I have recieved a partial payment from my customer and now refused to pay the remaining balance of the invoice. Customer has said I will not be paying the remaining balance.
1 reply
Feb 11, 2020
Sending a Notice of Intent to Lien can be an extremely powerful tool for recovering payment. But, unfortunately, the mere threat of a lien claim won't always lead to payment. Notably, though - if a Notice of Intent wasn't sent to the property owner in addition to your direct customer (if they aren't the same party), then it might be helpful to make sure the owner receives a copy of the Notice of Intent as well. Considering their property would be the one that's ultimately liened, they may be able to put additional pressure on the customer to make payment, or they may be willing to pay themselves to avoid the lien.
Still, Notices of Intent won't always work. And, pursuing some other recovery method, like filing a lien, may become necessary. While legal claims may also be on the table, like breach of contract or under prompt payment laws, that's not always the most efficient recovery option. And, while collections could get the job done, filing a lien will often result in faster payment - and a claimant won't have to forfeit a portion of what they're owed to file a lien claim. Still - those other options can be valuable and definitely have their place in the recovery process.
For more information on Arizona mechanics liens, these two resources should provide a lot of insight: (1) Arizona Mechanics Lien Guide and FAQs; and (2) How to File an Arizona Mechanics Lien – A Step by Step Guide to Get You Paid.