A subcontractor performs $12,500 worth of electrical work but is not paid by the general contractor. The property owner paid the general contractor in full. Under Alabama lien law, what must the subcontractor do to preserve lien rights?
Correct Answer
B) Send a preliminary notice to the property owner within 30 days of first furnishing labor
Alabama lien law requires subcontractors to send preliminary notice to property owners within 30 days of first furnishing labor or materials to preserve lien rights.
Why This Is the Correct Answer
Alabama lien law requires subcontractors to send a preliminary notice to the property owner within 30 days of first furnishing labor or materials. This notice alerts the owner that a subcontractor is on the project and has lien rights, giving the owner the opportunity to verify that subs are being paid before releasing funds to the general contractor. Without this timely preliminary notice, the subcontractor loses the ability to assert a mechanics lien against the property.
Why the Other Options Are Wrong
Option A: Send a notice of non-payment to the property owner within 30 days of non-payment
Sending a notice of non-payment within 30 days of non-payment is not the Alabama requirement for preserving lien rights. The critical action is the preliminary notice sent within 30 days of first furnishing — not a notice triggered by non-payment. By the time non-payment occurs, the window for preliminary notice may have already closed.
Option C: File a lien immediately upon non-payment
Filing a lien immediately upon non-payment is too late if the preliminary notice requirement has not been satisfied. In Alabama, the right to file a mechanics lien depends on the preliminary notice having been timely served. A lien filed without the prerequisite notice is invalid. Also, 'immediately' upon non-payment is not a defined legal standard.
Option D: File suit against the general contractor within 60 days
Filing suit against the general contractor within 60 days addresses a breach of contract claim, not lien preservation. Litigation against the GC does not protect the subcontractor's lien rights against the property. Furthermore, suing the GC is a separate remedy that does not substitute for the statutory lien notice requirements.
Memory Technique
Alabama sub lien rule: 'First day on site starts the 30-day clock.' The preliminary notice must go to the property owner within 30 days of first furnishing. Think of it as an introduction letter: 'Hi, I'm working on your property — you should know I'm here.' Send it within 30 days of day one.
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