Insurance & LiensQuestion 83 of 1605
The purpose of the preliminary notice requirement is to:
a.Start the project legally
b.Establish the contractor's priority over other creditors
c.Serve as a demand letter for payment
d.Alert the owner to potential lien claimants on the project
Explanation
Preliminary notices protect owners by informing them early who is furnishing labor and materials. Owners can then ensure funds flow properly and avoid paying the general contractor if subs are unpaid.
Law Reference: Civil Code §8200Practice all 1605 questions free — no signup required.
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)