In the construction industry there are documents for almost everything. When it is time to secure payments you will find a variety of documents that are a part of the whole process. Sometimes different steps in the construction process require specific documents and the names of these documents might not always be the same in every state. Today, the document we are discussing is the notice of completion and why it is so important for private construction projects.
What Is A Notice Of Completion?
Property owners use a notice of completion so that potential mechanics lien claimants know that a particular project has reached completion. If the document is recorded properly it will help in reducing the time that contractors and material suppliers take to record a mechanics lien against a private construction project. Property owners usually issue a notice of completion to notify the participants of the project, particularly the ones that possess mechanics lien rights. Notice of completion can also be filed by general contractors or prime contractors.
Even if the construction law in your state does not require notices of completion you might still encounter them. If your project has a construction lender you need to find out if they require a notice of completion to be filed with the county recorder. There are certain cases where the date of when a notice of completion is filed is able to influence the deadlines of filing a mechanics lien. So, it does not matter if you are the project owner, a prime contractor or a general contractor you need to be aware of the importance of filing a notice of completion for your construction project.
It is just as important to carefully take care of all the documentation involved in a construction process as it is to maintain the heavy equipment being used. Sending a preliminary notice is a good idea if you are a construction project owner. You need to be alert and make sure to always calculate your lien deadline. You do not want to end up getting burned by a shortened mechanics lien because of carelessness.