Arizona Mechanic’s Lien–Using a Preliminary 20-Day Lien Notice
We all know the power and credibility that is given to filing an Arizona mechanic’s lien. It puts an extra punch in your receivables and almost requires that your collecting party take you seriously. But remember before filing such an Arizona mechanic’s lien, there are pre-lien requirements.
Some states only require a pre-lien notice to be served by lower tier contractors, namely subcontractors and suppliers. But Arizona is different. All mechanic’s lien claimants, whether prime contractor, sub, supplier, or laborer, are required to first file a preliminary notice.
The Arizona Pre-Lien Notice must be served no later than 20 days after the lien claimant has first furnished the works to the project, which includes such matters as labor, services, materials, machinery, fixtures, or tools. And it is also noteworthy that you cannot serve these notices to early– there is no premature Pre-Lien Notice and as a result, it is recommended you send these out early.
For example, it is a good idea to send them out as soon as your contract is signed, so you do not forget.
These Arizona notices also go a long way to ensure future payments. Many owners collect the pre-lien notices and insist that lien waivers be signed by all the persons who have served them. That is in a way a guarantee for payment.
Note also that you can also serve the Pre-Lien Notice late, but you get an Arizona Mechanic’s Lien only for the labor and materials furnished for the 20 days immediately before sending out the Pre-Lien Notice, and for all work furnished after sending the notice.
For more information on an Arizona mechanic’s lien.