North Carolina Notice Requirements

Contractors — Notice of Contract (30-Day Deadline)

Contractors must file and post a Notice of Contract within 30 days of the issuance of building permits. This notice serves as a public record of the construction contract and is important for establishing the framework within which subcontractor mechanic lien rights operate.

All Claimants — Notice to Mechanic Lien Agent (15-Day Deadline)

Contractors, subcontractors, material suppliers, architects, and surveyors must send Notice to the designated Mechanic Lien Agent within 15 days of first furnishing labor or materials to the project. This is a critical preliminary notice that must be served timely to preserve mechanic lien rights.

The Mechanic Lien Agent is designated for the project and serves as a central point of contact for all lien-related notices. Failure to send notice to the Mechanic Lien Agent within 15 days may impair mechanic lien rights.

Subcontractors — Notice of Subcontract

Subcontractors not in privity with the general contractor should serve a Notice of Subcontract when the GC files and posts a Notice of Contract within 30 days of the building permit. This notice entitles second and third-tier subcontractors to be subrogated to the general contractor's mechanic lien rights.

The Notice of Subcontract also requires the general contractor to notify the subcontractor within 5 days of every payment made to the filer's customer, providing transparency in the payment chain.

Mechanic Lien on Contract Funds — Notice of Claim (§44A-19)

Subcontractors and material suppliers may serve a Notice of Claim of Mechanic Lien on the obligor — the owner, general contractor, and higher-tier subcontractors — to establish a mechanic lien on contract funds under §44A-19(c). This notice should be provided as soon as possible after the obligation is due to preserve the right to a full price mechanic lien.

First-tier subcontractors are entitled to a mechanic lien on funds owed to the contractor. Second-tier subcontractors are entitled to a mechanic lien on funds owed to the first-tier subcontractor with whom they contracted.

Public Works — Notice of Subcontract Within 75 Days

On North Carolina public works projects over $300,000, subcontractors and materialmen lacking privity with the contractor must send a Notice of Subcontract within 75 days of first furnishing. This notice is required as a prerequisite to making a bond claim.

Subcontractors in privity with the contractor need no preliminary notice for public works bond claims.