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what if we did not file a preliminary notice

UtahLien DeadlinesPreliminary Notice

We have project in Utah that we didnt realize that we needed to send a prelim notice to at the start of the project in 2017. The Project is now finishing up, but the owner is refusing to pay about 760K. do we have any lien rights available to us? Rollin

3 replies

Jul 23, 2020
In order to secure the right to file a Utah mechanics lien, a preliminary notice must be filed with the State Construction Registry within 20 days of first furnishing labor or materials to the project. This notice can be sent late, but it will only cover labor or materials provided in the 5 days preceding the receipt of the notice and everything thereafter. Failure to provide this notice is fatal to your mechanics lien rights. However, you still have rights against the person who hired you under the terms of your contract. If unpaid, you can file a lawsuit under a breach of contract or unjust enrichment claim. You should reach out to a local construction attorney to help advise you on the specifics of your case. We have a few Utah attorneys in our Expert Center Community you may want to reach out to personally. Good luck! Here are some other resources you may find helpful:
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Jul 23, 2020

Under Utah law a preliminary notice is required as a precondition to file a mechanics line. See statute below. You still may have rights to collection under contract law. I would suggestion you contact an attorney and visit with him regarding all your rights and remedies under law. It looks like you have a substantial sum due and owing. Here is the Utah code on Prelimnary notice requirements:   

Utah Code: 38-1a-501. 
Preliminary notice.
(1)(a)
A person who desires to claim a construction lien on real property shall
file a preliminary notice with the registry no later than 20 days after
the day on which the person commences providing construction work on
the real property.(b)
Subject to Subsection
(1)(c),
a preliminary notice is effective as to all construction work that the
person filing the notice provides to the construction project under a
single original contract, including construction work that the person
provides to more than one supervisory subcontractor under that original
contract.(c)(i)
A person who desires to claim a construction lien on real property but
fails to file a timely preliminary notice within the period specified in
Subsection
(1)(a) may, subject to Subsection (1)(d), file a preliminary notice with the registry after the period specified in Subsection (1)(a).(ii)
A person who files a preliminary notice under Subsection
(1)(c)(i)
may not claim a construction lien for construction work the person
provides to the construction project before the date that is five days
after the preliminary notice is filed.(d)
Notwithstanding Subsections
(1)(a) and (c), a preliminary notice has no effect if it is filed more than 10 days after the filing of a notice of completion under Section 38-1a-507 for the construction project for which the preliminary notice is filed.(e)
A person who fails to file a preliminary notice as required in this section may not claim a construction lien.

Good luck and if we can be of any services please feel free to call. 

Curtis Jensen

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Jul 24, 2020

I'm sorry,  but your lien rights are lost.  You do still have a claim for breach of contract, however. 

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