Filing a mechanics lien Arizona is a crucial step for contractors, subcontractors, and suppliers to secure payment for their work. However, understanding the timeline for filing a lien is essential to protect your rights. This article outlines the deadlines and factors affecting the filing process, ensuring you remain compliant and maximize your chances of receiving payment.

What is the Deadline for Filing a Mechanics Lien in Arizona?

In Arizona, contractors, subcontractors, and suppliers have 120 days from the completion of their work or the completion of the project to file a mechanics lien. If a Notice of Completion is recorded, the deadline is reduced to 60 days from the date of the notice.

Here’s a quick summary of the key deadlines:

• 120 days from project completion if no Notice of Completion is filed.
• 60 days from the date of the Notice of Completion.

Missing these deadlines can result in losing your lien rights, so it’s vital to track important dates and submit your claim promptly.

Why Are These Deadlines Important?

The deadlines ensure a clear and organized resolution for payment disputes. Without timely liens, property owners might face fewer consequences for delaying payment. Strict deadlines also encourage transparency in the construction industry, ensuring all parties remain accountable.

Can I File a Mechanics Lien Arizona if I Miss the Deadline?

Unfortunately, if you miss the deadline, your right to file a mechanics lien is typically forfeited. Arizona’s mechanics lien laws are strict, and courts generally enforce the timeline without exceptions.

However, alternative legal options may still be available, such as:

• Filing a breach of contract claim if you have a written agreement.
• Pursuing a payment bond claim on public projects.
• Negotiating a settlement directly with the property owner or contractor.

While these options may not offer the same level of security as a mechanics lien, they can still help you recover your payment.

Does the 120-Day Filing Deadline Apply to All Contractors in Arizona?

The 120-day deadline generally applies to most contractors, subcontractors, and suppliers. However, there are some exceptions based on the project type and role in the construction process. For example:

• General Contractors are subject to the same deadlines but may have additional contractual protections.
• Subcontractors and Suppliers follow the same filing timelines unless the property is publicly owned, in which case different Arizona lien laws apply.
• Material Suppliers must ensure their supplies are permanently incorporated into the project to qualify for a lien.

Understanding your role and the project type will help you determine the correct deadline.

How Is the Completion Date Determined for Filing a Mechanics Lien?

In Arizona, the completion date is a critical factor in determining your lien deadline. The completion date is generally defined as:

• The day the work on the project is finished.
• The last day materials were supplied.
• The date of final inspection or approval.
• The date a Notice of Completion was filed.

It’s important to maintain accurate records of your work, including invoices, delivery receipts, and communication with the property owner or general contractor. These documents will serve as evidence of the completion date if any disputes arise.

What If Work Is Delayed or Interrupted?

If your work is delayed or interrupted, Arizona law still allows you to file a mechanics lien. The key is to establish a clear and documented end date of your involvement. Maintaining correspondence regarding delays and changes to the project timeline can support your lien claim.

Can Subcontractors and Suppliers File a Lien After Completing Their Work?

Yes, subcontractors and suppliers have the right to file a mechanics lien in Arizona, even after completing their portion of the work. However, they must adhere to the same 120-day or 60-day deadlines.

Subcontractors and suppliers should also ensure they:

• Provide a Preliminary 20-Day Notice to the property owner and general contractor within 20 days of starting work.
• Track their completion date accurately.
• Maintain detailed records of their contributions to the project.

Failure to provide a preliminary notice can invalidate the lien, so it’s a crucial step in the process.

Does a Mechanics Lien Apply to Both Residential and Commercial Projects?

Yes, mechanics lien Arizona applies to both residential and commercial projects. However, there may be slight differences in how the lien is handled depending on the project type.

• Residential Projects: Homeowners are typically more protected, especially if they’ve fully paid the general contractor. Subcontractors and suppliers may need to pursue payment through the contractor instead.
• Commercial Projects: Liens are a common and effective tool to ensure payment in large-scale projects, and courts often enforce them strictly.

Regardless of the project type, ensuring proper documentation and following deadlines are essential.

How Can I Ensure My Mechanics Lien Is Valid After Filing?

To ensure your mechanics lien is valid in Arizona, follow these best practices:

1. Provide a Preliminary 20-Day Notice in Arizona: This notice is mandatory and must be sent within 20 days of starting work.
2. File Within the Deadline: Submit your lien within the applicable 60-day or 120-day period.
3. Serve the Lien: Notify the property owner by serving a copy of the lien within a reasonable time.
4. Include Accurate Information: Ensure all details in the lien, including property descriptions and payment amounts, are correct.

Working with a construction attorney can also help ensure compliance and improve the chances of successfully enforcing your lien.

What Happens After Filing the Lien?

Once your mechanics lien is filed, the property owner is notified. They may choose to resolve the payment dispute, negotiate, or challenge the lien in court. If the issue remains unresolved, you have the right to file a lawsuit to enforce the lien within 6 months of filing.

Is It Possible to Release a Lien After Receiving Payment in Arizona?

Yes, once you receive payment, you are legally required to release the mechanics lien. In Arizona, you can do this by filing a Release of Lien with the county recorder’s office.

Steps to release a lien include:

1. Confirm that the payment has cleared.
2. Prepare a formal Release of Lien document.
3. Submit the document to the county recorder.
4. Provide a copy to the property owner.

Releasing the lien clears the property title, allowing the owner to refinance, sell, or transfer ownership without complications.

Conclusion

Understanding the deadlines and requirements for filing a mechanics lien in Arizona is essential for contractors, subcontractors, and suppliers seeking payment protection. By adhering to the 120-day or 60-day timeline, providing preliminary notices, and maintaining accurate records, you can safeguard your rights and ensure timely payment.

If you’re facing non-payment issues, consider consulting with a construction attorney to explore your options and ensure compliance with Arizona’s lien laws. Taking proactive steps will help you protect your financial interests and maintain a successful construction business.

At CRM Lien Services, we have been serving customers nationwide with required reference documentation for lien claims since 1986. We assist property owners in navigating the mechanics’ lien process, informing them about their rights and responsibilities, including providing notices, securing payment, and releasing mechanic’s liens.

We have a wealth of expertise, are licensed and insured, and have a team of highly knowledgeable document processors. If you’re looking for a straightforward process for filing a mechanics lien, give us a call or shoot us an email.

We would love to work with you and help you lower your risk and get paid fast!