PRELIMINARY 20-DAY NOTICE
At the start of any construction project, all contractors and material suppliers are required to send out a Preliminary 20-Day Notice or 20-Day Lien Notice. In Arizona, a 20-Day Notice must be sent within 20 days of first providing labor, services, or materials. We process thousands of notices every month and have perfected a system to give our customers efficient and accurate completed requests. For more information on what needs to be included in the notice and how it must be sent, click here!
MECHANIC’S LIEN RECORDING
At CNS, we file hundreds of Mechanic’s Liens a month throughout Arizona. A Mechanic’s Lien provides the contractor or supplier the right of foreclosure of the property if they are not paid. In Arizona, a Mechanic’s Lien must be recorded within the first 60 days of filing of Notice of Completion, or within 120 days after completion of a project. For detailed information on how to record a mechanics lien, click here!
Filing a bond claim is common across many states, including Arizona. It’s an assurance used on state public works, and large commercial or residential jobs. In the event that the general contractor fails to fulfill its obligations, the bond will be used to pay the suppliers, subcontractors, and ultimately finish the project.
Enacted in 1935, the Miller Act requires general contractors of Federal construction projects to post Performance Bonds and Payment Bonds (“PNP Bonds”) to guarantee the performance of their contractual duties and the payment to subcontractors and material suppliers. Miller Act bond claims are universal across all states, although the nuances of state-specific Little Miller Acts may vary.
LITTLE MILLER ACT
Arizona has enacted the Little Miller Act governing certain state projects. The Little Miller Act is born from the Federal Miller Act and requires that a contractor on Arizona State Projects provide a payment and performance bond in the amount of 100% of the value of the contract. If the general contractor fails to pay any of the subcontractors or suppliers, CNS can make a claim for you against the bond under the Little Miller Act.
Once you have been paid the amount of money owed to you, CNS can help you release your lien. In Arizona, there are penalties if you do not release a lien. Working with CNS will save you from these potential costs.