From years of working with companies to establish great mechanics lien policies, I’ve come to understand that when it comes to preserving lien rights, many companies get shaky in the knees. There is especially a friction that develops between accounting and sales departments, with the accounting department wanting to secure every project and the sales department worried it will create a disadvantage for them in selling the underlying services.
It’s a funny thing that this hesitation has so much traction in the construction industry…because it’s completely make-believe.
Here are a few articles we’ve written about this topic in the past. They will help justify to you (or to your sales team, bosses, co-workers, partners, etc.) that sending preliminary notices is a good idea and will not jeopardize your relationships.
Preliminary Notices Will Not Scare Your Customer
This article goes right to heart of the hesitation when sending preliminary notices. Many believe that preliminary notices will scare their customers by making them think the project is liened or will be liened, or will result in eroding the relationship. None of these fears can be sustained, however, because the preliminary notices are just notices, they are commonly sent and received, and they are legally required.
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Get Fined If You Don’t Send California’s Preliminary Notice
This article addresses California preliminary notices directly, but it mentions notices in Washington and Nevada as well, and it is relevant everywhere. The fact is that there is a growing group of states that not only take away lien rights when you fail to deliver a preliminary notice, but also subject your company to discipline and fines. Why? Because these notices have important information and things get messier and relationships get further stretched when the notices aren’t sent.
GC Software Proof That Preliminary Notices Are A Standard Practice (And Make A Difference)
If you think you’re company will be the only company sending a preliminary notice, think again. When a state requires preliminary notices, the property owner or general contractor will receive tons of them. On large projects, sometimes hundreds or thousands. It’s a fact of business. If you want proof of that, consider software for general contractors that help contractors manage preliminary notices. They exist because they are needed, b/c contractors are constantly receiving preliminary notices.
Preliminary Notices Will Prioritize Your Invoices
Last, but not least, this article isn’t so much focused on justifying preliminary notices from the perspective of quashing fears of how the notice will be received, but is instead focused on justifying why sending a preliminary notice is a smart idea. The fact is, these notices prioritize your invoices.