Are you a licensed Washington contractor? If so, then you know that complying with all of Washington’s construction laws and regulations can be onerous. But here is one law that you need to be very familiar with.
If you as a licensed Washington contractor do business directly with a property owner, RCW 18.27.114 requires you to make sure the customer signs what is called a Notice to Customer. This is required when the contract is for repair, remodel or new construction, and the bid or contract price is $1,000 or more. It is also required for commercial projects when the contract price is between $1,000 and $60,000.
What is a Notice to Customer? It simply tells your customers that you are a licensed Washington contractor, that you have a bond, that you have construction lien rights, and that the customer should insist on obtaining lien releases. The statute sets forth exactly the language that must be included in the notice. I also offer a form Notice to Customer, and you can download a copy by clicking here. Keep in mind that you are required to keep all signed copies of the Notice to Customer for at least the last three years.
There are a few exceptions, but why take a chance? You should consider simply including the required language in your form bid or contract. Then, when the customer signs your bid or contract, they are also automatically signing the Notice to Customer too.
As a licensed Washington contractor, your failure to comply is not only an infraction and a violation of the law, but also completely strips you of your construction lien rights. That is why, when a licensed Washington contractor comes to me asking to help with a construction lien, the first question I ask is whether he or she has a signed Notice to Customer. Too often the answer is no.
Common Sense Disclaimer. Our ethical rules compels me to state some things that should be obvious. The above information is not legal advice specific for you. Your situation is unique and you should not rely on this blog post to tell you everything you need to know. Also, simply by reading this post, I am not your attorney.
