Home>Levelset Community>Legal Help>Can we file a mechanic's lien in Arizona for an installed project even if we are not a licensed contractor? Or for material only?
Can we file a mechanic's lien in Arizona for an installed project even if we are not a licensed contractor? Or for material only?
We completed an installed project in Arizona for which we are not being paid. I have been told we cannot file a lien since we are not licensed as a contractor in AZ. Is this the case? If so, are we allowed to file a lien for just the material?
1 reply
Sep 17, 2019
In order to file an Arizona mechanics lien claim, an Arizona claimant will need to be licensed - but only if their work requires a license. If the work does not require a license, then the claimant doesn't have to be licensed in order to file a valid and enforceable mechanics lien. For a little more background on what kind of work requires Arizona licensure: Arizona Contractor’s License: Who Needs One and What Are the Requirements?
Whether an unlicensed contractor could file a mechanics lien for material only is an interesting proposition. Generally, material suppliers don't have to be licensed. So, if a subcontractor provides materials but doesn't hold a license (which is required) for their work, conceivably, the subcontractor might be able to file a lien for the materials they supply.
However, this seems unlikely since the Arizona mechanics lien statute's licensing requirement ties more to the contractor than the work. Under § 33-981(C) of the Arizona mechanics lien statute, "A person who is required to be licensed as a contractor but who does not hold a valid license as such contractor issued pursuant to title 32, chapter 101 shall not have the lien rights provided for in this section." So, if a claimant is required to be licensed, filing a mechanics lien only for the materials they've supplied still might not be appropriate.
For more information on Arizona mechanics lien claims: Arizona Mechanics Lien Guide and FAQs.
For more information on recovery options outside of the mechanics lien process: Can’t File a Lien? Here Are Some Other Options For Recovery.