Rebuilding Western North Carolina:

Notice of Contract, Notice of Subcontract, and Notice of Public Subcontract

For the next installment of our series related to legal considerations for the rebuilding efforts taking place in Western North Carolina after the devastation of Hurricane Helene, we wanted to provide a primer on two legal documents: (1) Notice of Contract; and (2) Notice of Subcontract

A Notice of Contract is a document posted on the project site in a permit box by the owner or contractor, which provides important information about the project; these are also filed with the Court in the county that the real property is in. The Notice of Contract should include the name and address of the owner and contractor, a general description of the real property, and the name and address of the individual/entity filing the Notice of Contract.

A Notice of Subcontract is an important document for second or third-tier subcontractors, as by serving a Notice of Subcontract upon the contractor, the second or third-tier subcontractor can help to ensure the contractor knows who is working on a private project; this is helpful to open up lines of communication between the contractor and the numerous subcontractors on a given project. If a contractor posts a Notice of Contract on a project site, but a subcontractor or supplier does not send a Notice of Subcontract, then the right to claim a lien on the project’s real property can be cut off. A Notice of Subcontract should include a general description of the real property and information related to who you have contracted with, along with the contract chain leading to the contractor; most of this information should be available on the Notice of Contract.

It is important to note that if the project is public, then the key document for subcontractors is the Notice of Public Subcontract. When you enter into a contract with another party for a public project, they are obligated by statute to provide the contractor’s project statement. Nonetheless, you can also request this information directly from the contractor. As a practical tip, it would be best to do this in writing via certified mail in order to be able to prove the request was made. Then, if the contractor does not provide the requested document within seven (7) business days, the contractor loses the protections against having to pay twice. Lastly, a failure to serve a Notice of Public Subcontract upon the contractor within 75 days of your first furnishing for a project can negatively impact your payment bond claim.

If you have any questions about these documents or their implications, please feel free to contact our office.