In Ohio, Notices of Furnishing serve a similar purpose to preliminary notices, yet there are distinct differences between the traditional prelim notice and Ohio’s specific Notices of Furnishing. In this guide, we’ll outline the essential points you need to understand before preparing an Ohio Notice of Furnishing for a construction project.
Key Takeaways
- Timely Submission is Essential: In Ohio, the Notice of Furnishing must be sent within 21 days after labor or materials are first provided. Sending it too early can invalidate the notice, so it’s important to wait until work has started.
- Not All Parties are Required to File: Only those who do not have a direct contract with the property owner (such as subcontractors and suppliers) need to file a Notice of Furnishing, with the exception of laborers.
- Ensure Accurate Information: The Notice must include specific details like the property owner’s name, the general contractor’s name, a description of the work provided, and the date the work began. Incorrect information can delay or invalidate the claim.
What Is a Notice of Furnishing?
A Notice of Furnishing is the equivalent of a preliminary notice in four states: Michigan, Ohio, South Carolina, and South Dakota. To preserve lien rights, most parties supplying labor or materials on a construction project are required to send this notice. It’s important to send Notices of Furnishing early, well before any payment issues occur. If a lien claimant fails to submit this notice on time or skips it entirely, they typically forfeit their right to file a mechanics lien, limiting options in the case of nonpayment.
Who Needs to Send an Ohio Preliminary Notice on Private Projects?
Any party without a direct contract with the property owner—except laborers—is required to send a Notice of Furnishing. However, if the property owner fails to record a Notice of Commencement or submits an inaccurate one, sending a preliminary notice is no longer mandatory, though it is still advisable to provide notice for added protection.
Ohio also exempts preliminary notices for home purchase agreements, but it remains beneficial to send notice even when it’s not strictly required.
Who Needs to Send an Ohio Public Notice of Furnishing?
In Ohio, there are two primary methods for securing payment on public projects: filing a claim against the payment bond and placing a lien on the contract funds. These claims can conveniently be submitted using a single combined notice form.
Who Do I Need to Send the Ohio Private Notice of Furnishing To?
A Notice of Furnishing must be delivered to the property owner, part owner, lessee, or their appointed representative as listed in the Notice of Commencement. If no designee is specified or if the designee is unavailable, the notice should be sent directly to the owner, part owner, or lessee.
Additionally, parties not directly contracted with the general contractor must also send the notice to the general contractor.
Finally, if a lender is identified in the Notice of Commencement, the lien claimant has the option, though not an obligation, to serve the Notice of Furnishing to the lender as well.
What Information Is Required on an Ohio Private Notice of Furnishing?
The notice must closely follow the format outlined in ORC §1311.05(B) and include the following details:
- Name and address of the property owner, part owner, lessee, or designee mentioned in the Notice of Commencement
- Name and address of the general contractor
- Property description that is “sufficient to reasonably identify the property”
- Date when labor and/or materials were first provided
- Name and address of the notifying party
- The following warning statement:
WARNING TO PROPERTY OWNER: THIS NOTICE IS REQUIRED UNDER OHIO’S MECHANICS’ LIEN LAW. IF YOU HAVE QUESTIONS REGARDING YOUR RIGHTS AND OBLIGATIONS UNDER THESE LAWS, YOU SHOULD SEEK LEGAL COUNSEL TO AVOID THE RISK OF PAYING TWICE FOR IMPROVEMENTS MADE TO YOUR PROPERTY.
What Information Is Required on an Ohio Public Notice of Furnishing?
The Ohio public Notice of Furnishing must follow a format similar to that specified in ORC §1311.261(B) and include these key details:
- Name and address of the general contractor
- A description of the labor and/or materials being provided
- A description of the property involved
- The date when furnishing first began
- The name and address of the notifying party
Is the Ohio Preliminary Notice Considered Served When Sent or When Received?
When sent via certified mail, the notice of furnishing Ohio is deemed served on the date it is mailed. However, it must still be received to be valid. If delivered in person, service is considered complete when the notice is received.
How Should the Ohio Public Notice of Furnishing Be Sent?
The preliminary notice must be delivered either through personal service by the county sheriff (or another method allowed by Ohio law) or via certified mail, registered mail, overnight shipping, or hand delivery, with a written acknowledgment of receipt.
What If I Send the Ohio Private Notice of Furnishing Late?
The preliminary notice must be delivered either through personal service by the county sheriff (or another authorized method under Ohio law) or through certified mail, registered mail, overnight courier, or hand delivery, ensuring a written confirmation of receipt is acquired.
About Ohio Preliminary Notices
In Ohio, preliminary notice requirements (also known as a Notice of Furnishing) are closely linked to the actions of higher-tier parties in the payment chain. Notably, Ohio is one of the few states that limits preliminary notice to projects other than residential ones. It specifically exempts single-family homes, duplexes, and condominiums from needing a preliminary notice. However, it is generally recommended to send notice even if it is not required.
Apart from residential exemptions, Ohio mandates the filing of a Notice of Commencement, which must be filed by the property owner or an authorized party. This notice should be posted at the job site and sent to the general contractor. If the Notice of Commencement is not filed correctly or timely, or if a copy is not provided upon request, the deadline for filing a lien may be extended, and the requirement for preliminary notice may not apply.
When the Notice of Commencement is properly filed, all participants in the project who are not directly contracted with the property owner (except for wage workers) must send a Notice of Furnishing. This notice must be sent by certified mail, with return receipt requested, within 21 days after the first labor or materials are provided. If no Notice of Commencement is filed, sending preliminary notice is not specifically required, but it is still advisable.
Ohio has a unique provision regarding the timing of the Notice of Furnishing. Sending it too early can make it invalid, even if the notice is received after the labor or materials are furnished. Unlike other states like California, where preliminary notices can be sent at any time, Ohio requires that the Notice of Furnishing be sent only after the first contribution of labor or materials.
According to Ohio Revised Code Section 1311.05, the notice must be sent after the recording of the Notice of Commencement or an amended notice, and within 21 days of providing the first labor or materials. Ohio’s Twelfth Appellate District Court of Appeals has clarified that the notice must be sent after the work or materials have been provided. Therefore, the notice should not be mailed until the project participant has started work.
Additionally, a property owner or interested party can request a written notice of labor or materials provided. If requested, the project participant must respond within 10 days to preserve their mechanics lien rights.
How to Send Preliminary Notice in Ohio?
Ohio Notice of Furnishing serve a similar purpose to preliminary notices, but there are some important distinctions. This guide will cover the essential details you need to understand before issuing a Notice of Furnishing for your construction project.
Why is Sending a Notice Important?
Short answer: It’s generally recommended to send a notice on every project, and in some cases, it’s required.
Long answer: When the property owner files a Notice of Commencement, many parties involved in the project must send a preliminary notice—known in Ohio as the Notice of Furnishing. Even if it’s not required, sending this notice helps protect your lien rights and can be the key to receiving payment. Furthermore, it fosters transparency and good communication between owners, lenders, and general contractors, which is especially important in larger projects.
Key considerations:
- Best practice: Send a preliminary notice for both residential and commercial projects.
- If requested by the owner or any interested party, you must provide a written statement of the work/materials provided and the outstanding balance within 10 days. Failure to do so can void your lien rights.
Who Needs to Send a Notice in Ohio, and to Whom?
Short answer: Nearly everyone involved, except the general contractor.
Long answer: Ohio law requires all parties who don’t have a direct contract with the property owner (excluding laborers) to file a Notice of Furnishing to safeguard their lien rights. This includes subcontractors, material suppliers, and anyone other than the primary or principal contractor. The notice should be delivered to the property owner (or the designated representative), part-owner, lessee, or the lessee’s designee, as indicated in the Notice of Commencement. If the claimant is not contracted directly with the general contractor, the notice should also be sent to them.
Keep in mind:
- The Notice of Furnishing can also be sent to any lending institutions involved, at the lien claimant’s discretion.
- Refer to Ohio Revised Code 1311.261 for more details.
What Information Should Be Included in Your Notice of Furnishing?
Short answer: The project-specific details.
Long answer: Ohio law requires certain details to be included in the Notice of Furnishing.
These include:
- The name and address of the property owner
- Your name and address as the contractor
- Names and addresses of other contractors working on the project
- The address of the job site
- The date when you began furnishing labor and materials
Incorrect information in your notice could delay your claim, so ensure all details are accurate.
When Should You Send a Notice of Furnishing?
Short answer: Within 21 days.
Long answer: Ohio law allows a 21-day window from the date you first furnish labor or materials to send the Notice of Furnishing. The notice must be sent after the first day of service and is invalid if sent earlier. If no Notice of Commencement is filed, sending a Notice of Furnishing is not required, although it’s still a good idea to do so. A late Notice of Furnishing will cover the preceding 21 days of work/materials provided.
Key considerations:
- Don’t send your notice too early! If sent too soon, it will not be valid—even if the owner receives it after the labor or materials are furnished.
- You can still send the notice up to 21 days after the work/materials were provided.
How to Send Your Notice?
Short answer: Via certified mail.
Long answer: You can send the Notice of Furnishing in several ways: through certified mail, registered mail, by hand delivery, or through the county sheriff.
Keep in mind:
- Under Ohio law, sending the notice via certified mail is considered sufficient delivery. However, it’s still your responsibility to ensure the notice is received.
Get in Touch
Understanding the Ohio Notice of Furnishing is crucial for protecting lien rights in construction projects. By sending this notice within 21 days of providing labor or materials, you can ensure your ability to file a mechanics lien if payment issues arise. Though not always required, sending a Notice of Furnishing is a best practice for safeguarding your rights and promoting transparency among all parties involved.
Always ensure the notice includes the correct information and is delivered properly, whether by certified mail or other legal methods. Properly following Ohio’s notice requirements can help avoid complications and ensure timely payment.
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.
