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In Arizona is their a requirement; that construction providers have a contractor license to perform work?

CaliforniaCollections Right to Lien

Good Morning, Our Company would like to file a Mechanical lien for a construction job we will be finishing up soon. We do not have a contractors license in Arizona we also did not file a Preliminary twenty day lien notice. What are our options? Thank you

2 replies

Jul 27, 2020

The short answer is no. However, there's a few things to unravel here. So let's break it down by issue.

Arizona Contractor Licensing & Lien Rights

Under Az. Rev. Stat. §33-981(c), "A person who is required to be licensed as a contractor but who does not hold a valid license as such... shall not have lien rights provided for in this section." If the work requires a license by the state licensing board, and the contractor is not licensed, the contractor will not have lien rights in Arizona.

Visit the Arizona Registrar of Contractors for more information on licensing requirements

Arizona Preliminary Notice Requirements

An Arizona preliminary notice is required to be sent within 20 days of first furnishing labor or materials to the project. This notice may be sent late, but it will only cover the value of labor and materials provided in the 20 days preceding receipt of the notice, and everything thereafter. Failure to serve this notice is fatal to your lien rights.

For more: The Ultimate Guide to Arizona's 20-Day Preliminary Notice

Other Options for Recovery

Just because you don't have the right to file a mechanics doesn't mean all legal options for recovery are lost. Most notably, you can file an action against the person you contracted with for breach of contract and unjust enrichment.

For more: Can't File a Lien? Here Are Some Other Recovery Options

You should contact a local attorney to help guide you through the claims process. We have a few Arizona construction attorneys in our Expert Center Community that you may want to reach out to personally. Good luck!

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Jul 27, 2020

Thank you, we will contact your office if need other options. :)

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