Home>Levelset Community>Legal Help>In New Mexico, it indicates that a preliminary notice must be sent 60 days from beginning work if (1) claimant doesn't contract with owner or GC, (2) the amount due is greater than $5,000.00, AND (3) the project is not on a residential property in less than 4 dwellings. Is this all or nothing in regards to sending the preliminary notice?
In New Mexico, it indicates that a preliminary notice must be sent 60 days from beginning work if (1) claimant doesn't contract with owner or GC, (2) the amount due is greater than $5,000.00, AND (3) the project is not on a residential property in less than 4 dwellings. Is this all or nothing in regards to sending the preliminary notice?
We have a project in which we are contracted with the GC, the project is greater than $5,000.00, and it has more than 4 dwellings. Are we required to send the preliminary notice within 60 days of starting work?
1 reply
Jun 28, 2018
That's a good question, and the preliminary notice rules can be a bit tough to navigate in New Mexico. But first, it's worth noting that it's a good idea to send preliminary notice on every project - regardless of whether notice is required. These notices help to create a clearer payment chain and help to stop payment issues before they even arise. More on that idea here: Why You Should Send Preliminary Notice Even If It’s Not Required.
Anyway, in New Mexico, preliminary notice must be sent when all of the following apply: (1) The claimant does not contract directly with the owner or GC; and (2) the cost of the work will exceed $5,000; and (3) the project is NOT a residential with fewer than 4 dwellings. If all of the above apply, notice must be sent in New Mexico within 60 days of first furnishing. But if the claimant contracts directly with the owner or GC, if the cost of work will not exceed $5,000, or if the project is a residential unit with fewer than 4 dwellings, no notice is required. If required, the notice may be sent late, but note that if it is sent late, the notice will only protect the work performed after the notice was sent, plus the 30 days immediately preceding the notice. Work performed more than 30 days prior to sending notice, if notice is sent late, would not be protected by lien rights.