The Preliminary 20-Day Notice

Tool: The Preliminary 20-Day Notice

Construction projects face all sorts of issues, not the least of which is payment to subcontractors, material suppliers, and general contractors. Failing to serve a preliminary 20-day notice, as required by California law, can leave you unpaid on troubled projects. Here’s what you need to know to protect your payment.

The preliminary 20-day notice informs property owners, direct contractors, and construction lenders that you will provide, or have provided, labor, services, or materials to a project and that you may file a mechanics lien, issue a stop payment notice, or assert a claim against a payment bond. The notice itself isn’t a lien, but it is a critical step to preserve your right to file one. Subcontractors, material suppliers, and others without a direct contract with the property owner must serve this notice, while direct contractors and laborers are generally exempt unless a lender is involved. For general contractors working with lenders, serving the notice protects access to loan funds.

You must serve the notice within 20 days of starting work or delivering materials. If you miss this window, you can still serve notice but only claim a lien for work or materials provided in the 20 days before serving the notice and afterward. The notice must include a description of your work or materials, an estimated total price, location of the property where the work is performed, and the identities of the property owner, direct contractor, and lender, if any.

Notice must be served personally, or via certified or registered mail to ensure compliance. California courts demand strict adherence to these rules. A mistake in timing, content, or delivery can void your lien rights. Skipping the notice could leave you without leverage on a project that experiences financing issues. Without a lien, you’re stuck with weaker options like a breach of contract claim, which may fail if the owner or contractor is insolvent. In bankruptcy or foreclosure, un-noticed claimants rank low in payment priority, risking zero recovery.

The preliminary 20 day notice is a powerful tool for contractors. File it on time, keep records, and secure your right to get paid. Don’t let a failed project become your problem, instead, act early to avoid financial disaster.

Disclaimer: This article provides general information and is not intended as legal advice. Reading this does not create an attorney-client relationship. For personalized legal guidance, please consult an attorney.