WHY IS A PRELIMINARY NOTICE BEING SENT WHEN THE JOB HAS BEEN PAID IN FULL. WE HAVE ZERO BALANCE DUE
1 reply
Mar 16, 2020
Preliminary notices aren't a payment claim, they aren't an indication that a payment claim is looming, and they aren't a sign of payment issues being present on the project. Rather, a California preliminary notice is an informative document designed to inform owners, GCs, and lenders of who's performing work on the project. And, when used correctly, owners and GCs should love receiving preliminary notice.
It's certainly abnormal to receive a preliminary notice after the project has been completed and has been paid. And, some construction businesses may improperly use notices as a precursor to a lien claim. But, since a preliminary notice must be sent within 20 days of first furnishing (for the most part), sending one at the end of the job typically won't preserve lien rights.
When you've received a preliminary notice from a contractor, sub, or supplier on your project at an odd time - it might be wise to reach out to that business. If it's just an ordinary notice, that may at least ease your tension about receiving the notice. Or, if there does happen to be an issue on the project, you can get to the bottom of things before a claim comes out of nowhere.
For more information on preliminary notices, the resources below should be helpful.
- What is a Preliminary Notice?- The Ultimate Guide to California’s 20-Day Preliminary Notice- California Preliminary Notice Guide and FAQs