In the states of Arizona and California, A Preliminary 20 Day Notice is a very important document. The document sent by suppliers, subcontractors, and other construction parties to the owners of the property. Moreover, the document used by the general contractor to inform the stakeholders about their involvement in a project and to secure lien rights.
Is the 20 Day Preliminary Notice Special?
The Preliminary Notice of 20 Days is unique for both the states of California and Arizona. The rules of California and Arizona require the lien claimants to send notice within 20 days of starting a project. Starting a project includes furnishing labor or materials on a construction project. In the event of nonpayment by the claimant, the state can send a notice by filing lien mechanics.
The states of California and Arizona are not alone in the 20 Day Preliminary Notice. Other states like Utah also need submission. The term commonly referred to as “Preliminary 20 Day Notice” to refer to construction notices.
Similar to preliminary and construction notices, this notice is also useful to inform top-of-chain parties like the general contractor working on the construction project for the property owner. Hence, This notice helps in the facilitation of telling top-tier-parties about who expected to be paid and by how much by a smooth payment process can be made.
You need to send the 20 days notice proactively, long before the arrival of the payment process. Do not wait until you receive your first invoice to pay the payment. Note this payment is only to secure lien rights for work done in the previous 20 days. Hence it is called Preliminary Notice of 20 Days for a reason. You have to understand that it is most useful to send within 20 days of the beginning of the construction work.
Why Should we Send a Preliminary 20-day Notice?
A preliminary notice required to secure Lien Rights. To ensure lien rights, both the states of California and Arizona require lien claimants to send an initial notice. For late payment Filing, a mechanics lien is the best available tool for secure payment. Hence, Before payment sending preliminary notice is the first step in this process.
Sending Preliminary Notice Speeds Up the Payment Process
After sending the notice, you will receive invoice reminders for payment due. These reminders motivate you to make a payment on time. Hence sending initial notice speeds up the amount and reduces the Day Sales Outstanding.
The California Preliminary Notice of 20 Days
All the details of the project must be included in the preliminary notices for the state of California. The state of California typically requires all the parties involved in the project like general contractors, subcontractors, material suppliers, equipment lessors, design professionals, laborers, and any other parties who wish to protect the right to file a mechanics lien send this notice.
You can prepare, send and track 20-day preliminary notices using i-Lien a construction and mechanics lien software from Golden Omega., you can order a Free Demo to make sure that our software meets all your business needs. Contact or Call us Today at (916) 939-7083 to book a demo or for more details.