What to Do When You Forget to Send an NTO (Notice to Owner)

In this blog, we will shed light on what you could do if you missed your Notice to Owner deadline, the remedies, and how you could avoid missing your NTO deadline in future.  

What if I missed my NTO deadline?

In the construction industry, especially in the United States, an NTO (Notice to Owner) is a crucial legal requirement. It safeguards your ability to file a mechanics lien, a vital tool for getting paid.  

Missing the 45-day deadline for NTO delivery might seem like a roadblock, but if that happens, here are some remedies you may have to get paid for your work.

How to Get Paid When You Forgot to Send an NTO?

Step 1 - Review the Situation

Start by assessing your situation comprehensively. Take a close look at the project's contract, payment terms, and relevant local laws governing mechanics liens and payment disputes.

Step 2 - Check Legal Requirements

Familiarize yourself with your state's laws concerning NTOs, mechanics liens, and payment procedures. Each state may have specific timelines and requirements.

Step 3 - Consult an Attorney

Seek counsel from a construction law attorney. They can provide expert guidance tailored to your circumstances and local legal intricacies.

Step 4 - Contact the Property Owner

Reach out to the property owner or the party responsible for payment. Explain the oversight and request a meeting to discuss payment and possible resolutions.

Step 5 - Negotiate Payment

Be open to negotiation. Strive for a payment plan or resolution that benefits both parties. Finding common ground ensures you get paid for your hard work.

Step 6 - Document the Agreement

Any agreements reached during negotiations must be documented in writing. This includes the payment terms, schedule, and other relevant details.

Step 7 - Implement Payment Plan

‍If a payment plan is established, ensure it is well-documented and adhered to as agreed. Keep a close eye on payments and follow up if there are any delays.

Step 8 - Stay Informed for Future Projects

Learn from this experience and ensure you strictly adhere to legal and procedural requirements for future projects, including sending NTOs on time.

How to Avoid Missing Your NTO Deadline in the Future?

Preventing a repeat of this situation is crucial. Consider these strategies to ensure you never miss an NTO deadline again:

• Set Up a Process in Your Office: Automate your NTO process by implementing a system to send NTOs on every job above a specified value threshold. This removes the worry of overlooking essential notices.
• Send Your NTO as Soon as You Start Work: Rather than waiting until payment issues arise, send your NTO at the project's outset when you commence providing labor, materials, or services.
• ‍Use SunRay to Send Your Notices to Owner: SunRay is a valuable tool that streamlines the NTO process for contractors, subcontractors, and suppliers across the US. It ensures your notices reach the right parties and provides reminders for upcoming deadlines. With SunRay, you can complete your Notices to Owner in under a minute.

Key Takeaway

In conclusion, missing an NTO(Notice to owner) deadline doesn't mean you won't get paid. By taking the right steps and staying informed, you can still secure your well-deserved payment and avoid such oversights in the future.

You can always contact SunRay for further assistance and exploring solutions to enhance construction payment efficiency and to streamline payment processes.

FAQs

1. What happens if I forget to send a Notice to Owner?
If you forget to send Notice to Owner within the required timeframe ( within 45 days from your first work or delivery), you may lose your lien rights. However, you can still explore other options to recover payment, such as direct negotiation, mediation, or pursuing a breach of contract claim.

2. Can I still send an NTO after the deadline?
No, once the statutory deadline has passed, the NTO will not protect your lien rights for that project. However, sending it late can still help maintain transparency and goodwill with the property owner or contractor, and it may support future payment discussions.

3. Can I still file a mechanics lien if I missed the NTO deadline?
Not in most states. The NTO is a prerequisite to filing a mechanics lien in many jurisdictions, including Florida. Missing it invalidates your right to file a lien for that project.

4. What are my options to get paid without an NTO?
You can still pursue payment through other legal or business remedies:

• Contact the property owner and explain the situation.

• Negotiate a settlement or payment plan.

• File a breach of contract or unjust enrichment claim.

• Use collection agencies or small claims court for smaller amounts.

5. How can I verify if my NTO was sent or received?
You can check your delivery records, certified mail receipts, or use a professional notice service like SunRay, which provides tracking, delivery proof, and compliance reports for every notice sent.

6. What tools can help me avoid missing the NTO deadline in the future?
Use automated notice services like SunRay, which help contractors and suppliers send NTOs quickly, track delivery, and get deadline reminders for every project, so you never miss a notice again.

7. Does every state require a Notice to Owner?
No, not all states require an NTO, and the names and rules may vary (e.g., “Preliminary Notice” or “Notice of Furnishing”). Always check your state’s construction laws to confirm your specific obligations.

8. What should I do immediately after realizing I forgot to send an NTO?
Act quickly:

1. Review your project timeline and contracts.

2. Consult a construction attorney.

3. Notify the property owner about the oversight.

4. Explore alternative remedies for payment.