Notice of Commencement — First Step for All Claimants
The first step for any potential mechanic lien claimant in Ohio is to obtain a copy of the Notice of Commencement from the owner, contractor, or upper-tier subcontractor or materialman. This document contains essential information about the project, including the property description, owner information, and contractor details.
There are statutory penalties for failure to furnish the Notice of Commencement after a written request. Contractors and subcontractors have an obligation to provide this information to lower-tier parties upon request.
Notice of Furnishing — 21-Day Deadline
Subcontractors and materialmen not in direct privity with the owner must serve a Notice of Furnishing upon the owner and contractor within 21 days of commencing work or furnishing materials.
This is a critical deadline — no mechanic lien rights exist for work performed or materials furnished prior to 21 days before serving the Notice of Furnishing. This means the claimant can only recover for work performed within 21 days before and any time after the notice is served.
Exemptions From Notice of Furnishing Requirement
The Notice of Furnishing is not required for laborers, or for owner-occupied residential construction contracts, or for railroad projects.
Laborers are automatically protected without serving a Notice of Furnishing. However, all other subcontractors and materialmen should serve the notice promptly to maximize their mechanic lien rights.
Public Works — Mechanic Lien on Public Funds (§1311.25-.32)
On public works projects, the public authority is required to make the Notice of Commencement available. Contractors and subcontractors must provide, in writing, the name of the public authority and the name of the contractor to lower-tier subcontractors and materialmen. This obligation does not apply to laborers.
Subcontractors and materialmen not having direct privity of contract with the contractor must serve a Notice of Furnishing upon the contractor within 21 days of commencement of work or material furnished. §1311.261. No mechanic lien rights exist for work or material furnished prior to 21 days before serving the Notice of Furnishing.
Public Works — Payment Bonds (§153.54-.57 & §5525.15)
For public works contracts over $30,000, subcontractors, materialmen, and laborers not in privity with the prime contractor must serve a Notice of Furnishing upon the contractor within 21 days of commencement of work or material furnished. §153.56 & §1311.261.
Not all public works projects require payment bonds. The terms of a payment bond not required by statute may vary from the statutory terms. Always review the specific terms of the bond.
Prompt Pay Provisions
Ohio has strong prompt pay provisions effective for all contracts entered into after April 10, 1991. Contractors must pay subcontractors, materialmen, and laborers within 10 days after receipt of payment from the owner or public authority.
Interest at 18% per annum accrues after the 10th day. Reasonable attorney's fees and costs accrue after 30 days. Subcontractors and materialmen have the same obligation to lower-tier parties. Ohio Rev. Code §4113.61. Prompt pay does not apply to 1, 2, or 3 family detached dwellings or residential condo units.
Frequently Asked Questions
What is the Notice of Commencement in Ohio?
The Notice of Commencement is a document that must be obtained from the owner, contractor, or upper-tier party. It contains essential project information and is the first step for preserving mechanic lien rights. There are statutory penalties for failure to furnish it after a request.
What is the Notice of Furnishing deadline in Ohio?
Subcontractors and materialmen must serve a Notice of Furnishing upon the owner and contractor within 21 days of commencing work or furnishing materials. No mechanic lien rights exist for work done more than 21 days before the notice was served.
Are laborers required to serve a Notice of Furnishing in Ohio?
No. Laborers are exempt from the Notice of Furnishing requirement. They also are exempt on owner-occupied residential construction contracts and railroad projects.
What are Ohio's prompt pay requirements?
Contractors must pay subcontractors, materialmen, and laborers within 10 days after receipt of payment. Interest at 18% per annum accrues after the 10th day, and reasonable attorney's fees and costs accrue after 30 days. Ohio Rev. Code §4113.61.
Is a Notice of Furnishing required on Ohio public works?
Yes. On public funds mechanic lien claims and payment bond claims, subcontractors and materialmen not in privity with the contractor must serve a Notice of Furnishing within 21 days of commencing work or furnishing materials.
Related Ohio Resources
Explore other critical compliance areas for Ohio construction mechanic lien law.
Mechanic Lien Deadlines
Project-type-specific mechanic lien filing deadlines (60, 75, or 120 days), owner service requirements, and filing procedures under Ohio Rev. Code §1311
Mechanic Lien Enforcement Deadlines
60-day and 6-year suit deadlines, public funds mechanic lien enforcement, payment bond claim suits, and litigation timelines
Ohio Overview
Return to the main Ohio construction mechanic lien law page