or the contract amount - an Alabama Notice to Owner should generally include the price of the contract, not the price for what's already been billed. Alabama Notices to Owner are sent very early in a project's lifecycle. So, the amount that's been billed at the time the notice is sent will generally be very low in comparison to the price of the overall contribution to the project. I hope this was helpful! For more background on Alabama's preliminary notice requirements, here's a great resource: Alabama Preliminary Notice Guide and FAQs.

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