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Arizona

We do not provide services to the construction industry as a part of our regular business activities. We were forced to provide services to the owner/developer. The property owner nor the site supervisor ever requested or told us we needed to file a preliminary lien. When the invoices became significantly larger they stopped paying. Resulting in us no longer providing services to them. I believe they are not submitting our invoices to the bank for approval. They have not disputed the charges either. What are our possible options as material facts regarding preliminary lien were withheld. Which I assume also means we do not have to conform to construction standards regarding price increases, late fees, interest, etc. This project is also a government leaseback property.

3 replies

Apr 14, 2023

I am sorry about the issues, but the owner nor the site supervisor has an obligation to explain the law to you. The only person obligated to do that is the attorney that you hire. If you did not hire an attorney, then it was your duty to understand the law before you started providing the services. 

As a legal matter, unless you have a contract that states otherwise, they have no requirement to dispute the services. They can just refuse to pay as has happened here. 

There are no construction standards as to price increases, late fees, interest. Those are purely matters as to your contract. If your contract says nothing on late fees, or interest, or unilateral price increases, you have no authority to demand late fees or make unilateral price increases. The quetion of interest may be statutory, but an attorney would need more facts and would need to review your contracts. 

Please avoid futher mistakes in this matter. To avoid further mistakes, you really need to hire an attorney. You have various options as to your claims, but to know those options and explain your options requires an attorney's advice. I would strongly advise that you do not make demands that have no basis in law as that just makes your position as to negotiation weak. Hire an attorney and they can advise and make demands as necessary. Most of us offer free initial consultations, so that is the place to start. 

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Apr 17, 2023

Not sure why you think demands have been made? Unless you are referring to invoices and late notices.  

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Apr 17, 2023

I did not say you made demands. I am saying you cannot make prices increases or late fees demands unless that is in your contract. If that is in your contract, then feel free to make whatever claims are consistent with your contract. 

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