California's 20-Day Preliminary Notice

If you're operating in the California construction landscape, it's essential that you know about the California Preliminary Notice. This document isn't just paperwork; it's a important aspect of your financial security on any project.

California Preliminary Notice - A Must-Know!

If you're starting a big project in California, it's essential to file a preliminary notice (often referred to as a pre-lien notice) within 20 days of commencing the job. This step is vital if you wish to preserve your right to file a valid mechanic's lien later.

Why Does This Matter?

Filing the preliminary notice can make a world of difference in safeguarding your interests. Without it, you might lose the ability to secure your payments through a mechanic's lien. Essentially, this notice becomes a safety net, ensuring you're in the best position to get paid for the work you've done.

Considering Smaller Projects

Every project, regardless of its size, has some risks. It's for you to decide whether to preserve lien rights on smaller jobs. Many businesses find it beneficial to set a threshold amount, say $3,000, over which a pre-lien notice is consistently filed. It's a matter of weighing the risks against the costs, and we recommend considering this approach as it brings consistency and clarity to your processes.

The Bottom Line

As industry professionals, being proactive about regulatory deadlines is not just about compliance—it's about protecting the lifeblood of your business: your cash flow and financial rights. So, whether it's a towering commercial development or a modest home renovation, give the preliminary notice the attention it deserves. It's a small step in paperwork, but a giant leap in securing your business's future.