This Notice of Commencement of Improvements to Real Property form is filed by an individual owner, contractor or agent of owner within fifteen 15 days after the contractor physically commences work on the property.
This Notice of Commencement of Improvements to Real Property form is filed by an individual owner, contractor or agent of owner within fifteen 15 days after the contractor physically commences work on the property.
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Generally speaking, a Notice of Commencement is a form publicly filed in county records to signify that a construction project is beginning. The form contains information identifying the people involved with the project, such as who the property owner and construction lender are.
Subcontractors, suppliers, and those who did not contract with the real estate owner directly on a construction project should protect their payment rights by filing a Preliminary Notice of Lien within 30 days of first delivery of labor, materials, equipment, or professional services.
Where and how is the NOC filed for public Georgia projects? Just like on private jobs, the general contractor needs to post on the public works construction job site itself the notice of commencement, and file it with the clerk of the superior court in the county in which the site is located.
Letter of Commencement means the formal letter issued to the Contractor pursuant to the execution of the Contract.
Where and how is the NOC filed for public Georgia projects? Just like on private jobs, the general contractor needs to post on the public works construction job site itself the notice of commencement, and file it with the clerk of the superior court in the county in which the site is located.
A Notice of Commencement form is a legal document that is required to be filed by the property owner or contractor before beginning construction or improvement work on a property in the state of Georgia.
The responsibility of filing the Notice of Commencement form lies with the property owner or the contractor working on their behalf.
The Notice of Commencement form provides crucial information about a construction project, including the property address, owner information, and general contractor details. It helps protect the rights of parties involved by establishing the project's official start date and providing a channel for potential lien claimants to file their notices of intent to lien.
The Notice of Commencement form should be filed before any physical construction or improvement work begins on the property. It is advisable to file the form at least two days before the commencement of work to ensure it is properly recorded.
The Notice of Commencement form can be obtained from the county clerk's office or the website of the construction industry licensing board in Georgia.
The Notice of Commencement form typically requires information such as the property owner's name and address, contractor's name and address, lending institution (if applicable), project description, and legal property description.
Yes, the Notice of Commencement form can be modified or cancelled if there are changes to the project details or if the project is abandoned. In such cases, an amended or cancellation form should be filed accordingly.
Failure to file a Notice of Commencement form may limit the protection available to potential lien claimants. It can also lead to legal complications, such as difficulties in enforcing contract rights or securing payment.
The Notice of Commencement form is generally required for projects with a contract value exceeding $2500. However, certain types of projects like single-family residential construction are exempt from this requirement.
The Notice of Commencement form should be recorded within 15 days of the commencement of the project. However, it is advisable to file it as early as possible to protect the interests of all parties involved.
1. Include a caption referring to the owner of the property against which the lien was filed; 2. Must refer to a deed or other recorded instrument in the chain of title of the affected property; 3. Must be executed, under oath, by the party claiming the lien or by his attorney of record; 4. Must identify the court wherein the action is brought; the style and number of the action, including the names of all parties thereto; the date of the filing of the action; and the book and page number of the records of the county wherein the subject lien is recorded; and 5. Is then indexed under the name of the owner as specified in the caption included in the notice.The Notice of Action makes a lis pendens unnecessary. See Ga. Code § 44-14–361.1(a)(3). Rules Governing the Creation and Cancellation of "Preliminary" Lien Notice? The Preliminary Notice of Lien to be recorded and indexed by the Clerk of the Superior Court is optional for those in categories (1) through (8) of Ga. Code § 44-14-361, but mandatory for all others. The Notice must contain information identifying:
(1) the potential lien claimant, (2) the person instigating the furnishing of material or services by the potential lien claimant, (3) the owner of the real property, (4) the real property to be subjected to the with the potential lien, (5) the labor, materials or services provided or to be provided in the future. Ga. Code § 44-14–361.3 (a) and (b)A copy of the preliminary notice is then mailed by certified or registered mail to the contractor or to the owner of the property. Ga. Code § 44-14–361.3 (c). The Preliminary Notice of Lien Rights, once made a matter of record, is dissolved when it is canceled or under any of the following conditions:
1. Waived in writing by the lien claimant; 2. The time for following the claim of lien as provided by Ga. Code § 44-14– 361.1 expires – i.e. three (3) months after providing labor, materials or qualifying services or after completion of the work; 3. On residential property, a demand for filing a claim of lien has been properly served on the potential lien claimant and at least 10 days have elapsed since the date of mailing and a claim of lien has NOT been filed; 4. On all except residential property, the same requirement as for residential property with the proviso that the demand for filing the claim of lien may not be sent until: (a) the contractor’s contract is substantially complete, (b) the potential lien claimant’s contract has been terminated, or (c) the potential lien claimant has abandoned the contract.The actual “demand” must contain the same information required to be in a preliminary notice of lien rights and contain the following warning:
"This demand was mailed to you on ____________ pursuant to Code Section 44-14-361.4. You are notified that unless you file a claim of lien with respect to this claim on or before the tenth day after said date of mailing your right to claim a lien will be dissolved."Assuming that the demand for filing lien claim is properly done and no claim of lien filed within the 10 days after the date of mailing, cancellation of the preliminary notice of lien rights by the clerk of the superior court requires that the party mailing the demand file with the clerk of the superior court a copy of the demand and his affidavit establishing that the demand was properly mailed and that the requisite ten days have elapsed since the mailing with filing of a claim of lien by the potential lien claimant. The preliminary notice of lien rights is also to be canceled following final payment. It is the duty of the lien claimant to either delivery a cancellation at the time of final payment or cause the notice to be canceled of record within ten days of final payment. Failure to timely cancel the preliminary notice of lien rights can lead to actual damages, costs and reasonable attorney’s fees incurred by the owner in having the preliminary notice canceled. Ga. Code § 44-14–362. How a Contractor's Affidavit Dissolves an OCGA 44-14-361(a) Mechanic's Lien The “special” lien specified in Code Section 44-14-361 is dissolved upon proof that:
1. The lien has been waived in writing by the lien claimant; or 2. Based on the written statement of one, other than the owner, at whose request the lien claimant furnished labor, supplies or materials, or the owner when transferring title as part of a bona fide loan or sales transaction, that the lien claimant was paid and waived the lien in writing and where the written statement was obtained or given as part of a transaction involving a conveyance of title in a bona fide sale, involving a loan in which the real estate is serving as collateral, or where final disbursement is made to the contractor at a time when there was not a valid preliminary notice or claim of lien of record which had not been canceled, dissolved or expired. See Ga. Code § 44-14–361.4(a)(3) and GA-LIEN-26.The Creation of Mechanics or Materialmen's Liens by one not in a Direct Contractual Relationship (NO Privity of Contract) The point at which the improvement to the real property actually begins is established by the filing of a Notice of Commencement by the owner or the contractor with the clerk of the superior court in the county where the property is located. The Notice of Commencement must be filed not later than 15 days after the contractor physically commences work on the property. A copy of the Notice of Commencement must also be posted on the project site. Ga. Code § 44-14–361.5(b). The Notice of Commencement must include:
(1) The name, address, and telephone number of the contractor; (2) The name and location of the project being constructed and the legal description of the property upon which the improvements are being made; (3) The name and address of the true owner of the property; (4) The name and address of the person other than the owner at whose instance the improvements are being made, if not the true owner of the property; (5) The name and the address of the surety for the performance and payment bonds, if any; and (6) The name and address of the construction lender, if any.The contractor is also required to provide a copy of the Notice of Commencement to any subcontractor, materialman, or person who makes a written request of the contractor. Failure to give a copy of the Notice of Commencement within ten calendar days of receipt of the written request from the subcontractor, materialman, or person shall render the provision of this Code section inapplicable to the subcontractor, materialman, or person making the request. See Ga. Code § 44-14– 361.5(b).” To qualify the liens specified in paragraphs (1), (2), and (6) through (9) of subsection (a) of Code Section 44-14-361, any person having a right to a lien who does not have privity of contract with the contractor and is providing labor, services, or materials for the improvement of property shall, within 30 days from the filing of the Notice of Commencement or 30 days following the first delivery of labor, services, or materials to the property, whichever is later, give a written Notice to Contractor as set out in subsection (c) of this Code section to the owner or the agent of the owner and to the contractor for a project on which there has been filed with the clerk of the superior court a Notice of Commencement setting forth therein the information required in subsection (b) of this Code section. Ga. Code § 44-14–361.5. A Notice to Contractor shall be given to the owner or the agent of the owner and to the contractor at the addresses set forth in the Notice of Commencement and shall state:
(1) The name, address, and telephone number of the person providing labor, services, or materials; (2) The name and address of each person at whose instance the labor, services, or materials are being furnished; (3) The name of the project and location of the project set forth in the Notice of Commencement; and (4) A description of the labor, services, or materials being provided and, if known, the contract price or anticipated value of the labor, services, or materials to be provided or the amount claimed to be due, if any.Failure to file a Notice of Commencement excuses the non-privity provider from the requirement that a Notice to Contractor be provided contractor or owner. The clerk of each superior court shall file the Notice of Commencement within the records of that office and maintain an index separate from other real estate records or an index with the preliminary notices specified in subsection (a) of Code Section 44-14-361.3. Each such Notice of Commencement shall be indexed under the name of the true owner and the contractor as contained in the Notice of Commencement. How does an Owner Bond off a Mechanics and Materialmen's Lien filed on real property? GA Code § 44-14-364 provides for the release of lien on filing of bond in the proper form. The bond must be conditioned to pay to the holder of the lien the sum that may be found to be due the holder upon the trial of any action that may be filed by the lienholder to recover the amount of his claim within 12 months from the time the claim becomes due. The bond shall be in double the amount claimed under that lien and shall be either a bond with good security approved by the clerk of the court or a cash bond, except in cases involving a lien against residential property, in which event the bond shall be in the amount claimed under the lien. Upon the filing of the bond provided for in this Code section, the real estate shall be discharged from the lien. With respect to property bonds, the clerk shall not accept any real property bond unless the real property is scheduled in an affidavit attached thereto setting forth a description of the property and indicating the record owner thereof, including any liens and encumbrances and amounts thereof, the market value, and the value of the sureties' interest therein, which affidavit shall be executed by the owner or owners of the interest; the bond and affidavit shall be recorded in the same manner and at the same cost as other deeds of real property. So long as the bond exists, it shall constitute a lien against the property described in the attached affidavit. The Rules Concerning Waiver of Liens. OCGA Section 44-14-366 governs waiver of lien or claim upon bond in advance of furnishing labor, services, or materials void; interim waiver and release upon payment; unconditional waiver and release upon final payment; and affidavit of nonpayment. Any attempt to waive a lien or claim upon a bond is null and void. An oral or written waiver is enforceable if:
a. It is based on the statutory form included; and b. The claimant actually receives payment. Ga. Code § 44-14–366(b)When a claimant is requested to execute a waiver and release in exchange for or in order to induce payment other than final payment, the waiver and release must follow substantially the statutory form, and the priority of such claimant's lien rights, except as to retention, shall thereafter run from the day after the date specified in such Interim Waiver and Release upon Payment form. See Ga. Code § 44-14–366(c). A waiver and release upon final payment must follow substantially the statutory form. The claimant executing a waiver and release has thirty days from the date of the execution of the waiver and release in which to file a claim or lien or an Affidavit of Nonpayment using the statutory form. See Ga. Code § 44-14–366(f). A claimant who is paid, in full, the amount set forth in the waiver and release form after filing an Affidavit of Nonpayment shall upon request execute in recordable form an affidavit swearing that payment in full has been received. Upon recordation thereof in the county in which the Affidavit of Nonpayment was recorded, the Affidavit of Nonpayment to which it relates shall be deemed void. Requirements for acceptable “Service of Notice:” Service of Notice under the Construction Lien Laws of Georgia is usually by one or all of the following methods:
Registered Mail: Certified Mail; or Statutory Overnight Delivery.Whenever any law, statute, Code section, ordinance, rule, or regulation of this state or any officer, department, agency, municipality, or governmental subdivision thereof provides that a notice shall be given by "registered mail," the notice may be given by "certified mail." Notice by "statutory overnight delivery," shall be sufficient if:
(1) Such notice is delivered through the United States Postal Service or through a commercial firm which is regularly engaged in the business of document delivery or document and package delivery; (2) The terms of the sender's engagement of the services of the United States Postal Service or commercial firm call for the document to be delivered not later than the next business day following the day on which it is received for delivery by the United States Postal Service or the commercial firm; and (3) The sender receives from the United States Postal Service or the commercial firm a receipt acknowledging receipt of the document which receipt is signed by the addressee or an agent of the addressee. See Georgia Code § 9-10-12.
1. Include a caption referring to the owner of the property against which the lien was filed; 2. Must refer to a deed or other recorded instrument in the chain of title of the affected property; 3. Must be executed, under oath, by the party claiming the lien or by his attorney of record; 4. Must identify the court wherein the action is brought; the style and number of the action, including the names of all parties thereto; the date of the filing of the action; and the book and page number of the records of the county wherein the subject lien is recorded; and 5. Is then indexed under the name of the owner as specified in the caption included in the notice.The Notice of Action makes a lis pendens unnecessary. See Ga. Code § 44-14–361.1(a)(3). Rules Governing the Creation and Cancellation of "Preliminary" Lien Notice? The Preliminary Notice of Lien to be recorded and indexed by the Clerk of the Superior Court is optional for those in categories (1) through (8) of Ga. Code § 44-14-361, but mandatory for all others. The Notice must contain information identifying:
(1) the potential lien claimant, (2) the person instigating the furnishing of material or services by the potential lien claimant, (3) the owner of the real property, (4) the real property to be subjected to the with the potential lien, (5) the labor, materials or services provided or to be provided in the future. Ga. Code § 44-14–361.3 (a) and (b)A copy of the preliminary notice is then mailed by certified or registered mail to the contractor or to the owner of the property. Ga. Code § 44-14–361.3 (c). The Preliminary Notice of Lien Rights, once made a matter of record, is dissolved when it is canceled or under any of the following conditions:
1. Waived in writing by the lien claimant; 2. The time for following the claim of lien as provided by Ga. Code § 44-14– 361.1 expires – i.e. three (3) months after providing labor, materials or qualifying services or after completion of the work; 3. On residential property, a demand for filing a claim of lien has been properly served on the potential lien claimant and at least 10 days have elapsed since the date of mailing and a claim of lien has NOT been filed; 4. On all except residential property, the same requirement as for residential property with the proviso that the demand for filing the claim of lien may not be sent until: (a) the contractor’s contract is substantially complete, (b) the potential lien claimant’s contract has been terminated, or (c) the potential lien claimant has abandoned the contract.The actual “demand” must contain the same information required to be in a preliminary notice of lien rights and contain the following warning:
"This demand was mailed to you on ____________ pursuant to Code Section 44-14-361.4. You are notified that unless you file a claim of lien with respect to this claim on or before the tenth day after said date of mailing your right to claim a lien will be dissolved."Assuming that the demand for filing lien claim is properly done and no claim of lien filed within the 10 days after the date of mailing, cancellation of the preliminary notice of lien rights by the clerk of the superior court requires that the party mailing the demand file with the clerk of the superior court a copy of the demand and his affidavit establishing that the demand was properly mailed and that the requisite ten days have elapsed since the mailing with filing of a claim of lien by the potential lien claimant. The preliminary notice of lien rights is also to be canceled following final payment. It is the duty of the lien claimant to either delivery a cancellation at the time of final payment or cause the notice to be canceled of record within ten days of final payment. Failure to timely cancel the preliminary notice of lien rights can lead to actual damages, costs and reasonable attorney’s fees incurred by the owner in having the preliminary notice canceled. Ga. Code § 44-14–362. How a Contractor's Affidavit Dissolves an OCGA 44-14-361(a) Mechanic's Lien The “special” lien specified in Code Section 44-14-361 is dissolved upon proof that:
1. The lien has been waived in writing by the lien claimant; or 2. Based on the written statement of one, other than the owner, at whose request the lien claimant furnished labor, supplies or materials, or the owner when transferring title as part of a bona fide loan or sales transaction, that the lien claimant was paid and waived the lien in writing and where the written statement was obtained or given as part of a transaction involving a conveyance of title in a bona fide sale, involving a loan in which the real estate is serving as collateral, or where final disbursement is made to the contractor at a time when there was not a valid preliminary notice or claim of lien of record which had not been canceled, dissolved or expired. See Ga. Code § 44-14–361.4(a)(3) and GA-LIEN-26.The Creation of Mechanics or Materialmen's Liens by one not in a Direct Contractual Relationship (NO Privity of Contract) The point at which the improvement to the real property actually begins is established by the filing of a Notice of Commencement by the owner or the contractor with the clerk of the superior court in the county where the property is located. The Notice of Commencement must be filed not later than 15 days after the contractor physically commences work on the property. A copy of the Notice of Commencement must also be posted on the project site. Ga. Code § 44-14–361.5(b). The Notice of Commencement must include:
(1) The name, address, and telephone number of the contractor; (2) The name and location of the project being constructed and the legal description of the property upon which the improvements are being made; (3) The name and address of the true owner of the property; (4) The name and address of the person other than the owner at whose instance the improvements are being made, if not the true owner of the property; (5) The name and the address of the surety for the performance and payment bonds, if any; and (6) The name and address of the construction lender, if any.The contractor is also required to provide a copy of the Notice of Commencement to any subcontractor, materialman, or person who makes a written request of the contractor. Failure to give a copy of the Notice of Commencement within ten calendar days of receipt of the written request from the subcontractor, materialman, or person shall render the provision of this Code section inapplicable to the subcontractor, materialman, or person making the request. See Ga. Code § 44-14– 361.5(b).” To qualify the liens specified in paragraphs (1), (2), and (6) through (9) of subsection (a) of Code Section 44-14-361, any person having a right to a lien who does not have privity of contract with the contractor and is providing labor, services, or materials for the improvement of property shall, within 30 days from the filing of the Notice of Commencement or 30 days following the first delivery of labor, services, or materials to the property, whichever is later, give a written Notice to Contractor as set out in subsection (c) of this Code section to the owner or the agent of the owner and to the contractor for a project on which there has been filed with the clerk of the superior court a Notice of Commencement setting forth therein the information required in subsection (b) of this Code section. Ga. Code § 44-14–361.5. A Notice to Contractor shall be given to the owner or the agent of the owner and to the contractor at the addresses set forth in the Notice of Commencement and shall state:
(1) The name, address, and telephone number of the person providing labor, services, or materials; (2) The name and address of each person at whose instance the labor, services, or materials are being furnished; (3) The name of the project and location of the project set forth in the Notice of Commencement; and (4) A description of the labor, services, or materials being provided and, if known, the contract price or anticipated value of the labor, services, or materials to be provided or the amount claimed to be due, if any.Failure to file a Notice of Commencement excuses the non-privity provider from the requirement that a Notice to Contractor be provided contractor or owner. The clerk of each superior court shall file the Notice of Commencement within the records of that office and maintain an index separate from other real estate records or an index with the preliminary notices specified in subsection (a) of Code Section 44-14-361.3. Each such Notice of Commencement shall be indexed under the name of the true owner and the contractor as contained in the Notice of Commencement. How does an Owner Bond off a Mechanics and Materialmen's Lien filed on real property? GA Code § 44-14-364 provides for the release of lien on filing of bond in the proper form. The bond must be conditioned to pay to the holder of the lien the sum that may be found to be due the holder upon the trial of any action that may be filed by the lienholder to recover the amount of his claim within 12 months from the time the claim becomes due. The bond shall be in double the amount claimed under that lien and shall be either a bond with good security approved by the clerk of the court or a cash bond, except in cases involving a lien against residential property, in which event the bond shall be in the amount claimed under the lien. Upon the filing of the bond provided for in this Code section, the real estate shall be discharged from the lien. With respect to property bonds, the clerk shall not accept any real property bond unless the real property is scheduled in an affidavit attached thereto setting forth a description of the property and indicating the record owner thereof, including any liens and encumbrances and amounts thereof, the market value, and the value of the sureties' interest therein, which affidavit shall be executed by the owner or owners of the interest; the bond and affidavit shall be recorded in the same manner and at the same cost as other deeds of real property. So long as the bond exists, it shall constitute a lien against the property described in the attached affidavit. The Rules Concerning Waiver of Liens. OCGA Section 44-14-366 governs waiver of lien or claim upon bond in advance of furnishing labor, services, or materials void; interim waiver and release upon payment; unconditional waiver and release upon final payment; and affidavit of nonpayment. Any attempt to waive a lien or claim upon a bond is null and void. An oral or written waiver is enforceable if:
a. It is based on the statutory form included; and b. The claimant actually receives payment. Ga. Code § 44-14–366(b)When a claimant is requested to execute a waiver and release in exchange for or in order to induce payment other than final payment, the waiver and release must follow substantially the statutory form, and the priority of such claimant's lien rights, except as to retention, shall thereafter run from the day after the date specified in such Interim Waiver and Release upon Payment form. See Ga. Code § 44-14–366(c). A waiver and release upon final payment must follow substantially the statutory form. The claimant executing a waiver and release has thirty days from the date of the execution of the waiver and release in which to file a claim or lien or an Affidavit of Nonpayment using the statutory form. See Ga. Code § 44-14–366(f). A claimant who is paid, in full, the amount set forth in the waiver and release form after filing an Affidavit of Nonpayment shall upon request execute in recordable form an affidavit swearing that payment in full has been received. Upon recordation thereof in the county in which the Affidavit of Nonpayment was recorded, the Affidavit of Nonpayment to which it relates shall be deemed void. Requirements for acceptable “Service of Notice:” Service of Notice under the Construction Lien Laws of Georgia is usually by one or all of the following methods:
Registered Mail: Certified Mail; or Statutory Overnight Delivery.Whenever any law, statute, Code section, ordinance, rule, or regulation of this state or any officer, department, agency, municipality, or governmental subdivision thereof provides that a notice shall be given by "registered mail," the notice may be given by "certified mail." Notice by "statutory overnight delivery," shall be sufficient if:
(1) Such notice is delivered through the United States Postal Service or through a commercial firm which is regularly engaged in the business of document delivery or document and package delivery; (2) The terms of the sender's engagement of the services of the United States Postal Service or commercial firm call for the document to be delivered not later than the next business day following the day on which it is received for delivery by the United States Postal Service or the commercial firm; and (3) The sender receives from the United States Postal Service or the commercial firm a receipt acknowledging receipt of the document which receipt is signed by the addressee or an agent of the addressee. See Georgia Code § 9-10-12.