Contractor Statutory Disclosures & Pre-Lien Reference Guide
Last Updated: August 21, 2026 · Reference Guide for US Trade Contractors & Property Owners
1. Purpose & Legal Applicability
This disclosure hub sets forth standard statutory disclosures, consumer cancellation notices, preliminary mechanic's lien warning requirements, and trade workmanship warranty provisions automatically embedded or referenced in OnderVolk digital proposals, estimates, and work orders.
2. FTC 3-Day Right to Cancel (Cooling-Off Rule)
Under Federal Trade Commission regulations (16 CFR Part 429) and state Home Solicitation Sales Acts, consumers who enter into a home improvement or trade service contract at their residence valued at $25 or more generally have the legal right to cancel the transaction within three (3) business days:
MANDATORY NOTICE OF CANCELLATION
YOU MAY CANCEL THIS TRANSACTION, WITHOUT ANY PENALTY OR OBLIGATION, WITHIN THREE (3) BUSINESS DAYS FROM THE DATE YOU SIGNED OR ELECTRONICALLY APPROVED THIS ESTIMATE / AGREEMENT.
If you cancel, any payments made by you under the contract will be returned within ten (10) business days following receipt by the Contractor of your cancellation notice.
Emergency Repair Exception: If services were requested to remedy an immediate bona fide health, safety, or property hazard (e.g. active water main rupture, gas leak, loss of heat in freezing weather), the consumer may execute an electronic waiver of the 3-day cancellation period to begin emergency work immediately.
3. Statutory Mechanic's Lien Disclosures by State
State construction lien statutes require trade contractors to furnish property owners with formal statutory notice regarding mechanics' lien rights prior to or upon commencement of work:
TEXAS (Texas Property Code § 53.254 - Residential Homestead Notice)
“KNOW YOUR RIGHTS AND RESPONSIBILITIES UNDER THE LAW. YOU ARE WARNED THAT YOU MUST ENSURE THAT PERSONS WHO PROVIDE MATERIALS OR SERVICES ARE PAID IN FULL. IF YOU FAIL TO DO SO, A MECHANIC'S LIEN MAY BE PLACED ON YOUR PROPERTY.”
CALIFORNIA (California Civil Code § 8200 - Preliminary 20-Day Notice)
“NOTICE TO PROPERTY OWNER: EVEN IF YOU HAVE PAID YOUR GENERAL CONTRACTOR IN FULL, IF PERSONS WHO FURNISH LABOR, SERVICE, EQUIPMENT, OR MATERIALS ARE NOT PAID, THEY MAY FILE A MECHANIC'S LIEN ON YOUR PROPERTY.”
FLORIDA (Florida Stat. § 713.015 - Construction Lien Warning)
“ACCORDING TO FLORIDA'S CONSTRUCTION LIEN LAW (SECTIONS 713.001-713.37, FLORIDA STATUTES), THOSE WHO WORK ON YOUR PROPERTY OR PROVIDE MATERIALS AND SERVICES AND ARE NOT PAID IN FULL HAVE A RIGHT TO ENFORCE THEIR CLAIM FOR PAYMENT AGAINST YOUR PROPERTY.”
NEW YORK (New York Lien Law § 8 - Notice of Contract & Mechanic's Lien Right)
“UNDER THE LIEN LAW OF THE STATE OF NEW YORK, ANY CONTRACTOR, SUBCONTRACTOR, OR MATERIALMAN WHO PERFORMS LABOR OR FURNISHES MATERIALS FOR THE IMPROVEMENT OF REAL PROPERTY HAS A RIGHT TO FILE A LIEN AGAINST THE PROPERTY FOR THE VALUE THEREOF IF NOT PAID.”
ILLINOIS (770 ILCS 60/21 - Subcontractor Notice and Owner Warning)
“THE LAW REQUIRES THAT THE CONTRACTOR SHALL SUBMIT TO THE OWNER, BEFORE ANY PAYMENTS ARE MADE, A STATEMENT IN WRITING, UNDER OATH, OF THE NAMES AND ADDRESSES OF ALL PARTIES FURNISHING MATERIALS AND LABOR. PAYMENTS SHOULD NOT BE MADE TO THE CONTRACTOR WITHOUT SUCH STATEMENT.”
GEORGIA (O.C.G.A. § 44-14-361.1 - Notice of Right to Lien)
“FAILURE OF A CONTRACTOR, SUBCONTRACTOR, OR MATERIALMAN TO PROVIDE YOU WITH THIS PRELIMINARY NOTICE DOES NOT RELIEVE YOU OF THE OBLIGATION TO ENSURE ALL LABORERS AND SUPPLIERS ARE PAID. GEORGIA LAW ALLOWS LIENS TO BE ATTACHED TO REAL ESTATE FOR UNPAID IMPROVEMENT LABOR AND PARTS.”
COLORADO (C.R.S. § 38-22-109 - Notice of Intent to Lien)
“IMPORTANT NOTICE: CO-LAW PERMITS PERSONS PROVIDING LABOR OR MATERIALS FOR PROPERTY REPAIRS OR CONSTRUCTION TO FILE A LIEN AGAINST THE PROPERTY IF THEY ARE NOT PAID, EVEN IF YOU PAID YOUR PRIMARY GENERAL CONTRACTOR IN FULL.”
WASHINGTON (RCW 60.04.031 - Notice to Owner / Right to Claim Lien)
“THIS NOTICE IS SENT TO YOU TO PROVIDE INFORMATION THAT THE UNDERSTIGNED HAS BEGUN PROVIDING MATERIALS OR LABOR FOR DESCRBED PROPERTY IMPROVEMENTS. THE WASHINGTON CONSTRUCTION LIEN LAW PERMITS LIENS IN CASE OF NON-PAYMENT FOR SERVICES.”
PENNSYLVANIA (Mechanic's Lien Law of 1963 - Formal Notice of Intent to Claim a Lien)
“NOTICE IS HEREBY GIVEN THAT THE UNDERSIGNED INTENDS TO FILE A COMPLAINT FOR THE FORECLOSURE OF A MECHANIC'S LIEN AGAINST YOUR PROPERTY. THE LAW PERMITS ANY SUBCONTRACTOR OR MATERIALMAN UNPAID BY THE PRIME CONTRACTOR TO ATTACH A LIEN TO REAL ESTATE FOR IMPROVEMENT VALUE.”
OHIO (Ohio Rev. Code § 1311.011 - Homeowner Warning)
“WARNING TO OWNER: UNDER OHIO LAW, ANY SUBCONTRACTOR, MATERIAL SUPPLIER, OR LABORER WHO PERFORMS WORK ON OR DELIVERS MATERIALS TO YOUR HOME AND IS NOT PAID IN FULL HAS A RIGHT TO FILE A LIEN AGAINST YOUR PROPERTY FOR MONEY OWED.”
MICHIGAN (Michigan Construction Lien Act - Notice of Furnishing / Lien Warning)
“NOTICE TO OWNER: AN ACT OF THE STATE OF MICHIGAN PROVIDES CONRACTORS, SUBCONTRACTORS, SUPPLIERS, OR LABORERS A LIEN ON REAL PROPERTY CONCERNED IN THE EVENT OF NON-PAYMENT FOR LABOR, MATERIALS, OR EQUIPMENT CONTRIBUTED TO AN IMPROVEMENT.”
NORTH CAROLINA (N.C. Gen. Stat. § 44A-8 - Notice of Lien Claim)
“NOTICE: ANY PERSON WHO PERFORMS OR FURNISHES LABOR, PROFESSIONAL DESIGN OR SURVEYING SERVICES, OR MATERIALS PURSUANT TO A CONTRACT, HAS A RIGHT TO FILE A CLAIM OF LIEN TO SECURE PAYMENT FOR THE VALUE CONTRIBUTED TO YOUR REAL PROPERTY.”
MASSACHUSETTS (M.G.L. c. 254 - Notice of Contract / Mechanic's Lien Right)
“NOTICE: IN ACCORDANCE WITH THE LAWS OF THE COMMONWEALTH OF MASSACHUSETTS, ANY CONTRACTOR, SUBCONTRACTOR, AND SUPPLIER OF MATERIALS DISTURBING OR IMPROVING A REAL PROPERTY CARRIES A REMEDIAL RIGHT TO RECORD A LIEN AT THE REGISTRY OF DEEDS AGAINST YOUR ESTATE IF CONTRACTS GO UNPAID.”
NEW JERSEY (N.J.S.A. 2A:44A-1 et seq. - Construction Lien Law Notice to Owner)
“NOTICE TO PROPERTY OWNER: UNDER THE NEW JERSEY CONSTRUCTION LIEN LAW, ANY CONTRACTOR, SUBCONTRACTOR, OR MATERIAL SUPPLIER PROVIDING GOODS OR SERVICES HAS A RIGHT TO FILE A LIEN AGAINST YOUR PROPERTY IF THEY ARE NOT PAID.”
ARIZONA (A.R.S. § 33-992.01 - Preliminary 20-Day Lien Notice)
“THIS IS NOT A LIEN. THIS IS A NOTICE OF INTENT. UNDER ARIZONA LAW, PERSONS PERFORMING WORK OR FURNISHING MATERIALS HAVE THE RIGHT TO CLAIM A LIEN UPON YOUR PROPERTY IF UNPAID.”
VIRGINIA (Va. Code § 43-4.01 - Memorandum of Mechanic's Lien Notice)
“NOTICE: VIRGINIA LAW PERMITS CONTRACTORS AND SUPPLIERS TO CLAIM A STATUTORY LIEN AGAINST IMPROVED REAL ESTATE FOR UNPAID BALANCES WITHIN 90 DAYS FROM THE LAST DAY OF THE MONTH IN WHICH WORK WAS PERFORMED.”
WISCONSIN (Wis. Stat. § 779.02 - Notice of Lien Rights to Owner)
“AS REQUIRED BY WISCONSIN CONSTRUCTION LIEN LAW, BUILDER HEREBY NOTIFIES OWNER THAT PERSONS OR COMPANIES FURNISHING LABOR OR MATERIALS MAY HAVE LIEN RIGHTS ON OWNER'S LAND AND BUILDINGS IF NOT PAID.”
MINNESOTA (Minn. Stat. § 514.011 - Pre-Lien Notice to Homeowner)
“ANY PERSON OR COMPANY SUPPLYING LABOR OR MATERIALS FOR THIS IMPROVEMENT TO YOUR PROPERTY MAY FILE A LIEN AGAINST YOUR PROPERTY IF THAT PERSON OR COMPANY IS NOT PAID BY THE CONTRACTOR.”
MARYLAND (Md. Real Prop. Code § 9-104 - Notice of Intention to Claim a Lien)
“NOTICE TO OWNER: MARYLAND LAW PROVIDES THAT SUBCONTRACTORS AND MATERIALMEN WHO ARE NOT PAID MAY PETITION THE CIRCUIT COURT TO ESTABLISH A MECHANIC'S LIEN AGAINST YOUR PROPERTY.”
INDIANA (Ind. Code § 32-28-3-1 - Pre-Lien Notice for Residential Construction)
“NOTICE OF INTENTION TO HOLD MECHANIC'S LIEN: PERSONS FURNISHING LABOR OR MATERIALS FOR RESIDENTIAL REPAIRS OR IMPROVEMENTS MAY HOLD A LIEN UPON THE REAL ESTATE AND IMPROVEMENTS.”
TENNESSEE (Tenn. Code Ann. § 66-11-145 - Prime Contractor Lien Notice)
“NOTICE TO OWNER: TENNESSEE LAW ALLOWS CONTRACTORS AND SUPPLIERS WHO PROVIDE IMPROVEMENTS TO YOUR REAL ESTATE TO SECURE PAYMENT BY FILING A LIEN AGAINST THE PROPERTY.”
MISSOURI (Mo. Rev. Stat. § 429.012 - Notice to Owner Regarding Mechanic's Liens)
“WARNING TO OWNER: FAILURE OF THIS CONTRACTOR TO PAY THOSE SUPPLYING MATERIAL OR SERVICES TO COMPLETE THIS CONTRACT CAN RESULT IN THE FILING OF A MECHANIC'S LIEN ON THE PROPERTY BEING IMPROVED.”
OREGON (ORS 87.093 - Information Notice to Owner About Construction Liens)
“UNDER OREGON LAW, YOUR CONTRACTOR AND OTHERS WHO SUPPLY LABOR, SERVICE, EQUIPMENT, OR MATERIALS TO YOUR PROPERTY IMPROVEMENT MAY FILE A CONSTRUCTION LIEN AGAINST YOUR PROPERTY IF THEY ARE NOT PAID.”
4. Statutory Lien Waivers & Releases (Progress & Final)
Under state construction lien statutes, contractors and subcontractors exchanging payments must use legally enforceable statutory waiver forms. OnderVolk automatically generates state-compliant releases adhering strictly to statutory mandates:
CALIFORNIA (Civil Code §§ 8132, 8134, 8136, 8138)
California law strictly requires verbatim statutory language for all Conditional & Unconditional Progress and Final waivers. Any waiver failing to include statutory warnings is void and unenforceable.
TEXAS (Texas Property Code § 53.284)
Texas Property Code mandates exact statutory waiver formatting, requiring specific notice disclosures regarding constitutional lien release upon receipt of good funds.
5. 1099-NEC & State Independent Contractor Tax Reporting
Payments disbursed to trade subcontractors through the OnderVolk OS are tracked under IRS Form 1099-NEC reporting guidelines and state-specific Department of Revenue mandates:
- IRS Federal Threshold: Payments of $600 or more to unincorporated subcontractors require Form 1099-NEC Box 1 reporting by January 31.
- California EDD Form DE 542: California businesses must report any independent contractor paid $600 or more within 20 calendar days of payment or contract execution.
- State Non-Resident Withholding: States including Pennsylvania (3.07%), Georgia (4%), and North Carolina (4%) require statutory withholding on out-of-state trade subcontractors without registered state entity numbers.
- QuickBooks & Accounting Sync: All disbursements generate standard .QBO, .IIF, and CSV batch files for seamless ledger and CPA tax alignment.
6. OnderVolk Standard 1-Year Workmanship Warranty
When a contractor generates an official Workmanship Warranty Certificate through the OnderVolk platform upon invoice settlement, the following standard warranty provisions govern:
- Labor & Workmanship Guarantee: The contractor warrants that all installation and repair labor performed under the invoiced scope is executed in a good, workmanlike manner, free from defects in workmanship for a period of one (1) full year (365 days) from the completion date.
- Manufacturer Equipment Warranties:Equipment, mechanical units, breakers, pipes, compressors, and fixtures installed carry their respective manufacturer warranties (recorded in the customer's digital Equipment & Warranty Vault). The contractor assists in facilitating manufacturer parts warranty claims during the active warranty term.
- Warranty Exclusions: This workmanship warranty does not cover:
- Acts of God, severe weather, lightning strikes, grid surges, flooding, or earthquakes.
- Tampering, modifications, or repair attempts performed by uncertified third parties or homeowners.
- Normal wear and tear, cosmetic aging, consumable filters, or lack of recommended routine maintenance.
- Pre-existing structural, electrical, or plumbing defects not included in the approved scope of work.
7. EPA Lead-Safe & Asbestos Pre-1978 Disclosures
Under the EPA Renovation, Repair, and Painting (RRP) Rule (40 CFR Part 745), contractors disturbing painted surfaces in residential housing built prior to 1978 must provide the homeowner with the EPA pamphlet “Protect Your Family From Lead In Your Home” and observe lead-safe work practices.
Homeowners approving estimates for pre-1978 structures certify that they have received or been offered digital access to EPA lead-safety disclosures prior to the commencement of surface alteration work.
8. Legal & Regulatory Inquiries
OnderVolk Compliance & Regulatory Affairs
Email: compliance@ondervolk.com
Website: https://www.ondervolk.com/legal/disclosures