A formal document filed in public records, often with a county clerk or similar authority, establishes the official start date of improvements to real property. This filing serves to protect the rights of contractors, subcontractors, laborers, and material suppliers by providing them with information necessary to record a mechanic’s lien if they are not paid for their services or materials. The document typically includes details such as the property owner’s information, a description of the property, the general contractor’s details, and the lender’s information, if applicable. For example, if a homeowner hires a contractor to build an addition to their house, the homeowner (or their authorized representative) would file this form before work begins.
The primary function of this recorded statement is to provide transparency and clarity regarding the project. It benefits all parties involved by establishing a clear timeline for potential lien claims, ensuring that those providing labor or materials have the necessary information to protect their interests. Historically, the absence of such a system led to disputes and uncertainties about lien rights, making it difficult for contractors and suppliers to secure payment. Its utilization fosters a more secure and predictable environment within the construction industry, reducing the risk of financial losses and promoting fair business practices.
