What Is a Notice of Completion?

What Is a Notice of Completion?

In the construction industry, there is a document filed at the end of a project called the “Notice of Completion.” It is a document recorded by a property owner (developer) to notify potential mechanics lien claimants that a certain construction project has been completed. Which just means, the property owner is notifying all parties that have Mechanics Lien Rights that the project is completed. Along with property owners, general contractors can file a Notice of Completion too. This is filed and recorded with the county clerk’s office.

In construction defect cases, knowing when a home’s construction is completed is very important. Many statutes are based on the date of completion. This document is often times the first that our law firm would ask for when evaluating a construction defect case.

A Notice of Completion is a voluntary document, but in eight states, California being one of them, this notice has an effect on payment and lien rights.

A mechanics lien is a legal claim against a home or other property, and it is typically used by subcontractors and suppliers when they have not received payment for improvements they made to a property. It is a way to seek payment for work done to build or improve a home. However, those who want to enforce a mechanics lien must abide by certain timelines.
When the Notice of Completion is filed, the mechanics lien deadline is shortened, which applies in the state of California. In California, the deadline is shortened from 90 days to 60 days or to 30 days, depending on a person’s role in the project.

In California, property owners (developers) need to send the notice to parties who have submitted a preliminary notice. They generally will want to have filled out a preliminary notice so that they will be notified of the completion, and they can plan accordingly and avoid complications with a shortened lien deadline.

The Naumann Law Firm represents homeowner associations, high/mid-rise condominium and condominium conversion associations, single and multifamily residential homes and commercial property owners in construction defect litigation.  The Naumann Law Firm has over 37 years of experience handling significant construction cases with complex issues.

If you need more information on construction defects, visit our construction defect litigation page. To contact us, call 844-492-7474 or visit our San Diego construction defect contact page.

We also practice Los Angeles construction defect litigation, Orange County construction defect litigation, Riverside construction defect litigation, and San Bernardino construction defect litigation.