As a business owner or contractor in the construction industry, it is necessary to prepare and send preliminary notices at the start of every project. Preliminary notices help protect your lien rights and reduce the risk of slow, short, and no-pay situations after you’ve provided labor, materials, or services. However, the process of preparing and sending preliminary notices can be time-consuming and complex, requiring careful attention to state and county lien laws and deadlines that can sometimes lead to costly mistakes.
While some businesses may choose to handle preliminary notices in-house, there are several reasons why outsourcing to a good preliminary notice service can be a more efficient and effective approach.
The Benefits of Pre Lien Services
There are several key benefits to using an experienced pre-lien service provider. Below, we’ll explain why your business should consider taking advantage of these services.
Compliance with Legal Requirements
The specific rules and requirements for preparing and sending preliminary notices can differ based on the state and county. Failure to comply with these rules can result in the loss of your lien rights and even delayed payment. A good preliminary notice provider should have the expertise and knowledge to ensure that your notices are prepared correctly and comply with all applicable legal requirements.
The majority of states require pre-liens to be sent as certified mail with signature confirmation. This is necessary to track the prelim in transit and verify its delivery to the appropriate parties. However, sending your prelims through certified mail can cause a few headaches, such as physically going to the post office, tracking delivery, processing returned mail if it occurs, and storing the mailing history for proof when filing a lien.
At CNS, we take care of all these mailing steps for you. And, as a complimentary service, we maintain a logbook stamped by the postmaster and audit trails to ensure thorough record-keeping for our customers if they ever require proof of service.
Preparing and sending preliminary notices can be time-consuming, especially if you send them for multiple projects or properties. Preliminary notices require the research and verification of a lot of information pertinent to the project, and it can be tedious work tracking everything and everyone down. Outsourcing to a preliminary notice service lets you focus on your primary business responsibilities.
One of the main reasons businesses tend to choose to do their own prelims in-house is because they want to save money. However, outsourcing is often the more cost-effective option. By using a pre-lien service, you can avoid the costs of hiring, training, and maintaining additional staff (no PTO, vacation pay, absences, etc.), as well as the expense of purchasing and maintaining specialized materials and software.
Improved Accuracy & Efficiency
Preliminary notice providers have teams, systems, and processes in place to ensure your notices are prepared accurately and sent out promptly. This helps reduce errors and delays, which can, in turn, improve your cash flow and overall business performance. At CNS, we have a research and verification team dedicated to tracking down and confirming critical project information.
Access to Expertise, Support & Other Services
By outsourcing to a pre-lien notice service, you’ll often have access to the expertise and support of professionals who specialize in the area. This can be especially valuable if you are new to the construction industry, preliminary notices, or a state where the project is located. Additionally, customer service teams — like ours at CNS — can assist you with questions that extend beyond preliminary notices.
Preliminary notice providers also offer related services, such as mechanics liens and other collection documents. Some services are even complimentary, like our free lien waivers & progress payment releases.
Preliminary Notice Services With CNS
While it is possible to handle preliminary notices in-house, there are many benefits to outsourcing to a professional service. By doing so, you can ensure compliance with legal requirements, save time and money, improve accuracy and efficiency, and access expert support and guidance.
If you are looking to streamline your business operations and improve your lien rights protection, at CNS, we specialize in preparing and sending preliminary notices for various states, including California, Arizona, Nevada, Oregon, Washington, New Mexico, and Florida.
Our pre-lien services offer unmatched customer support that works as an extension of your team, USPS address verification for greater accuracy, in-house mailing to reduce the risk of processing errors, no subscriptions or contracts, and an in-depth research and verification process. Additionally, we have a trusted network of construction attorneys to refer businesses needing legal counsel.
Contact us today to get a pre-lien started.
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.