owner refuses to pay contractor full billing

5 days ago
State: Arizona

If an owner complains (within the given 14 days after receipt) about being billed taxes included in an invoice for progress payment, and the contractor and owner do not come to an agreement, does the 14+7 days for payment restart?

Additional info about this contractor
Project Role: General Contractor
Project Type: Residential
Attorney Jennings, Haug & Cunningham, LLP
38 reviews

On a private project, the owner has 14 days to object in writing with specific reasons for denying a pay application. Payment is due 7 days after the 14 day period for objection. If the owner is only objecting to the taxes that showed up on the invoice, and not disputing the rest of the pay application, then the undisputed portion is overdue and should have been paid within the 21 day period described above.

With respect to your question, the attempt by the parties to resolve a dispute does not restart the clock. The owner’s payment is due, whatever payment that is, taxes or not. The amount might be the subject of dispute, but the deadline for payment of what is owed does not change.

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