What Is a Notice of Completion?

As anyone reading this surely knows, the construction industry loves its documents! There’s a document for just about everything under the sun in the construction business. When it comes to securing payments in the construction industry, not only is there a specific document required for each step in the process, the name of that document also varies from state to state. There are some documents that are only used in one or a few states. The document we’re discussing today is the “Notice of Completion” or “Notice of Cessation.“

What is a Notice of Completion?

A Notice of Completion Is: A document recorded by a property owner to notify potential mechanics lien claimants that a specific construction project has been completed. The effect of a properly recorded Notice of Completion is to reduce the time in which a subcontractor, material supplier or general contractor can record a Mechanics Lien against a private works construction

There are some important things to note from Mr. Hobbs’ definition. The Notice of Completion typically comes from the property owner on a private project to notify the participants on a project – specifically, the parties that have Mechanics Lien Rights – that the project has been completed. Other parties higher up on the payment chain, like prime contractors or general contractors, can file a Notice of Completion too.

Conclusion

To sum it up, regardless of whether or not the project owner, prime contractor, general contractor, or any other party higher up the payment chain files a Notice of Completion, you need to be aware. Always calculate your lien deadline based on the completion of the work (last furnishing), always send a preliminary notice, and always make sure you have your finger on the pulse of the construction project. Otherwise, a shortened mechanics lien could seriously burn you.