Sending an Idaho 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 Idaho.
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Idaho does not generally require any notice to be given prior to a mechanics lien or bond claim.
For residential projects, however, the general contractor must provide the homeowner or residential property purchaser with a written Residential Disclosure Statement prior to entering into a contract greater than $2,000.
Who should I send a notice to on an Idaho construction project?
Idaho does not require a preliminary notice, so it can be sent to any party you choose. It’s generally best practice to send a notice to the property owner at the very least. Keep in mind that this document will help improve your ability to get paid on time, so it’s always a good idea to send the notice to anyone who needs to sign off on your payment.
People are asking Idaho construction attorneys:
What is the proper protocol for mailing Pre-lien notices?
A Washington Notice to Owner should be sent to both the property owner and the prime contractor. You can learn more about Washington's preliminary notice requirements with these resource: Washington Preliminary Notice FAQs.
Regarding lien waivers: Yes, Washington construction businesses are required to waive lien rights if payment has been made. This is laid out at RCW § 60.04.071, which states "Upon payment and acceptance of the amount due to the lien claimant and upon demand of the owner or the person making payment, the lien claimant shall immediately prepare and execute a release of all lien rights for which payment has been made, and deliver the release to the person making payment." And, if a party unjustifiably withholds a lien waiver, they could face having to pay damages and attorney fees for others.
Is the failure to identify the type of labor or materials in a preliminary notice render it insufficient?
It would be up to the Court to determine whether or not the preliminary notice was valid in these circumstances. However, I think that a Court could find that an owner had enough information to make a reasonable inquiry if the preliminary notice at least listed the contractor’s name and address to the owner could call them and ask questions. It could also be obvious if the contractor’s name gave an indication as to the type of work they do (i.e. Joe’s Plumbing, Best Electrical, etc.)
Still, for determining last furnishing in other situations and states: A given project's last furnishing date is tied to when the labor, materials, or equipment were last furnished to the project, not to the relevant contract terms. So, if some equipment comes back early, the deadline should generally still be based on when the equipment was last used at the project site.
Idaho is one of the few states without a general preliminary notice requirement. In fact, the only instance in Idaho where notice is specifically required to be sent prior to claiming a valid Idaho mechanics lien is when a general contractor is performing work on a residential project with a contract in excess of $2,000. For these projects, the general contractor must send a Residential Disclosure Statement.
However, a preliminary notice has many benefits beyond protecting mechanics lien rights. Visibility can be tough to gain on a construction project, and by raising a hand, and providing visibility of project participants to the owner or GC, it makes it much easier for the parties with the money to manage the payment chain throughout the project and make sure everybody is getting paid.
This generic notice form can be used in Idaho, 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.
If you are a general contractor on a residential contract for more than $2,000, you must provide the homeowner with a Residential Disclosure Statement.