What is a Notice to Owner?

A Notice to Owner, sometimes called a preliminary notice, may be required to secure your lien and bond rights in the state you are performing the work. This notice is not a mechanic's lien or bond claim, nor is it a notice of intent to file a lien. Instead, it serves to inform the relevant parties that you are currently engaged in the construction project. Essentially, it represents the first step in ensuring your claim is paid should the need arise to file a mechanic's lien or bond claim. However, this step must be taken before any payment issues become apparent. Failure to comply with a state's preliminary notice requirements may disqualify you from filing a lien or claim in the event of a dispute.

Property owners and general contractors appreciate receiving preliminary notices as they provide a clear record of who is contributing to a project and the expected compensation for their services. This information is crucial for general contractors to ensure project security and manage finances effectively. Generally, subcontractors who issue their notices tend to receive payment faster than those who do not.

In states where sending a Notice to Owner is mandated, the practice of issuing and receiving such notices is widespread. If you are eligible to file a mechanic's lien, whether you are providing labor or materials for a construction project, it is advisable to send a Notice to Owner in these jurisdictions. Property owners and contractors will anticipate receiving a notice from you.

Typically, a Notice to Owner is dispatched via certified mail with a return receipt requested or by registered mail. It is essential to retain a copy of the notice and the return receipt, so if you need to file a claim, you possess the necessary documentation to demonstrate your compliance with the state's procedures.

Undertaking the necessary research on notice requirements, ensuring your notice contains the correct information, mailing it correctly, keeping track of notices, and monitoring whether a project has been paid can be extensive. You might have an in-house team capable of managing these tasks, or you might consider seeking professional assistance. If you require any help or guidance, consider reaching out to the team at National Lien and Bond. They can assist you in adhering to the state's regulations or handle the entire process on your behalf.