Arizona Contracts, Change Orders & Lien Notice
Sound contracts and timely lien notices protect an Arizona contractor's right to be paid. This chapter covers the elements of an enforceable contract, change orders, and the preliminary twenty-day lien notice.
Elements of an enforceable contract
An enforceable construction contract requires an offer, acceptance, and consideration (value exchanged), between parties competent to contract, for a lawful purpose. Notarization, a set page count, and Registrar pre-approval are not general requirements - the substance of the agreement is what matters.
Change orders
When an owner requests work beyond the original scope, the change should be authorized by a written change order signed by both parties, setting out the added work, its price, and any schedule impact. Relying on verbal approvals is a leading cause of disputes over unpaid extra work.
The preliminary twenty-day lien notice
To preserve mechanic's-lien rights on most Arizona projects, a contractor or supplier must serve a preliminary twenty-day notice, generally within 20 days after first furnishing labor or materials (A.R.S. §33-992.01). Owner-occupied dwellings have separate rules that can limit lien rights, which is part of why the Residential Contractors' Recovery Fund exists.