What do we need to file now to protect our lien rights as the project progresses?
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May 28, 2020
If you are a second or third tier subcontractor (you don't have an agreement with the GC), you must prepare and sent a preliminary notice to the lien agent within 15 days after you first provide labor or materials to the Project. This is required if the General Contractor has filed a Notice of Contract. The Notice of Contract is filed with the Office of the Clerk of Superior Court of the county where the project is located.
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May 28, 2020
We are first tier under contract with the GC
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May 28, 2020
To preserve your right to a lien on the real property, your company should sent the preliminary notice to the Lien Agent within 15 days of providing labor or materials. The notice is not required to assert a claim of lien on funds owed to the GC.
Also, your company has an obligation to furnish notice to lower tier subs. Contractors or subcontractors must provide lower-tier subcontractors or suppliers with written notice of the lien agent’s contact information within three business days of contracting with the lower tier party (N.C.G.S. § 44A-11.2(c)). Contractors or subcontractors may include the lien agent’s contact information as part of the written subcontract or purchase order.
You can furnish the preliminary notice through Levelset or engage counsel to do so.