In short, yes! There are so many benefits to subcontractors who send preliminary notices (preliens) on every project. However, because of negative associations that come with preliens, many become hesitant and don’t send a prelien as part of their business process. As a result, they’re missing out as everyone can benefit from a prelien.
Advantages of Sending Prelims Every Time
The truth is, preliens do so much more good than harm for all parties involved. Here are a few ways your business can benefit from preliens.
They Promote Great Communication
Open communication is key when it comes to keeping the key individuals in the loop! The purpose of a prelien is to notify hire ups, owners, and any other parties of who exactly is involved in the construction project within 20 days of the start date. This also establishes who needs to be paid for the project, and when, giving you the visibility you need to get paid faster.
They Give You a GREAT Business Reputation
Not only does sending a prelien help communication, but it’s also a great way to leave a professional impression on your GC and all others involved. Making sure the project goes smoothly without any unnecessary roadblocks along the way is a great way to position yourself and your business in a positive light.
They Allow Yout To Protect Yourself
Whether you are working with brand new parties or you are familiar with all involved on a project, it’s so important to have yourself and business protected from nonpayment situations. You deserve to be paid for the work you do, and you just never know when situations arise that might lead to filing a mechanics lien. It’s better to be overly prepared just in case than to wish you were covered later on!
They Get Your Paid Faster
With a prelien in place, owners are notified that they have an outstanding payment, which more often times than not, allows your payment to be taken care of first since you’ve taken the initiative to secure your lien rights.