States with Notices of CommencementNCS Credit - July 22, 2014
Information is critical to sound decision making in the construction credit industry. Too often, credit professionals are spending valuable time making calls and scouring the internet looking for project information.
Where is the project located?
Who is the owner?
Is there a payment bond issued for this project?
Fortunately, there are several states that provide for a Notice of Commencement – i.e. the answer to these questions!
A notice of commencement is a notice typically recorded by the owner of a construction project, in the county where the project is located, prior to materials or services being provided to the project. The information provided in the notice of commencement assists in the preparation and service of the preliminary notice.
“That’s great… but what is a notice of commencement?”
The notice of commencement generally provides the property description, the name and address of the owner, the name and address of the prime contractor, any parties that need to be served with a preliminary notice (i.e., designee), and surety information if the project is bonded.
The requirements for the notice of commencement vary by state, and the recording of the document sometimes triggers the requirement for those working on the project to serve a preliminary notice. A copy of the notice of commencement is to be made available upon request, or a copy may be posted on the jobsite.
“OK, so which states provide for a notice of commencement?”
- Michigan (private projects)
- Nebraska* (private projects)
- South Carolina
- South Dakota
- Utah (public projects)
**Note: A Lender on a Nebraska project may record a Notice of Commencement to ensure the priority of their deed of trust over any subsequent liens.
NCS Side Note: Wouldn’t it be great if there was a central location for researching Notices of Commencement? We thought so too! Click here for more information. Rather check it out on YouTube? Click here.