Arizona Notice Requirements

Private Works — Arizona Preliminary 20-Day Mechanic Lien Notice (§33-992.01)

Under Arizona law, all mechanic lien claimants on private projects must serve the Arizona Preliminary 20-Day Mechanic Lien Notice using the statutory form. This notice must be served on the owner, contractor, construction lender, and the person with whom the claimant contracted within 20 days of first furnishing labor, services, or materials. A.R.S. §33-992.01.

The 20-day preliminary notice is required for original contractors (contractors, engineers, surveyors, and architects under §33-992.01) as well as subcontractors and materialmen. Unlike many other states, Arizona requires this preliminary notice from all tiers of claimants, not just those lacking privity with the owner.

Claimants who properly serve the 20-day preliminary notice are entitled to receive copies of the Notice of Completion within 15 days of its recording. A.R.S. §33-993(i). This is critical because the Notice of Completion shortens the mechanic lien recording deadline from 120 days to 60 days.

Who Must Serve the Preliminary 20-Day Notice

The following parties must serve the Arizona Preliminary 20-Day Mechanic Lien Notice on private projects:

• Original contractors (general contractors, engineers, surveyors, architects) — serve the owner, construction lender, and person contracted with within 20 days of first performance (§33-992.01)
• Subcontractors — serve the owner, contractor, construction lender, and person contracted with within 20 days of first performance
• Materialmen and suppliers — serve the same parties within 20 days of first furnishing materials
• No additional preliminary notices beyond the 20-day notice are required for original contractors on private works

Stop Notice and Bonded Stop Notice (§33-1055)

Arizona provides subcontractors and materialmen with a powerful stop notice remedy. A verified Stop Notice (or Bonded Stop Notice if directed to a construction lender) may be served on the owner and construction lender. This notice obliges the owner or lender to withhold from the prime contractor monies equal to the amount of the claim. A.R.S. §33-1055.

The owner is not required to hold funds exceeding the balance due on the contract. Upon demand by the owner or lender, the claimant must furnish the stop notice within 30 days or forfeit mechanic lien rights. A.R.S. §33-1055(a). The stop notice is a separate remedy from the mechanic lien and can be used in conjunction with mechanic lien rights.

Public Works — Arizona Preliminary 20-Day Mechanic Lien Notice (§34-223(a))

On Arizona public projects, subcontractors and materialmen who are in privity with a subcontractor (but not the prime contractor) must serve the Arizona Preliminary 20-Day Mechanic Lien Notice (Public Project) on the owner, contractor, subcontractor, construction lender, and person contracted with, within 20 days of first performance. A.R.S. §34-223(a) and §33-992.01.

No mechanic lien may be filed against public property in Arizona. Payment rights on public projects are secured through claims against the contractor's payment bond, which must be a minimum of 100% of the contract amount. A.R.S. §34-222.

Public Works — 90-Day Notice of Claim (§34-223.A)

In addition to the 20-day preliminary notice, public works claimants not in privity with the prime contractor must serve a written Notice of Claim on the contractor within 90 days after last furnishing labor, services, or materials. This notice must be sent by registered or certified mail with return receipt requested. A.R.S. §34-223.A.

Failure to serve the 90-day notice of claim within the statutory deadline will result in loss of the right to recover on the payment bond. The notice should clearly identify the claimant, the project, the amount claimed, and the nature of the work or materials furnished.

Consequences of Failing to Serve Timely Notice

The consequences of failing to serve the Arizona Preliminary 20-Day Mechanic Lien Notice or stop notice within the required timeframes are significant. Mechanic Lien rights may be limited or entirely forfeited for work or materials furnished before proper notice is given. On public projects, failure to serve the 90-day notice of claim to the contractor will bar recovery on the payment bond.

Additionally, on projects where the owner's contract, a payment bond, and the legal description of the property have been recorded, no mechanic lien may be filed. Instead, claimants must pursue claims and suit on the bond. A.R.S. §33-1003.