How Preliminary Notices Help Build Better Relationships with the General Contractor?
How Preliminary Notices Help Build Better Relationships with the General Contractor?
If you’re working in a construction firm, you are probably used to the long wait to receive your payment after completing your work. You wait patiently to get paid by the general contractor. You try contacting him via phone calls, emails and texts to remind him about the invoice. But none of it seems to get their response or attention. In fact, they get annoyed when you keep asking.
    That is when you ask yourself if there is anything you could’ve done to establish a better relationship early on in the project? Well, there is definitely something you could have done. Sending a preliminary notice is a great way to improve communication with the general contractor and build a good relationship with him from the beginning.
      One major misconception about preliminary notices is that they do not strengthen relationships between the parties but rather worsen it. However, that is not true at all. vigilant subcontractors always send preliminary notices regardless of whether there is a payment issue or not. Sending preliminary notices is not only about guarding your lien rights. There are several other benefits to the practice as well. Building a good relationship with the general contractor is important for every subcontractor. It not only helps you get your payment faster, but also improves your prospects for business in future.
        Here are three ways preliminary notices can help you strengthen your relationship with your general contractor:
          • Preliminary Notices Help in Forming a Professional First Impression
              General contractors prefer working with professionals who know what they are doing. One of their main concerns is making sure that all parties get paid without any complications. Working with professional subcontractors means that the work as well as the payments will most likely go smoothly. This is one of the main reasons why general contractors like to receive preliminary notices from subcontractors.
            • Preliminary Notices Minimize Risk for General Contractors
                All the parties at the top of the payment chain i.e. the general contractor, owner, and lender want to ensure that the payments move smoothly. None of them wants to get a mechanics lien filed. A lot of paperwork is required for liens which slows down the project can cause the concerned parties to lose the property entirely. Liens can also increase the chances of double payments to the sub-subcontractors, in case the payments from the general contractor don’t properly flow down through their subs.
                  When the property owner, lender, or general contractor receives a preliminary notice, they get more information about a sub who is doing the work, the work that is being done, and also who hired the sub. This helps them in ensuring that payments are made to the right party for the right work. In this way, they can effectively avoid the risk of double payment and a mechanics lien.
                  • Preliminary Notices Help Improve Communication
                      Most of the disputes that general contractors deal with arise due to poor communication. So to avoid any confusion, it is vitally important for you to establish a strong communication line at the very beginning of the project.
                        Keeping in mind the complexity of construction projects, not all parties in accounts payable are aware of the contractor on the payroll. Preliminary notices make you more visible and helps you stand out among that pile of paperwork. This transparency makes it easier for you to communicate with all the people involved, ensuring that the project runs smoothly.
                          Preliminary notices help you build a strong communication channel by informing all the concerned parties up the chain about who you are, what work you are responsible for, and how much it is going to cost. Moreover, these notices will also provide you with the opportunity to get feedback early on in the project, which will help you avoid any roadblocks in future.