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Past the 20 days

We have a customer in AZ who had a job done back in January. We have not sent out a prelim in time. Now that we are obviously past the 20 days what is our other option for collecting payment? Can i still send out the prelim? Please let us know what we can do. Thank you!

2 replies

Apr 8, 2020

You always have the option to file a lawsuit or attempt other forms of collection (letter etc…). A mechanic’s lien is not the only avenue of recovery.

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Apr 8, 2020

If the project is ongoing, or just for future reference, if you fail to send an Arizona preliminary notice within the initial 20 day period from first furnishing labor or materials; all is not lost. An Arizona preliminary notice may still be sent late. However, the late notice will only secure mechanics lien rights for the 20 days preceding the receipt of the notice and all labor and materials supplied thereafter. Securing some mechanics lien rights is better than none. If that's not an option, there are still other recovery methods available. Sending payment demand letters are a good start. Other options could include passing the debt off to a collections agency, or a lawsuit can be filed for breach of contract or unjust enrichment. Here are some additional resources you may find helpful:

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