I am a subcontractor working on a commercial job in Arizona. My GC has terminated my contract without cause- (personal dispute) but the there is already a considerable amount of money already due. The pay app was due April 1st. Although I realize it is not extremely late, I am concerned about the termination of the contract and whether or not my lien rights are affected. This GC is notorious for NOT PAYING. And now I have spoken with another sub on this job, who has told me the GC is past due on 100K+ to them. This has me concerned. I do not want to miss any deadlines and lose my lien rights. Also, I should mention, the GC HAS been paid by the owner for the payment which would include my pay app. The owner is paying on time, and yes, my pre-liens were filed timely.
I am sorry for the issues. The deadline has not changed. If the contract was terminated, that is a cessation of labor trigger unless the final inspection provisions apply.
General contractors, subcontractors, professionals, and materialmen must record their notice and claim for lien within the earlier of 120 days after completion or, if a notice of completion has been recorded and served, within 60 days after that recording. Completion means the earliest of either 30 days after final inspection and written final acceptance by the governmental body issuing the building permit or cessation of labor for a period of 60 consecutive days, except when such cessation is due to a strike, shortage of materials, or act of God.
To foreclose (enforce the lien), you must file a judicial foreclosure in superior court where the real property is located. You must file the foreclosure lawsuit within six months from the recording date of the notice and claim of lien. You then must record the lis pendens within five days of filing the foreclosure complaint. A.R.S. § 12-1191. You must satisfy both the six-month and five-day deadlines. Failure to timely file the foreclosure suit and file a notice of pendency within the six-month period automatically extinguishes the lien.
Superior court is complicated and, ideally, you should have an attorney provide a full representation. If this is through an entity, you must hire an attorney. You can find general information and forms here azcourts.gov/selfservicecenter. The Maricopa county resources are here superiorcourt.maricopa.gov/llrc/self-help-resources/. For other counties, check your judicial website for their resources. For fee waivers, review this azcourts.gov/courtfilingfees.
Reach out to an experienced construction attorney soon. Our office, like others, offers free initial consultations.
I hope it works out and I wish you all the best.