Georgia Court of Appeals Requires Strict Compliance of Supplier’s Notice to Owner/Notice to Contractor

Last month, the Georgia Court of Appeals handed down a decision that affects every third-tier subcontractor and supplier working on construction projects in Georgia.  In short, the court held that a supplier’s Notice to Owner/Notice to Contractor  which failed to include the subcontractor’s address and the location of the project  did not comply with statutory requirements of a Notice to Owner.  Thus, the supplier’s Notice was defective, and the supplier was barred from seeking payment under a payment bond and barred from filing a materialmen’s lien even though the  contractor and surety had actual knowledge of subcontractor’s address and location of project. See Consolidated Pipe & Supply Co., Inc. v. Genoa Const. Services, Inc., — S.E.2d —-, 2010 (WL 447011) Ga.App.,2010.

Thus, in order for a sub-contractor or supplier to preserve its right to file a materialmen’s lien or make a claim against a payment bond, it is essential that a proper Notice to Contractor and a proper Notice to Owner is given within thirty (30) days of the date the sub-contractor or supplier begins work on the project.