| DEFINITIONS | |||
| Professional Services Notice |
| In addition to any Notice requirements, suppliers of professional services to put potential lenders or buyers on Notice of a potential Claim, a new and separate Notice must be RECORDED in the real property records of the County where the property is located when "preconstruction activities" are being provided, such as preparing plans and specifications or surveys PRIOR to the beginning of the actual construction activities. |
| Cover Letter |
| Some customers have expressed reservations about sending materialman's Notices as they fear hurting the feelings of their customers or offending them to the point of not dealing with them anymore. |
| A possible answer to this problem is the Cover Letter. This letter can be used to express appreciation to your customer for dealing with you. It can also be effective in reducing the possible negative connotations of a Notice. Explaining the statuatory necessity of the Notice can prevent the Contractor from blaiming you for sending it. |
| Materialman's Notice |
| A materialman's Notice to the owner is required from certain persons furnishings professional services, materials, or equipment for the improvement of real property. |
| The Notice to the owner may be given at any time, but it only protects the right to claim a Lien for a maximum of 60 DAYS prior to the date the Notice was given. In case of the new construction for a single family residence, the right to claim a Lien only extends to 10 DAYS prior to the date the Notice was given. |
| Liens - Private Property |
| A claim of Lien must be recorded in the real property records of the County where the real property is located within 90 DAYS of the last day the Lien claimant furnished labor, professionals services, materials or equipment on the project. Failure to do so invalidates the Lien. |
| Liens - Condominium |
| This Lien is usually filed by the Homeowner's Association for collection of fees & dues. As these are ongoing fees, no first and last dates apply. A special form is needed. |
| Release of Lien |
| The same form is used for all the private works Liens, that is filed when paid in full or a the statement agreement has been paid. It is best to make sure all funds have cleared the bank or make the release conditional either upon payment by the bank upon which a check is drawn. |
| "Stop Payment" Notice to the Lender |
| The Lender's Notice is a Notice sent to the lending institution on a particular project. It notifies the institution that payment owed to you has now become due, but does not guarantee payment to a Lien claimant. The Notice may only cover amounts that are between 5 and 35 days past due (e.g., most recent billings, and thus, may not cover the full amount due to the project. |
| Notice on Bond - State and Local Public Works |
| A Notice on Bond notifies the General Contractor and the public agency responsible for the project that a Subcontractor has ordered materials, supplies, etc., for use on the project. |
| Claim on Bond and Retainage |
| The Claim on Bond is a claim made against the General Contractor's performance bond and/or retaininage for unpaid invoices on public works projects. |
| The Claim is sent by certified letter to the General Contractor, the public agency responsible for the project, and the bonding company providing the bond. |
| The Claim is to be made within 30 days of the project's final acceptance by the public agency responsible for the project. |
| Release of Claim on Bond, Public and Federal |
| When payment has been received, either from full payment or a settlement agreement, the release should be issued by certified mail to all of the appropriate parties. |
| Claim on Bond - Federal Projects |
| If dealing with the General Contractor, no claim is required. You have 1 year to file suit in Federal court, from the last day on the job. |
| If dealing with parties other than the General Contractor, you have 90 days to file a Claim and 1 year to file suit on the Bond from the last day on the job. Be sure that you are within the properties for materials or labor to have rights on the bond. |
| Release of Department of Transportation |
| *** Please contact Construction Credit Corporation, or your attorney, if you have further questions. *** |