Nebraska Notice Requirements

Private Works — Notice of Mechanic Lien Liability (§52-135)

Under Nebraska law, a claimant may give a written notice of mechanic lien liability to the Contracting Owner at any time after entering into a contract from which the claimant's mechanic lien right arises. While this notice is not strictly required as a prerequisite to filing a mechanic lien, it plays a critical role in determining the amount recoverable against a "protected party." §52-135.

The amount of a subcontractor's mechanic lien against the property of a "protected party" is limited to the lesser of: (a) the amount owed to the subcontractor under its contract; or (b) the amount unpaid under the prime contract through which the claimant claims at the time the protected party receives the claimant's notice of mechanic lien liability. Providing early notice therefore maximizes the potential mechanic lien recovery amount.

Who Qualifies as a "Protected Party" Under Nebraska Law

Understanding the "protected party" designation is essential for subcontractors seeking to maximize their mechanic lien rights. Under Nebraska law, a "protected party" generally includes:

• An individual who contracts for improvements to residential real estate that he or she intends to occupy, in whole or in part
• A person who is obligated primarily or secondarily on a contract to buy or have improved residential real estate
• The protected party status limits the subcontractor's mechanic lien recovery to the lesser of what is owed under the subcontract or what remains unpaid under the prime contract at the time the protected party receives notice

Notice of Commencement (§52-145)

Nebraska law permits the contracting owner to file a Notice of Commencement, which has significant implications for mechanic lien priority and attachment dates. All mechanic liens filed while a Notice of Commencement is in effect attach at the time of filing of the Notice of Commencement. All mechanic liens filed after the termination of the Notice of Commencement attach the day after such termination. §52-145.

A mechanic lien filed while there is no recorded Notice of Commencement attaches as of the date of visible commencement of the improvement. Claimants should verify whether a Notice of Commencement has been recorded before commencing work, as this affects both priority and the timing of mechanic lien attachment.

A claimant may also notify the contracting owner in writing — either in a notice of mechanic lien liability or separately — that the claimant must be notified of the recording of any termination of the Notice of Commencement. This is an important protective measure for subcontractors and suppliers.

Public Works — Bond Notice Requirements (§§52-118 to 52-118.02)

For public works projects in Nebraska, preliminary notice is not required for direct contractors who have a contractual relationship with the contractor furnishing the payment bond. However, sub-subcontractors and lower-tier claimants who do not have a direct contractual relationship with the general contractor must give written notice within four (4) months from the date on which the last labor was performed or material was furnished or supplied.

The notice must state with substantial accuracy the amount claimed and the name of the party to whom the material was furnished or supplied, or for whom the labor was done or performed. The notice must be served by registered or certified mail, postage prepaid, in an envelope addressed to the contractor at any place the contractor maintains an office or conducts business, or at the contractor's residence, or in any other manner in which a notice may be served. §§52-118 to 52-118.02.

Copy of Recorded Mechanic Lien — Required Post-Filing Notice (§52-135)

After recording a construction mechanic lien in Nebraska, the claimant must send a copy of the recorded mechanic lien to the "protected party contracting owner" within 10 days after recording. §52-135. Failure to comply with this post-filing notice requirement could jeopardize the claimant's ability to enforce the mechanic lien.

This requirement ensures that property owners are promptly informed when a mechanic lien has been recorded against their property, allowing them to take appropriate action such as withholding funds or requiring the contractor to resolve the claim.