A material supplier delivers $18,000 worth of lumber to a residential construction site. The general contractor fails to pay. Under A.R.S. 33-981, within what timeframe must the supplier serve a preliminary 20-day notice to preserve lien rights?
Correct Answer
A) Within 20 days of first delivery
Material suppliers must serve preliminary 20-day notices within 20 days of their first delivery to the project to preserve lien rights.
Why This Is the Correct Answer
Under A.R.S. 33-981, material suppliers must serve the preliminary 20-day notice within 20 days of their first delivery to the project. The clock starts on the date of the first furnishing of materials — not the last delivery. Missing this deadline forfeits lien rights even if subsequent deliveries are made later.
Why the Other Options Are Wrong
Option B: No notice required for material suppliers
Material suppliers are not exempt from the preliminary notice requirement. A.R.S. 33-981 explicitly applies to material suppliers, subcontractors, and others who are not in direct contract with the property owner. Assuming no notice is required is a critical error that results in losing lien rights.
Option C: Within 20 days of last delivery
'Within 20 days of last delivery' is the most dangerous distractor because it sounds logical — it seems fair to measure the deadline from the last delivery. However, A.R.S. 33-981 measures from the first delivery. By the time the last delivery occurs, the notice window may have already closed.
Option D: Within 30 days of first delivery
30 days from first delivery is incorrect — the statute specifies 20 days from first delivery. Extending the deadline to 30 days would incorrectly suggest more time than the law allows, potentially causing suppliers to miss the actual 20-day cutoff.
Memory Technique
Remember: 'First delivery starts the clock.' The moment you make your first delivery, the 20-day countdown begins. Think of it as a stopwatch that starts when the first piece of lumber hits the ground — not when the last piece does.
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