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Mistakes in Contracting: Some of the more
common construction contractor oversights and mistakes
by Levy • von Beck & Associates, P.S.
1. Accepting a subcontract that references the main contract without
actually seeing the main contract.
2. Not serving a preliminary notice on a project.
3. Not verifying the Owner, Lender and other information on the
4. Assuming that the "lien preparation service" company
you use guarantees their work in case of their own mistakes.
5. Not tracking the lien deadline and thereby allowing lien rights
6. Accepting a promissory note from a customer and releasing the
7. Setting up one main account rather than individual job accounts.
8. Not having the project names printed onto the invoices by the
computer. Instead, it is printed or typed in after the fact, if
included at all.
9. Not verifying contractor license numbers. Not updating verification
on contractor license numbers.
10. Giving a lump sum bid rather than listing out items and prices
or per foot charges.
As some of you know, we (www.TheContractorsGroup.com)
were once better known as "C and D Acoustics", a California
licensed suspended ceiling construction company. I used to think
that sending a prelien was just a simple task, even a no brainer
if you will. ;)
After much reading, however, on exactly what a preliminary notice
is supposed to do for me and, even more important, just how easy
it is to lose my rights to payment if I don't do every part of this
"simple task" absolutely perfect, I came to realize that
perfection of lien rights is a much more complicated and time-consuming
process than I am equipped for.
You can spend inordinant amounts of time researching and verifying
just who needs to receive a copy of your prelien, and then still
lose out in the end with just one typo or even one envelope misplaced
by the USPS (which unfortunately happens all too often these days).
Without a thorough understanding of the statutes (which changed TWICE in the year 2001 in California)
and/or the "man"power and financial resources to spend
the excessive amount of time required to insure that your prelien
is prepared perfectly and delivered to the correct entities, you
could lose all right to payment!
Be absolutely certain that you research your information carefully and/or hire a company to do this service for you.
Part 9 of this series takes a look at
LienLawOnline, a valuable asset for your "library" of helpful
Part 1 - Process your California 20-Day Preliminary Notice or lose out on your lien rights!
Part 2 - Researching and verifying preliminary notice information
Part 3 - Software can help you process preliminary notices super-quick! <-- No longer available
Part 4 - Outsourcing your preliminary notices
Part 5 - Processing preliminary notices using the form available here
Part 6 - Don't let a slip-up at the post office cause you to lose your rights
Part 7 - Mistaken Identity - by Attorney Dave Barnier...
Part 8 - Some common mistakes you MUST avoid !!
Part 9 - LienLawOnline is a valuable asset to add to your library of helpful sites
Thank you for visiting our site. I hope that this
series of articles is helpful to you! I'm always happy to receive
feedback, so please
do send me a note if you have anything you'd like to tell me.
Thank you!! :)