Filing liens comes with a great deal of complexity. You have to make sure you file it on time, that the lien is valid when you file it, and that you’re following the right lien laws for your state. We’re here to take away the complexity and confusion and give it to you straight. If you work in Arizona and need to know the construction lien and bond laws, this is the site for you. Here, we break down exactly what the state of Arizona requires for you to properly file a valid lien and bond.
All Contractors must be licensed and bonded to do business in Arizona in order to have lien or bond claims.
How to File a Bond in Arizona
- Public projects over $50,000, need to have bonds. For Place 3* and below, Subcontractor and Material Suppliers must provide the Place 1* Contractor with a preliminary twenty (20) day notice. This notice must be sent within twenty (20) days of first supplying labor and/or materials. All Contractors must send the notice of their bond claim within ninety (90) days of last work and/or materials. Must bring suit to enforce your bond claim within one (1) year of last work and/or materials supplied.
How to File a Lien in Arizona
- Contractors in Place 4* or below do not have lien rights.
- For Homesteads, only a Place 1* Contractor that has a written contract with the Owner has lien rights.
- You must send a preliminary twenty (20) day notice. The notice must be sent to the Place 1* Contractor, Owner, and Construction Lender within twenty (20) days of first supplying work and/or materials.
- Liens must be filed one hundred and twenty (120) days after final completion or sixty (60) days after a notice of completion is filed.
- You need to attach a copy of your contract or invoices to the lien.
- You need to attach a copy of the preliminary notice you sent and proof of mailing to the lien.
- You must send notice of the lien that was filed to the Owner.
- Liens are good for six (6) months, then you will need to bring suit to foreclose.
Lien Stop Notices in Arizona
- Any person who is entitled to a lien can send a stop notice.
- The notice is sent to the Lender and Owner and states that you are owed money and payments to the Owner, or the Place 1* Contractor should stop until you are paid. This is for commercial and non-occupied residential projects only.
- The individual must be personally served.
- You can only send if you would be timely for a lien as well.
- Must bring suit to enforce your stop notice claim within three (3) months of sending the claim.
If you work in Arizona, make sure you keep this list nearby. Construction liens and bonds exist to enforce your right to be paid. To solidify your lcollection strategy, listen in to The Quit Getting Screwed Construction Podcasts's Arizona Lien Laws episode. If you’d like someone else to take care of filing your lien or bond, and do it the right way, contact a professional Arizona lien lawyer who knows construction law. Our sister company, The Cromeens Law Firm, has a lien and collections team ready to take care of it for you. Your business’s future relies on your ability to collect. Don’t lose your leverage.
*The “places” referenced in the rules above correlate to the Construction Food Chain Chart from Karalynn Cromeens’ book,
Quit Getting Stiffed. The chart can be found here to use when following these lien and bond rules.