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Industry Insights

Preliminary Notice vs. Notice of Intent to Lien: What Subcontractors Need to Know

Sometimes subcontractors need legal protection to ensure they get paid for their work. That’s where mechanic’s liens come in. Filing a mechanic’s lien is a multi-step process involving two other documents that are often confused—preliminary notices and notices of intent to lien. 

If you’re new to the world of lien rights, this article will answer any questions you have about a preliminary notice vs. a notice of intent to lien. It covers:

  • The definitions and differences of each
  • When each should be used
  • State requirements for both types of notices
  • Information to include in your notices
  • Best practices for managing notices across projects

What are the differences between a preliminary notice and a notice of intent?

Yes, both of these documents are notices involved in the mechanic’s lien process. And they contain fairly similar information. However, they do serve different purposes. 

Preliminary Notice

A preliminary notice (a.k.a. notice to the owner or notice of furnishing) is a legal notice that informs the property owner, GC, and other parties with a financial interest in the property, that:

  1. you’re involved in the project, and 
  2. you have a right to file a lien if you’re not paid for your services.

Notice of Intent to Lien (NOI)

A notice of intent to lien (a.k.a. intent notice or notice of non-payment) is a warning that you intend to place a lien on a property if you don’t receive payment within a specific number of days.

To make it simple, a preliminary notice secures your right to payment. A NOI is a demand for payment.

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When should you send a preliminary notice or a NOI?

Timing is everything, especially in the world of construction documents. Each of these notices should be sent at specific times relative to the project and its billing cycles. 

  • Preliminary notices are routine letters sent at the start of each project. They’re not always required, but we recommend making them a regular part of your billing processes. Doing so will lead to faster payments, improved visibility, and better communication.
  • Notices of intent are warning letters sent as the last step before filing a lien. Like preliminary notices, they’re only required in certain circumstances. However, they can be an effective way to generate payment without actually filing a lien. 

You’re not always required to send these documents. However, we recommend incorporating them into your billing workflow. It’s a best practice that will lead to healthier financials.

Which states require preliminary notice and intent to lien letters?

State requirements for preliminary notices and notices of intent vary. The states that do require them have different guidelines depending on whether: 

  • It’s a public, commercial, or private project 
  • Service is provided by a first or second-tier sub
  • The project value exceeds a certain amount

Guidelines typically dictate when a notice is required, who you must send it to, and how many days you have to send it. Thirty-one states require subs to send preliminary notices at least some times. A few more states require notices from GCs. Only 14 states require you to send a notice of intent to lien for private projects. No states require NOI letters for public projects. 

The table below provides a general summary of state requirements. 

Note: The requirements listed are not exhaustive, and state laws may change. Checking your state’s requirements with a local authority is always a good idea. 

State

Preliminary Notice Required

Specific PN Requirements

NOI Required

Specific Requirements

Alabama

Yes

Only required for private projects; must send to property owner before work begins

Yes

Required from subs who didn't contract directly with owner; must send any time before filing a lien

Alaska

No

n/a

No

n/a

Arizona

Yes

Required from all subs for private projects; only required from second-tier subs for public projects; must send to GC within 20 days

No

n/a

Arkansas

Yes

Only required for private projects; must send notice to owner and GC within 75 days

Yes

Required for all private projects; must send 10 days before filing a lien

California

Yes

Required for all projects; must send to public entity, prime contractor, and surety within 20 days

No

n/a

Colorado

No

n/a

Yes

Required for all private projects; must send at least 10 days before filing a lien

Connecticut

No

n/a

Yes

Required for all private projects; must send within 90 days of finishing work

Delaware

No

n/a

No

n/a

Florida

Yes

Required for all projects from any party not hired directly by the GC (public) or property owner (private); must send to owner or GC within 45 days

No

n/a

Georgia

Yes

Only required if it is requested or if a notice of commencement was filed; must send within 30 days to the owner and prime contractor (private) or original contractor (public)

No

n/a

Hawaii

No

n/a

No

n/a

Idaho

No

n/a

No

n/a

Illinois

Yes

Only required for single-family owner-occupied residential projects; must send to property owner and mortgage lender within 60 days

Yes

Required for all private projects; must be sent within 90 days of finishing work

Indiana

Yes

Only required for owner-occupied residential projects; must send to property owner within 60 days for new construction or 30 days for renovation projects

No

n/a

Iowa

Yes

Only required by second-tier subs for public projects; required by all subs for owner-occupied residential projects; must send to owner or GC (commercial), prime contractor (public), or owner (private) within 30 days

No

n/a

Kansas

No

n/a

Yes

Only required for new residential projects; must send to property owner

Kentucky

Yes

Only required for private projects; must send to owner within 75 days for projects under $1,000 or 120 days for projects over $1,000

No

n/a

Louisiana

No

n/a

No

n/a

Maine

No

n/a

No

n/a

Maryland

No

n/a

Yes

Only required for private projects; must be sent within 120 days of finishing work

Massachusetts

Yes

Only required for private projects from second-tier or lower subs; must send to GC within 30 days

No

n/a

Michigan

Yes

Required from all subs on private projects and second-tier subs on public projects; must send to owner and GC within 20 days (private) or GC and public entity within 30 days (public)

No

n/a

Minnesota

Yes

Only required for private projects; must send to owner within 45 days

No

n/a

Mississippi

Yes

Only required for private projects; must send to GC within 30 days

Yes

Only required for single-family residential projects by parties not contracted directly by property owner; must send to owner 10 days before filing a lien

Missouri

 

 

Yes

Only required for residential projects; must send to owner 10 days before filing a lien

Montana

Yes

Required from all subs for private projects; only required from second-tier subs for public projects; must send to GC within 30 days (public) or file with county clerk and deliver to owner within 20 days (private)

No

n/a

Nebraska

No

n/a

No

n/a

Nevada

Yes

Required from all subs for private projects; only required from second-tier subs for public projects; must send to owner and GC within 30 days

Yes

Only required for residential projects; must be sent 15 days before filing a lien

New Hampshire

Yes

Required for all private projects; must send monthly notice to owner

No

n/a

New Jersey

No

n/a

No

n/a

New Mexico

Yes

Only required for private projects over $5,000; must be sent to owner or GC within 60 days

No

n/a

New York

No

n/a

No

n/a

North Carolina

Yes

Required for public and private projects; must be sent to GC within 15 days (private) or 75 days (public)

No

n/a

North Dakota

No

n/a

Yes

Only required if not hired directly by owner; must send at least 10 days before filing a lien

Ohio

Yes

Required for all public and private projects; must send to GC within 21 days

No

n/a

Oklahoma

Yes

Only required for private projects over $10,000; must be sent to owner and GC within 75 days

No

n/a

Oregon

Yes

Only required for private projects; owner, mortgagee, or other interested party within 8 days

No

n/a

Pennsylvania

No

n/a

Yes

Required from all subs if not hired directly by the property owner; must be sent at least 30 days before filing a lien

Rhode Island

No

n/a

No

n/a

South Carolina

No

n/a

No

n/a

South Dakota

Yes

Only required for private projects; must send to GC and owner within 60 days

No

n/a

Tennessee

Yes

Required for all private projects; must send monthly notices to owner and GC within 90 days of the last day of each month

No

n/a

Texas

Yes

Required for all projects from all subs not hired directly by the owner; must send monthly notice to GC and/or surety (public) or owner and prime contractor (private)

No

n/a

Utah

Yes

Required for public and private projects; must file with the State Construction Registry within 20 days

No

n/a

Vermont

No

n/a

No

n/a

Virginia

Yes

Only required for residential projects with one or two units when the owner identified a lien agent; must be sent to the lien agent within 30 days

No

n/a

Washington

Yes

Only required if you provide labor and materials (or materials only); must send to prime contractor or GC within 60 days

No

n/a

West Virginia

No

n/a

No

n/a

Wisconsin

Yes

Required for public and private projects; must sent to owner (private) or GC (public) within 60 days

Yes

Required for all private projects; must be sent at least 30 days before filing a lien

Wyoming

Yes

Required for public projects over $150,000 and all private projects; must send to GC within 60 days (public) or owner/owner's agent within 30 days (private)

Yes

Required for all private projects; must send 20 days before filing a lien

What information must preliminary notice and NOI letters include? 

Some states have specific verbiage that you must add to your preliminary notice and NOI letters. In general, you want to include the following information.

  • Preliminary Notice:some text
    • Your name, address, and phone number
    • Name, address, and phone of the company that hired you
    • The full property address
    • Description of your scope in the project
    • Name, address, and phone number of the GC, property owner, and lender
    • Signature
  • Notice of Intent:some text
    • Your name, address, and phone number
    • Name, address, and phone of the company you’re demanding payment from
    • The full property address
    • Description of services provided
    • Total payment due
    • Number of days until you file a lien
    • Signature

What best practices can subs use to manage preliminary notices and notices of intent?

With so many different rules and circumstances, managing these notices can seem like a lot. There are a few best practices that can make the process a little bit easier. 

  • Notify everyone: Make preliminary notices a standard document for all projects. Send it promptly upon starting labor. Notifying all interested parties that you’re involved in the project reduces the risk of payment disputes down the road.  
  • Review regulations: Check specific state regulations at the start of every project. Some states may require you to file your notices with the county clerk or state registry. Others only allow a designated delivery method like certified or registered mail.
  • Update your A/R process: Timing is everything when it comes to a notice of intent. You need a tight A/R process that allows for multiple collection attempts and sending the NOI letter all before your lien rights expire. Documenting your A/R workflows will help you identify exactly when you need to send an NOI without compromising your lien rights.

Siteline’s A/R Reporting gives subcontractors visibility into outstanding payments across all projects, alerting you when it's time to pursue overdue balances. By keeping tabs on your receivables, you can tackle payment holdups and reduce invoice aging by at least 30%. 

If getting paid faster would make a difference for your sub, get a demo of Siteline’s construction billing software today.

Co-Founder · COO
@ Siteline

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