Why we file prelim forms

California Preliminary Notices

A California Preliminary Notice is a notice sent out by material suppliers and sub-contractors that are supplying either materials and/or labor to construction projects. The purpose of the notice is to establish a lien right for the suppliers or sub contractors so that in the instance that they don’t get paid on a project that they have worked or supplied materials to, they have the right to place a Mechanics Lien against that property. Without a preliminary notice, suppliers and sub contractors may not have the right to file a Mechanics Lien against the job. The notice also notifies parties involved with the project; ie: general contractor, property owner and construction lender, who is working or supplying materials to their job.

Most suppliers send out a preliminary notice on all jobs that they supply materials too as a standard procedure. The notice clearly states that it is not a reflection of the integrity of any contractor working on the job, but is issued simply to protect the right of the person filing the notice. The preliminary notice has to be sent out within 20 days from the first day that materials and/or labor are supplied to the project. The notice, regardless of when it is mailed, will cover the supplier or sub-contractor back 20 days from the date that it is mailed.

American Rentals Inc., prelim jobs to assure our contractors that the property owner is ultimately responsible for the rental value of the equipment that improved their property.