Insurance & LiensQuestion 1513 of 1632

Why serve the preliminary notice at the start of a project, when payment is still arriving on time?

a.Because it extends the deadline for recording a lien to a year
b.Because late service reaches back only 20 days before it is given
c.Because the law requires service before any contract is signed
d.Because it removes the need to record a claim of lien later

Explanation

Civil Code §8204(a) lets a claimant who missed the 20 days give the notice later, but then limits the lien, stop payment notice, and payment bond claim to work provided within the 20 days before service and at any time afterwards. Serving at the start therefore protects the whole claim, and the value of doing so only becomes visible once a dispute arises over early work. (a) confuses the notice with the recording deadlines in §8412 and §8414, which the notice does not move. (c) invents a pre-contract requirement; the clock starts at first furnishing. (d) treats the notice as a substitute for the lien, when it is a precondition to it under §8410.

Law Reference: Civ. Code §8204(a)

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