Articles & Insights

Print ArticleThe Notice of Non-Responsibility: Only Limited Protection from Contractor, Subcontractor or Supplier Mechanics Lien Claims In California, a powerful … Continued

Print ArticleThere are occasions when a meeting (pre-litigation) among parties to a dispute with similar and/or opposing interests can be … Continued

Print ArticleWhen working on federal public works construction projects there are no Stop Payment Notice or Mechanics Lien remedies available … Continued

Print ArticleMediation Mediation is a process in which a neutral person or persons facilitate communication between the disputants to assist … Continued

Time and time again I receive calls from subcontractors and suppliers who find themselves faced with a customer who is either unwilling or unable to pay for labor or materials supplied for a private works project. As an attorney, the first question I usually ask is “did you serve a Preliminary Notice?” The second question I usually ask is “did you serve the Notice within twenty (20) days after first furnishing labor, service, equipment or materials to the job site?” The answers to these questions will often determine the ability to collect on the claim.

In the California building and construction industry, the “Preliminary Notice” is an absolute prerequisite for Subcontractors and Suppliers to protect their right to be paid for work performed and materials provided to a construction project.  Without the proper drafting and service of a Preliminary Notice, Subcontractors and Suppliers cannot protect their right to payment using such indispensable collection remedies as the Mechanics Lien, Stop Payment Notice and Payment Bond Claim.

The Private Works – Preliminary Notice form which contractors, subcontractors and suppliers had become accustomed to using for many years changed in 2004. Despite this change in law, many in the construction industry have still not started using the correct new form.  Changes in the law, championed by the American Subcontractors’ Association, gave a significant new benefit to subcontractors and suppliers by giving the subcontractor or supplier some expectation of actually receiving notice…

The California Mechanics Lien is one of the most valuable collection devices available to contractors, subcontractors and suppliers who are unpaid for work performed and materials supplied in relation to a California Private Works project. The mechanics lien allows the claimant to sell the property where the work was performed in order to obtain payment. The process starts with the recording of a mechanics lien in the office of the County Recorder where the property in question is located. As noted below, certain deadlines must be met.