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Preliminary notice is not required in the state of Nebraska. However, if the property owner is considered a “protected party” a preliminary notice may be given in an attempt to be fully protected and secure the ability to file a "full-price" lien.
Not required.
Preliminary notice is not required in the state of Nebraska. However, if the property owner is considered a “protected party” a preliminary notice may be given in an attempt to be fully protected and secure the ability to file a "full-price" lien.
Preliminary notice is not required for any party on a Nebraska public project to retain the ability to make a claim against a payment bond. It is generally good practice, however, to send a preliminary notice even when not specifically required.
Preliminary notice is not specifically required to be sent by any party on any project in Nebraska.
However, that being said, it can provide a benefit to send a preliminary notice of lien rights when a the property owner is a “protected party.” A protected party is an owner of residential property with less than 4 units, an owner of vacant land intended to be improved and used as a residence, or an owner of a condominium unit.
If a preliminary notice is sent to a protected party a project participant can be more fully protected if a lien filing is required.
Notice is not required, so there is no set time limit. If a party chooses to send a preliminary notice of lien rights to a protected party owner, the notice may be served at any time after entering into a contract and prior to filing the mechanics lien. The earlier it is sent the better, however, since a lien against a the property of a protected party is “for the lesser of:
(a) The amount unpaid under the claimant’s contract; or
(b) The amount unpaid under the prime contract through which the claimant claims at the time the contracting owner receives the claimant’s notice of the right to assert a lien.”
Learn about the difference between unpaid balance and full-price liens – and why it matters.
There is no set time limit for sending the notice, so it cannot be late as long as it is given prior to filing a Nebraska mechanics lien. And, as it is not required, there is generally no consequence to not sending the notice.
However, the later it is sent, the less protection it may be able to afford.
The preliminary notice must be “given” to the property owner. Sending by certified mail, return receipt requested, will provide evidence of delivery.
Learn more about construction notice delivery methods, and why they matter.
Nebraska’s preliminary notice only needs to be sent to the property owner. However, when it comes to getting paid for construction work or materials, there are significant benefits to providing preliminary notice to other parties, whether or not it’s required.
In Nebraska, the notice is considered delivered when sent – if sent by certified mail, return receipt requested.
Read the guide to construction notice delivery – and when a notice is considered “served.”
Preliminary notice is not required in order to preserve a right to make a bond claim in Nebraska. Any party, however, may send preliminary notices if desired in order to promote visibility, open channels for communication, and streamline payment.
Since sending preliminary notice is not a statutory requirement, there is no deadline. However, it’s a good idea to send preliminary notice at the beginning of every construction project. It is a good opportunity to request important project information, like the property owner or bond surety, that could help you fill out a bond claim if necessary.
Nebraska doesn’t have a preliminary notice requirement for public projects, so there is no penalty for late notice.
Typically, sending notices by certified mail is a best practice, since it provides the sender with documentation of the notice. Because Nebraska doesn’t have any preliminary notice requirements for public construction jobs, it is not necessary to document the delivery.
Nebraska doesn’t require contractors or suppliers to send preliminary notice in order to make a bond claim or file a mechanics lien. However, there are numerous benefits to providing preliminary notice at the start of a project. Generally, it’s a good idea to send preliminary notice to the prime contractor, property owner, and lender on the project (if there is one).
One of the easiest issues to pop up on a construction job is to use informal or sloppy change order processes. Requiring that all change orders be in writing and signed will help make sure that you're aware of all changes on the project, and it will avoid disputes over whether extras were approved and what should be paid for those extras.
Further change order discussion here: Change Order Form — Free Template Download and Best Practices.
Nebraska law is a little bit confusing with respect to preliminary notice. Generally, Nebraska does not require any sort of preliminary notice to be given in order for a construction participant to retain future lien rights.
However, as with all other states and all construction projects, it is always a best practice to provide preliminary notice even when not specifically required, in order to promote project visibility, open channels for communication and collaboration, and streamline payment.
Nebraska, in the past, made no distinction between residential and commercial property or property owners with respect to the availability and application of mechanics lien rights and protections. However, that was modified through the concept of a “protected party.”
According to Nebraska law currently, “[b]uyers and owners of residential real estate, who are likely to be unsophisticated about construction liens, are given special protection” under the mechanics lien statutes.
These protected parties are afforded additional protection in that liens agains their property may be limited to the lesser of “(a) [t]he amount unpaid under the claimant’s contract; or (b) [t]he amount unpaid under the prime contract through which the claimant claims at the time the contracting owner receives the claimant’s notice of lien liability.”
Nebraska defines a protected party as one who:
(1) contracts “to give a real estate interest security interest in, or to buy or to have improved, residential real estate all or part of which he or she occupies or intends to occupy as a residence;”
(2) is obligated on a contract to “buy or have improved residential real estate or on an obligation secured” by such property, if related to an individual “who occupies or intends to occupy all or part of the real estate as a residence”; or
(3) “acquires residential real estate and assumes or takes subject to the obligation of a prior protected party …. “
For the purposes of identifying a protected party, residential property must have no more than 4 dwelling units (or be condominium) and must have no non-residential uses for which the protected party is a lessor.
It is important to note, however, that while a best practice in order to potentially secure a larger pool of protection for a subsequent lien, the preliminary notice of lien rights to a protected party is not required in order to later claim a lien.
Nebraska law specifically states that a contraction participant “may give notice of the right to assert a lien” but this notice is not specifically required in order to claim lien. It only affects the amounts for which later lien may be validly claimed.
This generic notice form can be used in Nebraska, or any other state where notice is not required. It provides information about your company to the property owner, GC, and other parties that are in charge of payment on a construction project.
Include all the required information, and make sure it’s as accurate as possible. Owners and general contractors rely on the information on this form to communicate with you, and making a mistake could cause payment delays.
Nebraska doesn’t have any delivery requirements. Deliver the notice however you see fit.
Select Preliminary Notice document.
Provide basic job information.
Levelset sends the document for you. Postage included!