A contractor completes work valued at $45,000 on a residential property in Arizona. The homeowner refuses to pay the final $12,000. How many days does the contractor have to file a preliminary notice to preserve lien rights under A.R.S. 33-981?
Correct Answer
B) 20 days from commencement of work
Under A.R.S. 33-981, contractors must file a preliminary notice within 20 days of commencing work to preserve their lien rights.
Why This Is the Correct Answer
Under A.R.S. 33-981, a contractor (original contractor) must serve a preliminary 20-day notice within 20 days of first furnishing labor or materials to the project. This is the statutory deadline that preserves the right to later record a mechanic's lien if payment is refused.
Why the Other Options Are Wrong
Option A: 60 days from commencement of work
60 days is not the correct timeframe under A.R.S. 33-981. Confusing this with other notice periods (e.g., the 60-day window after project completion to record the lien itself) is a common error. The preliminary notice must be served much earlier — within 20 days of commencing work.
Option C: No preliminary notice required for contractors
This is incorrect and dangerous to assume. Original contractors do require a preliminary notice under A.R.S. 33-981 to preserve lien rights. Skipping this step forfeits lien protection entirely, leaving the contractor with only contract remedies.
Option D: 30 days from commencement of work
30 days is not the statutory deadline set by A.R.S. 33-981. This figure has no basis in Arizona's preliminary notice requirements and may be confused with other construction-law deadlines in other states.
Memory Technique
Think '20-day = 20-day notice' — the number matches the name of the notice. If you start work today, you have exactly 20 days to serve the preliminary 20-day notice or your lien rights vanish.
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Under Arizona lien law, if a property owner records a notice of completion on August 1st, by what date must subcontractors file their mechanics liens?
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