BICA Now Helps with Preliminary Notices in California
BICA has been serving clients in the construction industry for more than 100 years. The company is known for their credit-related products, but they have recently expanded their services to include notice and lien-related issues. Preliminary notice services fall under this new category.
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Mechanic’s Lien and Preliminary Notices
The mechanic’s lien is one of the best tools a licensed contractor can use to legally recover their payment for completed jobs. If the owner of the property does not complete payment within a given time period, the contractor will be able to own the property and even sell it to recover their money.
In California, preliminary notices have to be delivered to the owner 20 days after work starts. The lien rights will only cover work that was completed 20 days before the preliminary notice was sent. For example, if you deliver it on the 21st day, the liens rights will not cover your first day on the job.
If you are starting work on a construction project, you should file a California lien with BICA on time. The company will handle the filing and sending of the documents. This notice can be delivered in person, through the mail, or using overnight delivery. Receipts of the delivery should always be kept safely since they serve as proof.
What Is Included in the Preliminary Notice?
In California, a preliminary notice must contain this information:
- The owner’s name and address• The director contractor’s name and address• A description of the work that will be done• The total cost of the work that will be done• The street address of the construction site (or any form of identification of the place)• The name of the recipient of the services
If a construction lender is involved, their name and address should also be included in the notice. You will have to forward this notice to the general contractor, the construction lender, and the owner. If you are dealing directly with the owner, you may not have to include all these people in your forwarding list.
Who Is Entitled to Lien?
In construction work, anyone who furnishes labor, materials, equipment, or service is entitled to make a lien claim. This includes suppliers of the material, direct contractors, subcontractors, laborers, lessors of equipment, and designers. It is important to note that unlicensed contractors are not entitled to a mechanic’s lien. Also, anyone supplying material to another supplier does not have lien rights. According to a 2004 court precedent, people who provide pre-construction services to projects that were never built are also not able to claim lien rights.
Lien is important to people who work on construction projects. It is not uncommon for owners to hold back money that was meant to pay laborers, material suppliers, designers, and other construction workers. In case the owner fails to pay, these persons can legally own the property and sell it to clear their payments. If you fail to file preliminary notices within the first 20 days of work, your lien rights will not cover all the work you have done on the site. To avoid such inconveniences, make sure you file the notice and deliver it on time.
Author: Allen Brown
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