Subcontractors and Lien Notices

In order to protect your lien rights as a subcontractor, it is important to understand the various notice requirements and responsibilities of the parties involved with a project. The prime contractor has the responsibility to not only notify customers of their exposure to liens, but also to notify all sub-contractors of: 1) the identity of the owner of the property, and 2) relevant information about the property. The information that must be provided includes:

1. Tax parcel or legal description of the property;
2. Street address;
3. Owner’s name, address, and phone number;
4. The prime contractor’s business name, address, and phone number;
5. Contractor registration number, and;
6. Either: 1) the lender’s name, address, and phone number, or 2) the name and address of any company that has issued a payment bond to the contractor.

This information must be provided by the prime contractor to “any person who has contracted to supply materials, equipment, or professional services or who is a subcontractor on the improvement.” Additionally, it must be provided upon request from the subcontractor (the request must include the subcontractor’s identity and mailing address). For contracts valued in excess of $5,000, the prime contractor must post the information at the site of the project.

Subcontractors have a separate obligation to provide notice: the Notice to Owner. This is different from the Notice to Customer provided by the prime contractor. The purpose of the Notice to Owner is to ensure that property owners are aware of the identity of contractors who may have lien rights against the property. This notice requirement does not apply to claimants who have contracted directly with the property owner. Notice may be delivered by registered or certified mail or by personal service. The subcontractor is not required to prove that notice was received by the owner in order to pursue a claim.

The Notice to Owner requirements may not apply based on the type of project. Special notice requirements exist in the case of work done on residential remodels or repairs and work on properties that are not owner-occupied single family residences.

In the case of residential remodels or repairs, subcontractors must provide Notice to Owner unless they contracted directly with the owner-occupant, or are laborers whose claim is limited to the labor provided.

Where the project involves a residence which is not an owner-occupied single-family residence, notice must be provided by subcontractors except for those who: 1) contracted directly with the owner; 2) are claiming for labor only, or; 3) are licensed subcontractors who have contracted directly with the prime contractor.

Be aware that lien claims involve strict timeframes. Contact our office for assistance with protecting your lien rights.