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What's steps should I take

ArizonaConstruction Contract

I own a cleaning service and recently finished a construction cleaning on a hotel. After sending the pay app I received an email letting me know that the construction company couldn't pay the invoice because they haven't received payment from the owner. The construction company is now suing the owner for breach of contract.

3 replies

Nov 17, 2021

If you filed the required preliminary notice, then file a lien. If the amount due is under $3500, you can sue in small claims against the construction company. If above, you can still sue either in Justice or Superior court. I will assume your agreement did not include a viable contingent payment clause. 

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Nov 17, 2021
The contract says- The subcontractor shall not be paid by the contractor unless and until the Contractor has been paid by the Owner.
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Nov 17, 2021

Never agree to contingent payment terms. Ever. If you sue, they will likely move to dismiss that lawsuit and may win that motion. You are free to try to sue and see what happens but before you do that, you should review the attorney fee provisions and other terms. 

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