Providing an Arkansas preliminary notice is a proven method to expedite payments on construction projects. This document, generally sent to the property owner early in a project, serves as a formal notification. To ensure compliance and effectiveness when sending preliminary notices in Arkansas, it’s essential to understand the associated regulations.
However, navigating these intricate rules can be challenging. Here’s a breakdown of the key guidelines and requirements for issuing an Arkansas preliminary notice successfully.
Key Takeaways
- Timely Notice is Essential: In Arkansas, providing a preliminary notice within the required deadlines is crucial to preserve lien rights. For residential projects, the general contractor must submit a Pre-Construction Notice, while for commercial projects, a Notice to Owner & Contractor must be sent within 75 days of the last contribution.
- Accuracy Matters: Errors in the preliminary notice form can invalidate lien rights. It’s important to double-check all details for accuracy to avoid jeopardizing your ability to file a lien later.
- Subcontractors’ Rights Depend on the General Contractor’s Notice: On residential projects, if the general contractor fails to submit a Pre-Construction Notice, mechanics lien rights for all parties are voided. Subcontractors and suppliers should issue their own notice to ensure full protection for all labor and materials provided.
Who Needs to Send a Preliminary Notice on Private Projects in Arkansas?
The type of preliminary notice required for private construction projects in Arkansas varies based on the nature of the project.
Pre-Construction Notice
For residential projects involving four or fewer units, an Arkansas Pre-Construction Notice is mandatory. General contractors must provide this notice, as failure to do so prevents liens from being filed on the property. Subcontractors and suppliers can also issue the notice, which applies to all parties involved in the project. To protect lien rights, it’s recommended that each claimant issue their own Pre-Construction Notice rather than relying on others.
Notice to Owner & Contractor
For other private construction projects, parties who did not contract directly with the property owner are required to serve a Notice to Owner & Contractor.
Important Note: In addition to the above, all parties intending to file a lien must provide the property owner with a Notice of Intent to Lien.
What’s the Deadline to Send a Preliminary Notice in Arkansas?
Pre-Construction Notice
As the name suggests, the Pre-Construction Notice must be issued before any work begins on the project.
Notice to Owner & Contractor
In Arkansas, the Notice to Owner & Contractor must be delivered within 75 days from the claimant’s final date of supplying labor or materials to the project.
To whom do I need to send an Arkansas preliminary notice?
Pre-Construction Notice
The Pre-Construction Notice should be delivered to the property owner or their authorized or registered representative.
Notice to Owner & Contractor
As the name implies, this notice must be sent to both the property owner (or their agent) and the project’s general contractor.
What Information Is Required on an Arkansas Preliminary Notice?
Pre-Construction Notice
An Arkansas Pre-Construction Notice must contain the following details:
- Bold, capitalized notice language as outlined in Ark. Code §18-44-115(a)(7)
- The property’s address
- The date the notice is issued
- The contractor’s signature
- The owner’s signature (only required if not sent via certified mail)
Notice to Owner & Contractor
The Arkansas Notice to Owner & Contractor should include:
- A summary of the labor, services, or materials provided
- The outstanding amount owed
- The claimant’s name and address
- The hiring party’s name and address
- A description of the property in question
- Bold, capitalized notice language specified in Ark. Code §18-44-115(b)(6)(E)
How Should a Preliminary Notice Be Sent in Arkansas?
Pre-Construction Notice
This notice can be delivered through personal service, certified mail with a return receipt request, or directly included in the primary contract. If sent via certified mail, the owner’s signature is not necessary for the notice to be considered valid.
Notice to Owner & Contractor
A Notice to Owner & Contractor can be served through personal service, certified mail (with return receipt requested and delivery restricted to the recipient or their agent), or any method that provides written, third-party proof of delivery at the recipient’s business, office, or residential address.
Note: If the delivery is refused or unclaimed, the notice must be resent via first-class mail. The unopened, unclaimed mail, marked as such, will serve as proof of service based on the postmark date.
Is an Arkansas Preliminary Notice Considered Served When Mailed or When Received?
When preliminary notices are sent via certified mail, they are deemed served once they are mailed, as confirmed by a return receipt signed by the addressee or their agent. Alternatively, proof can be provided by a returned envelope, postal document, or affidavit from a postal worker indicating the notice was either refused or unclaimed.
What If I Send an Arkansas Preliminary Notice Late?
Pre-Construction Notice
If the general contractor fails to deliver the Pre-Construction Notice before beginning work, it not only jeopardizes their ability to file a lien but also prevents any legal action for breach of contract or under quantum meruit.
As noted earlier, if the general contractor neglects to send this notice initially, subcontractors or suppliers can issue it later. However, if the notice is delivered late, it will secure mechanics lien rights for all parties (excluding the general contractor) from the date their services are completed.
Notice to Owner & Contractor
If the Notice to Owner & Contractor is not provided within 75 days from the claimant’s last contribution of labor or materials, it will invalidate that claimant’s right to file a mechanics lien.
Who Needs to Send a Preliminary Notice on Public Projects in Arkansas?
In Arkansas, no preliminary notice is necessary to preserve a claimant’s ability to file a public payment bond claim.
However, it is the responsibility of the claimant to confirm that a bond exists for a public project. If the claimant fails to verify this and no bond is in place, they will have no grounds for a claim against the public contracting entity or the individual owners of the general contractor.
It is uncertain whether a claimant would have any recourse if no bond was provided, but they had verified its existence.
About Arkansas Preliminary Notices
Arkansas has a distinct and somewhat intricate preliminary notice system. The notice requirements differ for residential projects with 4 or fewer units and for commercial projects (which includes residential projects with 5 or more units). The type of project dictates the notice requirements and deadlines for those providing labor or materials.
For commercial projects, including multi-unit residential projects (5 or more units), the notice process is more straightforward. Those who didn’t contract directly with the property owner, along with architects, engineers, surveyors, appraisers, landscapers, or abstractors who did, must send notice within 75 days of their last contribution of labor or materials. If a mechanics lien in Arkansas is filed later, a notice of intent to lien must be sent at least 10 days before the lien is filed. These notices are mandatory for all involved parties.
In contrast, the notice requirements for residential projects in Arkansas are more complex. For these projects, a direct contractor must submit a Pre-Construction Notice to Owner before work begins. If this notice is not provided, the contractor loses the right to file a lien and cannot take legal action to enforce the terms of their contract with the property owner. Furthermore, a contractor who fails to submit this notice could face a fine of up to $1,000.
What makes Arkansas preliminary notice system unique is the impact of the general contractor’s failure to provide the notice. While the general contractor’s notice benefits subcontractors and material suppliers, its omission affects everyone’s lien rights. Only the general contractor is required to give the preliminary notice on residential projects, and if they don’t, lien rights for all parties involved are voided.
For subcontractors and material suppliers on residential projects, at least one preliminary notice must be sent to the property owner. While it doesn’t matter who sends it, the notice protects the lien rights of all involved parties. However, any labor or materials furnished before the notice is given will not be protected. Therefore, the only way to ensure complete protection for all contributions is for each party to send their own notice before starting work.
If a lien is filed later, all project participants must send a notice of intent to lien at least 10 days before filing the claim.
How to Send a Preliminary Notice in Arkansas?
Steps for Sending Preliminary Notice in Arkansas:
Obtain a Preliminary Notice Form
Begin by downloading the appropriate preliminary notice form for Arkansas. You can access both the pre-construction notice to owner and the notice to the owner and contractor forms on the Construction Payment Resources page specifically for Arkansas.
Complete the Notice Form
Accuracy is key! When filling out the form, double-check all details to ensure accuracy. Errors in your preliminary notice could jeopardize your ability to file a mechanics lien later. Review the information carefully to ensure everything is correct.
Submit the Notice
Send the preliminary notice via the appropriate delivery method. The pre-construction notice should be sent through personal service or certified mail with the return receipt requested. The notice to owner and contractor should be delivered using personal service, certified mail with a return receipt requested, restricted delivery, or an overnight delivery service. Ensure that the notice is sent to the correct parties within the 75-day deadline.
Get in Touch
Understanding the requirements of preliminary notice in Arkansas is crucial for contractors and suppliers involved in construction projects. Whether working on residential or commercial projects, adhering to the specific notice procedures ensures the protection of lien rights and expedites the payment process.
By following the proper steps, such as submitting the notice on time and with the correct information, project participants can avoid costly mistakes and legal complications. Whether you are a contractor or supplier, it’s essential to be proactive and well-informed about Arkansas’ complex preliminary notice system to safeguard your rights throughout the project’s duration.
At CRM Lien Services, we have been serving customers across the country with required reference documentation for lien claims since 1986. We provide expert guidance, helping contractors and suppliers safeguard their payment rights through seamless and timely preliminary notice and lien filings.
We have a wealth of expertise, are licensed and insured, and have a team of highly knowledgeable document processors. If you’re looking for a straightforward process for filing a preliminary notice and mechanics lien, give us a call or shoot us an email.
