A Notice to Owner secures your lien and your bond claim rights in the event of non-payment. While the Notice to Owner and Notice to Contractor are a combined form, the Notice to Contractor is for projects that are bonded, while the Notice to Owner is for private projects that are subject to lien
It is important to use the correct statutory language - such as that provided by the SunRay system - in every form for the state of Florida.
In this article, we will find out who is required to send a notice to owner in both Private and Public projects. Read on to know more!
Who is Required to Send a Notice to Owner on private projects?
- If you are a general contractor and you are hired directly by the owner of the property, you are not required to send a Notice to Owner in the state of Florida.
- If you are not contracted directly with the owner of a property, you must send a Notice to Owner to secure your lien rights.
- If you are working directly for the general contractor and not contracted directly with the owner of the property, you must send a Notice to Owner, even if everyone knows your name or you have a huge truck or other equipment on the property.
Who is Required to send a Notice to Owner on public projects?
The chain of command for public projects is a little bit different.
- If you are a subcontractor on a public project who is hired directly by the general contractor, you are not required to send a Notice to Owner.
- If you are working on a public project and are hired by a subcontractor to the general contractor, you are required to send a Notice to Owner.
- Think of it as working with the owner of the property. The owner knows who you are on a public project that is bonded. The general contractor hired you directly, so if you are looking to get paid, and the general contractor holds the bond, then you go after that bond.
- Let’s say that your city hires a general contractor who hires a subcontractor, who then hires you. In this situation, you would be required to send a Notice to Owner.
Notice to Owner mistakes to Avoid
There are three Notice to Owner mistakes that you need to be aware of in order to keep your property lien rights.
- Misunderstanding your specific Notice to Owner deadlines
- Misidentifying the job address location
- Not knowing where you are in the job payment chain. It is important to file a Florida NTO for every job on time, with the correct information, and sent to the right people.
Best Notice to Owner Business Practice
The best business practice is to send your Notice to Owner as soon as you sign your contract. This way, you will know that you are within your 40 days and you do not have to worry about whether the owner receives it by the 45th day.