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Notice of Commencement

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Notice of Commencement

What a Notice of Commencement Is and when it matters

A Notice of Commencement is a formal project-level record that identifies when construction work or improvements begin on real property. It clarifies the project owner, contractor, property legal description, and the official start date. Many states use the recorded Notice of Commencement to set deadlines for lien filings, preliminary notice requirements, and payment bond claims. In practice it helps contractors, suppliers, and owners confirm contract terms, invoicing windows, and which jurisdiction’s recording office maintains the official project file.

Why issuing a Notice of Commencement matters for project parties

A Notice of Commencement establishes the official start date, helps preserve mechanic’s lien and bond claim rights, clarifies responsible parties, and reduces payment disputes. For electronic records, the ESIGN Act (15 U.S.C. ch. 96) and UETA govern enforceability of signed Notices of Commencement in most U.S. jurisdictions.

Why issuing a Notice of Commencement matters for project parties

Who typically completes or relies on a Notice of Commencement

Common users include owners, prime contractors, and lenders who need a formal project start record.

  • Project owners and lenders who record the start date to protect financing and lien priorities.
  • Prime contractors who ensure subcontractors receive accurate project and contact information.
  • Subcontractors and suppliers who use the Notice to calculate notice periods and claim deadlines.

Step-by-step: prepare and file a Notice of Commencement

Follow these core steps to create, execute, and record a compliant Notice of Commencement.

  • 01
    Gather details: Collect owner, contractor, property legal description.
  • 02
    Complete form: Populate fields, verify spelling and dates.
  • 03
    Sign and notarize: Obtain owner or authorized signer signature; notarize if required.
  • 04
    Record and distribute: File with county recorder and share copies with contractors.

How the Notice of Commencement functions in project workflows

A Notice of Commencement becomes part of the public record, triggers notice timelines, and guides where claimants must file or serve notices.

  • Record start: Recording creates public notice of project start and responsible parties.
  • Trigger periods: Start date establishes windows for preliminary notices and lien filings.
  • Inform claimants: Subcontractors use it to confirm where to send notices and invoices.
  • Support bond claims: Identifies bond and surety information needed for payment bond claims.

Configuring an electronic Notice of Commencement workflow

Set up fields, signer roles, authentication, and distribution to match local filing and contractor notification needs.

Field Configuration
Signer role Owner or authorized agent required
Authentication Email + SMS code or ID proofing for higher assurance
Notarization option Enable RON or schedule in-person notary
Distribution Auto-send to contractor list and file to recorder

Digital delivery and eSubmission considerations

Confirm your eSignature platform supports notarization, audit trails, and the file formats required by the county recorder.

  • File formats: PDF, DOCX accepted by most recorders
  • Integrations: Connectors for Procore, Box, NetSuite
  • Authentication: Email, SMS, or KBA options

Essential components every Notice of Commencement should include

A complete Notice of Commencement collects authoritative project and contact details, dates, and recording information that parties rely on to protect lien and bond rights.

Project identity

Legal property description and parcel ID to ensure the Notice attaches to the correct land record and can be located by title searches.

Owner contact

Full legal name, mailing address, and authorized agent so claimants know who controls project funds and where to send notices.

Contractor details

Prime contractor name, license number, and point of contact for service of preliminary notices and payment requests.

Start date

Effective project commencement date in MM/DD/YYYY format that commonly starts statutory notice and lien periods.

Bond information

Payment/performance bond name, number, and surety to support bond claim procedures if payment disputes arise.

Recording data

County recorder location, book/page or instrument number, and notarized signature when state law requires acknowledgement.

Security and compliance points for electronic Notices of Commencement

Encryption: AES-256 at rest
Transport: TLS 1.2/1.3 in transit
Legal framework: ESIGN and UETA compliance
Audit trail: Timestamps and signer IP
Notary support: RON and in-person options
HIPAA readiness: BAA available if required

Common preparation errors to avoid

  • Using informal property addresses instead of the recorded legal description, which can prevent correct indexing by the county recorder.
  • Misspelling or shortening an owner or contractor legal name, creating mismatches that complicate title searches and claims.
  • Failing to notarize when state law or the county recorder requires an acknowledgement, risking rejection at recording.
  • Not distributing filed copies to subcontractors and suppliers, which can lead to missed notice deadlines and payment disputes.

Consequences of an incomplete or incorrect Notice

Recording rejection: Delay or rejection
Lost lien rights: Plaintiff may lose statutory rights
Bond claim issues: Bond claims may be denied
Payment delays: Invoicing disputes increase
Increased costs: Attorney and corrective fees
Title complications: Clouds on property title

Timing considerations and recommended filing windows

Timing rules for Notices of Commencement vary by state and project type; confirm local statute or county practice before filing.

Before first draw:

File prior to initial payment disbursement when lenders require a public start record

At project start:

Record effective date to trigger local notice periods

After changes:

Record amended Notices for major scope or owner changes

Coordinate with bond:

Provide bond info early to preserve payment bond claims

Check county rules:

Local recorders may impose specific forms or notarization

Key milestones from creation to recorded Notice

Track these sequential milestones to ensure the Notice is effective and distributed to interested parties.

01

Prepare draft

Assemble project data and verify legal names

02

Authorize signature

Owner or authorized agent signs and notarizes as required

03

Record notice

File with county recorder and obtain instrument number

04

Distribute copies

Send recorded copy to contractors, lenders, and relevant parties

Pricing and feature snapshot for eSignature providers often used with Notices of Commencement

Basic pricing and common feature availability across providers. Use this as a starting point when selecting an eSignature platform for document execution and notarization workflows.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial Varies Varies Varies Varies
Bulk Send Yes (Business Premium) Yes Yes Yes Varies
Audit Trail Yes Yes Yes Yes Yes
Envelope Cap No cap 100 envelopes/user/year Varies Varies Varies

Frequently asked questions about Notices of Commencement

Answers to common questions on validity, notarization, e-signing, revocation, and recording for Notices of Commencement.


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