A subcontractor who does not serve a preliminary notice loses which rights?

A subcontractor who does not serve a preliminary notice loses which rights?

• A. Stop notices only
• B. Mechanic's lien rights only
• C. Both stop notices and mechanic's lien rights
• D. Neither

Answer: (C)

In California, filing a 20-day preliminary notice is what preserves a subcontractor’s rights to both a mechanic’s lien and a stop notice on a project. This notice must be served on the project owner and the general contractor within 20 days after you start work or first furnish materials. If you miss that deadline, you generally forfeit the right to file a mechanic’s lien for that project, and you also lose the right to issue a stop notice against funds due to the contractor. In practical terms, you won’t be able to secure payment through the lien or stop-notice mechanisms, even though you may still have other contract remedies. The requirement is designed to alert the parties with an interest in the project funds so those funds can be reserved to satisfy valid claims.

In California, filing a 20-day preliminary notice is what preserves a subcontractor’s rights to both a mechanic’s lien and a stop notice on a project. This notice must be served on the project owner and the general contractor within 20 days after you start work or first furnish materials. If you miss that deadline, you generally forfeit the right to file a mechanic’s lien for that project, and you also lose the right to issue a stop notice against funds due to the contractor. In practical terms, you won’t be able to secure payment through the lien or stop-notice mechanisms, even though you may still have other contract remedies. The requirement is designed to alert the parties with an interest in the project funds so those funds can be reserved to satisfy valid claims.