The Power of Pre-Lien Notices: How They Protect Your Bottom Line
If you're a subcontractor in the building trades, chances are you’ve worked hard on a job only to wait too long—or forever—for payment. In California (and many other states), there’s a tool you can use to help protect your right to get paid: the Pre-Lien Notice, also known as the 20-Day Preliminary Notice.
What Is a Pre-Lien Notice?
A pre-lien notice is a legal document you send to the property owner, general contractor, and construction lender (if there is one) at the start of a project. This notice lets them know that you are working on the job and may file a lien if you are not paid.
In California, if you're not the general contractor, you must send a pre-lien notice within 20 days of starting work or delivering materials. If you miss the 20-day window, you can still send one, but it will only cover work done in the 20 days before the notice and after.
Why Is It Important?
Even if you have a good relationship with the contractor or owner, a pre-lien notice protects your right to file a mechanics lien—a powerful legal tool that helps you get paid if there's a dispute or delay. Without this notice, you may lose your right to file a lien altogether.
Think of it as a safety net. You hope you don’t need it—but you’ll be glad it’s there if something goes wrong.
What Does It Do?
A pre-lien notice does three simple things:
- Tells people you’re working on the job – Often, owners don’t even know who the subcontractors are.
- Establishes your right to file a mechanics lien – This step is required by California law.
- Encourages timely payment – Knowing you may file a lien can prompt quicker action on your invoices.
When Should You Send It?
The best practice is to send a pre-lien notice on every job over a certain dollar amount, like $2,500 or $3,000. Make it part of your routine paperwork, just like sending out an invoice.
Who Needs to Send It?
- Subcontractors
- Material suppliers
- Equipment rental companies
- Labor providers who are not working directly for the property owner
Also note that general contractors in California don't need to send a pre-lien notice except when a construction lender is involved with a project.
How Easy Law Can Help
Because a pre-lien notice is usually a legal prelude to a mechanics lien, it has to be prepared to strict legal standards, and sent to the right people at the right addresses. That’s where we come in. At Easy Law Construction Notices, we help contractors file pre-lien notices quickly, correctly, and affordably. It’s one of the simplest ways to protect your payment rights.
The Bottom Line
Don’t leave your hard-earned money up to chance. Sending a pre-lien notice is a smart, low-cost way to make sure your work doesn’t go unpaid. It’s a small step that can make a big difference to your bottom line.
Easy Law Construction Notices is not a law firm, and nothing in this article should be construed as legal advice. If you are seeking legal advice regarding construction matters, you can contact The Green Law Group, LLP, for a free initial consultation.