Ask the Legal Professionals, Phoenix Business Journal, June, 2012

Published on in News Articles

Q: I just hired a contractor to build a commercial project on my property. Is there any way to preclude his subcontractors and suppliers from filing liens against the project?

A: Yes. Pursuant to A.R.S. §33-1003 you can require your contractor to furnish a payment bond on the project. Once you record the payment bond together with a copy of your contract, along with a legal description of the property, with the County Recorder, no liens can be recorded against the property by subcontractors and suppliers. The subcontractors and suppliers would still have a remedy for non-payment by asserting a claim against the payment bond. Your general contractor still retains his lien rights against the property.

B&C: Ask the Legal Professionals, Phoenix Business Journal, June, 2012