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:
How would the lien affect the company invoiced?
If you contracted with the owner, and there is no lender, a prelim is not necessary. That your invoices say your client is subject to a mechanic's lien is not a prelim.
I signed a contract but don't own the property, what are my options?
A preliminary 20-day notice is not a lien. It simply provides notice that there may be a lien in the future if there is a dispute over payment, which there does not appear to be. Contractors have to send a preliminary 20-day notice or they lose their lien rights. If there is no dispute over payment and the work gets done right, the document has no legal significance.
How does a home owner adjust incorrect information on a 20 day preliminary notice before acknowledging it?
I'm not sure what you mean by acknowledging it. The preliminary 20-day notice is just something sent by a contractor to preserve lien rights and put the owner on notice of a possible lien if there is a problem with payment in the future. There is nothing for the owner to do when receiving the notice and no obligation to acknowledge it. Whether the error is material depends on what that error is
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.