Avoid Preliminary Notice Subscription Services

Subscription services have been on the rise over the last few years. Everywhere you look now, it is more likely to see yearly contracts and monthly fees rather than one-time payments.

Lately, subscription services have made their way into the construction industry, more specifically for construction notices such as pre-liens.

Unfortunately, subscription notice services might not be as good of a deal for all contractors, subcontractors, and material suppliers as they might first seem.

In this article, we’ll go over the various downsides of subscription services for preliminary notices to help you decide whether it’s the right choice for your business.

To get a preliminary notice started, contact CNS today or call us at 800-366-5660.


Construction Isn’t Steady Year Round

One of the primary issues with subscription services for your prelims is that construction work isn’t always steady throughout the year. Some months see spikes in business, with 5 to 10 projects going on at the same time, while other months can be slower, with a maximum of 1 or 2 projects.

Subscription services might seem enticing at first, offering you a high number of prelim processing per month at a set rate. And while the high number of prelims you can send every month might make the monthly payment or upfront yearly cost seem like a steal, it’s important to actually do the math.

If you don’t have a consistent number of projects every month, those prelims you don’t send become unnecessary expenses without any benefit to you. By the end of your contract, you might realize that you actually spent way more than you used.


Locked Into a Contract

That brings us to our next point, getting locked into a contract.

Most subscription services for pre-lien processing require a 6-month to a 1-year commitment with either monthly payments or one upfront payment that covers the contract’s entire duration. That means that if you become dissatisfied with the services or realize that you’re not sending as many prelims as you initially thought you would, you are still contractually obligated to keep paying for the service — even if you’re not using it.

Additionally, some prelim providers that only offer subscription services don’t always strive for excellent customer service since they have customers secured for 6 months to a year. This often leads to a customer replacement business model rather than one focusing on customer retention through quality services.
Things can also change drastically and instantly in the construction industry. Take the pandemic, for example, or even natural disasters. One month you might have several projects going, and the next, they can come to a halt.

Being tied to a contract could become a financial nightmare for many if work were to suddenly slow down or stop altogether. And to make matters worse, subscription services often leave out additional hard costs from their subscriptions, such as postage, recording, and research, leading to extra fees. Because of this, it is essential to always read the fine print before signing up.


Pay Only for What You Need With CNS

At CNS, our services are designed to go the extra mile for our customers, providing them with flexibility in their choice of service and ensuring there is never any unnecessary pressure on them from long-term commitments.

Given the nature of the construction industry, we don’t believe our customers should have to pay for services in advance. Since we don’t offer subscription-based services, our preliminary notice and mechanics lien services are a la carte, allowing you to pay as you go and only for what you need.

We’re confident that the quality of our services speaks for itself, so we’ll never lock customers into long-term contracts. We want to ensure that you always have control over the services you need and that the success of your business always comes first.

To get a preliminary notice started, contact us today.

Prefer to call? You can reach us at 800-366-5660.


Disclaimer: CNS is not an attorney, and if you need legal advice, please contact one.