Submitting a Missouri preliminary notice is a valuable step to ensure timely payments on construction projects. This notice, often sent to the property owner early in the project, serves as an informational tool to outline your involvement. Missouri’s preliminary notice process involves various rules, requirements, and specific circumstances that must be carefully understood.
Ensuring your notice is appropriate for the situation and fulfills all necessary conditions is crucial for its effectiveness. Due to the intricate nature of these regulations, navigating them can be challenging. Here’s a breakdown of the essential details for properly handling Missouri preliminary notices.
Key Takeaways
- Timely and Accurate Notice is Crucial: Sending the correct preliminary notices, such as the Notice to Owner, Notice of Equipment Use, and Notice of Intent to Lien, is essential to protect mechanics lien rights in Missouri. Failure to send these notices within the required timeframes can invalidate lien claims.
- Specific Requirements for Different Roles: Missouri’s notice rules vary based on the role in the project—general contractors, subcontractors, and equipment lessors all have distinct notice requirements that must be followed to preserve lien rights and avoid legal complications.
- Penalties for Non-Compliance: Missing deadlines or failing to provide required notices can lead to significant consequences, including the loss of lien rights or criminal charges. It is crucial to understand and comply with Missouri’s notice requirements to safeguard payment rights.
Do I Need to Send a Missouri Preliminary Notice on Private Projects?
Yes, Missouri has specific notice requirements that must be followed before filing a Missouri mechanics lien.
- Disclosure Notice: Any party contracting directly with the property owner (except architects) must issue a disclosure notice to the owner before receiving payment.
- Consent of Owner Document: For residential owner-occupied projects, subcontractors without a direct agreement with the owner should have the general contractor secure a signed consent of owner document. Without this, subcontractors will not have lien rights.
- Equipment Lessor Notice: On commercial projects, equipment lessors with rentals exceeding $5,000 must notify the property owner within 15 business days of the equipment being used on the property.
- Notice of Intent to Lien: Subcontractors and suppliers must send a notice of intent to lien to the property owner at least 10 days before filing the lien.
- Notice of Lien Rights: On residential projects where the owner has filed a notice of intended sale, potential lien claimants must file a notice of lien rights with the county recorder at least 5 days before the sale date.
Understanding and adhering to these requirements is essential to preserve lien rights in Missouri.
When do I Need to Send a Missouri Preliminary Notice on Private Projects?
- Disclosure Notice to Owner: Must be issued before receiving any payments from the property owner.
- Notice of Equipment Lease: Should be delivered to the property owner within 15 days of starting equipment use.
- Notice of Intent to Lien: Must be sent at least 10 days before recording the mechanics lien.
- Notice of Lien Rights: If required, this notice must be filed at least 5 days before the property’s proposed transfer date.
What if I Send the Missouri Preliminary Notice Late on Private Projects?
Not providing the required Notice to Owner in Missouri completely invalidates a mechanics lien claim. Additionally, if this notice is omitted with intent to deceive, the contractor may face a class B misdemeanor charge.
Missing the deadline to issue a Notice of Equipment Lease also renders a mechanics lien claim invalid.
Failing to file a Notice of Lien Rights, when mandated, will nullify the lien claim in Missouri.
Similarly, not delivering the Notice of Intent to Lien within the specified timeframe will disqualify a lien claim.
How Should the Missouri Preliminary Notice be Sent on Private Projects?
Missouri law does not specify a method for delivering the Notice to Owner. It is advisable to serve the notice via certified mail or personal delivery.
The Notice of Equipment Lease also lacks specific delivery guidelines but must simply be “provided” to the property owner.
The Notice of Lien Rights must be officially recorded with the county recorder of deeds in the county where the property is located.
For the Notice of Intent to Lien, it must be delivered in person by a qualified process server or an individual competent to testify. Documentation proving the service is required.
Do I Have to Send the Missouri Preliminary Notice to Someone Other than the Owner?
Typically, no, unless a notice of lien rights is required. In such cases, it must be recorded with the county recorder of deeds where the property is situated.
Is the Missouri Preliminary Notice Requirement met when sent or delivered?
In Missouri, preliminary notices are typically deemed delivered when sent via certified mail with a return receipt requested, unless personal service is mandated. For personally served notices, delivery is recognized at the time of service.
Do I Need to Send a Missouri Preliminary Notice on Public Projects?
Suppliers working with second-tier subcontractors or other vendors must now provide notice under the revised Missouri Payment Bond legislation.
While Missouri doesn’t mandate formal statutory notices, individual bond agreements may include specific notice requirements that must be adhered to. It’s advisable to obtain a copy of the bond at the start of the project to ensure compliance.
When Do I Need to Send a Missouri Preliminary Notice on Public Projects?
Suppliers working remotely must provide preliminary notice in Missouri within 90 days of their final delivery of materials or labor if payment is still pending and they plan to file a bond claim.
If the bond specifies certain notice requirements, those notices should be sent according to the deadlines outlined in the bond agreement.
What if I Send the Missouri Preliminary Notice Late on Public Projects?
Typically, bonds impose strict deadlines for notice submission, and failure to comply with these timelines may result in the forfeiture of any future claims.
Suppliers working remotely who miss the notice deadline will not be able to seek protection under the bond.
How Should the Missouri Preliminary Notice be Sent on Public Projects?
While there is no specific method outlined for delivering a remote supplier’s notice, it must be in writing. Using certified mail is recommended to maintain proof of delivery.
For notices required by the bond, follow the delivery method specified in the bond agreement.
To Whom Must the Missouri Preliminary Notice Be Given?
A remote supplier should direct their notice to the primary contractor overseeing the project. It’s also advisable to notify your immediate customer to keep them informed about the matter. Sending a notice to the surety could help speed up the payment process.
For any bond-related notices, ensure they are sent to the parties specified within the bond agreement. Typically, the bond may require the surety to be notified before filing a mechanics lien claim.
About Missouri Preliminary Notices
Missouri preliminary notice requirements have some unique aspects. While traditional preliminary notices are typically not necessary, subcontractors must submit a notice of intent to lien at least 10 days before filing a mechanics lien.
Other notice obligations vary depending on the project type and role.
Here’s a quick summary of Missouri’s notice requirements:
- General Contractors (excluding architects): Must provide notice before receiving any payment from the property owner.
- Subcontractors (residential owner-occupied properties): Must have the property owner sign a consent document through the general contractor. Without this, subcontractors without a direct contract with the owner lose lien rights.
- Equipment Lessors (commercial properties): Must inform the property owner within 15 days from the start of using equipment, provided the rental exceeds $5,000.
Additionally, Missouri has some distinctive requirements. If an owner plans to sell a property, they must notify those with potential lien rights. If a notice of intended sale is filed on a residential property, a lien claimant must file a notice of lien rights with the county recorder at least 5 days before the sale date.
Missouri takes these deadlines seriously, and failure to comply with the notice requirements, intent to lien, or mechanics lien rights notice will invalidate any lien claim.
How to Send Preliminary Notice in Missouri?
Missouri’s rules for preliminary notices can be complex. While there is no “traditional” preliminary notice requirement, subcontractors must submit a notice of intent to lien before filing a mechanics lien. Additionally, various other notices may be required depending on the specific situation. Understanding and adhering to these requirements is crucial as failure to do so can affect a contractor’s ability to file a lien. This guide covers all the key details about Missouri preliminary notice process.
Missouri Preliminary Notices
Missouri does not require a “traditional” preliminary notice but mandates several notices be sent before filing a Missouri mechanics lien. Almost every participant in a construction project must send or file a notice to secure their lien rights. Missouri law protects property owners by requiring direct contractors to inform them of possible liens and demanding consent from owners in certain cases. Missing any required notice will result in the loss of the right to file a lien. Let’s break down the necessary notices:
Notice to Owner
This notice is mandatory for contractors who have a direct contract with the property owner. It must be sent before any payments are received.
You can provide it when:
- Executing the contract
- Delivering the first materials
- Starting the work
- With the first invoice
While there is no specific method for sending this notice, it’s best to use personal service or certified mail and keep proof of delivery. The notice must include specific language in bold 10-point font, informing the owner that failing to pay suppliers or service providers could lead to a mechanics lien being filed.
Failure to send this notice can result in losing the right to file a mechanics lien. Contractors who intentionally fail to send the notice can face criminal charges, including fines and imprisonment.
Owner Consent
On owner-occupied residential properties, subcontractors or suppliers who do not have a direct contract with the owner must obtain the owner’s consent to secure lien rights.
This consent form must include the following language:
“CONSENT IS HEREBY GIVEN FOR FILING OF MECHANICS LIEN BY ANY PERSON WHO SUPPLIES MATERIALS OR SERVICES FOR THE WORK DESCRIBED IN THIS CONTRACT IF HE IS NOT PAID.”
If the consent is not provided, and the general contractor is paid in full, lien rights are lost. Missouri law enforces this requirement strictly, with severe penalties for anyone caught forging the owner’s signature.
Notice of Use of Equipment
For equipment lessors on commercial projects, a Notice of Use of Equipment is required. The rental must exceed $5,000 for the notice to be valid. The notice must be sent within 15 days of using the equipment. Failure to provide this notice will invalidate the lessor’s mechanics lien rights.
Notice of Intent to Lien
Before filing a mechanics lien, all potential lien claimants in Missouri must send a Notice of Intent to Lien. The notice should include:
- Property owner’s details
- Claimant’s contact information
- Hiring party’s details
- The amount claimed
- Description of labor/materials
- Legal description of the property
- Notarization
This notice must be served at least 10 days before filing a lien. It can be delivered through personal service, certified mail, or filed with the county recorder if personal service is not possible.
Notice of Rights
This notice is required when a property owner intends to sell the property during construction. If the sale notice is posted, all project participants must file a Notice of Rights at least 5 days before the scheduled sale to preserve their lien rights.
Final Thoughts
The preliminary notice process in Missouri is intricate. Depending on the project type, role, and specific circumstances, contractors must follow these notice requirements to ensure they protect their lien rights. Failing to meet these requirements may result in legal challenges or the inability to file a lien.
In addition to safeguarding lien rights, sending preliminary notices improves project communication and helps ensure timely payments. Even when not mandatory, it’s often advisable to send these notices to avoid complications down the line.
Get in Touch
Understanding and adhering to Missouri preliminary notice requirements is essential for contractors, subcontractors, and equipment lessors to protect their lien rights and ensure timely payments. With specific guidelines for different project types and participants, including requirements for disclosure notices, consent forms, equipment rental notices, and notices of intent to lien, the process can be complex but vital for avoiding legal challenges.
By following the proper procedures and meeting the necessary deadlines, stakeholders can safeguard their rights and prevent issues during and after the construction project.
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.
