How to File an Arizona Preliminary Notice

Protecting your lien rights in Arizona begins with serving the 20-day preliminary notice.

The preliminary notice in Arizona — also known as the 20-day notice — is one of the most important documents that you have to understand if you’re a construction professional working in the state.

Serving an Arizona preliminary notice is not only a legal requirement for filing a valid mechanics lien, but it is also a good business practice that opens communication lines between you and higher-tier construction parties.

What is a 20 Day Preliminary Notice in Arizona?

A twenty day preliminary notice in Arizona protects the right to lien of contractors, subcontractors, and suppliers ¹. The 20-day preliminary notice in Arizona is sent to the owner and/or construction lender if a project is financed by a loan, as well as to the original contractor, in the case of subcontractors, to notify them of the contractor, subcontractor, or supplier’s right to enforce a lien claim in case of full or partial non-payment ². Failing to send this notice results in losing the right to file a lien claim.

The 20 day preliminary notice is required for both private and public projects ³. in Arizona. While mechanics lien claims only apply to private works, a preliminary notice is also required for public works so the contractor, subcontractor, or supplier retains their right to get paid through a bond claim in case of payment issues ⁴.

What is the purpose of a 20-day Preliminary Notice? Why is it important to serve the 20-Day Preliminary Notice?

The preliminary notice in Arizona is a “necessary prerequisite to the validity of any lien claim” ⁵. This implies that in order for any of your lien claim to be considered valid, you must first be able to prove that you have fulfilled the 20-day notice requirement. For public projects, serving a preliminary notice secures your right to assert a claim on the payment bond, which is a requirement for all public projects ⁶.

The purpose of the preliminary notice is to preserve your right to file a lien and recover payment in case of payment issues in a construction project. If you do not file a preliminary notice in Arizona, you lose your right to lien.

Unfortunately, payment disputes and delays are fairly common in the construction industry. So even if no payment issues have come up yet, it is still highly advisable that you take the necessary steps to retain your lien rights.

If payment issues arise down the road, you know that your lien rights are protected, and you can exercise this right to claim that payment that you’ve duly earned.

On top of preserving your lien rights, serving a preliminary notice also opens the communication lines between you and the property owners. The 20-day notice lets the property owners know about your role and participation in a project, which can be helpful in getting your invoices paid.

Property owner(s) may sometimes lose track of which contractors, subcontractors, or material suppliers are working for them, especially in large-scale projects. By sending them a preliminary notice, you help them know who you are and how much payment you are expecting for your work.

A 20-day notice, therefore, does not necessarily promote friction between you and higher-tier construction parties. Serving a preliminary notice can even help foster good business relationships among construction stakeholders.

What is the difference between a preliminary 20- day notice and a mechanics lien in Arizona?

The preliminary notice is a prerequisite or requirement before you are able to file a mechanics lien claim. Without a preliminary notice, you lose your right to file a lien ⁷.

Who is required to serve the Arizona 20-Day Preliminary Notice? Do I need to send an Arizona Preliminary Notice?

If you are a contractor or subcontractor who has provided labor, professional services, materials, machinery, fixtures, or tools as part of a construction, alteration or repair project, you are required to file a preliminary notice within the first 20 days of work or delivery ⁸.

Every person who provides any of the following for the construction, alteration or repair of any building, structure, or improvement is required to file a preliminary notice in order to protect their lien claim ⁹:

• Labor
• Professional services
• Materials
• Machinery
• Fixtures
• Tools

The following are not required nor allowed to send a preliminary notice

• Laborers who work directly for wages are not required to send a 20-day preliminary notice in Arizona ¹⁰.
• A person who is required a license to work but is unlicensed has no lien rights ¹¹..
• A professional who does not have a valid certificate of registration pursuant to Title 32 Chapter 1 does not have lien rights ¹²..
• A professional who has performed services on a project but has no valid contract with the owner or an agent of the owner (contractor, architect, or engineer who has a contract with the property owner) has no lien rights ¹³.

Who do I need to send a preliminary notice to? Who is required to receive a preliminary notice in Arizona?

Claimants must send 1 preliminary notice to each of the following parties, as applicable for each project ¹⁴:

• Owner
• Reputed owner
• Original contractor (prime/direct)
• Reputed contractor
• Construction lender
• Reputed construction lender
• The person with whom the claimant has contracted with, i.e., the direct/prime/original contractor in the case of subcontractors, or a subcontractor in the case of lower-tier subcontractors

How do I file a preliminary lien notice in Arizona? How should you serve the Arizona preliminary notice form?

1. Prepare the Arizona 20-day notice form
2. Send the preliminary notice to the right parties
3. Secure an acknowledgement of receipt or sign an affidavit of mailing

How do I prepare a twenty day preliminary notice in Arizona? What information should be on the Arizona Preliminary Notice form?

Arizona has a statutory form for twenty day preliminary notices. Following the form and filling it out completely ensures that you have provided all the required information.

For clarity, here is the list of information that must be included in the form ¹⁵:

• General description of the labor, professional services, materials, machinery, fixtures or tools furnished or to be furnished
• The estimate of the TOTAL price of work provided or to be provided
• Name and address of the person furnishing labor, professional services, materials, machinery, fixtures, or tools
• Name of the person who contracted for the purchase of labor, professional services, materials, machinery, fixtures or tools
• Legal description of the location:
• Subdivision plant
• Street address
• Location with respect to commonly known roads or landmarks
• Description of the jobsite sufficient for identification
• The following statement, in boldface type:

In accordance with Arizona Revised Statutes section 33-992.01, this is not a lien and this is not a reflection on the integrity of any contractor or subcontractor.

Notice to Property Owner

If bills are not paid in full for the labor, professional services, materials, machinery, fixtures or tools furnished or to be furnished, a mechanic’s lien leading to the loss, through court foreclosure proceedings, of all or part of your property being improved may be placed against the property. You may wish to protect yourself against this consequence by either:

1. Requiring your contractor to furnish a conditional waiver and release pursuant to Arizona Revised Statutes section 33-1008, subsection D, paragraphs 1 and 3 signed by the person or firm giving you this notice before you make payment to your contractor.

2. Requiring your contractor to furnish an unconditional waiver and release pursuant to Arizona Revised Statutes section 33-1008, subsection D, paragraphs 2 and 4 signed by the person or firm giving you this notice after you make payment to your contractor.

3. Using any other method or device which is appropriate under the circumstances.

Here is the statutory form for the Arizona twenty day preliminary notice.

Arizona Preliminary Twenty Day Lien Notice

In accordance with Arizona Revised Statutes section 33-992.01, this is not a lien. This is not a reflection on the integrity of any contractor or subcontractor.

The name and address of the owner or reputed owner are:

The name and address of the original contractor are:

The name and address of any lender or reputed lender and assigns are:

The name and address of the person with whom the claimant has contracted are:

You are hereby notified that the claimant has furnished or will furnish labor, professional services, materials, machinery, fixtures or tools of the following general description:

In the construction, alteration or repair of the building, structure or improvement located at:

and situation upon that certain lot(s) or parcel(s) of land in ____________ County, Arizona, described as follows:

An estimate of the total price of the labor, professional services, materials, machinery, fixtures or tools furnished or to be furnished is: $_________________

Notice to Property Owner

If bills are not paid in full for the labor, professional services, materials, machinery, fixtures or tools furnished, or to be furnished, a mechanic’s lien leading to the loss, through court foreclosure proceedings, of all or part of your property being improved may be placed against the property. You may wish to protect yourself against this consequence by either:

1. Requiring your contractor to furnish a conditional waiver and release pursuant to Arizona Revised Statutes section 33-1008, subsection D, paragraphs 1 and 3 signed by the person or firm giving you this notice before you make payment to your contractor.

2. Requiring your contractor to furnish an unconditional waiver and release pursuant to Arizona Revised Statutes section 33-1008, subsection D, paragraphs 2 and 4 signed by the person or firm giving you this notice after you make payment to your contractor.

3. Using any other method or device that is appropriate under the circumstances.

(The following language shall be in type at least as large as the largest type otherwise on the document.)

WITHIN TEN DAYS OF THE RECEIPT OF THIS PRELIMINARY TWENTY DAY NOTICE THE OWNER OR OTHER INTERESTED PARTY IS REQUIRED TO FURNISH ALL INFORMATION NECESSARY TO CORRECT ANY INACCURACIES IN THE NOTICE PURSUANT TO ARIZONA REVISED STATUTES SECTION 33-992.01, SUBSECTION I OR LOSE AS A DEFENSE ANY INACCURACY OF THAT INFORMATION.

WITHIN TEN DAYS OF THE RECEIPT OF THIS PRELIMINARY TWENTY DAY NOTICE IF ANY PAYMENT BOND HAS BEEN RECORDED IN COMPLIANCE WITH ARIZONA REVISED STATUTES SECTION 33-1003, THE OWNER MUST PROVIDE A COPY OF THE PAYMENT BOND INCLUDING THE NAME AND ADDRESS OF THE SURETY COMPANY AND BONDING AGENT PROVIDING THE PAYMENT BOND TO THE PERSON WHO HAS GIVEN THE PRELIMINARY TWENTY DAY NOTICE. IN THE EVENT THAT THE OWNER OR OTHER INTERESTED PARTY FAILS TO PROVIDE THE BOND INFORMATION WITHIN THAT TEN DAY PERIOD, THE CLAIMANT SHALL RETAIN LIEN RIGHTS TO THE EXTENT PRECLUDED OR PREJUDICED FROM ASSERTING A CLAIM AGAINST THE BOND AS A RESULT OF NOT TIMELY RECEIVING THE BOND INFORMATION.

Dated: ___________________
___________________________

(Company name)
By: ______________________

(Signature)
______________________

(Title)

ACKNOWLEDGEMENT

Acknowledgement of receipt of preliminary twenty day notice

This acknowledges receipt on ________________ (date) of a copy of
the preliminary twenty day notice at _____________________________________________________________________ (address) .

Date: _______________________________________

A proof of service must be attached ¹⁶. If the recipient of the notice failed to sign the acknowledgement on the form or fails to complete and return the acknowledgement within 30 days of the date of mailing, the claimant must use an affidavit as proof of mailing.

The affidavit must include the following:

• Name and address of the owner, reputed owner, construction lender, reputed construction lender, or contractor to whom the notice is being served
• The title or capacity of the person to whom the notice is addressed to
• Attachments:
  • If the mailing was made via first class mail with a certificate of mailing, attach the certificate of mailing to the affidavit
  • If the mailing was made via certified or registered mail, attach the receipt of certification or registration

How do I fill out a Preliminary Notice? How to file or send a pre-lien in Arizona?

You can print the statutory form and fill it out or use an online service like Handle to generate accurate Arizona preliminary notice forms to fill out and send to all required parties online.

After preparing the twenty day notice and ensuring that all required information is included, you can now send 1 preliminary notice to each of the parties required to receive a preliminary notice.

You may use first-class mail or registered/certified mail ¹⁷. These are the approved delivery methods by law. These delivery methods provide you with a proof of service that is required in order to ensure that your preliminary notice is valid. Another requirement is to ensure that the recipient signs the acknowledgement on the preliminary notice or sends back an acknowledgement in the case of mailed preliminary notices. In case the other party or parties fail to send back the acknowledgement, you can use an affidavit as proof.

The affidavit must include the following information:

• Name and address of the owner/recipient
• The title or capacity of the person recipient
• Attachments:
  • If the mailing was made via first class mail with a certificate of mailing, attach the certificate of mailing to the affidavit
  • If the mailing was made via certified or registered mail, attach the receipt of certification or registration

When should a preliminary notice be filed in Arizona? What is the deadline for filing an Arizona Preliminary Notice? How much time do I have to file a preliminary notice?

Preliminary notice in Arizona must be given to the required recipients within 20 days of the first day of work or delivery on a project in order to protect all work and supplies provided for the entirety of the project ¹⁸. However, if you fail to send a preliminary notice within the 20 days, you may still send a preliminary notice granting that you are able to send the notice within 20 days of providing work or supplies to a project. Note that the preliminary notice can only protect your right to lien on work, services, or supplies provided in the 20 days before the date of notice delivery and onwards ¹⁹.

Only 1 preliminary notice needs to be sent to each party required to receive it. However, if the actual estimated total price exceeds 30% of the estimate included in previous preliminary notices, new amended preliminary notices must be sent to cover all additional labor, professional services, materials, machinery, fixtures, or tools ²⁰.

In the case of additional labor, services or supplies exceeding 30% of the original estimate, the original preliminary notice will not be deemed defective due to the difference in the general description ²¹.

What if you don’t know where to get some of the required information (e.g. name and address of the lender)?

In Arizona, you can issue a written request to the property owner or any higher-tier party so they can tell you the information that you need for your preliminary notice. The property owner must give you the required information within 10 days of receiving your written request ²².

If you did not receive the information within 10 days, the property owner or the interested party may not use “inaccuracy of information” as a defense against the mechanics lien.

Note, however, that sending this written request does not extend the deadline for serving your preliminary notice. If you do not have all the information required, you must issue the written request at your earliest convenience ²³.

How do I file an amended preliminary notice form in Arizona?

The statutory form for the amended preliminary notice is almost exactly the same as the one for original/initial preliminary notices except for the word “AMENDED” added to the notice title. It requires the same information as well as the acknowledgement and proof of service sections.

Amended preliminary notice is considered delivered at the same time as the original preliminary notice and covers the lien rights for work, services and supplies delivered 20 days before the date the amended preliminary notice is delivered or the original date of the preliminary notice delivered to the owner, whichever date comes first ²⁴.

Amended preliminary notices are sent in case the actual total estimate exceeds the initial estimated total by 30% or if there are any necessary corrections to the initial preliminary notice.

How do I make sure the recipient has received the preliminary notice?

Part of the statutory form for the Arizona Preliminary Notice is an acknowledgement that needs to be signed by the person receiving the notice ²⁵.

If the recipient of the notice fails to complete the acknowledgement (for personal delivery), or fails to complete and return the acknowledgement within 30 days of the date of mailing, you may use an affidavit as proof of mailing.

The affidavit must include the following information:

• Name and address of the owner/recipient
• The title or capacity of the person recipient
• Attachments:
  • If the mailing was made via first class mail with a certificate of mailing, attach the certificate of mailing to the affidavit
  • If the mailing was made via certified or registered mail, attach the receipt of certification or registration

Within 10 days of receiving a preliminary notice or written request to file a preliminary notice, the recipient must give the claimant a written statement containing the following information ²⁶:

• Legal description of the location:
  • Subdivision plat
  • Street address
  • Or Location with respect to commonly known roads or landmarks
  • Any other description of the jobsite sufficient for identification
• Name and address of the owner or reputed owner
• Name and address of the original contractor (prime/direct) or reputed contractor
• Name and address of the construction lender, if any, or reputed construction lender
• A copy of the payment bond and the name and address of the surety company and bonding agent, if any.

In case there are inaccuracies in the notice, and the claimant has not been informed by the recipient, the claimant’s preliminary notice is still deemed valid, and the recipient cannot use inaccuracy as a defense in case they want to contest the future lien claim, as long as other information in the notice is correct and complete.

Also, keep in mind that an Arizona preliminary notice is considered “served” at the time of mailing. This means that even if your notice does not get officially delivered within the 20-day time frame, you will still meet the notice requirement as long as you sent it out within this time frame.

What happens if you fail to submit the Arizona Preliminary Notice within 20 days?

If you fail to send a preliminary notice within the 20 days, you may still send a preliminary notice as long as you are able to send the notice within 20 days of providing work or supplies to a project. Note that the preliminary notice can only protect your right to lien on work, services, or supplies provided in the 20 days before the date of notice delivery and onwards ²⁷.

Are pre-notices for an Arizona mechanics lien claim required?

Yes. No pre-lien notice, no lien claim.

How is the “Estimated Total Price” for the initial notice to be calculated?

Your contract for the work or supplies delivered or to be delivered in the project is a good reference for the estimated total price you can use in the preliminary notice. It is a good business practice to ensure that the contract price accurately reflects the remuneration you expect to receive for work or supplies provided for a project. Therefore, it follows that this number is good to use for the preliminary notice. In case of projects where the contract price no longer reflects the actual estimate due to change orders and other project changes, your internal accounting for the work or supplies delivered should be used for the estimated total price. Ensure that the estimate is truthful because padding the estimate can cause your preliminary notice to be invalidated.

Here is an article about construction estimation best practices that can help you with estimates: https://www.handle.com/accurate-construction-estimates/

Do I need to file a new preliminary notice if the estimated total price for the work or supplies provided has changed?

If the actual estimated total price exceeds 30% of the estimate included in previous preliminary notices, new preliminary notices must be sent to cover all additional labor, professional services, materials, machinery, fixtures, or tools.

In the case of additional labor, services or supplies exceeding 30% of the original estimate, the original preliminary notice will not be deemed defective due to the difference in the general description.

What if the information on the preliminary notice is incorrect?

Within 10 days of receiving a preliminary notice or written request to file a preliminary notice, the recipient must give the claimant a written statement containing the following information ²⁸:

• Legal description of the location:
  • Subdivision plat
  • Street address
  • Or Location with respect to commonly known roads or landmarks
  • Any other description of the jobsite sufficient for identification
• Name and address of the owner or reputed owner
• Name and address of the original contractor (prime/direct) or reputed contractor
• Name and address of the construction lender, if any, or reputed construction lender
• A copy of the payment bond and the name and address of the surety company and bonding agent, if any.

If the owner/recipient fails to supply the information above, the claimant is not prevented from filing the preliminary notice. However, it does stop the recipient from raising as a defense the inaccuracy of the information in the 20-day notice, as long as other information in the notice is correct and complete.

Are subcontractors allowed to file a preliminary notice in Arizona?

Yes, subcontractors are required to file a twenty day preliminary notice in Arizona if they want to preserve their right to lien ²⁹.

What are the common mistakes in filing a preliminary notice? What are the reasons for an invalid preliminary notice in Arizona?

Failing to serve the preliminary notice within the first 20 days of work

Some construction participants delay the submission of the 20-day notice because failing to serve it before the 20-day deadline does not result in the revocation of their lien rights ³⁰.

However, know that even if you are allowed by law to submit the notice late, the coverage of your mechanics lien will only be effective for only the previous 20 days before you mailed your notice and for all the work done after this mailing date.

Serving the preliminary notice after the 20-day time frame may not only result in you not getting the full amount for your services — you may also start to develop terrible business practices that may not be beneficial in the long run. Some states are not as lax as Arizona when it comes to pre-lien notice deadlines.

Failing to include all the required information/statements in the form

The Arizona preliminary 20-day notice has simple requirements, but sometimes even the simple things can be missed. Make sure that you provide the complete names of the required parties, and make sure that you declare the correct estimated amount for your services ³¹.

Padding the amount with unnecessary fees can backfire. The owner or the contractor may contest your claim and your mechanics lien may be invalidated.

Also, remember that you can always issue a written request to the property owner or any other interested party. If they fail to respond to your info request, they may not be able to use “inaccuracy of information” as a defense against a lien claim ³²..

Failing to secure proof of notice receipt

Arizona requires all its potential lien claimants to prove that they fulfilled this 20-day notice requirement ³³.

You must always remember to attach the acknowledgement of receipt form to the preliminary notice that you are serving, and you must keep track of whether you have received the signed acknowledgement or not.

If your 20-day notice has not been acknowledged within 30 days after the date of mailing, then you must prepare an affidavit of mailing to prove that you indeed submitted the document.

How to send a preliminary notice form? What are the delivery methods for serving a preliminary notice in Arizona?

Preliminary notices in Arizona may be sent via the following delivery methods, addressed to the person to receive the notice at their residence or business address. Service is deemed complete at the time of the deposit of notice in the mail ³⁴.

• First class mail sent with a certificate of mailing (prepaid postage)
• Registered or certified mail (prepaid postage)

Part of the statutory form for the Arizona Preliminary Notice is an acknowledgement that needs to be signed by the person receiving the notice.

If the recipient of the notice fails to complete the acknowledgement (for personal delivery), or fails to complete and return the acknowledgement within 30 days of the date of mailing, you may use an affidavit as proof of mailing ³⁵.

The affidavit must include the following information:

• Name and address of the owner/recipient
• The title or capacity of the person recipient
• Attachments:
  • If the mailing was made via first class mail with a certificate of mailing, attach the certificate of mailing to the affidavit
  • If the mailing was made via certified or registered mail, attach the receipt of certification or registration

What projects should I request a preliminary notice for?

Both public ³⁶ and private works require preliminary notices. Works with payment bonds are not lienable however sending a preliminary notice requires the owner to send you a copy of the bond and is a legal requirement for bond claims.

Can I cancel my preliminary notice?

Preliminary notices do not need to be canceled because they only serve as notices. If the person you sent a preliminary notice to incorrectly assumed that the preliminary notice is a mechanics lien, you can point them toward AZ law stating preliminary notices only serve to preserve your lien rights and are not a reflection of the financial standing of any of the parties in the project.

As the beginning of the statutory form for the AZ 20-day preliminary notice states ³⁷:

In accordance with Arizona Revised Statutes section 33-992.01, this is not a lien and this is not a reflection on the integrity of any contractor or subcontractor.

Do I need to file a preliminary notice if my project has a payment bond?

Yes . You might not be sure whether the project you’re working on has a payment bond or not. Fortunately, it is a requirement for the owner to notify a claimant of any payment bonds for the project and furnish you with a copy of the payment bond once within 10 days of receiving a preliminary notice from said claimant, as mentioned in the statutory form ³⁸:

WITHIN TEN DAYS OF THE RECEIPT OF THIS PRELIMINARY TWENTY DAY NOTICE IF ANY PAYMENT BOND HAS BEEN RECORDED IN COMPLIANCE WITH ARIZONA REVISED STATUTES SECTION 33-1003, THE OWNER MUST PROVIDE A COPY OF THE PAYMENT BOND INCLUDING THE NAME AND ADDRESS OF THE SURETY COMPANY AND BONDING AGENT PROVIDING THE PAYMENT BOND TO THE PERSON WHO HAS GIVEN THE PRELIMINARY TWENTY DAY NOTICE. IN THE EVENT THAT THE OWNER OR OTHER INTERESTED PARTY FAILS TO PROVIDE THE BOND INFORMATION WITHIN THAT TEN DAY PERIOD, THE CLAIMANT SHALL RETAIN LIEN RIGHTS TO THE EXTENT PRECLUDED OR PREJUDICED FROM ASSERTING A CLAIM AGAINST THE BOND AS A RESULT OF NOT TIMELY RECEIVING THE BOND INFORMATION.

1. A.R.S 33-981 (D)
2. A.R.S 33-992.01(B)
3. A.R.S 34-223
4. A.R.S 34-222
5. A.R.S 33-992.01(B)
6. A.R.S 34-222
7. A.R.S 33-981 (D)
8. A.R.S 33-992.01 (C)
9. A.R.S 33-981 (A, D)
10. A.R.S 33-981 (B)
11. A.R.S 33-981 (C)
12. A.R.S 33-981 (E)
13. A.R.S 33-981 (F)
14. A.R.S 33-992 (B)
15. A.R.S 33-992 (C)
16. A.R.S 33-992.02
17. A.R.S 33-992.01 (F)
18. A.R.S 33-992.01(C)
19. A.R.S 33-992.01(E)
20. A.R.S 33-992.01(G)
21. A.R.S 33-992.01(H)
22. A.R.S 33-992.01(I)
23. A.R.S 33-992.01(J)
24. A.R.S 33-992.01(J)
25. A.R.S 33-992.02
26. A.R.S 33-992.01(I)
27. A.R.S 33-992.01(E)
28. A.R.S 33-992.01(I)
29. A.R.S 33-992.01(C)
30. A.R.S 33-992.01(E)
31. A.R.S 33-992 (C)
32. A.R.S 33-992.01(I)
33. A.R.S 33-992.02
34. A.R.S 33-992.01 (F)
35. A.R.S 33-992.02
36. A.R.S 34-222
37. A.R.S 33-992 (C)
38. A.R.S 33-992.01 (I)