As a contractor, you’ve poured your heart and soul into your work. But what happens when payday comes and the check doesn’t arrive? This scenario occurs more often than you might think in the construction industry. Fortunately, preliminary 20-day notices serve as a powerful tool to protect your right to payment and maintain a smooth cash flow.
The role of preliminary notices in construction
Preliminary notices act as a formal introduction. They establish your presence on the job site and create a paper trail of your involvement. These notices inform property owners, general contractors and lenders that you are working on a project. More importantly, a preliminary notice informs the recipients that you may file a lien if unpaid.
Benefits of sending preliminary notices
Filing preliminary 20-day notices offers several advantages for contractors:
- Improves communication: Opens lines of communication between all parties involved in the project
- Faster payment: Encourages prompt payment by alerting property owners to your involvement
- Legal protection: Preserves your right to file a mechanics lien if payment issues arise
- Professionalism: Demonstrates your commitment to following proper procedures and industry best practices
By filing preliminary notices, you’re not just following legal requirements but setting yourself up for success. These notices act as a safety net, ensuring you have options if payment problems occur.
Importance of giving notice on time
Timing is crucial when filing preliminary notices. As the name suggests, Arizona law requires that you send preliminary notices within 20 days of first furnishing labor or materials to a project. Failure to meet this deadline can result in a partial loss of lien rights.
Securing your payment rights
Don’t let your hard work go uncompensated. By understanding and utilizing preliminary notices, you safeguard your right to payment and maintain a healthy cash flow. An experienced attorney can guide you through the process, ensuring you meet all legal requirements and maximize your payment protection. Taking proactive today can save you headaches and financial stress tomorrow.