What happens if a notice of completion is filed for a construction project?

When a notice of completion is filed for a construction project, it serves several important functions, particularly concerning mechanic's liens. Filing this notice significantly shortens the time frame within which contractors and subcontractors can file a mechanic's lien against the property. Specifically, under California law, if a notice of completion is recorded, the deadline for claimants to file a mechanic’s lien is reduced to 60 days, as opposed to the typically longer 90-day period allowed if no notice of completion has been filed.

This early deadline incentivizes contractors and subcontractors to act promptly to secure their rights to payment. It also provides property owners with a degree of certainty regarding the cessation of potential lien claims once the stipulated time has passed after the notice of completion. As a result, understanding this aspect of a notice of completion is crucial for both property owners and those involved in construction projects, ensuring they are aware of their rights and responsibilities.