Anyone who can serve a mechanic’s lien in Arizona can generally also send a stop notice. While a mechanic’s lien is a claim against the property, contractors, subcontractors and material suppliers can serve a stop notice against construction funds held by the property owner and the construction lender.
A lender can freeze construction funds upon receiving a stop notice until you are paid. Thus, it can be an incentive for an owner or general contractor to resolve a nonpayment issue before experiencing delays in the project.
For a stop notice to benefit you, you need to know more about it, including:
How to secure your rights for sending the notice
You must serve an Arizona 20-day preliminary notice to the owner, general contractor or construction lender to protect your right to send a stop notice. If you didn’t send this notice, you may not be eligible to send a stop notice when unpaid.
Additionally, you may not have the right to send a stop notice after your deadline for serving a mechanic’s lien expires, which is usually 120 days after the completion of the project.
It’s crucial to act quickly when working on any construction project to protect your rights.
What to include in it
Although the rules are not as strict as for a mechanic’s lien, which could be considered invalid if lacking sufficient information, you should still ensure your stop notice includes the following:
- The name and contact information of the person who hired you
- A description of the labor, services or materials you offered
- The amount in value of your labor, services or materials
- Any payment already received
- Your name, address and signature
Review your notice to confirm you have included all details before sending it.
If you worked on a construction project and are considering sending a stop notice, legal guidance can help you make informed decisions.