What is Section 179?

A notice of intent to lien (NOI)—also called a notice of non-payment or intent notice—is a formal legal document warning a property owner, general contractor, or lender that a subcontractor or supplier plans to file a mechanics lien if an unpaid balance isn't settled within a set number of days.

Acting as a final warning before taking legal action, an NOI often resolves payment disputes quickly because property owners cannot sell, transfer, or refinance a property with a mechanics lien attached. While only legally required in certain states (full list here), sending an NOI is a low-cost, highly effective A/R strategy for collecting past-due funds without going through the formal lien filing process.

Notice of Intent vs. Preliminary Notice:

• Preliminary Notice: Sent at the start of a project to preserve your baseline right to file a lien if needed later.
• Notice of Intent to Lien (NOI): Sent after a payment is significantly overdue as a final deadline demand before officially recording the mechanics lien.

How Siteline Helps:
Every state has different lien rules, timelines, and required forms, making it easy to miss crucial notice deadlines and accidentally forfeit your lien rights. Siteline tracks state-specific lien deadlines across all your projects behind the scenes. When an account becomes severely past due, Siteline helps you instantly generate state-compliant lien notices using project data and send them via certified mail—so you preserve your leverage and protect your right to get paid.

Financial Statements, in the context of the construction industry, are formal records that portray the financial activities and conditions of a construction company. They're crucial for presenting a company's financial health to stakeholders and assisting in making strategic decisions. The primary types include balance sheets, income statements, cash flow statements, and equity statements. The balance sheet gives an overview of the company's assets, liabilities, and shareholders' equity. The income statement shows revenue and expenses, revealing the profit or loss over a period. Cash flow statements illustrate how changes in balance sheet and income statement items affect cash and cash equivalents. Equity statement depicts changes in the owner's interest in company during the accounting period. Without these statements, it would be challenging to understand a construction firm's economic status and make informed future financial decisions.

A lien, particularly in the construction industry, is a legal claim or right that a contractor, sub-contractor, or supplier places on a property at which they have rendered services or supplied materials, but haven't been paid. Essentially, it's a security interest granted over an item of property to secure the payment of a debt or performance of some other obligation. If the property owner does not fulfill the financial obligation, the lien holder may seek legal action to enforce their rights and might even result in the compulsory selling of the property to pay off the debt. Liens are crucial elements in construction law, ensuring parties are fairly compensated for their work and supplies provided.