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When does a subcontractor have to provide a model disclosure form to the owner in Washington ?

Does a subcontractor on a non owner occupied remodel that contracted for $10,000 materials and labor directly with the prime contractor have to provide the model disclosure to the owner? If not; it appears this subcontractor does not have to provide ANY notice, correct?

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Jul 16, 2020

The preliminary notice requirements for Washington mechanics liens can be a bit confusing. Let's break down the two types of notices, and how they apply to a residential remodel project.

Model Disclosure Statement requirements

For residential remodel projects over $1,000 in Washington, the Model Disclosure Statement is required from anyone who contracted directly with the property owner before work begins. Subcontractors are not required to do so.

Washington Notice to Owner requirements

As for subcontractors on residential remodel/repair projects, they are required to send a Notice to Owner to secure their lien rights. For full mechanics lien protection, this must be delivered to the property owner within 60 days of first furnishing labor or materials to the project. This notice can be delivered late, but the lien rights will only cover labor and materials provided 60 days prior to the receipt of the notice, and everything thereafter. Failure to provide this notice will preclude the claimant from filing a lien. The only exception to these requirements is if the claimant only provided labor to the project. Which may not seem like it applies since the subcontractor provided labor and materials. But, this is an interesting aspect of Washington lien laws. There is a scenario where a contractor furnished labor and materials, but didn't send a Notice to Owner. The contractor may still file a lien, but the amount will be limited to the value of the labor performed, and cannot include any materials. Here are some other resources you may find helpful:

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Jul 16, 2020

Alex, I believe you did an excellent job here! One important note however is that I believe the Washington Statute seems to NOT require a subcontractor to give any notice on "non'owner occupied remodel". I read "residential v commercial" and new construction vs existing/remodel early in the lien notice statute , but in "exception 3(b) I am thinking I see a requirement that it be an "owner occupied" remodel in order for the sub who didnt contract with the owner to not have to file a lien ??? (what a bunch of double negatives). Anyway, if you have time, see if you see that exception too?? Jacob

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Jul 16, 2020

Thank you for responding! I missed the "non" owner-occupied portion of your question. You are correct. The general rule is that subcontractors who contract directly with the prime contractor in Washington are not required to provide a Notice to Owner under §60.04.031(2)(c) to secure their lien rights. Only second tier and other remote subcontractors are required to send notice. The exception to the rule, as you correctly pointed out, is under 3(b) for owner-occupied, single-family residential properties, which does require notice. So the ultimate short answer to your question is yes. A subcontractor who contracted directly with a prime contractor, on a non-owner-occupied, residential repair, alteration, or remodel project (whew!) is not required to provide any notice to secure their lien rights Again, we appreciate the followup. I will revisit our resources to make this exception clearer for future reference.

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Jul 18, 2020

Great analysis. Thank you!

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