20 Day Or Preliminary Notice Requirements And Laws On California Construction Projects

• First Tier Subcontractors 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
• 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

• 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 subcontractors and persons contracting with a tenant- are considered "subcontractors" for purposes of meeting the requirements of the Mechanics Lien Stop Notice and Payment Bond Laws.
• 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.