The coronavirus pandemic is taking a grip on the construction industry. It’s making it more difficult to get supplies, to complete projects, and most importantly, it’s getting harder for companies to get paid. Sending preliminary notices to the owner, GC, and even the lender can go a long way when it comes to getting paid during COVID-19. By sending these notices on all your jobs now, not only are you presenting yourself in a positive and respectful manner to all the parties involved. Preliminary notice may also help you secure your right to file a mechanics lien or bond claim should payment delays continue.
What is a preliminary notice?
A preliminary notice is a construction document that lets the important parties involved know who you are, what work you’re doing, and your payment expectations. They often provide legal protection. But it’s important to think of a preliminary notice as a communication tool that makes your construction business more visible – and more likely to get paid.
For the best chance of success, you should send these notices at the beginning of every project – not just the problem ones. This allows the appropriate parties enough time to understand all the information provided. It’s important to realize that on large jobs, there could be a large chain of contractors and subcontractors. Sometimes, the General Contractor or owner might not even be aware that you’re on the job. Your preliminary notice advises them of your presence on the job, helping to make sure you get paid.
Download the Coronavirus Survival Kit for Construction Businesses
Contractors and suppliers can take simple, concrete steps now that will help protect their business, employees, and financial health during the coronavirus – and set up their business for success once the dust settles.