Original Contractor/Original Contractor (those hired by the Property Owner or Property Owner’s Agent): If you were hired by the Property Owner or the Owner’s Agent, then you are not required to serve or file any Notices before filing your Lien Affidavit on a residential Property. You can move straight to filing a Lien Affidavit. However, you might consider sending a strong Payment Demand Letter before filing a Lien if you think it will resolve the payment dispute.
All Other Claimants: On residential projects, if you were not hired by the Property Owner or the Property Owner’s Agent, then you must serve the Property Owner and the Original Contractor with a Notice of Claim by no later than the 15th day of the second month, for each and every month that you provide labor/material/equipment to the Property and have not been paid.
Example: If you provide labor/material/equipment in January and February and were not paid, then for the work done in January, you must serve a Notice by no later than March 15; for the work done in February, you must serve the Notice by no later than April 15. In other words, you have to notify the Property Owner and Original Contractor each and every month payment has not been made.
Inside Tip: In the above example, you could serve just one Notice (combining both months) as long as the Notice is sent before March 15th (which would be the 15th of the second month for the work performed in January). Keep in mind you can always serve a Notice early (and you should), just don’t serve it late.
Warning: A Property Owner is allowed to release final payment (typically withheld statutory retainage) to the Original Contractor within 30 days after completion of the entire Project. Once the Project funds have been released, you can no longer require the Property Owner to withhold funds or place a Lien against the funds. As such, if possible, always serve the Notice (regardless of your final deadline) before the Property Owner releases final payment to the Original Contractor. On residential homestead Properties, the Property Owner is not liable to a Subcontractor or Material Supplier for any amount paid to the Original Contractor (including the withheld 10% retainage) before receiving a Notice of Claim. Again, consider serving the Notice as soon as you expect a payment dispute and before the Property Owner releases final payment to the Original Contractor.