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State of Arizona - Pre-lien and lien questions.

Arizona

I am a subcontractor to the General Contractor. One of our suppliers were issued 2 PO's ~ one for X materials for $6,800.00 and one for Z materials for $36,722.00. They pre-liened for $6,800.00. Recently, the total amount outstanding to them, $43,417.00. If their pre-lien was only for $6,800.00, is the lien legit? The 36K is not over 90 days. There were no change orders involved.

1 reply

Jun 7, 2022
The general rule of thumb is that the amount owed cannot be more than 20% greater than what is in the preliminary 20-day notice. So yes the lien would likely be valid, but it is unlikely they can line for the full amount owed if the full amount is $36k as you say it is.
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