Construction Frequently
Asked Questions.

Please check the following FAQ's below to find the answers to common questions

If you don't find the answer here, please contact us here.

Preliminary Notice FAQ

A Nebraska preliminary notice, also known as the Notice of Right to Assert Lien, is a letter sent by a contractor, laborer or supplier to the property owner at the start of a construction project. In many states, a preliminary notice is required to be sent in order to secure the right to lien.

No, serving a preliminary notice is not required in Nebraska.

However, note that serving a Notice of Right to Assert Lien when working on a residential project with fewer than 5 dwelling units can help you secure your full lien rights. Otherwise, your lien rights may be limited to the amount that is yet to be paid to the general contractor. [1]

There is no deadline for serving a Notice of Right to Assert Lien because it is not required. It is recommended that you serve it as early as possible, preferably on your first day of work.

You will still have your lien rights even if you don’t send a preliminary notice in Nebraska. If you are working on a residential project with fewer than 5 dwelling units, your lien rights may be limited if you do not serve a Notice of Right to Assert Lien.

Intent To File FAQ

A Nebraska notice of intent to lien is sent before the filing of a mechanics lien becomes necessary. Although only a number of states require that this notice be sent, many construction participants send a notice of intent to lien as an uncostly way to have payments for invoices settled.

No, sending a Notice of Intent to Lien is not a requirement for any construction participant in Nebraska. You may, however, opt to send one as an uncostly way to prompt payment without resorting to sending a mechanics lien.

In Nebraska, a notice of intent to lien may be sent 10 days before filing a mechanics lien, even if it is not required to do so. It advises the owner of your intention to record a lien if the payment is not satisfied.

Failing to send a Nebraska Notice of Intent to Lien has no direct effect on your lien rights.

Mechanics Lien FAQ

A Nebraska mechanics lien is an effective tool that helps make sure you will be paid for the construction materials and/or labor you supplied. It is a legal claim that can effectively recover payment for contractors and suppliers.

This means that if you file a valid mechanics lien in Nebraska and you do not get paid for your work, you have the right to enforce the lien through a lawsuit. This enforcement action can either prompt the client to settle or force the sale of the property. The proceeds of the sale will be used to settle your unpaid bill.

If you successfully file a Nebraska mechanics lien, you have an interest in the improved property. When a mechanics lien is filed on the property you worked on, the property becomes collateral for uncollected payments.

According to Nebraska Revised Statutes 52-131, “person who furnishes services or materials pursuant to a real estate improvement contract has a construction lien.” [ii] These parties include, but are not limited to, general contractors, subcontractors, and material suppliers.

A Nebraska mechanics lien must be filed within 120 days after your last day of work. Your last day of work corresponds to the date when you last furnished services or materials to the project. [iii]

A Nebraska mechanics lien is enforceable within 2 years after filing [iv]. A claimant must therefore enforce a mechanics lien within this period or the mechanics lien expires.

Nebraska does not have specific licensing requirements before a party can have lien rights.

Nebraska does not specifically require a lien claimant to cancel a lien once it is satisfied. However, you may release a lien once the debt is settled by filing a certificate of release in the district court. [vi]

The “pay-when-paid” clause may be enforceable if the clause is clearly stated. There is currently no Nebraska court that has considered the validity of the “pay-if-paid” clause.

References:

[i] Nebraska Revised Statutes § 52-136

[ii] Nebraska Revised Statutes § 52-131

[iii] Nebraska Revised Statutes § 52-137

[iv] Nebraska Revised Statutes § 52-140

[v] Nebraska Revised Statutes § 52-147

[vi] Nebraska Revised Statutes § 52-142

Handle.com provides answers to Frequently Asked Questions (FAQs) to contractors and others who are seeking information regarding preliminary notices, intent to file, mechanics lien, and other construction questions. These are provided for informational purposes only, and we cannot provide any kind of advice, explanation, opinion, or recommendation about possible legal rights, remedies, defenses, options, selection of forms or strategies.

Nebraska documents

Miller Act

The Miller Act protects the rights of subcontractors working on or who have worked on government projects.

Waiver

Waivers release your right to file a mechanics lien in case of non-payment. Some have conditions so ensure you're sending the correct lien waiver type.