Managing construction paperwork puts a big burden on the back office of subcontractors. Notarization can feel like one more weight on the scale. One that, if disregarded, will stand in the way of getting paid.
If you’re trying to understand which construction documents require notarization and when they require it, you’re in the right place. This article will cover:
- Why documents need to be notarized
- Which construction documents require a notary
- State-by-state list of notarization requirements
- Tips to manage notarized construction docs
Why Construction Documents May Need to Be Notarized
The primary purpose of notarization is to certify that document signatures are authentic. It provides legal protection and peace of mind for project owners and general contractors (GCs).
To get a document notarized, you’ll take it to a notary who acts as a government agent while doing the following:
- Verify identity: Notaries must check your identification to make sure you are who the document says you are. This aims to prevent parties from falling into business with fraudulent people.
- Validate document dates: You cannot notarize a document that’s dated in the future. The notary will confirm that the date on the document is either for the current or a previous day, ensuring that the terms of the document are valid from the moment you sign it.
- Confirm sound mind: Part of the notary’s role is to ensure that you are of sound mind, that you understand what you are signing, and that you’re not signing under duress.
Not all documents need to be signed by a notary, which is how most subs get tripped up. So when do you need to worry about notarization?
Notarization Requirements for Common Construction Documents
Some construction documents require notarization according to state laws. For others, the contract holder may request it. If the property owner or GC requires certain documents to be notarized, they will outline those terms in the construction contract.
Let’s look at the notarization requirements for most common construction documents, including:
- Construction contracts
- Notices of commencement
- Change orders
- Payment applications
- Sworn statements
- Contractors’ affidavits
- Lien waivers
- Preliminary notices
- Notices of intent to lien
- Mechanics’ liens
Do construction contracts need to be notarized?
Almost every construction project has a contract that defines all the parameters of the project, including scope, budget, and schedule, along with many other details. Since contracts are already legally binding agreements, no states require them to be notarized.
Project owners and GCs generally don’t require it either, but it’s feasible they could if they’re being extra cautious. Some attorneys recommend that subcontractors get all signed agreements notarized as an extra layer of protection against potential future disputes.
Does a notice of commencement need to be notarized?
A Notice of Commencement (NOC) is a document that contractors file to declare the start of a project. It’s also referred to as a Notice of Project Commencement, an Affidavit of Commencement, or a Notice of Contract. Only seven states require contractors to issue a NOC. In three of those states, you must have it notarized.
- Florida
- Michigan
- Ohio
You can learn more about other important NOC requirements here.
Do change orders need to be notarized?
A change order is an amendment to a construction contract that documents a modification to the details in the contract. They come up in almost every project. Amendments can include expanded or retracted scope. This guide covers all the ins and outs of change orders.
States don’t require you to notarize change orders, and typically neither does anyone else. Because approved change orders are essentially part of the original contract, they’re already considered legally binding.
Do payment applications need to be notarized?
Payments applications are a collection of documents that prove what work was done, which materials were used, and what payment is due. They’re the construction industry’s extra-complicated version of invoicing. For a deeper dive into payment applications, check out this guide.
As far as regulations go, there are no laws stating that payment applications must be notarized. Your contract may specify otherwise. If you spot a notarization clause during contract review, either ensure you have the pay app properly notarized or ask the GC to take this clause out.
Do sworn statements need to be notarized?
Sworn statements list all contractors and suppliers that are providing labor or materials for a project, along with:
- The total amount for their contract
- Any amount previously paid
- Payment currently owed
- The remaining balance on each contract
Sworn statements aren’t legally required in any state, but when a sworn statement is requested, you must always have it notarized.
You can find other state requirements related to sworn statements here.
Does a contractor’s affidavit need to be notarized?
A contractor’s affidavit is similar to a sworn statement. The only difference is that the affidavit is submitted at the end of the project and lists all the vendors or subcontractors who are still owed money on a project.
Like sworn statements, affidavits must be notarized in all 50 states.
Do lien waivers need to be notarized?
Lien waivers are one of the more complicated documents in construction, primarily because there are multiple types that need to be submitted at specific times.
To put it simply, a lien waiver is an agreement where subcontractors waive their rights to file a lien against the project in exchange for receiving payment for completed work. This guide to construction lien waivers covers important details about how lien waivers work.
Only Wyoming and Mississippi require a lien waiver to be notarized. Other than that, it’s up to the GC’s discretion. Texas required lien waivers to be notarized until its policy changed in January 2022.
It’s worth noting that 10 states have specific lien waiver forms that may not be altered. Therefore, notarizing a lien waiver in one of these states could nullify it:
- Arizona
- California
- Florida
- Georgia
- Massachusetts
- Michigan
- Missouri
- Nevada
- Texas
- Utah
Do preliminary notices need to be notarized?
A preliminary notice is a document you submit to the GC at the start of the project letting them know you’ll be involved in the project and have a right to file a lien if you don’t receive payment. In some states, this document is known as a Notice to Owner or Notice of Furnishing.
Preliminary notice requirements vary widely across states. They don’t typically need to be notarized. Arizona, however, requires proof that notice was given. Notarization is an acceptable method of proof.
Do notices of intent to lien need to be notarized?
A notice of intent to lien (NOI) says you intend to place a lien on a property if you don’t receive payment within a specific number of days. It’s basically your final warning before filing a lien.
Ten states—Arkansas, Colorado, Connecticut, Illinois, Louisiana, Missouri, North Dakota, Pennsylvania, Wisconsin, and Wyoming—require subs to send a NOI to protect their right to file a mechanics lien. Of these 10 states, Illinois and Missouri require the NOI to be notarized.
Do mechanics’ liens need to be notarized?
Mechanics’ liens protect you—and other contractors, subcontractors, and suppliers—from not getting paid for your work on a project. This legal claim functions like a security interest in the property.
Filing a mechanic’s lien says you’re owed money for your services, you demand payment by a specific date, and if you don’t receive payment, you intend to file a lawsuit to collect payment from the value of the property.
More states than not require mechanics’ liens to be notarized. If the project site is in one of these 36 states, be sure to get your lien notarized before you file it.
Additionally, Delaware and Massachusetts recommend having liens notarized. The other 12 states—California, Georgia, Hawaii, Illinois, Louisiana, Mississippi, Montana, New Hampshire, North Carolina, North Dakota, Pennsylvania, and Wisconsin—don’t require it.
Notarization Guide for All 50 States
It’s a lot to keep track of, even for local contractors. If you do business in multiple states or regions, it’s even more confusing. Here’s a high-level breakdown.
- Construction contracts, change orders, payment applications, and preliminary notices do not legally need to be notarized anywhere.
- Sworn statements and contractors’ affidavits must be notarized in all 50 states.
- Notices of commencement, lien waivers, notice of intent, and mechanics’ liens vary depending on the state.
Here’s a chart of the notarization laws for each state.
Managing Notarized Construction Documents
Just like all the rest of the paperwork flying in and out of your office, managing notarized construction documents can feel like a juggling act. And dropping a ball can be a big deal. If you overlook a notary signature on a single lien waiver, it can delay payment by weeks.
Streamlining your approach to managing notarized construction docs can make a difference, not only for your peace of mind but also for your financial health. Here are a few tips to keep everything flowing smoothly and make sure you never miss an important signature.
- Know the requirements: It’s your job to know the state requirements everywhere you’re licensed to do business. You can bookmark the table above if you need a cheat sheet. But remember, the project owner or GC may have different policies. So, be sure to check your contracts for the requirements of each of your projects.
- On-demand notary access: Make it as easy as possible to get documents notarized. This used to look like having someone on staff register as a licensed notary. Today, you have access to online notary services like NotaryLive, OneNotary, and Secured Signing.
- Centralize and automate: GC requirements are where it gets complicated, especially when it comes to lien waivers. Subs can save a lot of time and prevent a lot of mistakes when they use a tool like Siteline to manage all their lien waivers, pay apps, and change orders across all GCs.
Cornerstone Forming uses Siteline to centralize their change orders and pay application management. Not only does it prevent pay apps from getting rejected, but it also saves their team 24 hours per month. Take a look at how Siteline can make your life easier.
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