Understanding the intricacies of preliminary notices is critical when dealing with lien laws. Preliminary notices, also known as prelims or pre-liens, are often the linchpin of preserving lien rights and protecting your right to payment for work or materials provided in a project.
Because of this, prelims require careful attention to how they are sent, to whom they are sent, and who receives them. These requirements are not merely procedural but a strategic step in safeguarding your right to file a mechanics lien if slow, short, or no pay issues arise.
To get a prelim started, contact CNS today or at 800-366-5660.
Preliminary Notice Recipients
In order for a preliminary notice to be valid, it needs to be sent to a specific set of recipients. Typically, the requirement spans a range of two to six recipients, covering the property owner(s), the general contractor, and any construction lenders involved.
Sending prelims to key stakeholders serves multiple purposes. For property owners and lenders, it provides transparency about the work being performed and the parties involved, safeguarding against surprise liens. For general contractors, it ensures they are informed of all subcontractors and suppliers on the project, enabling better financial management and dispute avoidance. Essentially, preliminary notices create a foundation of communication and transparency, helping to prevent payment issues and lien disputes before they arise and protecting the financial interests of all parties involved.
Certified Mail for Preliminary Notices
A critical aspect of the preliminary notice process is the method of delivery. Certified mail is often required when sending a prelim as it serves several crucial functions:
- Proof of Mailing: Certified mail provides concrete evidence that the notice was sent. This proof is indispensable, as it establishes that the sender complied with the statutory requirements within the given timeframe.
- Delivery Confirmation: Beyond proving mailing, certified mail confirms delivery, offering peace of mind that the notice reached its intended recipient. This is particularly vital when deadlines are tight, and proof of receipt can make or break a case.
- Legal Credibility: In lien disputes, the documentation provided by certified mail (receipts, delivery confirmations) adds credibility and can be instrumental in legal proceedings.
Set Price Structure for Preliminary Notice Services
Given the variability in the number of recipients for pre-liens and the intricacies of the mailing process, preliminary notice services are a valuable and reliable resource for protecting your right to payment. However, not all prelim services are priced equally.
Many pricing models may seem reasonable at first until you realize they charge per recipient. And, as mentioned above, there can be multiple recipients for each prelim sent, quickly inflating the price. Other pricing models are subscription-based and charge on a monthly basis whether or not you utilize the service each month. While subscription models can seem appealing for businesses that need to send many notices, there can often be hidden fees for postage, recording, and tiers of research.
At CNS, we offer a set price for preliminary notice services, plus postage, regardless of the recipient count. By creating a set pricing model that includes as many recipients as needed, it offers our customers several advantages:
- Predictability: A flat-rate model provides cost predictability, enabling businesses to budget for these services without worrying about fluctuating costs based on the number of recipients.
- Cost-Effectiveness: Our pricing structure can lead to substantial savings, preventing costs from escalating when multiple parties must receive a notice. This is particularly beneficial for large projects with multiple stakeholders.
- Simplicity: A single, flat rate simplifies the decision-making process for customers. Without the need to calculate varying costs based on recipient numbers, businesses can focus on the project at hand, knowing their preliminary notice needs are covered at a straightforward, transparent cost.
- Encourages Comprehensive Compliance: By eliminating per-recipient fees, businesses are more likely to adhere fully to lien law requirements, sending notices to all necessary parties without trying to cut corners to save on costs. This comprehensive approach reduces the risk of jeopardizing lien rights due to non-compliance.
Send A Preliminary Notice With CNS
Preliminary Notices are the first step toward protecting your lien rights when experiencing payment disputes. However, properly preparing and sending a prelim can be challenging and lead to pitfalls that jeopardize those rights. As such, it is critical to understand every detail of the process, including the recipient requirements for valid preliminary notices.
At CNS, we are committed to providing value-driven, customer-centric solutions to help contractors, subcontractors, and material suppliers get paid. Our set price structure for preliminary notices, regardless of the number of recipients, is transparent and designed with the demands of construction professionals in mind. Contact us today to get a prelim started and protect your right to payment.
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.
