Preliminary Notice-Private Work

Warning: All information contained within this data base is subject to change at any time by the various states and is not guaranteed in any way by FWM Software. Nor does FWM Software assume any liability or responsibility for it's content. Please use in conjunction with advice from your attorney.

Note: This information is limited in scope and applies only to this document. Please see the general information, all forms memo, and the general information memo for this type of document, for additional information.

Document Title: Preliminary Notice for Furnishing Labor, Materials or Equipment.

Scope: State of Arkansas, Private Works.

Time Constraints: The Notice for Furnishing must be served under the following conditions:

Residential Jobs of 4 units or less: The Notice of Furnishing, with the information on the owner's lien rights, must be served PRIOR to the actual furnishing of your labor, materials or equipment;

All other Private Works: The Notice of Furnishing must be served within 75 days of the final furnishing of your labor, materials or equipment.

Whether you are required to send a Notice at all depends on your contractual relationship with the owner:

Direct Contractual Relationship: Must give notice to owners unless they have supplied performance and payment bonds. We suggest giving notice anyway.

Relationship via contractor or subcontractor: Must give notice, especially since Arkansas is one of the states that does not allow full recovery on the lien unless you file a Notice.

No notice is required for liens on railroad property.

If the notice is not sent by certified mail, it must be signed by the property owner as proof of delivery.

In any case, it is our recommendation that the second you have the contract to furnish, mail your preliminary notices immediately.

Warning: Multiple deliveries of materials: A recent Arkansas Court of Appeals decision declared that multiple deliveries of materials supplied on an open account where actually multiple contracts between a material man and his contractor rather than being a single contract, and so required multiple Notices of Furnishing, Lien Warning Notices, Liens, etc. It was the court's ruling that the relationship between the material man and contractor did not intend a single contract for delivery on the job. In light of this ruling, we strongly urge you to speak with your attorney to revise your contracts with Arkansas contractors to specify that multiple deliveries to a job are under a single contract, or to make sure to serve a preliminary notice under the required conditions above for each delivery.

Information Requirements: The information required by program and whether you intend to send an owner cover letter.

Form Types: Preliminary Notice for Furnishing labor, Materials or Equipment (this is a statutory form), exhibits A-D (if needed) and Owner Letter.

Procedures: Enter the program data, including additional Legal Parties or Releases for Other Companies. Copies of all of the forms (less the Owner Cover Letter and the Recorder Letter) must be sent to all legal owners, including husband and wife, all lenders and all sureties. The form provides for the owner to acknowledge receipt of said notice and to return a signed copy to you, so be sure to send each of the owners two copies and a stamped return envelope. If the owner fails to return the document you will have to rely on your certified receipt as proof of delivery, but that should be sufficient.

Sending a copy to the general contractors or your customer (unless he is the owner, general contractor, lender or surety) is optional.

When in doubt, file your lien claim immediately.

Important: If you fail to prepare and serve your Preliminary Notice before furnishing your lien rights revert only to the unpaid balance due your customer. If they have already been paid before you furnish, you may find yourself with an uncollectable bill and no lien rights at all.

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