What is the main purpose of filing a notice of commencement?

Filing a notice of commencement is primarily a legal requirement that serves to officially signal the beginning of a construction project. This document provides public notice that work is set to commence on a property, and it establishes a timeline that is crucial for the rights of contractors and subcontractors regarding lien rights.

When the notice of commencement is recorded, it helps protect the interests of those involved in the construction by ensuring that they can enforce their rights for compensation should any payment issues arise throughout the project. This process notifies all interested parties that construction is starting, which is particularly important in terms of establishing subcontractors' and suppliers' rights to make claims related to the project.

In contrast, finalizing a construction contract, registering a business, or applying for permits are distinct activities that do not directly relate to the public declaration of the start date for the actual construction work. Therefore, the main purpose of filing a notice of commencement is indeed to legally begin construction, serving as an essential step in the project initiation process.