Subject: Proactive Lien Rights: Don’t Leave Money on the Table
As a contractor, in Arizona contractor particularly, protecting your lien rights on residential projects is crucial, especially in light of the increasing number of escalation requests for mechanics liens we are receiving. Unfortunately, many of these requests are either rejected due to non-compliance with Arizona's statutory timeframes or result in significant financial losses.
To ensure you secure your lien rights effectively, it’s essential to adopt a proactive approach. In Arizona, the law mandates specific timeframes for filing Preliminary Notices and mechanics liens. Failure to adhere to these timeframes can jeopardize your ability to collect payment.
Key Arizona Statutes to Remember:
Preliminary Notice (A.R.S. § 33-992.01): You must serve a Preliminary Notice within 20 days of starting work on a project. Read more here.
Mechanics Lien (A.R.S. § 33-993): If you do not file your mechanics lien within 120 days of your substantial completion of the entire project, you will lose your right to a lien. Read more here.
By understanding and adhering to these statutory requirements, you can avoid losing valuable payments and streamline the collection process. We recommend reviewing your projects regularly to ensure that all notices are sent out promptly and that you are fully informed about the statutory timeframes.
If you have questions or need assistance with your lien rights, please don't hesitate to reach out. We're here to help you navigate these complexities and secure your hard-earned payments.
Best regards,
President
RCS Preliminary Lien Services, LLC
