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once i file a preliminary notice do i need to update it if the contract amount increases

ArizonaPreliminary Notice

I have several new construction jobs that have gone on longer than a couple of months since I first filed my preliminary notices and the scope of work has changed increasing the contract amount. At what point should I revise or reissue my preliminary notices in order to make sure the entire time period and scope of work is now covered? Thank you.

1 reply

Mar 1, 2021

Arizona is unique in the sense that a revised preliminary notice can be required under certain circumstances. Specifically, if the contract price increases by more than 30%, commonly referred to as the 30% Rule. Although the statute isn't particularly clear, the generally accepted rule is that the revised prelim should ideally be sent within 20 days of when the contract value was increased by more than 30% of the original estmated. This used to be just 20%, but this law was changed in 2019

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

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