There are several kinds of lien services available. Again this would vary as per the kind of construction project you have, the kind of vendor you work with and the kind of services they are offering to their client. Today, we are going to deal with one of the most common kinds of lien services, which is Preliminary notice.
So what exactly is Preliminary Notice?
Preliminary Notice means a legal binding document which provides a notification from the side of the vendor. It states about the services that the party is providing to the property’s owner so as to develop or improve it. This notice is especially written for and to the owner of the property.
Basically through this notice, the involved parties know now that who is working for you for your construction project. In a way this is one step for getting claims paid. However it needs to be done before you get to know that the payment will get issued. If you are not following the preliminary notice requirements of your state, you would not be qualified for the claim or the lien in case any problem or issue rises.
Usually owners of property or contractors would like to receive preliminary notices because they will be able to confirm and track who is working for their project and how much should they expect when the time for payment comes. More so, it would be quite useful for the general contractor to manage the security of the project. Subcontractors, who have in the past submitted their notices, have been paid quicker than the times they have not.
Parties Involved Here
Again, this will depend on the kind of business you have, the party can belong from a wide array industries. But since they belong to the construction industry, the party will be dealing with vendors, contractor or suppliers.