Providing a New Hampshire preliminary notice can be a powerful step toward securing faster payments on a construction project. This notice serves as an informational document, usually delivered to the property owner early in the project timeline. However, managing preliminary notices in New Hampshire comes with its challenges. Multiple types of notices may be necessary, and some even require repeated submissions.
As such, ensuring accuracy in the process is essential. For those receiving preliminary notices, understanding their purpose and the appropriate follow-up actions is equally critical. Given the intricate rules and obligations surrounding preliminary notices, navigating this process can be complex. Below, we break down the key rules and requirements for sending preliminary notices in New Hampshire.
Key Takeaways
- Timely Preliminary Notices Are Crucial: Sending a preliminary notice before providing labor or materials, or as early as possible, enhances your ability to secure payment and enforce mechanics lien rights in New Hampshire.
- Recurring Monthly Updates Protect Your Claim: Submitting a written account of labor or materials supplied every 30 days ensures the property owner reserves sufficient funds to cover your costs, minimizing risks of non-payment.
- Compliance Reduces Payment Risks: Following New Hampshire’s specific rules for notices and documentation safeguards your lien rights and maximizes recoverable amounts, even in the face of payment disputes.
Do I Need to Send a New Hampshire Preliminary Notice on Private Projects?
In New Hampshire, any party without a direct agreement with the property owner is obligated to send a preliminary notice.
When do I Need to Send a New Hampshire Preliminary Notice?
Under New Hampshire mechanics lien laws, parties must provide a preliminary notice (also referred to as a notice of intent to lien) before supplying labor or materials to a construction project. Additionally, a detailed written account of the labor or materials delivered in the prior 30 days must be submitted every 30 days following the initial notice. While the statutes suggest that the preliminary notice can be given at any point before filing a lien, its effectiveness depends on the property owner’s outstanding balance to the general contractor when the notice is served.
This means serving the notice early improves the chances of securing a valid lien. However, there is some legal ambiguity regarding the timing and necessity of subsequent written statements of account, which has led to varying interpretations by the courts.
What if I Send the New Hampshire Preliminary Notice Late?
If a preliminary notice is not issued before labor or materials are provided, it may still be sent later, as long as it is delivered before filing the lien. However, the lien will only cover the funds owed by the property owner to the general contractor at the time the notice is served. Delays in sending the preliminary notice could jeopardize the lien’s enforceability.
Additionally, failing to provide the required statement of account, either with or after the preliminary notice, adds complexity. Courts have differing interpretations, but missing this requirement could result in portions of the lien claim being invalidated.
How Should the New Hampshire Preliminary Notice Be Sent?
New Hampshire law does not specify the exact method for delivering a New Hampshire preliminary notice to the property owner, only that it must be “furnished.” Utilizing certified mail with a return receipt requested is often a recommended approach to ensure proper documentation of delivery.
Do I Have to Send the New Hampshire Preliminary Notice to Someone Other than the Owner?
The notice should also be provided to the mortgage holder involved in a construction project.
Is the New Hampshire Preliminary Notice Requirement met when sent or delivered?
Since the statutes do not specify the method of service, the process remains unclear. To ensure compliance, treat the notice as delivered when it is either accepted or refused if sent via certified mail.
Do I Need to Send a New Hampshire Preliminary Notice on Public Projects?
A preliminary notice is not explicitly mandated for a lien on funds owed by a public entity or for a claim against the contractor’s bond. However, any party has the option to send one. As a precaution, especially before pursuing a lien on contract funds, it is often advisable to issue a preliminary notice resembling that required for a private mechanics lien.
About New Hampshire Preliminary Notices
New Hampshire’s preliminary notice requirements are unique and somewhat unclear, reflecting the state’s outdated lien laws. For example, lien rights can be triggered by furnishing materials worth as little as $15, and the preliminary notice process is poorly defined.
The law technically requires two types of notices, each with its own requirements:
- Initial Preliminary Notice:
All parties without a direct contract with the property owner must provide a written notice to the owner. This notice should ideally be sent before starting work or delivering materials, but it can also be issued afterward. If sent post-delivery, the lien will only cover amounts still owed to the party who hired the claimant or potentially to the general contractor. The statute’s wording on this limitation is unclear and subject to interpretation. - Recurring Notice of Account:
Parties required to send the initial preliminary notice must also provide a written account of work completed or materials supplied “as often as once in 30 days.” This recurring notice is generally understood as a monthly statement to ensure the property owner reserves enough funds to cover the costs. However, the law also allows this account to be included with the initial notice, adding to the confusion.
Deadlines for these notices are equally vague. While the law suggests the initial notice should be sent before work begins, it explicitly allows the notice to be issued afterward, with restrictions. The recurring notice requirement is more straightforward but still poorly explained in the statutes.
To ensure compliance and maximize lien rights in New Hampshire, parties without a direct contract with the property owner should:
- Send a written preliminary notice before providing labor or materials (or as soon as possible afterward).
- Issue a monthly statement detailing work or materials provided in the preceding 30 days.
This cautious approach helps navigate the state’s complex lien laws and better protects a claimant’s rights.
How to Send Preliminary Notice in New Hampshire?
The New Hampshire preliminary notice process for private construction projects is distinctive and can significantly impact payment recovery. While not strictly mandatory to secure mechanics lien rights, neglecting to send a notice—or sending it late—can drastically reduce the recoverable amount. This guide simplifies the rules and requirements for sending preliminary notices in New Hampshire to protect your payment rights effectively.
New Hampshire Preliminary Notices
New Hampshire law outlines two key types of preliminary notices:
- Notice of Intent to Claim a Lien: A traditional preliminary notice asserting lien rights.
- Recurring Monthly Notice: A detailed account of labor or materials supplied within the previous 30 days.
Both notices play a vital role in maximizing your ability to recover payment on a project.
Notice of Intent to Claim a Lien
The Notice of Intent to Claim a Lien is crucial for securing mechanics lien rights in New Hampshire. This notice must be sent before starting work or delivering materials and applies to most project participants, including sub-subcontractors.
Form Requirements
New Hampshire statutes don’t provide explicit details about what to include in the notice. However, a comprehensive notice should have the following:
- Project/property address
- Claimant’s contact details
- Information about the hiring party
- Contract date
- A declaration of intent to assert lien rights under N.H. R.S.A. Chapter 447
Since the statute doesn’t specify a delivery method, sending the notice via certified or registered mail with a return receipt is recommended. This creates a documented trail in case of disputes.
Impact of Late Notices
While failing to send the notice doesn’t invalidate your right to file a mechanics lien, it does limit the recoverable amount. In New Hampshire, lien claims are only valid for funds unpaid to the party who hired the claimant at the time the notice is received by the property owner.
The later you send the notice, the greater the risk of reducing your recoverable amount. If the owner has already paid the general contractor (GC) in full, a subcontractor may have no recourse through the lien and may need alternative recovery options.
Recurring Monthly Notice
Once the preliminary notice is sent, the claimant must provide a Recurring Monthly Notice every 30 days. This isn’t exactly a new notice but a written statement summarizing labor and materials supplied during the preceding 30 days, along with the current balance due.
Providing an itemized invoice usually satisfies this requirement. Upon receiving the notice, the property owner must hold sufficient funds to cover the amount unless it is paid by the hiring party.
How to Send a Preliminary Notice
Using a reliable service or software ensures that your preliminary notices are accurate and timely. Certified mail with proof of delivery remains the best option to establish a record of compliance.
Conclusion
New Hampshire preliminary notice rules are relatively simple yet critical for maximizing lien recoverability. Although these notices aren’t mandatory, they are a proactive measure to protect yourself from payment issues. Properly following the process ensures you can claim the full amount owed for your work or materials.
No one anticipates payment problems when starting a project, but taking these steps minimizes risks and secures your hard-earned payments.
Get in Touch
New Hampshire preliminary notice process is an essential tool for protecting your payment rights on construction projects. While not mandatory, sending timely and accurate preliminary notices—along with recurring monthly updates—can significantly enhance your ability to recover the full amount owed. By proactively following these guidelines, you reduce risks and ensure compliance with New Hampshire’s unique lien laws. Taking these steps helps safeguard your financial interests and secures fair compensation for your efforts.
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.
