LIEN RIGHTS AND PRELIMINARY NOTICE

PROTECT YOUR LIEN RIGHTS.

QUICK ANSWER

Your mechanic's lien rights are the most powerful collection tool you have, and most subcontractors lose them before they ever need them. In most states a preliminary notice has to be sent within 20 to 30 days of first furnishing labor or materials to preserve your right to file a lien later. Preliminary notice deadlines, filing windows, and enforcement timelines are unforgiving, so the only reliable protection is treating notice as standard operating procedure on every project.

The decision that costs you is the selective one. A sub who sends notice only on the jobs that feel risky is betting he can spot a slow payer before the notice window closes, and that bet loses more often than it wins. Lien law is state specific, so the deadline, the required recipients, and the filing window all change when you cross a line on the map. Send notice on every job as part of setting the job up and the question never comes up again. Skip it once and you find out on the day you needed it most.

BY JOSH LUEBKERPublished 2026-08-06Updated 2026-08-07
THE DEFINITION

WHAT IT MEANS.

Lien rights are your legal claim against the property you improved, and they're the strongest collection tool a subcontractor has when a GC stops paying.

Lien rights are a deadline business. The clock starts when you first furnish labor or materials, not when the GC stops paying, and a late notice can't be cured after the window closes.

That's why the only protection you can count on is a procedure that runs on every project without anybody making a judgment call. Treat it like insurance certificates or safety orientation: it happens at job setup, every time, and nobody has to think about whether this GC is good for the money.

WHAT WE SEE IN THIS BUSINESS

HOW THE RIGHT GETS LOST.

01

You don't send preliminary notices on every project

In most states a preliminary notice must be sent within 20 to 30 days of first furnishing labor or materials to preserve your right to file a lien later. Most subcontractors only think about preliminary notices once a GC goes slow, and by that point the deadline has usually passed. When the preliminary notice window closes, the lien right closes with it.

02

You don't know the deadlines in your states

Lien law is completely state specific. The preliminary notice deadline in California is different from Texas, which is different from Florida, and filing windows, required recipients, and enforcement timelines all vary as well. Working across several states without knowing each state's rules means playing lien rights roulette on every project.

03

You're relying on GC relationships instead of legal rights

Most subcontractors skip preliminary notices because they don't want to seem adversarial. Preliminary notices are standard practice in commercial construction, and most large GCs and owners expect them. A preliminary notice doesn't signal distrust, but the absence of one signals that you haven't protected yourself.

HOW SPM FIXES IT

WHAT WE CHANGE.

Preliminary notices as standard practice on every project

The right approach is sending a preliminary notice on every project, every time, rather than selectively based on how much you trust the GC. A vetted lien services partner can run preliminary notices as an automatic program, so your lien rights stay preserved on every job without you tracking the deadlines yourself. You give up the judgment call, and in exchange you stop losing rights to a calendar.

Know your state specific deadlines

SPM works with a vetted lien services partner so clients operating in more than one state know their preliminary notice deadline by state and by project type. The deadline, and who must receive the notice, changes with the state, with whether the project is private or public, and with your position on the job, sub to GC or sub to sub. Those three variables are why a rule of thumb learned in one state gets contractors in trouble in the next one.

A proactive notice program instead of a scramble

Our vetted lien services partner offers a proactive preliminary notice program that sends notices automatically on your behalf across all active projects. You provide the project information at the start, and they take it from there. This carries an additional cost and isn't included in the SPM monthly fee.

$10.7M+
Client AR Recovered Since 2023
48
Active Trade Specializations
60 DAYS
Average Onboarding Time
PRICING

FLAT MONTHLY FEE. NO SURPRISES.

Three tiers, priced by your trailing twelve month revenue. Which one you're in depends on how much of the work you want off your desk. No hourly billing, no payroll, and no add-ons.

Last 12 months revenueMonthly fee
Up to $1M$1,900 to $2,900
$1M to $3.5M$2,600 to $3,900
$3.5M to $6.5M$3,800 to $5,700
$6.5M to $9.5M$5,100 to $7,100
$9.5M to $12.5M$6,100 to $8,500
$12.5M to $15.5M$7,400 to $11,000
$15.5M to $18.5M$9,400 to $13,500
$18.5M+Quoted individually

Range reflects the three tiers below. Which one you're in depends on how much of the work you want off your desk. No payroll. No hidden line items.

Core

You stop guessing.

You get the CFO work. Job costing built against the way you estimate, a 13 week cash forecast, monthly WIP, and a meeting every month that ends in decisions rather than a report.

Your bookkeeper keeps doing the books.

Executive

You stop touching the books.

Everything in Core, and we run the bookkeeping and the controllership as well. Nobody in your office is answering coding questions or chasing a reconciliation at month end.

We do the books. No payroll.

Strategic

Every job shows its margin while it's still running.

Everything in Executive, plus the job costing and WIP platform set up, loaded with your cost codes, and managed for you every month. You never have to learn it.

We do the job costing.

COMMON QUESTIONS

FREQUENTLY ASKED.

No, not with professional GCs. Preliminary notices are standard practice in commercial construction, and most large GCs and owners receive dozens of them per project and expect them from competent subcontractors. A GC who takes offense at a preliminary notice is telling you something about how they manage payment, and that's useful information before the project starts rather than after.
In states where preliminary notice is required to preserve lien rights, missing the deadline usually means you can't file a valid mechanic's lien, regardless of how much you're owed. What's left is demand letters, litigation on the contract, and any prompt payment statute claims that apply in that state. A lien services partner can advise on the remaining options once the notice has been missed.
Three tiers, and which one you are in depends on how much of the work you want off your desk. Core is where you stop guessing: job costing built against the way you estimate, a 13 week cash forecast, monthly WIP, and a monthly meeting that ends in decisions, while your bookkeeper keeps doing the books. Executive is where you stop touching the books, because we run the bookkeeping and the controllership as well. Strategic is where every job shows its margin while it is still running, because the job costing and WIP platform is set up and managed for you. No payroll. No scope gaps.
Sixty days. We migrate your books back to the start of your last taxable year, set up ControlQore, and build your job costing structure from scratch. Fully operational in two months.
WHAT THIS TIES INTO
Josh Luebker, The Construction CFO
Josh Luebker
FRACTIONAL CFO · THE CONSTRUCTION CFO

Former commercial project manager and master electrician: 150+ projects worth $2.1B combined, from $50,000 to $300M. Now fractional CFO to commercial subcontractors.

IS THERE A NOTICE OUT ON EVERY OPEN JOB RIGHT NOW?

Bring your open job list. We will go through which states you're working in, which notice windows are still open, and what your collection position looks like on each job.

You don't hire a CFO because it's safe, you do it because the real risk isn't having one.
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