Notices are commonly used throughout the various stages of a construction project’s timeline to help combat the communication challenges facing projects with too many moving parts to realistically account for. There are two main types of notices used by the construction industry: the preliminary notice and the Notice of Intent to Lien (NOI).
In nearly every state, sending a preliminary notice is required to secure lien rights on a construction project, but the specifications for an NOI vary greatly depending on location. In this article, our Nashville construction litigation attorneys will explain the fundamentals of the NOI and help you decide if you should be using one.
Demanding Your Payment
An NOI is similar to a demand letter. After you have sent your preliminary notice, you may need to consider sending an NOI before you proceed to filing a lien claim. NOIs carry more weight than preliminary notices, and they can be issued to any relevant parties in your case. It has been reported that in 47 percent of cases, sending an NOI resulted in the fulfillment of late payments in no later than 20 days.
Individual State Requirements
There are currently nine states that require the claimant to send an NOI on private projects before they can file a mechanic’s lien. Although the NOI deadlines vary from state to state, it is important to familiarize yourself with these differences if you work in multiple states. The nine states that require an NOI on privates projects include:
- Arkansas: NOI required 10 days before filing a lien. Mechanic’s lien must be filed within 120 days after the last day worked.
- Colorado: NOI required 10 days before filing a lien. Mechanic’s lien must be filed within 120 days after the last provision of labor/materials.
- Connecticut: NOI required 15 days before filing a lien. Mechanic’s lien must be filed within 90 days after the last provision.
- Louisiana: Notice of contract required before work begins. Liens must be filed within 60 days of completing a project.
- Missouri: Preliminary notice served to owner preceding the first payment. Lien must be filed within 6 months of the last day worked.
- North Dakota: NOI required 10 days before filing a lien. Lien must be filed within 90 days after the last provision of labor/materials.
- Pennsylvania: No preliminary notice or NOI deadlines. Lien must be filed within 6 months after the last provision.
- Wisconsin: NOI required 30 days before filing a lien. Lien must be filed within 6 months after last work.
- Wyoming: NOI required 20 days before filing a lien. Lien must be filed within 150 days from the last provision.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.