Bond or Lien Claim, Public Work

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Note: This information is limited in scope and applies only to this document. Please see the general information, all forms memo, and the general information memo for this type of document, for additional information.

Description: Notice of Claim on Bond and Lien for public Improvement.

Scope: State of Arizona, Public Works.

Time Constraints: Claims must be filed depending on the type of entity you represent:

Both Cases, Preliminary Notice: You must have served A Preliminary Notice on all required parties before you can establish lien rights in the State of Arizona. Failure to do so negates your lien rights. See the State of Arizona memo on Preliminary Notices, Public Works, for more information. Claims may be made only against the payment bond, and on lien is allowed.

Sub-Contractor or Supplier: If you have not been paid in full, you must serve your Notice of Claim on Bond and Lien for Public Improvement within 90 days, inclusive, of the completion, or cessation, of your work of improvement or supplying of material or services for improvement. Serve a copy of said notice on the public entities and, if they exist, the general contractors, lenders and sureties.

Contractor: No notice required before suit, although we suggest sending notice (cheaper than a lawsuit).

Both Cases, Perfection:

Lien Claim: To perfect your Lien Claim, you must file suit to enforce the lien at least 90 days but within 1 year of the last date of furnishing.

Both Cases, Payment Bond: Where a Payment Bond has been provided by a surety, after you have served your Stop Notice file suit against the surety within the terms stated in the bond.

The usual remedy is to file to enforce all claims in one suit (see below, Procedures). In any case, we strongly recommend that your attorney handle the enforcement actions to perfect your lien claims.

Recent Court Requests:  A client has reported to us that the filing of a mechanic’s lien form is not enough for a claim to stick in some Arizona locals.  In addition to the filing of the Mechanic’s Lien the court is also requiring a copy of the preliminary notice, a copy of the billing statements involving the account, and any other documentation or correspondence relating to the matter to show an effort to collect the account without response from any of the parties.  This will increase you likelihood of enforcing your mechanic’s lien.

Information Requirements: Program information and information for Exhibits A-D and any additional costs as to legal fees, court costs and interest charges (don't pass these up. Estimate if necessary. The public entities and sureties will reserve ONLY the amount for which you make claim.), the county of the state where the recording will be made and a copy of your original 20 Day Preliminary Notice.

Form Types: Notice of Claim on Bond and Lien for public Improvement and Exhibit's A-D, if needed.

Procedures: Prepare your documents using the required information. Serve the Notice of Claim on Bond and Lien for Improvement on the public entities, general contractors and sureties, if known.

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