Sending a Delaware preliminary notice is an effective way to speed up payment on a construction project. A preliminary notice is an informational document typically sent to the property owner near the beginning of a construction project. Here's what you need to know about the rules and requirements for sending preliminary notice in Delaware.
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Notice of intent to lien
Delaware preliminary notice requirements for:
General contractors are not required to send notice on private projects.
General contractors are not required to send notice on public projects.
Subs and suppliers are not required to send notice on private projects.
Subs and suppliers are not required to send notice on public projects.
Sending a preliminary notice can help even in states in which preliminary notices are not specifically required. To find out more about whether there are things to keep in mind about preliminary notices in Delaware see the Frequently Asked Questions below.
When do I need to send a Delaware Preliminary Notice?
No preliminary notice is required.
After a Statement of Claim is filed, a Notice to Lien Holders must be sent to any other parties who hold a lien on the property within 10 days. Generally, this notice is sent along with the Statement of Claim.
When do I Need to Send a California Preliminary Notice?
The notice must be given no later than 20 days after the claimant has first furnished labor or materials to fully protect the lien claimant. A lien claimant who failed to provide a 20-day notice within 20 days of first providing labor or materials may provide the notice at a later date, but will only retain lien rights for materials and/or labor furnished within the 20 days preceding the late notice, and the labor and/or materials provided thereafter.
It’s common to wonder…what if you send notices too late, and can you send notices too early? Check out these articles:
So the rule is that retainage should be withheld. Oftentimes, retainage is not withheld. Don't worry, no one is in trouble. If the contractor is doing a good job, everything is fine.
If you want to be cautious, however, withhold $22K from the last draw request and let the contractor know that everything is fine but the last $22K will be paid upon completion of any final items (punchlist) or final walkthrough. They are used to seeing retainage and a good contractor will have no fear of their work not holding up. If you want, you can get a lien waiver signed by him stating that all subcontractors have been paid.
E. Aaron Cartwright III 214.789.1354 Aaron@EACLawyer.com
Delaware is a state that does not require any type of preliminary notice. However, after a Statement of Claim is filed, project participants do need to send a Notice to Lien Holders to all other parties holding a lien in the property as well as all tenants of the property via certified mail with return receipt requested. Though there is a deadline to send this notice (within 10 days from the date a Statement of Claim is filed), failure to send the notice in a timely manor is not fatal to the Delaware mechanics lien claimant’s claim. Also, a Delaware mechanics lien claimant may be required to furnish a Writ of Scire Facias.
The generic notice form can be used in Delaware, or any other state where notice is not required. It provides information about your company to the property owner, general contractor, and other parties in charge of payment on a construction project.
Fill out the form
Be careful! Accuracy is important.
Fill out the form completely and accurately. Because property owners and GCs often rely on this document to communicate with you, mistakes on this form can cause payment delays.
Deliver the form
Delaware doesn’t have any specific notice delivery requirements. You can deliver the notice however you see fit.
How to send a Preliminary Notice with Levelset
Select Preliminary Notice document.
Provide basic job information.
Levelset sends the document for you. Postage included!