Preliminary Notice: What is it and how does it work in construction?

Описание: Sending Preliminary Notices on every job is a proven method to get paid faster and prevent payment disputes. Send one today for free: https://lvl.st/send-preliminary-notice.

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What to do if you miss a Preliminary Notice deadline (video):    • What if I miss a Preliminary Notice deadline?  .

-What is a Preliminary Notice? (0:03)
Depending on where your project is located, a preliminary notice can be called a number of different things: a Notice to Owner, a Notice of Furnishing, a 20-day Notice, pre-lien, prelim, or something else along those lines, but they’re all the same thing.
A Preliminary Notice is a document that helps contractors and suppliers get paid faster. In many states, you’re actually required to send one to protect your right to file a mechanics lien down the road. And trust me - you want to protect your lien rights on every single job! Payment problems can come out of nowhere, and if you haven’t preserved your rights, forcing payment can be a nightmare.
Even if your state doesn’t require preliminary notices, we highly recommend sending one at the start of every project. That’s because prelims do more than just preserve lien rights - they also establish communication, visibility, and accountability early on.

-Who should I send Preliminary Notices to? (0:55)
These documents are typically sent to the people in charge of the project - the property owner, the general contractor, and maybe even the lender; if there is one.

-What’s typically included on a Preliminary Notice? (1:02)
A Preliminary Notice will usually include your company’s name and address, your contact information, who hired you, and what you’re doing on the project. But, the required info will change from state to state.

-Why should I send a Preliminary Notice? (1:19)
Preliminary Notices are so powerful because they open lines of communication on a construction project and create great visibility throughout the payment chain. By sending this professional, friendly notice, you let everyone else on the project know that you’re on the job. Why is this so important? Because on any given project, there can be a ton of other contractors or suppliers that may not even be aware of each other. And, when it comes time to pass payments down the chain, this visibility will help payments move more quickly.
Preliminary notices are often just as important to owners and GCs as they are to you. They want to make sure everyone on the project gets paid, so they can avoid payment disputes and lien claims. However, it can be hard for them to identify everyone that’s on the job. If they miss a subcontractor, and if that person doesn’t get paid, that sub could potentially file a lien against the property - that could cripple the cash flow on the job and even halt progress on site. When preliminary notices are sent, that helps to keep track of everyone who must be paid.
In any case, the best practice is to always send a prelim on every project as soon as you realize you haven’t sent one out, no matter how late it is. Late notices may not protect your lien rights in some states, but it’ll still get you seen on a project and speed up payment.

Levelset’s mission is to empower contractors to always get what they earn. Levelset’s products help millions in the construction industry each year to make payment paperwork and compliance easier, get cash faster, monitor the risk on jobs and contractors, and better understand payment processes and rules. The results are faster payments, access to capital, and fewer surprises. Backed by investors like Horizons Ventures, S3 Ventures, Altos Ventures, Operating Venture Capital, and Brick & Mortar Ventures, Levelset is headquartered in New Orleans, Louisiana, with offices in Austin, Texas, and Cairo, Egypt, and is over 200 employees strong. Learn more at www.levelset.com.

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