This document serves as a preliminary notification in construction projects, typically utilized by subcontractors, suppliers, or other parties who are not directly contracted with the property owner. It informs the owner that the notifying party is furnishing labor, materials, or services to the property and, as such, may have lien rights against the property if payment is not received. For example, a plumbing supplier providing pipes to a construction site might issue this notification to the property owner.
The issuance of such a notification is crucial for preserving potential lien rights, offering a degree of financial security to those working on the project but lacking a direct contract with the owner. Historically, these notifications have evolved from legal frameworks designed to protect laborers and material suppliers from non-payment, fostering a more equitable environment within the construction industry. Adherence to specific state statutes regarding timing and content is paramount for the notification to be legally effective.