Construction professionals at work

This morning, I posted about a Los Angeles Times article about an “rebound” in commercial building throughout Southern California. Right after, I encountered an article from The Republic about a similar trend in the Arizona construction industry, in an article title “Good News For Construction Jobs.”

Again, just like in California, the commercial market in Arizona is experiencing a 6% increase in jobs. In a state whose construction market was pretty devastating, a 6% increase is very pleasant news, especially since according to Ken Simonson, chief economist for the Associated General Contractors of America, Inc, “jobs have been increasing in [Arizona] for the past eight months.”

Healthy Construction Market Means More Cash At Risk

Everyone likes to hear this kind of news. If you’re in the construction industry, a healthier construction market is a great thing.

It’s important to keep in mind the ramifications of a healthy market. The more construction projects, the more bidding and work, which means companies used to scrapping by may accidentally over-extend themselves and experience cash flow challenges.

The more business and work out there in the market place, the more cash a company is likely to have on the street.  And the more cash on the street, the more exposed that cash is for loss.  Companies embarking on new construction projects in Arizona, therefore, ought to commit themselves to a reliable mechanics lien policy, so that if the going gets tough, their cash will be protected by their lien rights.

Protecting Mechanics Lien Rights in Arizona

Filing a mechanics lien in Arizona, just like filing a lien in any state, is a discipline and not a knee-jerk reaction. The process of protecting your company’s lien rights begins at the very start of a construction project.  When your company starts furnishing, it must deliver a preliminary notice.  When it concludes furnishing, if unpaid, it must timely and promptly file a mechanics lien.

If you’re furnishing labor or materials to any projects in Arizona, not knowing and complying with these requirements is at your own peril.

We recently updated our Lien Law Resources for the state of Arizona on our website, and it now contains a robust frequently asked question section that goes through many of the state’s lien law nuances.  Plus, you can read blog posts about Arizona mechanics lien law here on our blog.  The most recent article, playing on words about the prickliness of cactus trees, is called “Arizona Mechanics Lien Laws Can Be Thorny.”

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