Preliminary Notices: What Are They?

Preliminary Notice Basics 

A preliminary notice is often the first step in preserving your right to secure payment through a mechanic’s lien (for private projects) or a bond claim (for public projects). In many states, serving a timely and properly formatted preliminary notice is a legal prerequisite or statutory requirement to filing a lien or claim later. Failing to serve a notice, or serving it incorrectly, could forfeit your rights entirely, even if you're otherwise entitled to payment. 

Why Preliminary Notices Matter in Construction  

A preliminary notice informs the property owner, general contractor, lender, and/or surety that you are providing labor or materials for a construction project. It’s often served when you begin furnishing or shortly thereafter. It’s not a mechanic’s lien or bond claim, nor does it reflect negatively upon any party in the ladder of supply.

Project Owner

General Contractor

Lender

Surety

Preliminary notices establish transparency, encourage timely payment, and, most importantly, protect your mechanic’s lien and bond claim rights. 

How Do They Relate to Mechanic’s Liens and Bond Claims? 

Think of the notice as your legal “on-ramp” to filing a mechanic’s lien or bond claim. In most states, you can’t proceed to a lien or claim unless you’ve first properly served a preliminary notice. 

Statutory vs. Non-Statutory Notices 

• Statutory Preliminary Notice: a statutory preliminary notice is a notice created by a state’s law. This notice is often served upon the owner and/or prime contractor as a precondition to filing a lien or serving a bond claim. It’s recommended you serve a statutory notice upon all parties within the ladder of supply to increase transparency and prioritize your payment. Failure to serve a statutory notice or meet the stated deadline can invalidate your right to file a mechanic’s lien or serve a bond claim.  
• Non-Statutory Preliminary Notice: a non-statutory notice is a notice served upon parties on the ladder of supply, advising all parties that you are furnishing to a project. Non-Statutory notices are not required by state law and is strictly a precautionary measure intended to prompt timely payment. Failure to serve a non-statutory notice does not affect your mechanic’s lien or bond claim rights.  

Is a Preliminary Notice the Same as a Notice of Intent to Lien? 

No, they aren’t the same. A preliminary notice is typically served at the beginning of your involvement on a project, before payment issues arise. Whereas, a Notice of Intent to Lien is sent when payment issues arise and is statutorily required to be served prior to (or in tandem with) filing a mechanic’s lien. 

Is a Notice of Intent to Lien the Same as a Demand Letter? 

Unfortunately, throughout the construction industry, document types don’t carry a uniform title.  While some may use the terms Notice of Intent and Demand Letter interchangeably, NCS uses the term Notice of Intent only when the action is required by statute. 

When a Notice of Intent is not required by statute, NCS recommends claimants serve a demand letter before proceeding with a lien, as it may be enough to prompt payment, without expending the cost for a mechanic’s lien. A demand letter, much like the name implies, is a demand for payment. 

Do Preliminary Notices Have Other Names? 

A preliminary notice goes by different names depending on the state in which it’s served. Some alternative names include 20-Day Notice, Notice to Owner, Notice to Contractor, Notice of Furnishing, Preliminary Lien Notice, and Prelien Notice.  

Benefits of Serving Preliminary Notices 

Here are the top benefits of serving preliminary notices: 

• Protects (secures) mechanic’s lien and bond claim rights 
• Encourages communication and payment transparency 
• Can speed up payment cycles (reduce DSO and improve cash flow!) 
• Helps identify who is financially responsible on a project 
• Builds a documented timeline in case of disputes 

Common Mistakes and Issues to Avoid 

The most common preliminary notice mistakes include: 

• Missing deadlines 
• Serving the wrong parties 
• Incomplete or incorrect project information 
• Using the wrong form or format 
• Failing to keep proof of service 

Preliminary Notice Process 

Who Serves Preliminary Notices? 

Any party furnishing materials or services to a construction project should serve a preliminary notice. This includes subcontractors, material suppliers, distributors, and in some instances, general contractors.  

Who Should Be Notified (Served)? 

Generally, you should serve a preliminary notice upon the project owner, the general contractor, the lender (if applicable), and the surety or bonding company. Each state will identify who is required to receive a copy of the preliminary notice, but as a best practice, serve all parties within the contractual chain (aka ladder of supply).  

Example: In Ohio, you should serve the owner, the designee, and the general contractor.   

OH 1311.5 (A) “… a subcontractor or material supplier who performs labor or work upon or furnishes material in furtherance of an improvement to real property and who wishes to preserve the subcontractor's or material supplier's lien rights shall serve a notice of furnishing… upon the owner's, part owner's, or lessee's designee named in the notice of commencement or amended notice and the original contractor under the original contract…” 

What Information Is Required? 

A preliminary notice typically contains the name and address of the project, the project owner, the general contractor, and any other party on the ladder of supply. Additionally, it should include a description of the materials or services you provided and the dates you furnished. In some states, you may be required to include the claim amount and contract amount.  

Example: Arizona’s statute clearly identifies what information should appear within the notice. Here’s an excerpt from Ariz. Rev. Stat. Ann. 33-992.01: 

C. The preliminary twenty day notice referred to in subsection B of this section shall be given not later than twenty days after the claimant has first furnished labor, professional services, materials, machinery, fixtures or tools to the jobsite and shall contain the following information:

1. 1. A general description of the labor, professional services, materials, machinery, fixtures or tools furnished or to be furnished and an estimate of the total price thereof. 
   2. The name and address of the person furnishing labor, professional services, materials, machinery, fixtures or tools. 
   3. The name of the person who contracted for the purchase of labor, professional services, materials, machinery, fixtures or tools. 
   4. A legal description, subdivision plat, street address, location with respect to commonly known roads or other landmarks in the area or any other description of the jobsite sufficient for identification. 
   5. The following statement in bold-faced type: In accordance with Arizona Revised Statutes section 33-992.01, this is not a lien and this is not a reflection on the integrity of any contractor or subcontractor.

When Should You Amend Your Notice? 

Here are a few reasons or events that may warrant the sending of an amended notice: 

• The amount of your contract increases (generally recommended when contracts increase by 20% or more) 
• There are changes to the ladder of supply (e.g. the general contractor leaves the job & a new party takes over) 
• You receive information regarding a lender 
• Mail is returned for a party that is required to receive a copy of the notice 
• You receive the Notice of Commencement that contains additional or changed information (e.g. in Georgia, statute is very particular, your notice must match the information on the Notice of Commencement) 

This isn’t an exhaustive list, but it does cover the most common reasons. 

Timing and Deadlines 

Deadlines vary by state, but most require serving the preliminary Notice prior to furnishing or within a month of furnishing. Here are a few examples: 

• In Florida, the notice must be served within 45 days of first furnishing: “…The notice must be served before commencing, or not later than 45 days after commencing, to furnish his or her labor, services, or materials…” - FL 713.06 (2)(a) 
• In Oregon, the deadline is much shorter at a mere 8 days: “The notice of right to a lien may be given at any time during the progress of the improvement, but the notice only protects the right to perfect a lien for materials, equipment and labor or services provided after a date which is eight days...” - OR 87.021(1) 
• In Utah, notice must be filed with the State Construction Registry (SCR) within 20 days from first furnishing: “A person that desires to claim a preconstruction lien on real property shall file a notice of preconstruction service with the registry no later than 20 days after the person commences providing preconstruction service for the anticipated improvement on the real property.” – UT 38-1a-401 
• In Nevada, the notice must be served after you begin furnishing: “…every lien claimant… shall, at any time after the first delivery of material or performance of work or services under a contract, deliver in person or by certified mail to the owner of the property a notice of right to lien…” – NRS 108.245 

There are a handful of states (New Hampshire, Louisiana, Tennessee and Texas) that require the notice be served after funds are past-due. This notice is generally called a notice of non-payment. 

Here’s a citation from Louisiana’s statute: 

La. RS 9-4804. C. If notice of contract has been timely filed, the seller of a movable sold to a subcontractor shall deliver to the owner and contractor notice of nonpayment of the price of the movable no later than seventy-five days after the last day of the calendar month in which the movable was delivered to the subcontractor.  

Helpful Reference Guides 

• Download: Preliminary Notice Deadlines for Private Commercial & Residential Construction Projects 
• Download: Preliminary notice Deadlines for Public Construction Projects 

What if My Notice Is Late? 

Some states allow partial protection (aka Trapping Notice) for materials or labor provided within a certain number of days prior to serving the notice. Others may void your rights entirely.  

Even if your notice is late, serve the late notice. Although your mechanic’s lien and bond claim rights may be questionable, it’s likely the service of the preliminary notice will be enough to ensure you get paid.  

Example of Trapping Notice: Ohio 

1311.05 (D)(1)… a notice of furnishing served more than twenty-one days after a subcontractor or material supplier who is required by this section to serve a notice of furnishing, first performed labor or work or furnished material at the site of the improvement preserves the subcontractor's or material supplier's lien rights for amounts owing for labor and work performed and materials furnished within the twenty-one-day period immediately preceding service of the notice of furnishing and thereafter, but does not revive any prior lien rights for labor or work performed or materials furnished prior to the twenty-one days immediately preceding service of the notice of furnishing.” 

Methods of Service (and When Is It Considered Served?) 

Preliminary notices should be served via certified mail with return receipt requested. Additionally, a notice may be served via registered mail, personal service (e.g., process server), or electronic delivery – just make sure the service type complies with statute.  

In Washington, RCW 60.04.031 states “(a) Mailing the notice by certified or registered mail to the owner or reputed owner; or (b) Delivering or serving the notice personally upon the owner or reputed owner and obtaining evidence of delivery in the form of a receipt or other acknowledgment signed by the owner or reputed owner or an affidavit of service.”  

Do You Need Proof of Service? 

Yes, you should keep dated records (such as a certified mail receipt or affidavit of service) as part of your project file.  

State-Specific Requirements 

Do All States Require a Preliminary Notice? 

No, not all states require a notice, but most do. Currently, 43 states in the U.S. and one province in Canada have provisions for a preliminary notice to be served before filing the lien. The exceptions will depend on who you contracted with, the state in which the project is located, and the project type.  

Private vs. Public Project Differences 

In the U.S., construction projects are categorized as private, public or federal. (Bonus: in Canada projects are categorized as private, public or federal crown.) 

Private Projects 

A private project is a private improvement contracted by a private entity, e.g. a person, company or corporation. 

Examples: office buildings, restaurants, stores/retail, churches 

Public Projects 

A public project is an improvement of public works or building under formal contract made by any government authority, e.g. the state, county, city or political subdivision. 

Examples: public schools, city hall, Dept. of Transportation 

Federal Projects 

A federal project is a contract for the construction, alteration or repair of any public building or public work of the United States. 

Examples: United States Post Office, United States Air Force, Ft. Hood, U.S. Army 

How to Check State Requirements 

Use a reliable construction law resource, like The National Lien Digest, or consult an expert lien service provider, like NCS Credit.

If you are using an online resource, make sure it’s a reputable source that updates information regularly, because laws change and information can quickly become outdated. 

Should You Serve a Notice Even if It’s Not Required? 

Yes, serving a notice, even when it’s not required, is beneficial. Notices establish your presence on a job, clarify your role in the payment chain, encourage prompt payment, and minimize disputes.  

Using a Service Provider 

Managing preliminary notices in-house requires time, precision, and administrative resources. To reduce risk and free up internal teams to focus on core operations, many companies choose to outsource the process. A comprehensive outsourced solution should include notice research, preparation, and delivery, handled by specialized providers who: 

• Track deadlines and requirements by state 
• Ensure proper formatting and compliance 
• Maintain records and proof of service 
• Help manage notice workflows across multiple projects 

Navigating deadlines, state-specific rules, and notice delivery requirements can be overwhelming. That’s why thousands of construction credit professionals trust NCS Credit. NCS Credit simplifies the notice and lien process with expert support, compliant forms, and industry-leading technology. 

Whether you handle a few jobs a year or hundreds of projects nationwide, NCS Credit helps you serve preliminary notices on time and protect your right to get paid. 

Ready to secure your receivables? Learn more about preliminary notice services from NCS Credit or speak with a specialist today.