Everything Subcontractors Need to Know About a Notice of Commencement

Construction is one of the most paperwork-heavy industries. And nearly every form has a trickle-down effect that can wind up causing problems down the road. A Notice of Commencement is one document that subcontractors need to pay special attention to because it can significantly impact your lien rights. 

A Notice of Commencement (NOC) is a document that GCs file to declare the start of a project. In some states, it’s called a Notice of Project Commencement, an Affidavit of Commencement, or a Notice of Contract.

NOCs are supposed to make it easier for everyone to find important project details related to the lien rights process. They also impose hurdles and limits to the lien process. Ultimately, they impact your lien rights and provide an additional layer of protection for GCs and owners.

When the owner or GC files a Notice of Commencement, it may:

• Mean you must send a preliminary notice before filing a mechanic’s lien.
• Shorten the time frame within which you can file a lien.
• Change the priority of your mechanic's lien.

If you want to protect your lien rights, you need to understand how this notice works. This article will cover everything subcontractors need to know about a Notice of Commencement (NOC), including:

• What’s included in a Notice of Commencement 
• Which states require or allow a Notice of Commencement 
• Specific requirements by state
• How to protect your lien rights when there’s a Notice of Commencement

What Information Does a Notice of Commencement Include?

A NOC provides information to all subcontractors, suppliers, and vendors about how and when to file notices, liens, or other critical forms. It also includes project details like:

• Legal description of the property
• Lender (name, mailing address, phone number)
• GC (name, mailing address, phone number)
• Property Owner (name, street address, mailing address, phone number)
• Commissioning Party (could be the property owner, could be a tenant; will include name, mailing address, and telephone number of whoever is “commissioning” the project)
• Payment Bond Sureties (name, address, and telephone number of the bonding company/surety, if applicable)
• Scope of Work
• Project start and end dates

Which States Require or Allow a Notice of Commencement?

Most states don’t require or acknowledge the Notice of Commencement. Only 11 states have a NOC process: Florida, Georgia, Iowa, Louisiana, Michigan, Nebraska, Ohio, South Carolina, South Dakota, Texas, and Utah.

Required: Seven states require NOCs to be filed when a project begins for any party to file a mechanics lien later on. Some require it for all projects. In other states, it applies only to certain types of projects.‍

• For all projects: Louisiana, Georgia, Ohio‍
• For private projects: Florida, Michigan‍
• For residential projects: Iowa‍
• For public projects: Utah

‍Optional: Another four states treat NOCs as an optional notice, meaning they acknowledge it but don’t require it. Those states are Texas, Nebraska, South Carolina, and South Dakota.

If you work for a subcontractor that does business in one of these states, you need to be aware of how a Notice of Commencement works, specifically in the seven states that require it. 

Notice of Commencement State-by-State Requirements

The seven states that require a Notice of Commencement all have different rules regarding project requirements, who must file the notice, when it must be filed, and how it affects subcontractors’ lien rights. If the GC doesn’t follow the requirements for creating and filing a NOC, the notice will be void. 

Here’s a breakdown of each state’s requirements related to NOCs. 

Florida Notice of Commencement Laws

Filing Requirements and General Details

The NOC must be:

• Filed for any private projects valued over $2,500. It is not required for any public or government projects.
• Filed by the property owner unless the project has a construction loan on it. In this case, it must be filed by the lender.
• Signed by the owner, regardless of who files it, and notarized.
• Filed before work starts, but not sooner than 90 days before.
• Typically void and invalid after one year, unless the NOC specifically states the project will last longer than one year and includes an estimated completion date.
• Filed either online or at the local county recorder’s office. It must also be posted in a visible location at the job site. 

How a Notice of Commencement Affects Subcontractors in Florida

• The Notice of Commencement in Florida does not affect your lien rights. You can still file a mechanics lien if you don’t get paid. 
• All mechanics liens relate back to the date the NOC was filed, so the priority of your lien will be the same as everyone else’s regardless of when you filed. 

Georgia Notice of Commencement Laws

Filing Requirements and General Details

The NOC must be filed:

• For all construction projects in Georgia.
• By the property owner, the owner’s agent, or the GC.
• No later than 15 days after the GC starts physical work on the project.
• Either online or at the local county recorder’s office. It must also be posted at the project site. 

Note that NOCs do not expire in Georgia.

How a Notice of Commencement Affects Subcontractors in Georgia

• If the NOC has been filed, subcontractors must deliver a Notice to Contractor when they start working on the project. 
• You cannot file a mechanics lien if you didn’t submit the Notice to Contractor.
• The GC must provide you with a copy of the Notice of Commencement within ten days of submitting a written request. If they fail to do so, the provisions in the NOC become invalid.  

Iowa Notice of Commencement Laws

Filing Requirements and General Details

• The NOC must be filed for all residential projects.
• GCs are generally required to file the NOC. Property owners and lenders are not. However, owner-builders are required to file it if they will be working with subcontractors. 
• There’s no deadline to file the NOC in Iowa, but it must be posted within ten days of starting work on the project.
• The NOC must be posted online in Iowa’s Mechanic’s Notice and Lien Registry. A copy must also be provided to the property owner. 
• There is no expiration date for a NOC in Iowa.

How a Notice of Commencement Affects Subcontractors in Iowa

• You can only file a mechanics lien if the NOC has been filed.
• If the GC did not follow the requirements to file and post the NOC, you can file the NOC so you can submit your preliminary notice.

Louisiana Notice of Commencement Laws (called a Notice of Contract)

Filing Requirements and General Details

• The NOC must be filed on any project over $100,000. 
• The GC is generally required to file, not the property owner.
• The GC must file an NOC before starting work on the project.
• The GC can file the contract itself instead of an NOC as long as the contract contains a complete property description and the name of the project.
• The NOC expires after five years.

How a Notice of Commencement Affects Subcontractors in Louisiana

The standard timeframe for subcontractors to file a mechanics lien is 60 days after substantial completion of your work. The NOC can extend or shorten this, depending on whether or not the GC files a Notice of Termination (NOT).

• When a NOC has been filed, subcontractors have 6 months after substantial completion to file a mechanics lien.
• If the GC files both a NOC and a NOT, you only have 30 days after the NOT filing date to file your mechanics lien. 
• If the GC does not file a NOC but does file a NOT, you have 60 days after the NOT filing date to file your lien.

Michigan Notice of Commencement Laws

Filing Requirements and General Details

• An NOC is required for all private projects in Michigan. 
• The project owner or lessee is responsible for filing. An agent representative can sign it. 
• The NOC must be filed before work begins. 
• If it’s filed after the project starts, it’s only valid after the filing date.
• It must be filed in the county’s office of the register of deeds. It must be posted on the project site.
• The notice must be notarized. 
• NOCs do not expire in Michigan.

How a Notice of Commencement Affects Subcontractors in Michigan

• You must file a Notice of Furnishing to maintain your lien rights. (This notice informs all interested parties that you’re working on the project and have lien rights.)
• You have 20 days after the NOC is recorded to provide this preliminary notice.
• If the NOC isn’t filed, you don’t have to provide a preliminary notice to retain your lien rights. 

Ohio Notice of Commencement Laws

Filing Requirements and General Details

• An NOC is required on all projects in Ohio, except improvement projects that are part of a home purchase contract.
• On private projects, the owner or lessee is required to file. Property owners can appoint the GC as an agent to sign and file the notice. If the owner fails to file, the GC can file the NOC. 
• On public contracts, the contracting party must prepare and file the NOC, and it must be notarized.
• The NOC should be filed before the start of the job but there aren’t any penalties if it’s filed late.
• It must be filed in the office of the country recorded, posted on the job site, and sent to the GC.
• It expires six years after the filing date. 

How a Notice of Commencement Affects Subcontractors in Ohio

• If a NOC is filed, you must submit a Notice of Furnishing to maintain your lien rights.
• If the owner does not file the NOC before the project begins, your deadline to provide a Notice of Furnishing is extended until 21 days after the NOC is recorded.
• If you request a copy of the NOC, the owner must provide it within ten days of receiving your request.

Utah Notice of Commencement Laws

Filing Requirements and General Details

• An NOC is required for all public projects in Utah. (It was once required for private projects as well, but that’s no longer the case.)
• Generally, the GC files the NOC, but the owner or builder can also file it. 
• The deadline to file is 15 days after physical labor begins.
• It must be filed in the Utah State Construction Registry. 

How a Notice of Commencement Affects Subcontractors in Utah

• When a NOC is filed, you must file a preliminary notice within 20 days to retain your ability to make a claim against the bond. 

4 Tips to Protect Your Lien Rights with a Notice of Commencement 

Lien rights can be the only assurance subcontractors have that they’ll get paid for their work. It’s critical to know how to protect these rights when a Notice of Commencement is involved. 

Here are four best practices to include in your accounting processes to make sure you never miss a beat. 

1. Know whether a Notice of Commencement is required for the project.
2. Note the filing deadline. 
3. Get a copy of the NOC once it's been filed. You should be able to find it posted at the construction site in a visible location or on file at the county recorder, county clerk, or assessor’s office in the county where the project is taking place. 
4. Make it a habit to always send a preliminary notice regardless of whether there’s a NOC.

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