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Construction glossary
Construction Glossary •

Preliminary Notices

What are Preliminary Notices?

Preliminary Notices are legal documents that are commonly used in the construction industry. These notices are also known as pre-lien notices or notices to owner. They are typically sent at the beginning of a construction project by the subcontractors, suppliers, or equipment renters, essentially anyone who does not have a direct contractual relationship with the property owner. The main purpose of these notices is to inform the property owner, general contractors, or other party with financial interest in the property, of the sender's involvement in the project and their right to file a lien in the event they are not paid for the services or materials provided. It's an essential step in securing one's right to payment. Moreover, Preliminary Notices serve as a professional way to maintain transparency and communication in construction projects and promote smoother and more prompt payments.

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Other construction terms

Lien

What is a Lien?

A lien, particularly in the construction industry, is a legal claim or right that a contractor, sub-contractor, or supplier places on a property at which they have rendered services or supplied materi...
General Ledger (G/L)

What is a General Ledger (G/L)?

A General Ledger (G/L) in the construction industry is a fundamental financial tool for recording all financial transactions of a construction company including assets, liabilities, equity, revenue, a...
ACH (Automated Clearing House)

What is an Automated Clearing House (ACH)?

An Automated Clearing House (ACH) within the construction context refers to an electronic fund transfer system primarily used for direct deposit payments, including for construction services. It's a m...

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