--- title: NEW IOWA LAWS LIMIT LAWSUIT OPTIONS FOR RESIDENTIAL CONSTRUCTION CONTRACTORS WHO FAIL TO FILE STATUTORY NOTICES description: NEW IOWA LAWS LIMIT LAWSUIT OPTIONS FOR RESIDENTIAL CONSTRUCTION CONTRACTORS WHO FAIL TO FILE STATUTORY NOTICES --- [![Goosman Lawfirm](https://blog.goosmannlaw.com/hs-fs/hubfs/Goosmannlaw%20October2017/images/Goosmann_Law_Firm_logo_4C-white.png?width=1250&name=Goosmann_Law_Firm_logo_4C-white.png "Goosman Lawfirm")](http://goosmannlaw.com/) - [COVID-19 Toolbox](https://goosmannlaw.com/covid-19-resource-toolbox/) - Our Team - [Attorneys](https://goosmannlaw.com/attorneys/) - [Non-Attorney Staff](https://http://goosmannlaw.com/non-attorney-staff/) - Practices & Industries - [Practices](https://goosmannlaw.com/practices/) - [Banking & Finance](https://goosmannlaw.com/banking-finance/) - [Bankruptcy, Restructuring & Workouts](https://goosmannlaw.com/bankruptcy-restructuring-workouts/) - [Business](https://goosmannlaw.com/business/) - [Divorce & Family Law](https://goosmannlaw.com/divorce-family-law/) - 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In January 2013, the Iowa legislature enacted new statutes which have a significant impact on general contractors and subcontractors providing goods and services on residential construction projects. Noncompliance with the new laws can significantly limit a contractor’s options if he/she later files a lawsuit related to the project. Under the new laws, a *general contractor* who has or will contract with a subcontractor to provide labor or material on a residential project must post a “Notice of Commencement of Work” to the Iowa Secretary of State’s online Mechanic’s Lien Registry within 10 days after commencement of work and must provide the owner with the following notice - in writing, in bold type, and at a minimum size of ten point font: *IMPORTANT NOTICE REGARDING THE PROPERTY LOCATED AT: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_. Persons or companies furnishing labor or materials for the improvement of real property may enforce a lien upon the improved property if they are not paid for their contributions, even if the parties have no direct contractual relationship with the owner. The mechanics’ notice and lien registry provides a listing of all persons or companies furnishing labor or materials who have posted a lien or who may post a lien upon the improved property. For more information, go to* [http://sos.iowa.gov/mnlr](http://sos.iowa.gov/mnlr) or call toll-free 1.888.767.8683. If the general contractor fails to do so, it cannot file a mechanics’ lien on the property. The significance of this fact is discussed below. In addition, the new laws require a *subcontractor* on a residential project to post a “Preliminary Notice” to the Iowa Mechanics’ Lien Registry if it wants to preserve the right to file a mechanics’ lien. A subcontractor’s claim is limited to the amount owing to the general contractor at the time the Preliminary Notice if filed. As such, subcontractors will want to file the Preliminary Notice right away as a matter of custom. Furthermore, if the general contractor failed to post the Notice of Commencement of Work, a subcontractor will need to post such Notice when also filing its Preliminary Notice. If a general contractor or subcontractor fails to file the above-discussed notices, they will not be able to file mechanics’ liens on residential properties in the State of Iowa. As a result, any subsequent lawsuit seeking to collect money will not include a claim to foreclose on the mechanics’ lien and will be limited to other causes of action, such as breach of contract or unjust enrichment. In addition, Iowa law permits the recovery of attorneys’ fees in an action to foreclose on a mechanics’ lien. Absent such a claim, a contractor will likely be unable to collect attorneys’ fees incurred through a successful lawsuit against the property owner unless the contract with the homeowner contains an attorneys’ fees provision. As a result, it is important for contractors working on residential construction projects in Iowa to follow the new statutory rules, which are strictly enforced, if they want to avoid limiting their litigation options. 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