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What constitutes a "separate contract" that would trigger a new Preliminary Notice to b filed on a already Noticed job

CaliforniaConstruction ContractPreliminary Notice

"If the preliminary notice was sent with a figure derived by rational estimate, only one preliminary notice is needed unless a separate contract with another party is executed." As a SUPPLIER of MATERIALS ONLY...is the contract referenced in the statement above in reference to the contract with one or more parties involved in the original Pre-Lien, or would this reference include a manufacturer or distributor that said SUPPLIER is getting the material from. This is the party that would be shipping the material to said Material Supplier's customer direct on Material Supplier's behalf. They are not included in our Preliminary notice, because they are Downline from supplier, not upline.

1 reply

Sep 25, 2019
Typically, a sub or supplier must only send one preliminary notice when working on a California construction project. That notice must include an estimated cost of work or materials that the sub or supplier sending notice will charge for their work. When a subcontractor or supplier is hired by a customer to provide labor or materials to the project, that sub or supplier will need to send preliminary notice based on that work. If that sub or supplier also agrees to perform work or provide material for a different customer, that would constitute an additional contract and additional notice might be necessary under § 8206 of the California Civil Code, depending on the circumstances. But, even if it wouldn't be necessary to preserve rights, it's generally a good idea to send additional notice anyway to best promote transparency regarding what work or materials are being provided to the project. Regarding the estimate that's included in a California preliminary notice: That is the estimated cost that the party sending notice will end up charging their customer for their work. And, as long as the notice-sender provides a good faith, rational estimate of the cost of their work or material, then they won't typically need to send additional notice if the contract price goes up. I hope this information was helpful! Admittedly, I'm not quite certain I fully understood the situation - but I think the information above should help clear things up. If not, feel free to reply here with additional questions or to post another question. For more information on California's preliminary notice requirements, these resources should be valuable: (1) California Preliminary Notice Guide and FAQs (2) The Ultimate Guide to California’s 20-Day Preliminary Notice
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