Compliance & Lien Law Procedures Index
Purpose: Mechanics lien rights, preliminary notices, waivers, and compliance
Audience: AR, AP, Project Managers, Legal, Executives
🚨 CRITICAL: Protect Your Lien Rights
Mechanics liens are your most powerful tool for getting paid. Missing deadlines = losing rights PERMANENTLY.
Documents in This Section
| Document | Description | Priority |
|---|---|---|
01-preliminary-notice-procedure.md | Sending preliminary notices | CRITICAL |
02-lien-waiver-management.md | Providing and collecting waivers | CRITICAL |
03-mechanics-lien-filing.md | When and how to file liens | CRITICAL |
04-stop-notice-procedure.md | Stop notice process | High |
05-payment-bond-claims.md | Claims on public work bonds | High |
06-prevailing-wage-compliance.md | Certified payroll requirements | High |
07-notice-requirements-guide.md | Notice requirements guide | Reference |
08-insurance-requirements.md | Insurance requirements | High |
09-bonding-guide.md | Bonding guide | High |
10-california-compliance-guide.md | Complete CA compliance reference | Reference |
10-contract-risk-assessment.md | Contract risk assessment | Medium |
11-bonding-capacity-management.md | Bonding capacity management | Medium |
12-insurance-claims.md | Insurance claims procedures | Medium |
13-insurance-renewal.md | Insurance renewal procedures | Medium |
14-credit-risk-assessment.md | Credit risk assessment | Medium |
California Lien Law Quick Reference
Key Deadlines (MEMORIZE THESE)
| Action | Deadline | Penalty for Missing |
|---|---|---|
| Preliminary Notice | 20 days from first work | Lien limited to work after notice |
| Mechanics Lien | 90 days from completion | LOSE ALL LIEN RIGHTS |
| Lawsuit to Enforce | 90 days from lien recording | Lien becomes unenforceable |
Who Must Send Preliminary Notice?
In California:
- ✅ Subcontractors - MUST send
- ✅ Material Suppliers - MUST send
- ✅ Equipment Lessors - MUST send
- ❌ Direct (Prime) Contractor - NOT required (but recommended)
Lien Waiver Types (California)
| Type | When Used |
|---|---|
| Conditional Progress | With progress payment request |
| Unconditional Progress | After payment received |
| Conditional Final | With final payment request |
| Unconditional Final | After final payment received |
WARNING: California requires use of statutory waiver forms. Non-compliant forms may be invalid.
Monthly Lien Management Checklist
For AR (What We Send)
- Preliminary notices sent for new projects (within 20 days)
- Conditional waivers sent with pay apps
- Unconditional waivers sent after payment received
- Lien deadlines tracked for all projects
For AP (What We Collect)
- Preliminary notices received and logged
- Conditional waivers collected before payment
- Unconditional waivers collected after payment
- All tiers of waivers collected
Lien Timeline Visual (California Private Work)
First Work/Materials
|
v
Day 20 -----> Preliminary Notice Due
|
|
|
Project Continues...
|
|
v
Project Completion (or cessation)
|
v
Day 90 -----> Mechanics Lien Must Be Recorded
|
v
Day 90 (from recording) -----> Lawsuit Must Be Filed
Emergency Contacts
| Situation | Contact |
|---|---|
| Lien deadline approaching | AR Manager + Legal |
| Payment issue on public work | PM + Legal |
| Stop notice received | AP Manager + PM + Legal |
| Lien filed against our project | PM + Legal + Insurance |
Related Resources
- California Civil Code §§ 8000-9566 (Mechanics Lien Law)
- CFMA Silicon Valley February Lien Law Event
- Construction Lien Law Guide