The primary purpose of a preliminary lien notice is to protect the rights of subcontractors, suppliers, and other parties working on a construction project. By sending the notice, these parties establish their presence and involvement in the project and put the property owner and general contractor on notice of their potential lien rights. This helps ensure that those providing labor and materials receive payment for their work and supplies, reducing the likelihood of payment disputes and facilitating a smoother payment process. Additionally, the preliminary lien notice promotes transparency in the construction industry by creating a clear record of all parties involved in the project, enabling property owners and general contractors to track the flow of funds and ensure proper payment down the chain. Ultimately, the notice helps safeguard the financial interests of the parties contributing to the project and can serve as a powerful legal tool if the need for filing a mechanics lien arises.
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