5 Things to Know About Arizona Mechanics Lien Law

It's not always easy to receive the gold you've earned in the Copper State. Arizona, like all other states, has mechanics lien laws to help construction workers and suppliers like you get paid. Like all other states, Arizona mechanics lien and Arizona construction lien laws are also confusing and complicated. So you need to know how the law works to be able to properly file a Arizona lien and protect your right to be paid. Here are 5 things you need to know about the Arizona lien laws as reported to NLB by our network of Arizona construction attorneys and Arizona construction lawyers to successfully file your next lien.

Who Can File a Arizona Mechanics Lien

Generally, every state has laws that limit who can file a mechanics lien and a payment bond claim, and Arizona liens are not the same to perfect. You need to know how and when to take the required steps. The pre-lien or preliminary notice requirements are different for each state on Private, Public, and Federal Projects. When you send the notice to the owner, preliminary notice, or pre-lien notices are also different for a supplier, sub, GC, or design professional.

Notice of Right to Lien

Your first step in protecting your lien rights is typically to serve notice of your right to file a mechanic's lien, often referred to as the "Preliminary Notice". It must be served on the owner and the general contractor. Unless you are working directly for the general contractor. If the owner obtained a loan to fund the project, you must also serve the notice to the construction lender. The Preliminary Notice timing shown is not always mandatory but will afford maximum protection for liens.

This notice may be served when you begin supplying materials to the project. If you miss the statutory date, you may in some states still serve the notice to capture remaining funds as state law typically but not always provides. Notice (Statutory Form) to owner, contractor, construction lender & person with whom the claimant has contracted within a date certain from the time you began work, or in some times before you start and in others when you completed work.

The notice may either be served by certified mail, return receipt requested, or personally served on each of the parties. If you file a lien, you need to provide proof of this service by affidavit and proof of mail delivery. The notice typically includes a description of the work or goods you will provide, the estimated total price of the work or goods you will provide, and the statutorily required statement.

Preparing the Arizona Mechanics Lien

Every mechanics lien typically must contain the owner's name, a general description of the property and location, the name of the hiring party, the first and last date of work a description of the work performed, and the amount of money owed. The lien may also include other statutorily required statements and best practices require a lien to be prepared by a lawyer in the project state.

Filing and Serving the Arizona Mechanics Lien

According to the mechanics lien law, after your notices are served timely the lien must be filed in the county recorder's office in the county where the property is located. The lien may either be served by certified mail, return receipt requested, or personally served on each of the parties. If you file a lien, you may in several states need to provide proof of this service by affidavit and proof of mail delivery.

Final Thoughts

Even if circumstances change, it is never too late to start a dialogue with the owner and GC to with general counsel to discuss the details of your initial consultation. If you properly perfected all the required steps you can likely start a foreclose action on the lien, sue the surety on a bond or sue for collection and other remedies. Property owners and competing creditors may try to block your path, but if you followed the law, you will have placed yourself in a strong secured position against your adversaries.