How a Notice to Owner Can Help Protect Your Relationship With the GC
One of the most common concerns we hear from subcontractors and suppliers is:
“I have a great relationship with my GC. I don’t want to send a Notice to Owner and make it look like I don’t trust them.”
We understand the concern. Good GC relationships lead to repeat work, referrals, and long-term business.
But a Notice to Owner isn’t a statement that you don’t trust your GC. In fact, properly protecting your lien rights can actually help preserve that relationship if you aren’t paid.
Here’s why.
An NTO Isn’t a Claim That Someone Won’t Pay You
A Notice to Owner isn’t a collection letter or a Claim of Lien.
It’s a notice typically sent near the beginning of a project that helps preserve potential lien rights for subcontractors and suppliers who are required to serve one under Florida law.
You’re not saying:
“We don’t think the GC will pay us.”
You’re saying:
“This is how our company protects its accounts receivable.”
That’s why Sunshine Notices recommends making NTOs part of your normal business process instead of deciding whether to send one based on how much you trust a particular customer.
Good customers can still have bad projects.
An owner can stop paying. A lender can delay funding. A draw can get held up. A dispute can freeze payments.
None of those situations necessarily mean your GC did anything wrong.
For more on this, read Why Subcontractors Must File a Notice to Owner Even When They Trust the GC.
Protect Every Qualifying Job
Sunshine Notices recommends submitting every qualifying project for an NTO rather than trying to predict which jobs will have payment problems.
When NTOs are simply company policy, they’re no longer personal.
You can tell your GC:
“We send them on every qualifying job.”
Then get back to business.
Hopefully, you complete the project, get paid, and never need the lien rights you protected.
That’s the best outcome.
But if something does go wrong, you’ve given your company options.
Don’t Wait Until Day 45
Florida’s Notice to Owner deadline is generally 45 days from first furnishing labor, services, or materials when an NTO is required.
But Sunshine Notices does not recommend waiting anywhere near Day 45.
We recommend submitting your job by Day 35 whenever possible.
Our team may need to research the property, locate the Notice of Commencement, verify the owner, identify the GC and other appropriate parties, prepare the notice, and get it mailed.
Accurate GC and project information can be just as important as meeting the deadline. We explain why in Notice to Owner Information Florida: Why GC and Job Location Details Matter.
If you’re unsure of your deadline, you can also use Sunshine Notices’ Free Notice to Owner Due Date Calculator.
The important thing is simple: if you have the job information now, send it now.
What Happens When a General Contractor Doesn’t Pay a Subcontractor?
This is where protecting your lien rights can actually help the relationship.
Suppose you’ve worked with the same GC for years. They’re a good customer, but now they owe you $50,000.
You call and hear:
“The owner hasn’t paid us yet.”
That may be completely true.
The GC could be waiting on $300,000 from the owner while you’re waiting on $50,000 from the GC.
Putting more and more pressure on the GC doesn’t necessarily solve the underlying problem. It can, however, damage a valuable relationship.
If you properly protected your lien rights at the beginning of the project, you may have another avenue.
How a Florida Claim of Lien Gives Subcontractors Another Path to Payment
This is one of the most important reasons to protect your lien rights.
When the applicable requirements have been met, a Claim of Lien can allow an unpaid subcontractor or supplier to assert a claim against the owner’s property for unpaid labor, services, or materials.
In practical terms, you aren’t relying solely on the GC to get paid.
The payment issue can move up the chain.
Instead of the conversation being only:
“GC, when are you going to pay me?”
the property owner now has a reason to pay attention to the unpaid balance and the claim against the property.
That doesn’t mean a Claim of Lien guarantees payment or removes the GC from the process. It means you may have another statutory avenue for pursuing the money you’ve earned.
And sometimes you and the GC actually want the same thing.
You want your $50,000.
The GC wants their $300,000.
The real payment problem may be above both of you.
Having properly protected lien rights can allow you to protect your company without making the GC your only target for collection.
You can learn more about Sunshine Notices’ Notice to Owner and Claim of Lien services here.
Why the Notice to Owner Is Critical to Protecting Your Lien Rights
The Notice to Owner you send near the beginning of the project may help preserve the lien rights you need months later.
You don’t send an NTO because you’re planning to file a Claim of Lien.
You send it so that option may be available if you ever need it.
Hopefully, you don’t.
But if a large invoice goes unpaid, you’ll be glad you didn’t give up an important payment remedy simply because you were worried about offending a good customer.
Don’t Let a Good Relationship Cost You Your Lien Rights
The same thinking applies when the project ends.
A GC may tell you:
“The check should be here Friday.”
Then:
“Give me another week.”
Then:
“The owner says the draw is coming.”
Meanwhile, your deadline keeps getting closer.
In Florida, a Claim of Lien generally must be recorded within 90 days of your final furnishing of labor, services, or materials.
A promise of payment doesn’t stop that clock.
Sunshine Notices recommends addressing an unpaid project well before Day 90.
That doesn’t mean you have to immediately become aggressive with your customer. You can continue working with the GC while also protecting your company.
It’s much easier to say:
“We want to work with you, but we also have deadlines we have to protect.”
than to discover you’ve waited too long.
Don’t Give Away the Rights You Worked to Protect
Protecting your lien rights doesn’t end with the NTO.
Be careful about the releases you sign throughout the project.
Signing the wrong release—or signing a Final Release before you’ve actually been paid—can affect rights you worked hard to preserve.
Sunshine Notices recommends using conditional releases before funds have cleared and non-conditional releases after payment has been received.
Read our guide on Lien Waivers and Releases: How Subcontractors Protect Payments and our warning about Signing a Final Release of Lien Before Payment before giving up your lien rights.
Make Payment Protection Company Policy
The easiest way to protect both your money and your customer relationships is to remove emotion from the decision.
Don’t ask:
“Do I trust this GC?”
Ask:
“Does this project need an NTO?”
Our recommendation is simple:
- Submit every qualifying project for a Notice to Owner.
- Send projects to Sunshine Notices as early as possible and preferably by Day 35.
- Don’t wait until the end of the NTO deadline to act.
- Keep track of your last furnishing date.
- If you’re unpaid when the project ends, address a potential Claim of Lien well before Day 90.
- Be careful about the releases you sign before receiving payment.
- Make all of this standard company policy instead of making decisions based on how much you trust a particular customer.
Protect Your Rights Without Making It Personal
A Notice to Owner doesn’t have to hurt your relationship with a GC.
It may actually help protect it.
When payment stops, properly preserved lien rights can give you another avenue for pursuing payment instead of making every unpaid invoice a fight between you and your customer.
You can trust a GC you’ve worked with for years while still protecting your company.
Those aren’t opposing ideas.
At Sunshine Notices, we’ve been helping Florida contractors, subcontractors, and suppliers protect their payment and lien rights since 1994.
Our advice is simple:
Protect your rights before you need them.
Send the NTO.
Do the work.
Get paid.
Hopefully, that’s where the story ends.
If it doesn’t, you’ll be glad you protected your options.
Have a New Project or an Unpaid Job?
If you’ve recently started a Florida project, don’t wait until the deadline is approaching. Submit it early so our team has time to research the project, identify the appropriate parties, and prepare and serve your Notice to Owner.
If you’ve finished a project and are still waiting to be paid, don’t wait until the 90-day Claim of Lien deadline is on top of you.
See all Sunshine Notices construction notice and lien services or contact Sunshine Notices and let us help you stay ahead of your deadlines.
This article is for general informational purposes and is not legal advice. Florida’s Construction Lien Law is complex, and specific circumstances can affect notice requirements, lien rights, and deadlines. Consult a qualified Florida construction attorney for advice regarding a specific situation.
FAQ’s
Does sending a Notice to Owner mean I don’t trust my GC?
No. Sunshine Notices recommends treating NTOs as a standard accounts-receivable procedure on qualifying projects rather than making the decision based on whether you trust a particular contractor.
Is a Notice to Owner the same as a lien?
No. A Notice to Owner is not a Claim of Lien. When required, timely service of an NTO is one of the steps that can help preserve a subcontractor’s or supplier’s potential lien rights.
What happens if my GC doesn’t pay me in Florida?
Depending on your position on the project and whether you’ve met Florida’s requirements, you may have the ability to record a Claim of Lien against the property. This can provide another avenue for pursuing payment rather than relying solely on the GC.
When should I send my Florida Notice to Owner?
While Florida law generally provides a 45-day deadline in situations requiring an NTO, Sunshine Notices recommends submitting qualifying projects as early as possible and preferably by Day 35 so there is adequate time for research, preparation, mailing, and delivery.
How long do I have to file a Claim of Lien in Florida?
A Florida Claim of Lien generally must be recorded within 90 days of the lienor’s final furnishing of labor, services, or materials. Sunshine Notices recommends addressing unpaid projects well before that deadline.