CSLB Contractor's Law & Business Practice Exam

When should a 20-day preliminary notice be delivered by a subcontractor?

1. Before starting work

2. After project completion

3. At any time during the project

4. Only when the project is delayed

The correct answer is: Before starting work

A 20-day preliminary notice should be delivered by a subcontractor before starting work on a construction project because this notice serves as a formal notification to the property owner and construction lender that the subcontractor intends to perform work on the project. Delivering this notice allows the subcontractor to establish their right to file a mechanic's lien if they do not receive payment for their services. Sending this notice in advance ensures that all parties involved are aware of the subcontractor's participation in the project and helps protect their legal rights concerning payment for labor, materials, or services provided. It is a preventive measure to establish a legal basis for any claims that may arise later on if payment disputes occur. This timing is crucial because delivering the notice after work begins or upon project completion would not provide the same level of protection; the subcontractor risks losing their right to claim certain remedies if they fail to notify the involved parties in a timely manner.