Source: https://www.bicanet.com/state/california-preliminary-notice-to-owner-construction-liens/
Timestamp: 2020-05-29 17:30:55
Document Index: 415078320

Matched Legal Cases: ['§3082', '§8000', '§9000', '§8400', '§8400', '§7031', '§8170']

California Preliminary Notices & Liens - 20 Day Forms PDF - 2020 Service
California Mechanic’s Liens & Notices
California Mechanic's Liens & Notices
Your Guide to California Preliminary Notices in 2020
Preliminary 20-Day Notice:
Required to be sent within 20 days of first delivery to the owner, general contractor, and lender.
If sent later than 20 days, it only covers work done 20 days prior to mailing the notice.
There is no statutory follow-up notice.
Same handlings as for Commercial jobs.
Relevant Documents and pdfs for California Preliminary 20 Day notice for Private and Public works:
Mechanic’s Lien form
Release of Mechanics’ Lien form
Partial Release of Mechanics’ Lien form
California Preliminary Notice Form – 2019
Need help? Give us a call (800) 722-2422 or Contact us!
A contractor’s constitutional right to get paid!
1872 – First Codes
1951 – First Minor Revision
1969 – Second Minor Revision
2012 – Major Revision
Civil Code §§3082-3267 to Civil Code §§8000-8840 and Civil Code §§9000-9566
Statutory Implementation
Persons Entitled To Lien: Civil Code §8400
Lessors of equipment
Design Professionals (architect, landscape architect, professional engineers, land surveyor: Civil Code §8400).
Anyone who furnishes labor, service, equipment or material (L.S.E.M.) for use in and which is used in a work of improvement
Claims for Fringe Trust Fund Benefits: Betancourt v. Storke Housing Investors (2003) 31 Cal.4th 1157
Persons NOT Entitled To Liens:
Unlicensed contractors or subcontractors: B&P Code §7031
Material supplier to material supplier
A contractor providing “preconstruction services” for a project that was never built. D’Orsay International Partners v. Superior Court, 123 Cal.App.4th 836 (2004)
Puts The Owner And Lenders On Notice Of Your Potential Claim
Use To Protect The Subcontractor’s Rights To Get Payment For Money Owed
REMINDER: Lender MUST be served with preliminary notice!
Who MUST Serve A Preliminary Notice?
Direct Contractor (with the lender only)
Who must be served?
1st tier sub – Notice to:
2. Direct Contractor
2nd tier sub/material supplier – Notice to:
Material supplier –
Director Contractor
Owner/builder job:
1st tier sub is a direct contractor and must give notice to lender.
2nd tier sub/material supplier:
How Notices Are Served:
Notice shall be in writing
Notice shall be given by
Mail per (Civil Code 8110)
Leaving the Notice & mailing a copy: Civil Code 8106
Notice given by mail shall be given by:
A) Registered mail
B) Certified Mail
C) Express Mail
D) Overnight Delivery by an express service carrier: Civil Code 8110
If notice given by mail, it is complete when deposited in the mail: Civil Code 8116(b)
5. Proof of notice shall be by a proof of service declaration that states:
Description of the notice
Date, place and manner of service
Name and address of person to whom notice was given and if appropriate, the title or capacity in which the person was given notice
D If by mail, accompanied by:
Documentation provided by the United States Postal Service showing that payment was made to mail the notice using registered, certified or express mail
A return receipt, delivery confirmation, signature confirmation, or other proof of delivery or attempted delivery provided by the United States Postal Service showing the date of delivery and to whom delivered, or in the event of non-delivery by the returned envelope.
Documentation provided by an express mail service showing that payment was made to send the notice using an overnight delivery service. Civil Code 8118
Must include space for name, branch designation, if any, and address of construction lender
NOTE: Reasonable Effort To Locate
A Lender Is Still Necessary
Required Information In Contract
Civil Code §8170
Direct Contractor and Owner
Owner’s name, address, and place of business
Name and address of construction lender
Exception: Home Improvement Contracts
Direct Contractor-Subcontractor And Subcontractor-Sub-Subcontractor
Name address of owner, direct contractor and construction lender
General Description Of Labor And Services
Scope increase will be reflected in the Mechanic’s Lien
Separate Contracts + Same Project = Separate Preliminary Notices
Estimate For Total Price
Figure Must Be Based On A Rational Analysis
Not expected to be exact or precise
Requires more than a guess
No psychic powers required
Changes in scope (and price) will be reflected in the Mechanic’s Lien
Rental Equipment, Inc. v. McDaniel Builders, Inc. (2001) 91 Cal. App. 4th 445: Preliminary Notice estimates (2) totaled $20,000.00; lien amount: $159,898.00.
“Estimate” means an approximate computation of the probable cost of a piece of work made by a person undertaking to do the work; Statute requires “a derived figure, arrived at by rational analysis”; “The estimate called for can be in compliance with the statute even though it badly misses the mark with reference to the total charges as finally tallied.” Can’t be a “guess, conjecture, or surmise.”
When To Serve Preliminary Notice?
Within 20 days of starting work – Proof of Notice Declaration
Example: 20 Days
Started work on March 1
Give Notice on March 20
Entitled to file a lien for work from March 1st forward
If you’re working in the construction industry, then preliminary notice requirements are something you should pay attention to. In California, they changed in July of 2012, so you need to find actual information about them.
In this state, in order to retain the ability to file a valid mechanics lien, you need to send a preliminary notice. Property owners, general contractors, and lenders are usually the ones receiving it. They use it to paint a clear picture of the parties that are working on the project.
Preliminary notices have a deadline in California, but the state is strict in the required content.
The state allows you to file a mechanics lien on a project if you provide labor or materials to it. In some cases, the law specifies that some parties must send preliminary notice to rightfully preserve the mechanics lien.
California’s requirements for preliminary notice are not very different from those of other states. Their role is to inform a property owner about a claimant’s right to file a mechanics lien against the property in case there is no payment. A preliminary notice in California is meant to benefit the general contractor, property owner and top project members.
What Does a Preliminary Notice Include in California?
In the state of California, certain things should be included in preliminary notices, as the law requires them. They are:
The name and address of the construction lender where necessary
The owner’s name and address
The prime contractor’s name and address
The name and address of the party that contracted with the claimant
The claimant’s name and address
A general statement of the provided work
A description of the site that is enough for identification (like a street address)
A specific boldface type 235-word statement
An estimate of the total price of the future provided work
A preliminary notice should be sent within 20 days of the first material or labor furnishing.
Therefore, in case you send it after 20 days, you should know that it only protects lien rights for the previous 20 days.
Preliminary notices can be sent via overnight delivery, express mail or registered mail. Make sure you have proof about mailing your notice.
The “certified mail” of the United States Postal Service is the most cost-effective way, as it costs under $5 and you receive a tracking number as well.
California has very good laws when it comes to preliminary notices. However, make sure you do your research before you send one.
How to File a Mechanic’s Lien in California
The Importance of Keeping Your Contractors’ License Current
2016 End of Year California Legislative Report
Alabama Mechanic’s Lien Alaska Mechanic’s Lien Arizona Mechanic’s Lien Arkansas Mechanic’s Lien California Mechanic’s Liens & Notices Colorado Mechanic’s Lien Connecticut Mechanic’s Lien Delaware Mechanic’s Lien Federal Florida Mechanic’s Lien Georgia Mechanic’s Lien Hawaii Mechanic’s Lien Idaho Mechanic’s Lien Illinois Mechanic’s Lien Indiana Mechanic’s Lien Iowa Mechanic’s Lien Kansas Mechanic’s Lien Kentucky Mechanic’s Lien Louisiana Mechanic’s Lien Maine Mechanic’s Lien Maryland Mechanic’s Lien Massachusetts Mechanic’s Lien Michigan Mechanic’s Lien Minnesota Mechanic’s Lien Mississippi Mechanic’s Lien Missouri Mechanic’s Lien Montana Mechanic’s Lien Nebraska Mechanic’s Lien Nevada Mechanic’s Lien New Hampshire Mechanic’s Lien New Jersey Mechanic’s Lien New Mexico Mechanic’s Lien New York Mechanic’s Lien North Carolina Mechanic’s Lien North Dakota Mechanic’s Lien Ohio Mechanic’s Lien Oklahoma Mechanic’s Lien Oregon Mechanic’s Lien Pennsylvania Mechanic’s Lien Rhode Island Mechanic’s Lien South Carolina Mechanic’s Lien South Dakota Mechanic’s Lien Tennessee Mechanic’s Lien Texas Mechanic’s Lien Utah Mechanic’s Lien Vermont Mechanic’s Lien Virginia Mechanic’s Lien Washington Mechanic’s Lien West Virginia Mechanic’s Lien Wisconsin Mechanic’s Lien Wyoming Mechanic’s Lien