Why do I need a notice of commencement? Well, in order to be able to pull a building permit you need to file a notice of commencement with the building permit. And the building department will not issue a building permit without a notice of commencement. So, that is a good safeguard whenever you’re having someone do some work on your home, is to inquire as to whether or not they’re a licensed contractor, and if they’re going to pull a building permit. And if they are, well then you’re going to have to sign for the notice of commencement. You need to be very wary if they are not going to pull a building permit to make sure that they are a licensed contractor, and you have all sorts of problems if you don’t as far as unlicensed contractors doing work.
The notice of commencement is one of the first steps that the owner is obligated to do – to file under the construction lien statute, which gives anyone that is furnishing material or labor notice as to who the owner is, and where to send their notice to owner. And so, if you would receive a notice that someone is supplying materials, you need to ask your contractor to give you a waiver from that particular person whose supplying materials or labor. Also, whenever the contractor is finished, and if you haven’t received any notices to owner, the proper document to ask for from your contractor is a contractor’s final affidavit stating that they have been paid in full and that there are no outstanding unpaid suppliers. So, if you are going to be doing work on your home, you need to be sure that you deal with a licensed contractor; that he pulls a building permit; and that as you pay him, you get progress payment affidavits and make sure that there are no unpaid material amounts or suppliers. And before you give him the final check, you need to have him sign a contractor’s final affidavit to protect you against any unpaid contractors, since it’s a crime to sign this affidavit and you can rely upon it by the contractor.
So, if you have any questions about dealing with your contractor, please give me a call at 727-847-2288. Thank you.