The Construction Counselor

Lower-tiered subcontractors—that is, companies that furnish labor or materials to a subcontractor (rather than directly to the general contractor or owner)—must comply with specific notice requirements under Iowa law to preserve their rights to later file a mechanic’s lien (on private projects) or a Chapter 573 Claim against the owner’s retainage (on public projects) for nonpayment.

If these requirements are not satisfied, lower-tiered subcontractors forfeit their lien and claim rights.

Below is a high-level overview of these requirements. We have also developed a more detailed informational guide to assist lower-tiered subcontractors in meeting their legal obligations.

Commercial Projects

On commercial projects (both private and public), Iowa law requires lower-tiered subcontractors to send a pre-lien notice to the general contractor. If this requirement is not met in a timely manner, all lien and claim rights are lost.

There is no statutory required form or format for the notice, but per statute, the sub-subcontractor must:

1. notify the general contractor in writing with a one-time notice containing the name, mailing address and telephone number of the sub-subcontractor, and the name of the subcontractor to whom the labor or materials were furnished, and
2. send such notice within 30 days of first furnishing labor or materials.

Importantly, this notice must be sent directly to the general contractor and is not filed on the Mechanic’s Notice and Lien Registry (MNLR). An exemplar notice is on the second page of the more detailed informational guide.

Residential Projects

For residential projects, the requirements differ. All subcontractors—both higher- and lower-tiered—must file a pre-lien notice called a Preliminary Notice.

This notice must be filed on the MNLR as soon as work or materials are first furnished, or otherwise as soon as practicable. The Preliminary Notice is an online, fillable form available through the MNLR system.

Key Takeaways

• Strict deadlines apply: Lower-tiered subcontractors must comply with Iowa’s notice requirements to preserve lien and claim rights.
• Commercial projects: A written notice, as described above, must be sent to the general contractor within 30 days of first furnishing labor or materials.
• Residential projects: A Preliminary Notice must be filed on the MNLR as soon as work begins (or as soon as practicable).
• Noncompliance is costly: Failure to follow these steps results in a loss of lien and claim rights.

Questions?

If you have questions regarding these requirements or how they apply to your projects, please contact Jodie McDougal.