I haven’t got my final check. I can’t file a lien because I don’t have a license. What. Can I do?
2 replies
Sep 1, 2020
Unfortunately, in the state of Arizona, unlicensed contractors don't have any legal recourse for payment. This is explicitly mentioned under A.R.S. §32-1153:
No contractor as defined in section 32-1101 shall act as agent or commence or maintain any action in any court of the state for collection of compensation for the performance of any act for which a licensed is required by this chapter without alleging and proving that the contracting party whose contract gives rise to the claim was a duly licensed contractor when the contract sued upon was entered into and when the alleged cause of action arose.
If the work performed required a license issued by the Arizona Registrar of Contractors, and the contractor is unlicensed, they will not be able to file a mechanics lien, nor file any action in court for breach of contract or unjust enrichment.
There is a "handyman" exemption that allows unlicensed contractors to perform construction work for under $1,000. But if a building permit is required, the exemption doesn't apply.
Arizona takes contractor licensing very seriously. Not only are you (in the words of our CEO) living dangerously and potentially working for free, but you are also subject criminal penalties as well. For more on this see: Arizona Contractor Licensing: Who Needs One & What Are the Requirements?
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Sep 7, 2020
If you are working on a residential home with no written contract and the homeowner denies our verbal contract can an action be taken for unjust enrichment when he claims there is no substantial additional value due to the Build or over build in the neighborhood? The cost of the home as is...$500,000. pluse $125.000. in construction costs = $625,000.00 - he had the house appraised for $650.000.00 +/- how can I overcome his argument. He denies we ever had an agreement for compensation even though I am a licenced General Contractor?