Insurance & LiensQuestion 679 of 1632

A material supplier delivers $40,000 of lumber to a private construction project on July 1. To fully preserve mechanics' lien, stop payment notice, AND payment bond claim rights, the supplier must serve a preliminary notice under Civil Code §8200 on the owner, direct contractor, and construction lender no later than:

a.Twenty days after the supplier first furnishes materials to the project
b.Twenty days after the supplier issues its first invoice for lumber
c.Twenty days after the construction deed of trust is recorded
d.Twenty days after the owner records a notice of commencement

Explanation

The 20-day clock in Civil Code §8200 runs from the date the claimant FIRST FURNISHES labor, service, equipment, or materials — here July 1, so service by about July 21 protects the full claim; §8204 lets a later notice stand but limits recovery to the 20 days before service and afterwards. (b) keys the deadline to the paperwork rather than the delivery, which is the most common and most expensive supplier error, because invoices often go out weeks later. (c) uses a recording date that concerns lien priority, not notice. (d) borrows a notice of commencement from other states; California's scheme uses completion and cessation, not commencement.

Law Reference: Civil Code §8200 / §8204

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