So i did send an NTO to the General Contractor but it did not made it to the owner and Landlord
2 replies
Sep 26, 2019
When a Florida owner doesn't receive a Notice to Owner sent by a subcontractor or supplier, that sub or supplier will generally not be able to file a mechanics lien for their work. However, this doesn't mean that payment won't be made!
On most projects, payment will be made regardless of whether lien rights are preserved. While utilizing preliminary notice and leveraging lien rights work as great tools to force payment, the fact is that they're usually backup plans. So, for most jobs, failing to send a Notice to Owner, as required, shouldn't dramatically affect the odds at getting paid. Though, it's always a good idea to send notice.
Further, even if payment does become an issue, failure to send an NTO won't ruin all chances of recovery. Rather, it will just take one option (albeit an important one) off the table. So, if payment issues do come up, sending things like invoice reminders and payment demand letters might be enough to get payments back on track. Plus, if payments aren't being made as required, proceeding with a recovery option outside of the mechanics lien process is always an option.
We discuss some of those ideas in this article: Can’t File a Lien? Here Are Some Other Options For Recovery.
0 people found this helpful
Helpful
Sep 26, 2019
Florida has very strict and specific rules regarding preliminary notices. In Florida, everybody that doesn't contract directly with the property owner must serve a Notice to Owner (NTO) on the property owner within 45 days of furnishing labor and/or materials to the construction project, except for three exceptions:
(1) individual wage-laborers (employees of a project participant);
(2) architects, engineers, or other design professionals; and
(3) participants providing “subdivision improvements” (improvements for the purpose of making a site suitable for construction)
If a notice to owner is required, and is not sent to the required parties and/or sent by the statutory deadline, it is fatal to lien rights. If there is still time to meet the 45-day deadline, the notice may be re-sent to the required parties, and still be effective.
However, even if lien rights have been lost due to the failure to provide the required notice to the owner within the deadline, that doesn't mean that payment will not be made, or even that payment will be made late or slow. Additionally, there are other ways to follow-up and work to ensure payment is made.
Florida has prompt payment laws that require payment be made to construction participants within a certain amount of time. Additionally, there is always the opportunity to send general invoice reminders, or other follow-ups. And, in the event that payment does not seem to be forthcoming, there are general breach of contract actions that could be pursued, as well.
Finally, even though the notice was not given, there should be care taken to open channels of communication throughout the payment chain. A lien should be the last resort for any construction participant, it's much better to just talk things out beforehand to ensure that participants are paid fairly before any of the remedies are required.