What is notice of commencement?

A notice of commencement is a legal document that is filed with the clerk of the court or the county recorder's office. The purpose of a notice of commencement is to put contractors, subcontractors, and material suppliers on notice about the start of a construction project. It provides details about the project such as the property owner, the contractor, and the location of the project.

The notice of commencement usually includes critical project information such as the estimated total cost of the project, the start and end dates of the project, and the scheduled payment dates. It also outlines the roles and responsibilities of the parties involved in the project and the conditions of their agreements.

This document is essential in protecting the property owner from mechanics liens. The notice of commencement alerts interested parties that there is an ongoing construction project taking place and it ensures that contractors and suppliers have a statutory deadline to file a lien against the property.

The notice of commencement is valid for up to one year from the date of filing and it should be posted on the construction site in a visible location. The process of filing a notice of commencement varies by state, so it is recommended to consult with a local attorney or a construction professional for guidance.