Understanding Preliminary Notices and Their Role in Mechanics Liens
If you work in the California construction industry as a contractor, subcontractor, supplier, or even material supplier, you should have a thorough understanding of Preliminary Notices and why they are so important. These notices are not just legal documents, but they also protect your interests and allow you to enforce a mechanics lien in case payment issues arise with construction project stakeholders and owners.
Here is a detailed guide about Preliminary Notices and how to file them in the state of California. Let's get started.
What is a Preliminary Notice?
A Preliminary Notice, sometimes called a 20-Day Notice, is a document served by contractors, subcontractors, suppliers, and certain other parties at the beginning of a construction project. Its primary purpose is to inform the property owner, general contractor, and construction lender (if any) that you are working on the project and that you may have the right to file a mechanic’s lien if you are not paid.
In California, serving a Preliminary Notice is not just a best practice; it’s often a legal requirement. With a few exceptions (such as direct contracts with the property owner), most parties who aren’t paid directly by the owner must serve a Preliminary Notice within 20 days of first furnishing labor, materials, or equipment.
Failing to provide this notice on time could result in losing your lien rights for any work performed before the notice was served. Read more about the 20% Amendment rule of Preliminary Notice.
Other Names for Preliminary Notice
Preliminary Notice is also known by many other names in California, such as:
20-Day Preliminary Notice
Pre-Lien Notice
California Preliminary Notice
Prelim (industry shorthand)
Notice to Contractor
Why Doesn’t a Preliminary Notice Create a Lien?
A mechanics lien is a legal claim recorded against the property, which can complicate a property’s sale, refinancing, or ownership until the debt is resolved. By contrast, a Preliminary Notice is just a notification—it doesn’t affect the property’s title or public records. It’s sent as a matter of legal procedure, essentially giving everyone involved a heads-up that you are contributing labor, materials, or equipment to the project and that you expect to be paid.
This advance notice is not adversarial; it’s routine. Most property owners, especially those familiar with construction, expect to receive Preliminary Notices from various parties as a project gets underway.
How Does a Preliminary Notice Protect Your Rights?
The key role of the Preliminary Notice is to preserve your legal right to file a mechanics lien later if necessary. Under California law, only those who have properly and timely served a Preliminary Notice are eligible to record a mechanics' lien if they remain unpaid. If you skip this step, you may lose your ability to use the mechanics lien as leverage, even if you did the work or supplied materials as agreed.
Think of the Preliminary Notice as your “entry ticket” into the mechanics lien process. If you don’t have your ticket (the timely notice), you’re not allowed to participate (file a lien), no matter how strong your case for payment might be.
Why Does the Law Require Preliminary Notices?
The law is designed to protect both property owners and those working on the property. The owner may not know which subcontractors or suppliers are on the job, especially if there are several tiers of contracts. The Preliminary Notice system ensures that owners are made aware of everyone who could potentially file a lien later, so they can make sure payments are handled appropriately.
From the perspective of workers and contractors serving a Preliminary Notice is very important, as stated already. If you send it at the start of your involvement, you lock in your right to use the mechanics lien process if you aren’t paid in full and on time.
Secure Your Right to Get Paid
Preliminary Notices are a critical part of the payment protection process in California construction. Whether you’re a subcontractor, supplier, or equipment rental company, don’t risk your ability to recover what you’re owed. If you want to safeguard your business, apply for a Preliminary Notice as soon as you start work on a project.
For more information on how to protect your interests and ensure you get paid, check out our Mechanics Lien Services in California and let Easy Law Inc. help you secure your payment rights in a simple and easy way.
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.