The high level Levelset process on the website states that a preliminary notice is required in WI. However, when I did a deep dive investigation, into this matter, the Levelset site also states that it is not a requirement on private contracts. Please provide specific detain into the Preliminary notice requirement in WI? Do I Need to Send a Wisconsin Preliminary Notice? It depends. In Wisconsin, preliminary notice is generally required to preserve a claimant’s right to make a bond claim, unless one of the specific exceptions apply. Parties who are not required to send preliminary notice prior to making a bond claim in Wisconsin are claimant’s whose contract was for less than $5000, claimants who are employees of the general or sub, and claimant’s listed in the contract between the general and the sub. Preliminary notice is not required from any party prior to making a claim on the contract funds. When do I Need to Send a Wisconsin Preliminary Notice? Bond: In Wisconsin, the preliminary notice must be received by the general contractor within 60 days from the claimant’s first furnishing of labor and/or materials to the project. Contract Funds: N/A
First, note that it's generally best practice to send preliminary notice regardless of what's required. Preliminary notices establish communication early on the job, create job transparency, and help to establish a collaborative atmosphere on the job. These benefits exist regardless of whether there's actually any preliminary notice requirement. Levelset discusses that in these articles: (1)Why You Should Send Preliminary Notice Even If It’s Not Required; and (2) Construction Industry Communication Is Weak | Notices Will Make it Stronger.
As a result of the above, a stance of "when in doubt, send a notice" is generally appropriate when facing complex preliminary notice rules. Erring on the side of caution is not only the best way to ensure that rights are preserved, but it also has the additional benefits described above.
Below is a detailed breakdown of WI's preliminary notice rules on public and private projects. If you believe Levelset has information that conflicts with the below, please feel free to provide that to a Levelset Support associate so they can help to ensure all of the information on the site is as accurate as possible.
You can find Wisconsin's preliminary notice rules for private projects here: W.S.A. § 779.02. That section weaves together a complicated array of notice requirements and exceptions to those requirements.
Section § 779.02(2)(b) generally states that subcontractors and suppliers must send notice to preserve their lien rights. However, § 779.02(1) creates several exceptions to this rule, including:
And, to be sure, § 779.02(3) states that non-prime contractors who fail to give notice (when it's required) won't be entitled to lien rights. So, considering the complex and confusing nature of the exceptions to WI's notice requirements for non-prime contractors, and considering how hard it is to track and capture the information some of those exceptions are based on, the best and safest route is to assume notice is required.
Wisconsin public projects generally require that subs and suppliers send preliminary notice, as well. And, just like with private projects there, some big exceptions apply.
Under 779.14(2)(a), notice will not be required under the following situations:
Just like with private projects, if notice is required on a public job but not sent, a claim against the bond will not be possible. So, the risk of not sending a preliminary notice is the inability to pursue a claim against the bond. Granted, it does appear that subs who have a direct, written contract on a WI public job might be able to avoid sending notice.