Legal Question in Construction Law in California

Re: CA Preliminary Notice

I wouldn't worry too much about it because it is a 20 day preliminary notice and that is common in the industry to include an "estimate" of the work and changes they will be doing. If it is from an equipment rental yard or material supplier they generally always over-inflate the costs in their preliminary notices.

Out of precaution (and you should be doing this anyways provided it does not violate any provision in your contract)-

Just make sure that you issue a joint check to your contractor with that subcontractor/material suppliers name on the check as well as the contractor you are contracting with so you are ensured they get paid. Also demand that your contractor give you conditional progress payment release for all subcontractor(s) and material suppliers etc. who you have 20 day notices from. The conditional progress releases should cover up to the date of closing for that pay period for the check you give to them. Also you should demand unconditional progress release from your contractor and their subcontractors for periods covering the previous pay period. This is standard in the industry and should not alarm anyone.

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Re: CA Preliminary Notice

No, I wouldn't worry about that overage, provided it is a reasonable estimate of the project and any change orders you might authorize during the project.

However, if a mechnics lien is filed and the "Claim of Lien" provided therewith includes amounts for materials not provided or services not rendered, then the entire lien will be forfeited by operation of law. THAT'S the time to scruntinize the numbers.

Good luck!