Service Area: Notice and Mechanic’s Lien Services

What is a Notice of Intent to Lien?

Posted on August 28, 2017 by - Mechanic's Liens & Bond Claims, Preliminary Notices & Construction Credit

What is a Notice of Intent to Lien? Is It the Same as a Preliminary Notice or a Demand Letter?

The first step in securing mechanic’s lien or bond claim rights is often the service of a statutory notice. The statutory notice, depending on the project state, may be called any number of names: Preliminary Notice, Prelien Notice, Notice to Owner, Notice of Furnishing, and the list goes on.

Once the preliminary type notice is served, and payment has not been received, a Notice of Intent may be required.

What is a Notice of Intent?

A Notice of Intent is a statutory notice, required in many states, to be served prior to filing a mechanic’s lien.

Here’s a quick look at some states with a requirement for a Notice of Intent:

Notice of Intent on a Private Commercial Project

  • Alabama: If the Preliminary Notice was not served prior to furnishing, serve a Notice of Intent upon the owner as soon as possible to trap funds, but prior to filing the lien.
  • Arkansas: Serve Notice of Intent upon the owner least 10 days prior to filing the lien.
  • Colorado: Serve Notice of Intent upon the owner and prime contractor at least 10 days prior to filing the lien.
  • Connecticut: Serve a Notice of Intent upon the owner and the prime contractor within 90 days from last furnishing materials or services.
  • Illinois: Serve a copy of the notice of lien upon the owner and the lender within 90 days from last furnishing materials or services.
  • Missouri: When contracting directly with the prime contractor or a subcontractor, serve a notice of intent upon the owner at least 10 days prior to filing the lien.
  • North Dakota: Serve a notice of intent upon the owner at least 10 days prior to filing the lien.
  • Wisconsin: Serve a notice of intent upon the owner at least 30 days prior to filing the lien.
  • Wyoming: Serve a Notice of Intent on the owner at least 20 days prior to filing the lien.

“I thought a Notice of Intent was a demand for payment.”

Well, in a way it is. Typically, if you are serving a Notice of Intent, it is because you are unpaid and intend to pursue a mechanic’s lien, but must first comply with statutory requirements.  Often, the Notice of Intent is a component of the mechanic’s lien itself.

Notice of Intent = Demand Letter

Unfortunately, throughout the construction industry, document types don’t carry a uniform title.  While some may use the terms Notice of Intent and Demand Letter interchangeably, NCS uses the term Notice of Intent only when the action is required by statute.

When a Notice of Intent is not required by statute, NCS recommends claimants serve a demand letter before proceeding with a lien, as it may be enough to prompt payment, without expending the cost for a mechanic’s lien. A demand letter, much like the name implies, is a demand for payment.

“A demand served upon a debtor, advising legal action may be taken including, but not limited to, filing a lien or suit to enforce a lien, making a claim against a bond, or filing suit to enforce a bond claim, or whatever other remedies may be available, if payment is not received within a specified time frame. Copies may also be sent to the owner, prime contractor, and subcontractors on a construction project.”

“How do I know which document to send?”

Just ask NCS! As a service provider, our notice & mechanic’s lien specialists are available to provide you with recommendations based on your project information. If you’d prefer to venture out on your own, then I would recommend referring to statute for the state in which your project is located.

The Miller Act & Your Bond Rights in Tribal Construction

Posted on August 21, 2017 by - Mechanic's Liens & Bond Claims

No Miller Act Bond Claim Rights on Tribal Construction Project

A recent district court decision in Oklahoma, left one subcontractor unhappy and unpaid to the tune of $184,343.95.

Bond claims are a key risk-reducing tool for those furnishing to construction projects. Bond claims are generally available on public and federal projects, and are sometimes available on private projects.

Unfortunately for one subcontractor, the court decided a Miller Act Bond Claim was not available on a DOT construction project in Oklahoma, even though a payment bond was issued with the United States as the obligee. Why was the bond claim remedy unavailable? Because the construction didn’t qualify as a “public work of the Federal Government.”

The Case

J.A. Manning Construction Co., Inc. v. Bronze Oak, LLC and Mid-Continent Casualty Company

The United States Department of Transportation entered an agreement with the Cherokee Nation for the construction of a bridge in Mayes County, Oklahoma. Cherokee Nation hired general contractor, Bronze Oak, LLC (Bronze), who in turn hired subcontractor J.A. Manning Construction Co., Inc. (J.A.).

According to the court decision, a payment bond was issued for the project; the principal of the bond was Bronze and the obligee was the United States of America.

“The payment bond lists Bronze Oak as the principal, Mid-Continent as surety, and the United States of America as obligee. Id. at 1 (‘We, the Principal and Surety(ies), are firmly bound to the United States of America . . . in the above penal sum.’). The payment bond states that it is ’for the protection of persons supplying labor and materials‘ pursuant to the Miller Act. Id. at 2.”

Typically, if the payment bond obligee is United States of America, the project is deemed a federal project and potential claimants would follow the statutory guidelines under the Miller Act.

Bond Puzzle: County Property, Cherokee Build, Federal Obligee

Property Owned by the County, Construction Decisions Made by Cherokee Nation, Payment Bond Obligee is the U.S.

Confused? Me too! With public, federal & sovereign parties all contributing to a construction project, it was up to the court to clarify jurisdiction in this case.

To determine jurisdiction, the court weighed the following: “whether the United States is a contracting party, an obligee to the bond, an initiator or ultimate operator of the project; whether the work is done on property belonging to the United States; or whether the bonds are issued under the Miller Act.”

Jurisdiction Break Down

Let’s break it down:

  • The U.S. is a contracting party? No, the U.S. is not a contracting party.
  • The U.S. is the obligee of the payment bond? Yes, the U.S. is identified as the obligee.
  • The U.S. is the initiator/ultimate operator of the project? No, Cherokee Nation is the ultimate operator. (However, the court opinion also indicates that DOT “retained some control over the project by requiring semi-annual reports on, and occasional access to for inspections.”)
  • The U.S. owns the property being improved (i.e. federal land)? No, the property is owned by Mayes County.
  • The bond is issued under the Miller Act? Yes, the bond was issued under the Miller Act.

The “no’s” have it. Of course, it’s more technical than that. The heavily weighted factor, according to the court, was whether or not the U.S. is a contracting party. As mentioned above, the U.S. is not a contracting party. Here’s an excerpt from the court opinion.

“[C]onsidering the entirety of the circumstances, the federal government’s relationship to the project is not strong enough to classify the project as a ’public work of the Federal Government.’ The project was funded by the federal government through a program that gives tribes an annual lump sum to carry out transportation projects… The United States is the obligee of the payment bond, but even with federal funding of the project, this is not enough to bring the project under the Miller Act. The project is owned and maintained by the County and is not on federal land. The Nation initiated the project, and the federal government is not a contracting party. Finally, agreements among the contracting parties that federal law will apply does not transform a project that does not fall under the Miller Act into one that does. ‘Federal subject matter jurisdiction cannot be consented to or waived.’”

What’s a Claimant to do?

Based on this decision, the claimant does not have rights under the Miller Act as the Federal government has no jurisdiction.  However, NCS would recommend proceeding with a non-statutory bond claim against the general contractor’s payment bond, along with pursuing the debtor (filing suit if necessary). Another option could be the filing of a UCC-1.  Of course, the UCC filing would need to be done before supplying materials to your customer, so that decision would have to be made at the time of contract.

Ultimately? If you find yourself in a situation where rights are questionable, seek a legal opinion & please do so as soon as possible–don’t wait.

3-in-3: Payment & Performance Bonds

Posted on August 7, 2017 by - Mechanic's Liens & Bond Claims

3-in-3: Payment & Performance Bonds

Today’s 3-in-3 features Jenna Burnett, Notice & Mechanic’s Lien Specialist. Read this post to learn more about payment & performance bonds.

Payment & performance bonds were created to allow risk to be shifted from public/government agencies, to the private sector; specifically, to the private surety companies that post the bonds.

In Construction, what are the bond types and who do they protect?

Jenna: The two main types of bonds are performance and payment bonds.

A performance bond protects the owner if the contractor fails to complete the project according to contract, whereas a payment bond protects suppliers and subcontractors who are furnishing material and labor to the project.

Generally, on public and federal projects, the contractor will obtain both a payment and performance bond; however, it is the payment bond that you would look to for payment protection.

When should a credit manager look to obtain a copy of this bond?

Jenna:  It is best to try and obtain a copy of the bond at the beginning of the project, before there are problems on the job.

Also, by obtaining a copy up front, you can review the bond to make sure you are protected. Important details to review include who the principal on the bond is and who they are bound unto. Most of the time, the general contractor will be the principal and will be bound unto the owner of the project, but sometimes the subcontractor may obtain a bond as well.

If a creditor isn’t paid, can they leverage the payment bond to recover payment?

Jenna: Yes, to recover payment, a formal claim is generally required, and is usually served upon the principal of the bond and the surety, stating that you’re making a claim and looking to the surety for payment.

The requirements for a claim may differ, depending on who the principal of the bond is, as a general contractor’s bond will generally look to the terms of the statute, which varies by state, and a subcontractor’s bond most often will look to the terms of the bond.  It is critical to obtain a copy of the bond to confirm the principal of the bond, along with the terms of the bond.

It’s important to note, bonds may not be available on all jobs.

Most public and federal projects will have a payment bond; however, sometimes a bond may not be required if the general contract does not meet the dollar threshold defined by statute.  To ensure security exists, you should always ask for a copy of the payment bond when you sign your contract, rather than just assume there’s a bond.

There may also be occasions where a payment bond has been issued for a private project.

Some states even have statutes that if a project is properly bonded, lien rights may not be available. The National Lien Digest© provides the details for those specific cases and also provides a quick reference guide on payment bond threshold requirements by state.

3-in-3 Takeaway

A payment bond is a valuable risk-reducing tool for creditors furnishing materials and/or services to construction projects.

As a best practice, always obtain a copy of the bond up front and make sure you are familiar with the state statute, to ensure you take appropriate steps in the event of non-payment.

Can a Mechanic’s Lien Be Avoided in Bankruptcy

Posted on August 4, 2017 by - In Other Commercial Credit News, Mechanic's Liens & Bond Claims

Can a Mechanic’s Lien Be Avoided in Bankruptcy?

This should come as no surprise: mechanic’s lien and bond claim rights vary by state. Right? We remind you of this frequently. (It’s the reason that resources like The National Lien Digest are so important.) It turns out, the time and information requirements for lien filings aren’t the only part of the lien process that is state specific.

According to an article from Robinson + Cole, The Enforceability of Mechanics’ Liens in Bankruptcy is Dependent on State Law, whether a lien can/can’t be avoided in bankruptcy is also state specific.

“In a recent decision, the Third Circuit Court of Appeals held that a mechanic’s lien filed by an unpaid supplier against a construction project, after the contractor through whom the materials were furnished filed for bankruptcy protection, was voidable. However, the Court noted that this doesn’t apply if applicable state law permitted the lien to relate back to a date prior to the filing of the petition. Under the laws of most states, perfected mechanics’ liens do in fact relate back to the first day on which the lienor furnished labor, materials, or equipment to the construction project.”

The referenced case involves an unpaid supplier who filed a mechanic’s lien, in compliance with New Jersey statute.

The contractor, who had failed to pay the supplier, filed for bankruptcy protection. Naturally, the supplier took steps to enforce its mechanic’s lien, but the contractor filed a motion claiming the supplier’s suit to enforce the mechanic’s lien was a violation of the automatic stay.

Unfortunately for the supplier, the trial court, and subsequently the appeals court, agreed with the contractor, and the supplier’s mechanic’s lien was invalidated. However, as the trial court pointed out, a lien may sometimes survive a bankruptcy, depending on the date the lien relates back to.

“[T]he result would have been different if applicable state law provided for the mechanics’ liens to relate back prior to the filing of the bankruptcy petition. …[T]he filing of a mechanic’s lien by a subcontractor did not violate the automatic stay provision because, under Pennsylvania law, the date of filing the mechanic’s lien related back to ‘the date of visible commencement upon the ground of the work of erecting or construction the improvement.’ New Jersey law contained no such provision; therefore, the mechanic’s lien was effective only as the date of filing.”

If you have concerns about a project you are furnishing to, or a party within the contractual chain filing bankruptcy, you may want to take an extra step and confirm statutory guidelines for the date to which the lien relates back.

Florida’s Construction Lien and Bond Claim Deadlines

Posted on June 26, 2017 by - Mechanic's Liens & Bond Claims

Deadlines for Construction Liens and Bond Claims in Florida

In an earlier post, we covered the Florida Notice to Owner / Contractor. In today’s post, we are going to map out the Florida mechanic’s lien & bond claim.

Private Projects

Florida Mechanic’s Liens

Here’s what you need to know! Your mechanic’s lien should be filed within 90 days from your last furnishing. You should serve a copy of the lien upon the owner within 15 days from filing the lien. Your lien is enforceable for the unpaid portion of the contract.

If necessary, you should file suit to enforce your lien within 1 year from filing the lien. If you are the prime contractor, you must serve a final payment affidavit at least 5 days prior to filing suit.

Florida Bond Claims

In Florida, the payment bond will either be conditional or unconditional. An unconditional payment bond, properly recorded, prevents liens from attaching to the property. You should serve a bond claim upon the prime contractor and surety within 90 days from last furnishing. The bond claim must be received by the deadline.

If necessary, you should file suit to enforce your bond claim within 1 year from last furnishing.

Public Projects

Florida Bond Claims

Generally, payment bonds are required for general contracts exceeding $200,000. If it is a Department of Transportation project, payment bonds are generally required for contracts exceeding $250,000.

You should serve the bond claim upon the prime contractor and surety after 45 days from first furnishing, but within 90 days from last furnishing.

For Department of Transportation Projects, serve bond claim notice upon the prime contractor and surety after 45 days from first furnishing, but within 90 days from last furnishing. When contracting directly with the prime contractor, no bond claim is required.

If necessary, file suit to enforce your bond claim within 1 year from last furnishing. For Department of Transportation Projects, File suit to enforce your bond claim within 365 days after final acceptance of the contract.

Public-Private Partnership Bonus

Payment bonds are required for Public Private Partnership projects as defined by F.S. 287.05712, and are subject to the same recordation, notice, suit limitation and other requirements of the statute for public projects (F.S. 255.05).

Questions about securing payment rights on Florida construction projects? Contact us!

8 Things to Know about Michigan Construction Liens

Posted on June 13, 2017 by - Mechanic's Liens & Bond Claims

Ah, Pure Michigan! I love that slogan, despite being born and raised in Ohio. There is something so calming and soothing about it. Contractors, subcontractors and material suppliers furnishing to private construction projects in Michigan, you can maintain that calm feeling once you read this post on Construction Lien Rights in Michigan.

#1 – File the Notice of Commencement

For private projects in Michigan, the project owner is required to file a Notice of Commencement prior to the project starting.

#2 – Provide the Notice of Commencement

The information needed to serve the Notice of Furnishing is contained within the Notice of Commencement. The owner has 10 days, from written request, to provide you with a copy of the Notice of Commencement.

#3 – Serve the Notice of Furnishing

Unless you are contracting directly with the owner, you should serve the Notice of Furnishing upon the owner, lessee, designee and prime contractor within 20 days from first furnishing. Oh, and make sure to send the notice via certified mail!

Sec. 109. (1) Except as otherwise provided in sections 108, 108a, and 301, a subcontractor or supplier who contracts to provide an improvement to real property shall provide a notice of furnishing to the designee and the general contractor, if any, as named in the notice of commencement at the address shown in the notice of commencement, either personally or by certified mail, within 20 days after furnishing the first labor or material. If a designee has not been named in the notice of commencement, or if the designee has died, service shall be made upon the owner or lessee named in the notice of commencement. If service of the notice of furnishing is made by certified mail, service is complete upon mailing. A contractor is not required to provide a notice of furnishing to preserve lien rights arising from his or her contract directly with an owner or lessee.

#4 – It’s a Trap

It’s in your best interest to serve the notice by the deadline, however, in Michigan, a late notice may be served any time within the lien filing period, but the lien, when later filed, will be limited to the unpaid portion of the contract at the time the notice is served. This late notice is sometimes referred to as a Trapping Notice.

#5 – File the Lien

The construction lien deadline is calculated from your last furnishing date. You should file the lien within 90 days from your last furnishing, and serve a copy of the lien upon the owner within 15 days from filing the lien.

#6 – It’s Unpaid Balance

If the notice is not served within 20 days from first furnishing materials or services, the lien in Michigan is an unpaid balance lien, which means the lien is limited to the unpaid portion of the contract at the time the notice was served.

#7 – Suit and Release

In the event the lien filing does not prompt payment, you should file suit to enforce the lien within 1 year from your lien filing. If the lien does prompt payment, make sure you release the lien in a timely manner.

#8 – No Waiver of Construction Lien

Statute is rather specific about waiving lien rights within a contract. Take a look:

570.1115 Waiver of construction lien. Sec. 115. (1) A person shall not require, as part of any contract for an improvement, that the right to a construction lien be waived in advance of work performed. A waiver obtained as part of a contract for an improvement is contrary to public policy, and shall be invalid, except to the extent that payment for labor and material furnished was actually made to the person giving the waiver. Acceptance by a lien claimant of a promissory note or other evidence of indebtedness from an owner, lessee, or contractor shall not of itself serve to waive or discharge otherwise valid construction lien rights.

Questions?

Lien rights in Michigan are purely awesome so don’t lose them! If you have questions about securing lien rights on Michigan projects, or any project within the US, its possessions & Canada, contact us!

21 Essential Facts About New Jersey Lien and Bond Claims

Posted on May 22, 2017 by - Mechanic's Liens & Bond Claims

New Jersey Construction Lien, Bond Claim & Municipal Mechanic’s Lien

There are 21 counties in New Jersey, so it seems logical to provide you with 21 important facts and features of lien and bond claim rights in the state of New Jersey. Let’s get started!

Private Projects = Construction Lien

If you are furnishing to a private project, you would seek relief via the Construction Lien statute — NJS 2A:44A-1 through 44A-38.

1. On commercial projects, you can file a Notice of Unpaid Balance and Right to File Lien, prior to recording the actual lien. If this notice is filed, the lien, when later filed, will have priority over conveyances after the filing of the notice.

2. On residential projects, the filing of a Notice of Unpaid balance should be done within 60 days from last furnishing and includes a demand for arbitration. Then, an arbitrator is required to decide within 30 days from receipt of the demand.

3. Serving a Notice of Unpaid Balance may greatly improve the chance of successfully filing a valid lien after a project owner or other party files a petition in bankruptcy, allowing the lien to relate back to the Notice of Unpaid Balance.

4. Only those contracting with the owner, the prime contractor or a first-tier subcontractor have the right to a mechanic’s lien.

5. On commercial projects, you should file the lien within 90 days from last furnishing.

6. On residential projects, it’s back to the arbitrator! File the lien within 10 days from determination by the arbitrator that a valid lien shall attach to the improvement, and within 120 days from last furnishing materials or services. Also furnish any bond, letter of credit or funds required by the arbitrator.

7. On both commercial & residential projects, make sure you serve a copy of the lien upon all parties within the ladder of supply, within 10 days from filing the lien.

8. New Jersey is an unpaid balance lien state, and the lien is only enforceable for the unpaid portion of the contract.

9. Enforce your lien by filing suit within 1 year from last furnishing or within 30 days from receipt of a notice to commence suit.

10. Release: a satisfied Notice of Unpaid Balance and/or a Construction Lien must be released within 30 days from satisfaction and within 7 days from demand.

11. Prompt Pay: he owner shall pay the GC within 20 days from receipt of monies and the GC shall pay the subcontractor(s) within 10 days of receipt of monies from the owner. (Check out 2A:30A-2  Payment to prime contractor, subcontractor, subsubcontractor, timely payment; exceptions; disputes; resolution. For additional details!)

Public Projects = Bond Claim & Municipal Mechanic’s Lien

If you are furnishing to a public project, you would seek relief via the Bond Claim & Municipal Mechanic’s Lien statute — NJS 2A:44-143 through 147 and NJS 2A:44-125 through 142.

12. Always attempt to get a copy of the payment bond. Generally, on local or school district projects, payment bonds are required for general contracts exceeding $100,000 and on state projects bonds are required for contracts exceeding $200,000.

13. The Port Authority of New Jersey & New York is exempt from bonding requirements.

14. The preliminary notice for the bond claim should be served upon the prime contractor before your first furnishing. You can serve a late preliminary notice; however, your bond claim will only be effective for materials and services provided after serving the notice.

15. The preliminary notice for the municipalmechanic’s lien (aka a lien on funds) should be served within 20 days from first furnishing. You can serve a late preliminary notice; however, your lien will only be effective for materials and services provided after serving the notice.

16. Serve your bond claim within 1 year, less 91 days, from your last furnishing. And, your bond claim must be served at least 91 days prior to filing suit.

17. File the municipal mechanic’s lien within 60 days from completion/acceptance of the project. This lien acts as a claim against any unpaid funds in possession of the public entity.

18. A municipal mechanic’s lien is not available on projects owned by the state of New Jersey or its agencies.

19. File suit to enforce the bond claim after the expiration of 90 days from serving the bond claim, but within 1 year from last furnishing.

20. File suit to enforce the municipal mechanic’s lien within 60 days from completion or acceptance of the project.

21. Release/Withdraw: We recommend withdrawing a satisfied bond claim, and a satisfied municipal mechanic’s lien should be promptly released

Shew! So that’s 21 bits about securing rights to payment in New Jersey. Still have questions? Contact us

A Guide to Securing Lien Rights in Arizona: 5 Key Tips

Posted on May 1, 2017 by - Mechanic's Liens & Bond Claims

Five Things You Should Know when Securing Lien Rights in Arizona

I recently learned a bit about Arizona’s 5 Cs: copper, cattle, cotton, citrus and climate. Although today’s post doesn’t have the catchy 5-C-alliteration, it does list 5 important facts about securing mechanic’s lien rights in Arizona.

#1: Arizona Preliminary 20 Day Notice

Arizona, like most states, requires potential lien claimants to serve a preliminary notice. All those furnishing materials or services must serve the notice upon the owner, prime contractor, construction lender and your customer within 20 days from first furnishing.

Did you miss the 20 day deadline? You can serve the notice late, however if/when you proceed with the mechanic’s lien, the lien will only be effective for furnishings provided 20 days prior to serving the notice and for subsequent furnishings.

ProTip: Make sure your service of the notice meets the parameters within Arizona’s statute: 33-992.01. F. The notice or notices required by this section may be given by mailing the notice by first class mail sent with a certificate of mailing, registered or certified mail, postage prepaid in all cases, addressed to the person to whom notice is to be given at the person’s residence or business address. Service is complete at the time of the deposit of notice in the mail.

#2: You May Need to Amend Your Preliminary Notice

There are two common events that may warrant an amended preliminary notice. First, if the owner receives a copy of your notice and discovers the information within the notice is incorrect, he has 10 days from receipt of your notice to provide you with the correct information. Once you receive the corrected information, you then have 30 days to amend and resend your notice.

The second reason for amending a notice would be an increase in your contract amount. You may have the best estimator on the planet, but some projects (OK, perhaps most projects) will require more materials and/or services. In the event your contract amount increases by 20% or more, serve an amended preliminary notice.

Did You Know? To maintain compliance with Arizona statute, your contract amount must appear on the preliminary notice.

#3: File Your Arizona Mechanic’s Lien

The Arizona mechanic’s lien deadline is based upon the date of project completion. Lien claimants must file the lien within 120 days from completion of the project, or within 60 days from the recording of a notice of completion. As a best practice, serve all parties with a copy of the lien, but minimally, you will need to serve a copy of the lien upon the owner.

Frequently, the date of project completion is unknown to subcontractors and suppliers. Therefore, we recommend conservatively calculating your deadline based on your last furnishing date (i.e. as a best practice, file your lien within 90 days from last furnishing).

#4: Arizona is Full Balance

There are full balance lien states and unpaid balance lien states. Fortunately, Arizona is a full balance lien state. This means the lien is enforceable for the full amount owed, regardless of payments made by the owner.

#5: Suit to Enforce Lien

If you have filed a mechanic’s lien, and have yet to receive payment, your next step would be to file suit to enforce your lien. According to Arizona’s statute, claimants must proceed with lien enforcement within 6 months from the filing of the lien.

33-998. Limitation of action to foreclose lien
A. A lien granted under the provisions of this article shall not continue for a longer period than six months after it is recorded, unless action is brought within that period to enforce the lien and a notice of pendency of action is recorded pursuant to section 12-1191 in the office of the county recorder in the county where the property is located. If a lien claimant is made a party defendant to an action brought by another lien claimant, the filing within such period of six months of an answer or cross-claim asserting the lien shall be deemed the commencement of an action within the meaning of this section.

Bonus: Stop Notice

In addition to the filing of a mechanic’s lien, unpaid parties may seek recovery through the service of a stop notice. A stop notice can obligate the lender to withhold sufficient funds to cover unpaid amounts. The stop notice should be served upon the owner and lender within 120 days from completion of the project, within 60 days from the recording of a notice of completion or within 30 days from written demand by the owner or lender.

Do you need to secure your rights for a project in Arizona? Or, do you have questions about mechanic’s liens? Contact us today!