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A "Pre-Lien" is a document that is served by the "claimant" to notify all interested parties that he/she will provide labor and/or materials for a work of improvement to a property. The term claimant is broadly defined as anyone who furnishes equipment and materials or performs a work of improvement to a property. The term claimant includes, but is not limited to, contractors, subcontractors, laborers, architects, electricians, material suppliers, and equipment suppliers. A Pre-Lien is usually a prerequisite before filing a construction lien, stop notice, and bond claim.
A Pre-Lien is generally required when the claimant does not have a direct contract with the property owner. However, in certain states, all claimants must serve a Pre-Lien. There are very few situations where a claimant is exempt from filing a Pre-Lien. Exemptions vary from state to state. Without a properly served Pre-Lien, you may lose your lien rights and receive disciplinary actions from the Contractors Licensing Board.
The Pre-Lien is usually served to the property owner, general contractor, construction lender, and surety company as legal notification that a claimant will have the right to file a construction lien, serve a stop notice, and make a bond claim if he/she has not been paid for his/her labor and/or materials. Pre-Liens should be served on the interested parties within the time frame specified by your state laws. Pre-Liens usually can be served late, but late notices may limit your rights.
Preparing and serving a Pre-Lien can be time consuming and expensive. Preparing your own Pre-Lien notice can be difficult if you do not have adequate research tools to check for inconsistencies and to verify property ownership
My Legal Depot's staff has experience in researching, preparing, and filing thousands of legal documents. Let us research, prepare, and serve your Pre-Lien promptly and accurately at affordable rates.
Note: Pre-Liens are referred to as a “Preliminary 20-Day Notice” in the states of California and Arizona and “Notice of Right to Lien” in the state of Nevada. for more information about your state pre-lien laws.
My Legal Depot makes it simple to prepare and file your Pre-Lien Notice. Complete our simple online questionnaire and we will take care of the rest. If you need customer support, we are just a phone call away (Customer Support: 800-820-2144).
Complete our simple online questionnaire. If you are unable to finish the questionnaire, we will save your answers and you can complete the questionnaire at a later time (save feature only available for registered users). If you need customer support, we are just a phone call away (Customer Support: 800-820-2144).
Our experienced staff will research the property profile and review your order for errors and inconsistencies. We will prepare and email you a copy of the document to review within 2 business days.*
After reviewing the document for errors, please reply via email with an approval. Once approved, we will serve the notices by Certified Mail with Return Receipt.
Once the Pre-Lien Notice is delivered, we will scan and email you the endorsed certified mail receipts. Once the signature confirmations are received, we will scan and email you a copy. If the notice is returned by the addressee, we will notify you.
*Documents will be prepared and emailed to you within 2 business days. Delays are uncommon, but may occur due to uncontrollable circumstances.
The cost to prepare and serve a Pre-Lien for projects located in California, Nevada, or Arizona is $41.00 plus $9.00 for certified mail postage. The total postage cost depends on how many notices must be mailed. After submitting the questionnaire, our staff will review the order to determine the exact postage cost.
**Documents will be prepared and emailed to you within 2 business days. Delays are uncommon, but may occur due to uncontrollable circumstances.
Pre-Lien laws vary from state to state. For a summary of your state's Pre-Lien laws, please select the state where the job site is located.
A Pre-Lien is a notice that informs all interested parties that a claimant is providing labor and/or materials and will have rights to a construction lien, stop notice, and bond claim if the claimant is not paid for his/her work. The Pre-Lien is a prerequisite for filing a construction lien, serving a stop notice, or making a claim against a bond to obtain payment.
In Arizona, the Pre-Lien is called a “Preliminary 20-day Notice.” This notice is required for both private construction jobs and public works of improvement for Arizona’s state or local government agencies.
For private works of improvement, a "Preliminary 20-day Notice" must be served on the property owner, the general contractor, the construction lender (if any), and the person with whom the claimant has contracted with.[1]
Every person who furnishes labor, professional services, materials, machinery, fixtures, or tools must serve the Preliminary 20-day Notice otherwise he/she may lose his/her rights to a construction lien and stop notice. Persons performing actual labor for wages are exempt from having to serve this notice.[2] The Preliminary 20-day Notice shall be served no later than twenty (20) days after the claimant has first provided labor, professional services, materials, machinery, fixtures, or tools to the job site.[3]
If the notice is not served within the required time frame, it may still be served late. However, a late notice will limit the claimant’s rights to a construction lien and stop notice to twenty (20) days prior to the service of the notice and anytime thereafter.[4] Below is an example of the limited rights of a construction lien and stop notice if the Preliminary 20-day Notice is served late:
Example: ABC Construction is a subcontractor that commenced work at the job site on August 1, 2005 but did not serve the Preliminary 20-day Notices until August 31, 2005. According to Arizona law, the notices must be served no later than 20 days from the start date and ABC Construction has served their notice 10 days late. Although the notice can still be served on the 31st of August, their rights to a construction lien and stop notice will be limited.
Since the notice was served 10 days late, ABC Construction will lose rights to a construction lien and stop notice for all of the work that was completed during the first 10 days on the job site. Let’s assume that the work provided during the first 10 days was worth $2,500 and the total price of the construction project is $75,000. There are no rights to a construction lien and stop notice for the $2,500 but ABC Construction still retain rights to a construction lien and stop notice for $72,500.
Arizona law also requires the claimant to provide a secondary Preliminary 20-day Notice if the actual estimated total price for the labor, professional services, materials, machinery, fixtures, or tools furnished or to be furnished exceeds the estimated total price in any prior original or subsequent preliminary notice by twenty percent (20%) or more.[5]
Service of the Preliminary 20-day Notice is considered complete once the notice has been delivered to the Post Office.[6] Actual receipt of the Preliminary 20-day Notice is not required.[7]
The term "days" are calculated by calendar days and NOT business days unless otherwise stated. Time is calculated by excluding the first day and including the last day, unless the last day is a holiday, then it is also excluded.[8]
List of Cited Statutes and Case Laws for further research
For Arizona public work projects, the law requires that a payment bond be posted by the prime/general contractor in order to protect certain lower tier contractors and suppliers ("claimants") that were not paid for their labor and/or materials.[1] A payment bond is a guarantee by a surety company to pay certain lower tier contractors and material suppliers if the general/prime contractor or their subcontractors fail to make payment.
For Arizona public work projects, a "Preliminary 20-day Notice" must be served on the general contractor if the claimant has a direct contractual relationship with a subcontractor but no direct contractual agreement with the prime/general contractor.[2] If the claimant is contracted by any other person other than the prime/general contractor, the claimant is required to serve the Preliminary 20-day Notice.[3]
The Preliminary 20-day Notice should be given no later than twenty (20) days after the claimant has first furnished labor, professional services, materials, machinery, fixtures, or tools to the job site.[4]
If the notice is not served within the required time frame, it may still be served late. However, late notices limits a claimant's bond claim rights to twenty (20) days prior to the service of the notice and anytime thereafter.[5] Below is an example of the limited bond claim rights of a Preliminary 20-day Notice that is served late:
Example: ABC Construction is a sub-subcontractor that commenced work at the County Hospital on August 1, 2005 but did not serve the Preliminary 20-day Notices until August 31, 2005. According to Arizona law, the notices must be served no later than 20 days from the start date and ABC Construction has served their notice 10 days late. Although the notice can still be served on the 31st of August, their bond claim rights will be limited.
Since the notice was served 10 days late, ABC Construction will lose bond claim rights for all of the work that was completed during the first 10 days on the job site. Let’s assume that the work provided during the first 10 days was worth $2,500 and the total price of the construction project is $75,000. There are no bond claim rights for the $2,500 but ABC Construction still retains bond claim rights for $72,500.
In addition to the Preliminary 20-day Notice, if the claimant has a direct contractual relationship with a subcontractor, but no direct contractual agreement with the prime/general contractor who furnished the bond, the claimant must also serve “90-day Notice” to the prime/general contractor as a demand for payment.[6] This notice must be served within 90 days from the claimants completion date and is required before he/she can make a valid bond claim.
The term "days" are calculated by calendar days and NOT business days unless otherwise stated. Time is calculated by excluding the first day and including the last day, unless the last day is a holiday, then it is also excluded.[7]
List of Cited Statutes and Case Laws for further research
A Pre-Lien is a notice that informs all interested parties that a claimant is providing labor and/or materials and will have rights to a construction lien, stop notice, and bond claim if the claimant is not paid for his/her work. The Pre-Lien is a prerequisite for filing a construction lien, serving a stop notice, or making a claim against a bond to obtain payment.
In California, the Pre-Lien is called a "Preliminary Notice." This notice is required for both private construction jobs and public works of improvement for California’s state or local government agencies.
For private work of improvements, a "Preliminary Notice" must be served on the property owner, the prime/general contractor, and the construction lender (if any).[1]
Every person who furnishes labor, professional services, materials, machinery, fixtures, or tools must serve the Preliminary Notice otherwise he/she may lose his/her rights to a construction lien, stop notice, and bond claim. Contractors who have a direct contract with the property owner or any "laborers" are exempt from having to serve this notice.[2] However, if there is a construction lender involved, all contractors (including prime/general contractors) must serve a Preliminary Notice to the lender in order to retain claim rights against the lender. The Preliminary Notice should be served no later than twenty (20) days from when the claimant first provided labor, professional services, materials, machinery, fixtures, or tools to the job site.[3]
If the notice is not served within the required time frame, it may still be served late. However, late notices will limit your rights to a construction lien, stop notice, and bond claim to twenty (20) days prior to the service of the notice and anytime thereafter.[4] Below is an example of the limited rights of a construction lien, stop notice, and bond claim if the Preliminary Notice is served late:
Example: ABC Construction is a subcontractor that commenced work at the job site on August 1, 2005 but did not serve the Preliminary Notice until August 31, 2005. According to California law, the notices must be served no later than 20 days from the start date and ABC Construction has served their notice 10 days late. Although the notice can still be served on the 31st of August, their rights to a construction lien, stop notice, and bond claim will be limited.
Since the notice was served 10 days late, ABC Construction will lose rights to a construction lien, stop notice, and bond claim for all of the work that was completed during the first 10 days on the job site. Let’s assume that the work provided during the first 10 days was worth $2,500 and the total price of the construction project is $75,000. There are no rights to a construction lien, stop notice, or bond claim rights for the $2,500 but ABC Construction still retain rights to a construction lien, stop notice, and bond claim for $72,500.
If the estimated price listed on the original Preliminary Notice has changed substantially, a "Pre-Lien Amendment" is typically served in order to document the change. A court case denied lien rights to an equipment rental company whose Preliminary Notice contained an estimated price of $10,000 and the actual price invoiced was $160,000. The courts rejected the equipment rental company’s request to enforce the construction lien because the estimated price was substantially different from the actual price.[5]
Service of the Preliminary Notice is considered complete once the notice has been delivered to the Post Office.[6]
The term "days" are calculated by calendar days and NOT business days unless otherwise stated. Time is calculated by excluding the first day, and including the last, unless the last day is a holiday or weekend, then it is also excluded.[7]
List of Cited Statutes and Case Laws for further research
For California governmental works of improvement, a "Preliminary Notice" must be served on the public agency and the prime/general contractor.[1]
Every person who furnishes labor, professional services, materials, machinery, fixtures, or tools must serve the Preliminary Notice otherwise he/she may lose his/her rights to a stop notice and bond claim.[2] Contractors who have a direct contract with the prime/general contractor and laborers are exempt from having to serve this notice.[3] The Preliminary Notice should be served no later than twenty (20) days after the claimant has first furnished labor, professional services, materials, machinery, fixtures, or tools to the job site.[4]
If the notice is not served within the required time frame, it may still be served late. However, late notices will limit your rights to a stop notice and bond claim to twenty (20) days prior to the service of the notice and anytime thereafter.[5] Below is an example of the limited rights of a stop notice and bond claim if the Preliminary Notice is served late:
Example: ABC Construction is a subcontractor that commenced work at the County Hospital on August 1, 2005 but did not serve a Preliminary Notice until August 31, 2005. According to California law, the notices must be served no later than 20 days from the start date and ABC Construction has served their notice 10 days late. Although the notice can still be served on the 31st of August, their rights to a stop notice and bond claim will be limited.
Since the notice was served 10 days late, ABC Construction will lose rights to a stop notice and bond claim for all of the work that was completed during the first 10 days on the job site. Let’s assume that the work provided during the first 10 days was worth $2,500 and the total price of the construction project is $75,000. There are no rights to a stop notice or bond claim for the $2,500 but ABC Construction still retain rights to a stop notice and bond claim for $72,500.
Service of the Preliminary Notice is considered complete once the notice has been delivered to the Post Office.[6]
The term "days" are calculated by calendar days and NOT business days unless otherwise stated. Time is calculated by excluding the first day and including the last day, unless the last day is a holiday, then it is also excluded.[7]
List of Cited Statutes and Case Laws for further research
A Pre-Lien is a notice that informs all interested parties that a claimant is providing labor and/or materials and will have rights to a construction lien if the claimant is not paid for his/her work. The Pre-Lien is a prerequisite for filing a construction lien.
Private Works of ImprovementIn Nevada, the Pre-Lien is called a “Notice of Right to Lien.” If the project is a residential work of improvement, an additional notice called “Notice of Intent to Lien” must also be served before a lien can be filed.
Public Works of ImprovementFor governmental works of improvement, claimants can make a bond claim to obtain payment. In Nevada, the Pre-Lien for public works is called a “30-day Notice.” If a claimant does not have a direct contract with the general contractor, he/she must serve a 30-day Notice in order to preserve bond claim rights.
In order to have lien rights in Nevada, a “Notice of Right to Lien” must be served on the property owner.[1] Subcontractors and material suppliers must also to serve a Notice of Right to Lien to the general contractor.[2]
Every person who furnishes labor, professional services, materials, machinery, fixtures, or tools must serve the Notice of Right to Lien otherwise he/she may lose his/her lien rights. Contractors who have a direct contract with the property owner or any “laborers” are exempt from having to serve this notice.[3] In order to retain full lien rights, the Notice of Right to Lien should be served no later than 31 calendar days from the date that the claimant first delivered material or performed work under his/her contract.[4] The term claimant refers to any person or company supplying materials and/or labor to a work of improvement. (The term claimant refers to you.)
If the notice is not served within the required time frame, it may still be served late. However, late notices will limit your lien rights to 31 calendar days prior to the service of the notice and anytime thereafter.[5] Below is an example of the limited lien rights of a Notice of Right to Lien that is served late:
Example: ABC Construction is a subcontractor that commenced work at the job site on July 1, 2005 but did not serve the Notice of Right to Lien until August 16, 2005. According to Nevada law, the notice must be served no later than 31 days from the start date and ABC Construction has served their notice 14 days late. Although the notice can still be served on the 16th of August, their lien rights will be limited.
Since the notice was served 14 days late, ABC Construction will lose lien rights for all of the work that was completed during the first 14 days on the job site. Let’s assume that the work provided during the first 14 days was worth $2,500 and the total price of the construction project is $75,000. There are no lien rights for the $2,500 but ABC Construction still retains lien rights for $72,500.
RESIDENTIAL PROPERTIES ONLY - ADDITIONAL NOTICE REQUIREDIf a work of improvement involves the construction, alteration, or repair of a multifamily or single-family residence, including, but not limited to apartment houses, a “15-day Notice of Intent to Lien” must be served to both the property owner and the general contractor before filing a lien.[6] Only laborers and commercial construction projects are exempt from serving the 15-day Notice of Intent to Lien.[7]
A properly served 15-day Notice of Intent to Lien gives an additional 15 day credit towards the construction lien filing deadline.[8]
The term “days” are calculated by calendar days and NOT business days unless otherwise stated. Time is calculated by excluding the first day and including the last day, unless the last day is a holiday, then it is also excluded.
List of Cited Statutes and Case Laws for further research
For Nevada public works project, the law usually requires that a payment bond be posted by the general contractor in order to protect claimants that were not paid for their labor and/or materials.[1] A payment bond is a guarantee by a surety company to pay certain lower tier contractors and material suppliers if the general/prime contractor or their subcontractors fail to make payment.
For Nevada public work projects, a “30-day Notice” must be served to the general contractor if the claimant does not have a direct contractual agreement with the prime/general contractor.[2] If the claimant was contracted by a subcontractor or any other person other than the prime/general contractor, he/she must serve the 30-day Notice in order have bond claim rights.[3] The 30-day Notice shall be given no later than thirty (30) days after the claimant has first provided labor, professional services, materials, machinery, fixtures, or tools to the job site.[4]
If the notice is not served within the required time frame, it may still be served late. However, late notices will limit the bond claim rights to thirty (30) days prior to the service of the notice and anytime thereafter.[5] Below is an example of the limited bond claim rights of a 30-day Notice that is served late:
Example: ABC Construction is a sub-subcontractor that commenced work at the County Hospital on May 1, 2005 but did not serve the 30-day Notice until July 16, 2005. According to Nevada law, the notice must be served no later than 30 days from the start date and ABC Construction has served their notice 15 days late. Although the notice can still be served on the 16th of July, their bond claim rights will be limited.
Since the notice was served 15 days late, ABC Construction will lose bond claim rights for all of the work that was completed during the first 15 days on the job site. Let’s assume that the work provided during the first 15 days was worth $2,500 and the total price of the construction project is $75,000. There are no bond claim rights for the $2,500 but ABC Construction still retains bond claim rights for $72,500.
In addition to the 30-day Notice, unpaid claimants that do not have a direct contract with the prime/general contractor must also serve a “90-day Notice” to the prime/general contractor who furnished the bond as a demand for payment.[6] This notice must be served within 90 days from the date that the claimaint last furnished labor and/or materials.[7] In Nevada, unpaid claimants can file a lawsuit to claim on a bond between 90 days and one year from the date that the claimant completed his/her role in the project.[8]
The term “days” are calculated by calendar days and NOT business days unless otherwise stated. Time is calculated by excluding the first day and including the last day, unless the last day is a holiday, then it is also excluded.
List of Cited Statutes and Case Laws for further research