I have 4 contracts for one project. I am in the process of doing a bond claim. I did a pre lien on 2 of those contracts, can I included the total dollar amount due in my bond claim?
1 reply
Mar 6, 2020
The Arizona Little Miller Act doesn't provide any insight into whether multiple preliminary notices will be required when working under a number of different contracts on the same project. However, the safest way to proceed will always be to send a preliminary notice for every contract that's executed, regardless of whether there's another contract on that same job.
Because the statute doesn't specify what should happen when multiple contracts are taken on, but where prelims were sent on some but not all of those contracts, it's hard to say whether the lack of notice would block some potential bond claim rights. But, since preliminary notices are generally required to preserve bond claim rights, there's likely a fair chance that failing to send a notice on some contracts might result in some issues with bond claims on those contracts.
Still, at least to the extent that notice was sent, bond claim rights will be available. So, pursuing one bond claim for all amounts owed on the job, or pursuing multiple separate claims, should result in at least partial recovery.
For more on Arizona bond claims: Arizona Bond Claim Guide and FAQs.
Arizona's preliminary notice requirements on public projects
Finally, keep in mind that not all subs and suppliers will need to send preliminary notice on AZ public projects. Rather, only those who were hired by someone other than the project's GC will need to send notice. So, if any of the relevant contracts were with the GC, then preliminary notice wouldn't be required for that contract.
For more on Arizona's preliminary notice requirements: Arizona Preliminary Notice Guide and FAQs (scroll down for public projects).