PRELIMINARY LIEN NOTICES
Any time you start a new construction project, those working or supplying material or labor are mandated to send out a Preliminary Notice or sometimes referred to Pre-Lien Notice. In California especially, the licensing board can fine you if you don’t process a Pre-Lien Notice at the start of a job. A preliminary lien notice must be sent by certified mail within 20 days of first providing labor, services, or materials to a project. At CNS, we process thousands of preliminary notices every month and have perfected a system to give our customers efficient and accurate completed requests. For more information on what is included in the preliminary notice, click here!
MECHANIC’S LIEN RECORDING
At CNS, we file hundreds of Mechanic’s Liens a month throughout California. A Mechanic’s Lien provides any contractor a right of foreclosure of the property if they are not paid. A Mechanic’s Lien is part of the California State Constitution and is a powerful collection tool specific to the construction industry. For detailed information on how to record a mechanics lien, click here!
Unique to California, stop notices are used in cases of state public works jobs and commercial/residential jobs when there is a financial lender. Mechanics’ Liens cannot be filed on public works projects because land is publicly owned. Instead of a lien, the contractors remedy to non-payment is a stop notice, and it is put in place to stop the money from the public entity or issuer of the funds from being dispersed to the general contractor.
NOTICES OF COMPLETION MONITORING
At CNS, we monitor the recording of the notice of completion for certain Southern California Counties, specifically, Imperial, Kern, Los Angeles, Orange, Riverside, San Bernardino, San Diego, Santa Barbara, and Ventura. Once a notice of completion has been filed, we will contact you to let you know as it can affect the time period in which you may exercise your lien rights.
Filing a bond claim is common across many states, including California. It’s an assurance used on state public works, and large commercial or residential jobs. In the event that the general contractor fails to fulfill its obligations, the bond will be used to pay the suppliers, subcontractors, and ultimately finish the project.
MILLER ACT BOND CLAIM
Enacted in 1935, the Miller Act requires general contractors of Federal construction projects to post Performance Bonds and Payment Bonds (“PNP Bonds”) to guarantee the performance of their contractual duties and the payment to subcontractors and material suppliers. Miller Act bond claims are universal across all states, although the nuances of state-specific Little Miller Acts may vary.
Once you receive payment and you no longer need the lien recorded, CNS can help you release your lien. If you are told to release the lien by an attorney or judge after the lien has been paid or timeframes have expired, and you do not do so, you may face penalties. Avoid fees and penalties by having CNS release your lien.