Home>Levelset Community>Legal Help>Do i include the original value in the excess preliminary notice or just the difference?

Do i include the original value in the excess preliminary notice or just the difference?

ArizonaPreliminary Notice

If I create an excess preliminary notice and the only include the excess amount and not the original estimate, does the state only refer to the excess preliminary notice (latest notice filed) or is the original 20-day preliminary notice still valid if I were to file a mechanic's lien?

1 reply

Oct 11, 2019

Generally, an Arizona excess/revised preliminary notice will provide the estimate for the total value of all work that will be provided - not just the difference between the previously-sent notice and the new estimated cost of the work. As for how a revised notice would be treated in the situation above, it's hard to say. The Arizona mechanics lien statute doesn't specifically provide for what should happen in such a situation. However, a revised notice is only required if the new estimated value of work provided exceeds the amount on the original notice. So, presumably, a revised notice shouldn't typically take the place of the notice that was originally sent. Meaning, seemingly, the amount lienable should be at least the amount of the notice that was originally sent. But, note that a revised notice that merely states the difference between the original estimate and the revised estimate might, potentially, still preserve the right to lien for the value of the new estimate. After all, additional notice is only required if the contract price rises - so, if additional notice is sent for a smaller amount, it might be intuitive that the amount should've been added to the original notice. This is especially true when the text of the revised notice makes it clear that the amount on that notice is merely the difference. Still: the safest way to send revised notice is to be as clear and simple as possible, and generally, a revised Arizona preliminary notice will contain the new, entire revised estimate (rather than just the difference). For more on Arizona notices, here are some great resources: (1) Arizona’s 20% Preliminary Notice Rule (2) Arizona Preliminary Notice Guide and FAQs

0 people found this helpful

Helpful