What Is a Notice of Furnishing?

A Notice of Furnishing is a document that certain subcontractors and material suppliers must serve on the property owner and original contractor to preserve their mechanic's lien rights on many private construction projects in Ohio. The notice informs the owner and contractor that the sender is providing labor, services, equipment, or materials to the project.

Ohio's Notice of Furnishing requirements are found in Ohio Revised Code § 1311.05. Generally, a subcontractor or supplier that fails to timely serve a required Notice of Furnishing may lose some or all of its mechanic's lien rights.

The Notice of Furnishing identifies the subcontractors and suppliers working on a project. Its purpose is to notify the property owner of the companies providing labor or materials and to preserve the sender's right to file a mechanic's lien if payment is not made.

Because mechanic's lien rights are created by statute, Ohio courts generally require strict compliance with notice and filing requirements. Contractors, subcontractors, and suppliers should carefully review Ohio's mechanic's lien statutes to ensure their rights are protected.

What Is a Mechanic's Lien?

A mechanic's lien is a legal claim against real property that may be filed by contractors, subcontractors, laborers, and material suppliers who have not been paid for improving that property. In Ohio, mechanic's liens are governed by Ohio Revised Code Chapter 1311.

The purpose of a mechanic's lien is to provide security for payment. Rather than relying solely on a breach-of-contract claim, an eligible claimant may obtain an interest in the improved property itself. If the debt remains unpaid, the lienholder may have the right to enforce the lien through court proceedings.

Ohio law generally grants lien rights to those who perform labor, furnish materials, or provide certain professional services that contribute to the improvement of real property. See Ohio Revised Code § 1311.02.

Mechanic's liens are subject to strict statutory requirements, including filing deadlines and notice obligations. Because failure to comply with these requirements can result in the loss of lien rights, property owners and construction professionals should understand the procedures established by Ohio law.

Do I Need a Written Construction Contract in Ohio?

In some situations, Ohio law may not require a construction contract to be in writing. However, having a written agreement is one of the best ways to avoid disputes and protect everyone involved in a construction project.

Short Answer: Not every contract has to be in writing, But You Should Have One

Ohio generally recognizes oral contracts if the parties can prove an agreement existed and establish its essential terms. However, proving the scope of work, price, schedule, and responsibilities becomes much more difficult without a written contract.

Why Written Contracts Matter

A written construction contract helps clearly define:

• The scope of work
• Project pricing and payment terms
• Deadlines and completion dates
• Change-order procedures
• Warranty obligations
• Dispute-resolution provisions

When disagreements arise, courts often look first to the written agreement to determine the parties' rights and obligations.

When a Writing May Be Required

Certain agreements must be in writing under Ohio's Statute of Frauds, including contracts that cannot be performed within one year. See Ohio Revised Code § 1335.05.

Additionally, Ohio's Home Construction Service Suppliers Act requires certain disclosures and other terms in residential construction contracts. See Ohio Revised Code Chapter 4722.

The Bottom Line

While an oral construction agreement may be enforceable in Ohio, a detailed written contract can significantly reduce misunderstandings and strengthen your position if a dispute arises. Whether you are a contractor, subcontractor, supplier, or property owner, a well-drafted contract is often the most effective risk-management tool available.