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Arizona Preliminary Notices - should they be sent for overall contract or for each purchase order?

Arizona

We will be working on a hotel on a bulk room basis, so 20 or so rooms to each invoice, with each invoice following up after closing out the previous 20. Should we send a preliminary notice for each invoice or will one preliminary notice cover the entire length of the job? Is this altered if we provide a final lien waiver after each invoice is completed?

1 reply

Sep 20, 2021

Your preliminary 20-day notice should be sent prior to commencing any work or delivering any materials to the jobsite and should cover the amount of the entire contract. You should not provide separate preliminary notices for each "phase" of work unless each "phase" is covered by a separate contract. Additionally, as you complete a "phase," you should be signing conditional lien waivers for only the amount covered under that "phase" of the contract. Be careful not to sign an unconditional lien waiver unless you have already received payment. Also, be careful not to sign lien waivers (conditional or unconditional) for an amount greater than what you are paid. In the even that you have change orders to your contract during the life of the contract, you may need to subsequently provide an amended preliminary 20-day notice if the aggregate value of the labor and materials you provide under the contract exceeds the original preliminary 20-day notice amount by more than 30%.

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