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Subcontractor Change of Ownership Notice to Contractor and Owner

A subcontractor sent a preliminary notice at the beginning of the project as required. In the middle of the project, that subcontractor changes ownership, do they need to send another preliminary notice or is a letter showing change of ownership sufficient?

1 reply

May 6, 2020

If a subcontractor sent proper preliminary notice at the start of the job, then the notice will be sufficient to preserve lien rights later on with that job. And, the ownership of a business shouldn't have much effect on the validity of the notice given previously. So, it seems like a change of ownership notice should likely be sufficient. If the work is being passed off to a new subcontractor entirely - then, that new subcontractor would likely need to send a preliminary notice to establish their presence on the project and future lien rights. But, if the same sub will be continuing the work, just with new ownership, that shouldn't affect a previously-sent prelim. If the same sub will be continuing work, but under a different name - it'd likely be more important to notify others on the job of the name/ownership change. But that still shouldn't necessitate an entirely new or revised preliminary notice. For more information on CA prelims, the resources below should be useful. - California Preliminary Notice Guide and FAQs - The Ultimate Guide to California’s 20-Day Preliminary Notice

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