What is a Notice of Furnishing (Pre-Lien) Notice?

A Pre-Lien Notice (also known as a Notice of Furnishing) is a preliminary lien notice that notifies all major project stakeholders that your company is working on the same project as them. The notice also advises the stakeholders of any invoices you have due or to become due. Whether physically on-site working or shipping materials from out-of-province, a pre-lien notice notifies stakeholder(s) of your involvement. Communicating with all the major stakeholders is the prime reason for using a Pre-Lien notice.

If you are located in the United States, for example, and are shipping to Canada you might not be present. The materials you shipped will arrive on site, but you might not have anyone from your company physically on site. This lack of presence may lead to other parties forgetting about your involvement. By sending a preliminary Pre-Lien Notice, all relevant stakeholders receive a hard copy of your contact details for their reference. Ensure your company will not get lost in the chaos of everyday work with a Pre-Lien notice.

A Pre-Lien Notice keeps you in the payment loop

The Pre-Lien notice does not affect the credit-worthiness of the recipient; it is simply an informative letter. In the event that there is a project bond, the Pre-Lien Notice requests that all bonding information be forwarded to you. This will ensure that come payment time, you will know who to contact if funds are not released to you by your customer.

The Pre-Lien Notice is best used when you are working on a larger scale project where multiple parties are involved and may not always if at all, be present on site. The Pre-Lien Notice is sent to the property owner, general contractor, and your client. If you would like this notice to be sent to additional parties, you can do so.

What is a Pre-Lien Notice?

A Pre-Lien Notice is a tool that opens communication, requests useful information, and outlines your lien rights as a party involved on a project. Sending a Pre-Lien Notice may be all it takes to ensure you are paid.

A Pre-Lien Notice can be sent at any point prior to filing a lien. It can be sent as a preventative measure before your involvement in the project starts, at any point along the course of your work/supply, or after your involvement in the project is complete.

A Pre-Lien is not a formal requirement in Canada, as of yet. It is a desirable part of the credit process and can encourage payment and resolution of any disputes or issues in the early stages. Note: Some provinces do require formal notice of involvement prior to you performing work for a leaseholder. If you are about to start work on a project for a leaseholder, you might need to send notice to the owner prior to beginning work. If you would like clarity on your situation, feel free to contact our office today for a free consultation. A Pre-Lien Notice may be all you need in order to meet this requirement.

Pre-Lien Notice:

Basic and Certified Versions:

1. Formally notifies your customer of your involvement in the project – notice is sent via registered mail
2. Outlines any outstanding invoices (if any)
3. Provides your company’s contact details
4. Requests bonding information for the project (if any)
5. Summarizes project scope and details – description of your work (future or current)
6. Informs of your right to lien/take action, (in the event of non-payment

In addition to the above, a Certified Notice:

7. Notifies major project stakeholders that you are involved with the project

8. In addition to sending notice to your customer, notice is also sent to the property owner via registered mail, and the General Contractor (if known) via regular post
9. Verifies information – a land title is obtained for the project’s property and a corporate search is conducted on your customer to confirm registration, spelling, and registered office address

We offer 3 types of Pre-Lien Notices

Notice of Furnishing - Pre-Lien Notice (Basic)

Any Province or Territory

Just finished the job? Finalize your account by sending a Notice of Furnishing to let your customer know the work is done and you expect payment! Sent via registered mail. Cost - $50 + disbursements & tax (approx. $65) Cost - $50 + tax

Notice of Furnishing - Pre-Lien Notice (Certified)

BC, AB, SK, YT, NWT, and NU

Notice is sent to your customer and the property owner(s) via registered mail. A copy of the notice is also sent to the General Contractor (if known).The notice lets all parties know you are involved on the project and outlines your work to be complete. Certified pre-lien includes a copy of the land title and a corporate search of your customer to verify where the work was done and where to send the official notice. Cost - $98.75 + disbursements & tax (approx. $155).

Notice of Furnishing - Pre-Lien Notice (Certified) Premium

MB, ON, QC, NB, NS, PEI, and NL

Let the important people on-site know that you are involved and working. Notice is sent to your customer and the property owner(s) via registered mail. A copy of the notice is also sent to the General Contractor (if known). Premium Pre-Liens are applicable for jobs located in the above provinces (MB, ON, QC, NB, NS, PEI and NL) and include a corporate search for your customer and a copy of the project’s land title.Cost - $98.75 + disbursements & tax (approx. $205).

Do you have a difficult customer? Escalate the matter and send a Lien-Pro Demand Letter

or skip the letter and file a builders' lien