20 Day Notice or Preliminary Notice Requirements and Laws on California Construction Projects

  • First Tier Contractors Having a Direct Contract With the Public Agency or Private Property Owner Do Not Have to Serve a Preliminary Notice on Public Projects.
    • Caution - Play it Safe and Serve Notice.
  • Subcontractors and suppliers must ALWAYS Serve a Preliminary Notice
  • Notice - Must be Served on Prime Contractor and Public Agency on Public Jobs, or on Prime Contractor, Property Owner & Construction Loan Lender on Private Jobs.
  • Prime Contractors on Private Projects must Always serve the Construction Lender or “Reputed” Construction Lender.
  • Methods of Service for 20- Day Preliminary Notice
    • Personal Service by process server or third party
    • First Class Mail Allowed on Public Project (Not on Private jobs)
    • If Mailing, Best Practice is by Certified Mail - Request Return Receipt
    • Contractor Place of Business - Do Not Mail to Job Site!
    • Check Contract Documents for Proper Public Entity and Owner & Lender
    • Check Prime Contract, Building Permits and Recorder’s Office for the name of the Owner and Construction Lender.
PRIVATE AND PUBLIC IMPROVEMENTS
  • Are you a prime contractor or a subcontractor?
  • All persons who do not have a direct contract with the owner of the property - including material suppliers to a contractor or subcontractor, and persons contracting or subcontracting with a general contractor, subcontractor or a tenant- are considered "subcontractors" for purposes of meeting the requirements of the Mechanics Lien Stop Notice and Payment Bond Laws, and they therefore MUST serve a Preliminary Notice to have valid Mechanics Lien or Stop Payment Notice rights.
  • Even if you are a licensed general contractor, you are considered to be a "subcontractor" for certain purposes under the California Mechanics Lien Law when your contract is not a direct contract with owner of the property, such as when a general contractor contracts with a tenant of the owner of the property on either public property or private property.
  • On Private Jobs, the General Contractor must serve the Construction Lender or the “reputed Construction Lender”.
N.B. The contents of this Article do not constitute legal advice or create an attorney-client relationship, and you may not rely on it without seeking legal advice regarding your particular situation and contract from a competent construction attorney.
Please also note that statutes and case law are frequently changing and these materials may become outdated.
For further information on this topic and how the current law may apply to your particular project and issues, Contact Us via email, phone (415)788-1881 or visit our website at www.wolfflaw.com for other contract information.