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Notice of Commencement

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Notice of Commencement

What a Notice of Commencement Is and why it matters

A Notice of Commencement is a written filing used at the start of a construction project to formally declare the project, property, owner, contractor, and lender information required by state mechanic's lien statutes. It creates public notice of the job and identifies parties with lien or contract rights, helps define the scope of work and payment protections, and often affects how subcontractors, suppliers, and lenders preserve or assert lien claims. Use and exact form vary by state and by local recording office requirements.

Why filing a Notice of Commencement matters

Filing preserves notice to potential claimants, clarifies payment responsibilities, and can limit lien exposure by identifying the official project record and contact points.

Why filing a Notice of Commencement matters

Who typically prepares and relies on this filing

The Notice of Commencement is prepared by the owner or the owner's agent and shared with contractors, lenders, and relevant county recorders before work begins.

  • Owners and developers who control project financing and need to protect title and lending interests.
  • General contractors who coordinate subcontractor notices and need a clear record for pay applications.
  • Subcontractors and suppliers who require recorded project data to preserve mechanic's lien or bond claim rights.

Step-by-step: filing a Notice of Commencement

Follow these core steps to prepare, sign, and record a Notice of Commencement so it serves its intended legal purpose.

  • 01
    Prepare form: Complete all required fields with legal names and property details.
  • 02
    Sign and notarize: Owner or authorized agent signs; notarization required in many states.
  • 03
    Record in county: File the document at the county recorder or clerk's office for the property.
  • 04
    Distribute copies: Provide recorded copies to contractors, lenders, and interested suppliers.

Configuring an online Notice of Commencement workflow

Set up fields, signer roles, and record delivery before sending to avoid rework and ensure the filing includes required data for local recorders.

Field Configuration
Project and Property Make these required fields; add validation for address and parcel formats.
Owner / Contractor Assign signer roles and require signer authentication.
Notary Block Include an embedded notary section with date and jurisdiction fields.
Recording Delivery Add routing to export a printable PDF for county recorders or for e-recording services.

Digital signing, e-notarization, and integrations

Electronic workflows can streamline preparation, notarization, and distribution but must meet local legal and e-recording requirements.

  • Authentication: Email, SMS, or multi-factor verification.
  • Integrations: Salesforce, NetSuite, Procore, Box, Google Workspace.
  • eNotary / RON: Supports remote or in-person notarization where allowed.

Typical document flow from draft to recorded copy

A clear, repeatable sequence reduces errors and ensures all parties receive the recorded Notice of Commencement promptly.

  • Drafting: Prepare the Notice with project and party details.
  • Signing: Owner/agent signs; notary completes acknowledgement.
  • Recording: File with the county recorder or clerk's office.
  • Distribution: Send recorded copy to contractors, lenders, and suppliers.

Timing considerations and common recording expectations

Timing affects lien rights and payment applications; check local rules for when recordation must occur relative to first work or first draw.

Before work begins:

Record or deliver notice when required to protect title and lender interests.

Before first pay request:

Provide recorded notice prior to initial draw to support funding conditions.

Notary timing:

Sign and notarize on the same date in many counties.

Local filing hours:

Check county office open hours and electronic filing windows.

Retention of proof:

Keep recorded copy and receipt for dispute resolution.

Common mistakes to avoid when preparing a Notice of Commencement

  • Using an informal or project nickname instead of the legal project or permit identifier, which causes record mismatch and indexing errors.
  • Entering abbreviated or inconsistent owner or contractor names that do not match title documents, complicating searches and lien disputes.
  • Failing to include the correct recording county or parcel ID, which can prevent the document from being associated with the property in public records.
  • Distributing an unrecorded copy to subcontractors or lenders when state law requires recordation for the notice to be effective.

Consequences of errors or omission

Loss of notice protections: May forfeit protections afforded by the recorded notice.
Lien disputes: Inaccuracies can trigger additional lien litigation.
Payment delays: Funding holds if lender needs recorded notice.
Recording rejection: Missing data can cause county rejection.
Increased legal costs: Correcting errors may require counsel involvement.
Title issues: Unresolved notices can cloud title.

Practical tips for accurate and efficient completion

Small process improvements reduce errors, speed recording, and limit downstream disputes.

Use legal entity names
Enter the exact legal name for owners, contractors, and lenders as shown on title and loan documents; mismatched names can invalidate searches and complicate lien enforcement.
Validate property identifiers
Confirm parcel, assessor, or permit numbers with the county assessor to avoid filing under the wrong property record and to ensure indexability.
Include lender details
When a lender is involved, list the lender's legal name and address to meet bond or financing conditions and to facilitate lien or bond claim notices.
Record then distribute
Record the Notice with the county first if state law conditions effectiveness on recordation, then deliver copies to contractors and suppliers with proof of record.

Real-world examples of Notices in action

These brief examples show how owners and contractors used a recorded Notice of Commencement to support project administration and protect rights.

Martin Properties — Site Start

A regional developer recorded a Notice before mobilization to document lender and owner contact information.

  • The recorded Notice clarified the pay application schedule for subs.
  • The clear public record helped avoid payment disputes and sped up funding draws during the first two months of construction.

BIS — Bond and Claims

A contractor recorded the Notice of Commencement and provided copies to suppliers and the bond issuer.

  • Timely distribution triggered required notice windows.
  • When a supplier later claimed nonpayment, the recorded Notice and distribution evidence simplified the bond claim review and reduced litigation risk.

Typical eSignature vendor comparison for Notice of Commencement workflows

Choose a provider based on price, HIPAA and compliance needs, bulk-send capabilities, and whether the vendor supports integrations you require for e-recording and project systems.

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 by vendor Varies by vendor Varies by vendor Varies by vendor
Bulk Send Yes Yes Yes Yes Yes
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Frequently asked questions about Notices of Commencement

Answers to common questions about execution, electronic signing, recording, and correcting Notices of Commencement.


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