What is the primary purpose of the "Preliminary 20-day Notice"?

The primary purpose of the "Preliminary 20-day Notice" is to assert mechanic's lien and stop notice rights. This legal notice is typically sent by subcontractors, suppliers, or others who are providing labor or materials on a construction project. By issuing this notice, the parties involved inform the property owner and the general contractor that they are involved in a project and may have a right to file a mechanic's lien if they are not paid.

This notice serves several important functions: it protects the rights of those who may not have a direct contractual relationship with the property owner, and it provides a level of transparency regarding who is working on the project. If a contractor or subcontractor does not receive payment for their services, they can file a mechanic's lien against the property, but in many jurisdictions, they must first provide this preliminary notice within a specified timeframe—in this case, 20 days.

This process helps to ensure that all parties are aware of their rights and obligations related to payment, while also offering a form of security for those providing labor and materials, encouraging fair payment practices in the construction industry.