#049compliance risk

Notice of Commencement

Definition

A Notice of Commencement (NOC) is a document filed or posted by the property owner (or GC, depending on state) at the start of a project. It typically identifies the project, owner, contractor, and sometimes the lender. In many states, subs and suppliers must serve a Notice to Owner (or Notice of Furnishing) within a set time after the NOC to preserve lien rights.

Why It Matters

In states that use NOC, missing the deadline to serve a Notice to Owner after the NOC is posted can bar a sub or supplier from filing a lien. Contractors and subs must know whether the project has an NOC, when it was filed, and their state’s deadline to respond. Owners use NOC to start the lien timeline and to identify who is on the job.

Field Example

Owner files NOC and posts it on the job site. Sub starts work; state law requires Notice to Owner within 45 days of first work. Sub sends Notice to Owner in week 2, preserving lien rights. A material supplier who never sent Notice to Owner may lose lien rights even if unpaid.

Calculation / Formula (if applicable)

Not applicable. Deadlines are statutory (e.g., X days from NOC recording, or from first furnishing). Varies by state. Legal advice needed.

Software Application

Allow recording that an NOC was filed (date, project, where to find it). For jobs where the user is a sub, track “Notice to Owner sent” and deadline. Alert before deadline. Link to job and to lien/waiver workflow. Do not give legal advice; surface dates and checklist items.

Tooltip Version

A Notice of Commencement is filed at project start; in many states, subs must send a Notice to Owner within a set time to preserve lien rights—track the deadline.

Related Objects

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