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4 Delivery Methods for a Valid Construction Preliminary Notice

The construction industry is infamous for payment issues. Because of a payment structure where part of the money is retained until the job is done, many contractors bear the risk of never getting paid due to work disputes and payment delays. Furthermore, the hierarchical structure of payment responsibilities -- from property owners, and prime contractors down to subcontractors and suppliers -- adds to the problem. If a contractor is not paid by their client, they may also withhold payment from their subcontractors, starting a chain of payment issues. 

For these reasons, contractors and suppliers need to be proactive in protecting their right to file a mechanics lien, the legal recourse for unpaid compensation in the construction industry. And this process starts with the delivery of a construction preliminary notice. 

A preliminary notice is a legal document that lets a property owner, a general contractor, and other relevant stakeholders know of the sender’s participation in a project. It also serves as a reminder that the sender knows their lien rights and will exercise them should the need arise. 

Many states like Florida, Texas, and California require a preliminary notice before a mechanics lien becomes valid and enforceable. In addition, these states have specific requirements regarding the form for the notice, the language, the information included, the recipient, and the delivery method. 

In this article, we’ll focus on how exactly construction contractors and suppliers can deliver a preliminary notice. Here are the four major methods of preliminary notice delivery that contractors and suppliers need to know. 

Personal Delivery

Many contractors consider hand delivery of documents more convenient as it adds a  personal touch. Fortunately, most states allow preliminary notices to be personally delivered. That said, this method comes with certain requirements and is not always the best option. 

Many states have laws specifically stating a “written receipt” is required as proof of delivery. The validity of unusual proofs of delivery may be questioned in court. It is best to err on the side of caution and always deliver a preliminary notice as explicitly stated in a state’s lien laws. 

Regular Certified Mail

In most states, a preliminary notice is considered officially delivered at the time it is mailed. For this reason, sending a notice by certified mail is a preferable option. 

Regular certified mail gives contractors the ability to track the document and determine exactly where and when the item was delivered. Each certified mail is given a tracking number that contractors can use to receive delivery updates, starting from when the mail is picked up until it gets delivered to the receiving party. 

This mailing process also requires the recipient to sign a  document confirming that they have indeed received the notice. It will not be sent back to the contractor but rather kept on record in the post office. Contractors need to pay an additional fee to be able to access this record.  

Certified Mail with Return Receipt Requested

Contractors  can secure a copy of a proof of receipt by using certified mail with return receipt requested. Paying for fees on top of that for regular certified mail will attach a “green card” which the recipient will sign when the preliminary notice is delivered. This green card will then be mailed back to the contractor and can serve as proof of delivery that fulfills lien law requirements. 

Using certified mail with a return receipt requested is one of the best bets for contractors who want to ensure that they have the necessary documents to prove their notice was delivered. California lien laws, for instance, explicitly state that a return receipt provided by the United States Postal Service is enough proof that delivery requirements were met. 

Online

Preparing the necessary documents to protect lien rights, such as preliminary notices, can be a tedious process. Chances are contractors do not have a dedicated employee to handle the preparation of preliminary notices. In addition, manual preparation and delivery of preliminary notices are prone to errors that can render them invalid. Mistakes in a preliminary notice like incorrectly spelled names and use of a wrong form can render it and a subsequent mechanics lien invalid.

Fortunately, contractors can significantly shorten the process of preparing a preliminary notice -- from researching relevant information to recording the document in the county clerk’s office -- by using a dedicated online lien service provider.  Furthermore, all of the documents needed to prove that the preliminary notice is delivered will be conveniently stored online with such a service.

As sending a preliminary notice secures the right to file a mechanics lien, contractors need to be proactive in fulfilling all the requirements prescribed by state laws. This means using the delivery option that will ensure a preliminary notice’s validity. Contractors, as always, should pay close attention to the language of the law in order to protect their right to get paid.