Nebraska Preliminary Notice Guide and FAQs

Nebraska Preliminary Notice Rules
At a Glance

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Preliminary Notices Are 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.

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X

Notice Not Required from GCs

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.

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X

Notice Not Required from Subs

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.

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X

Notice Not required from Subs

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 Not Required

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.

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X

N/A

On public jobs, any claims for non-payment are made against the general contractor's bond. Since GCs will not make a claim against their own bond for non-payment, they do not have bond claim rights, and have no preliminary notice requirement.

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X

Notice Not Required from Subs

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.

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X

Notice Not Required from Suppliers

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.

• What is a Preliminary Notice?
• Why Send a Preliminary Notice Even If Not Required

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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.” Currently in Nebraska, “[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.”

According to Neb. Rev. Stat. § 52-129(1)(a), in order to qualify as a protected party to whom a preliminary notice of lien liability may be given, a party must be a party who:

(1) who 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) who 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) “Who 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 effects the amounts for which later lien may be validly claimed.