No matter what you or your state call a preliminary notice – pre lien, preliminary lien, right to lien notice, etc. – taking action at the start of each project is crucial to reducing risk. In this article, we’ll discuss “what is a preliminary notice?” as well as the “why” behind it.
When you engage our preliminary notice services, or file a prelim on your own, your future self will thank you.
Even if you work with the same people you always have, you may face slow pay, short pay, and no pay situations. Add an uncertain economic climate to the mix, and the risk of late, incomplete, or zero payment can increase.
Whether it’s January or June, it’s never too late to set a New Year’s resolution for yourself – and resolve to protect your business better.
What is a Preliminary Notice?
A preliminary notice is mailed to the property owner, general contractor, and construction lender at the start of a project. This notice informs your customer that you officially have the right to collect unpaid costs and file a mechanics lien, if they fail to pay.
CNS provides preliminary notice services for construction projects in California, Arizona, Oregon, Washington, Nevada, and New Mexico. Depending on the state, the type of mail (e.g., certified vs. first class) and timing of the notice can differ. Our experts are here to help you meet your state’s requirements.
To protect your rights, always send a prelim at the start of every project. Read on to understand more reasons why.
Why File a Pre Lien?
The biggest reason: You protect your rights to collect money that’s rightfully yours.
Without a pre lien/prelim filed, you forfeit the ability to place a valid lien on the property. That’s potentially a big deal for your business and your pocketbook. Sitting back and examining the potential risk to a company, employees, and one’s own finances, it’s easy to see why filing a pre lien is so critical.
We’re so passionate about it, we started communicating this to customers from Day 1 – and on our homepage today as well: Don’t roll the dice.
Learn even more in another CNS article: Why You Should Always Send a Preliminary Notice.
Create a Successful Blueprint with CNS
Working seamlessly with you and your in-house team, we make prelims easy. We send the prelim accurately, expertly, and quickly.
With CNS taking important paperwork off your plate, your business has a blueprint for risk reduction. No matter the type of project – state or federal, residential or commercial – your dedicated CNS customer service rep is there to help reduce your risk with the proper notice sent at the right time. We guide you through the process and answer any questions you may have.
As you already know well, your employees, their families, and your family are counting on you to do your due diligence, and protect the payments of your projects.
Let us help you protect those funds – and enforce your rights to collect, if and when the need arises.