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Preliminary Notices – The Process is Simple

The Process for preparation of a Preliminary Notice in Arizona is simple.

1]        The Notice must be sent out within 20 days of first providing labor, materials, equipment, or services to the project.  A notice can never be sent out too early (e.g. even prior to start of physical work) but it can be sent out late.  If the notice is mailed beyond the 20 days of start, it will relate back and cover only that work performed in 20 days prior to mailing.

The recommended procedure is to have prepared and mailed out the preliminary notice at the same time your company receives the signed contract or purchase order for the project.  That document generally contains all of the required information necessary to properly complete the notice (except for the project lender).

2]        The  notice must be mailed certified mail ($3.65/each) to the following listed parties; alternatively, it can be mailed 1st class mail at the post office and obtain a certificate of mailing ($0.44/each), but the certificates have contain the post master’s mailed stamp.

3]        The notice must be mailed to the Property Owner (or reputed Owner), General Contractor, Project Lender, and the party which your company is in contract with.  Basically, mail it to ALL known parties involved in the project who are in the chain of contracting with your company.

4]        The notice must contain the project description and location (typically a street address or other description sufficient to allow a party generally familiar with the area to identify the project).

5]        The notice must contain a short description of the work being performed by your company (e.g. Remodeling of Suite 104A; concrete work, delivery of rental equipment)

6]        The notice must contain a REASONABLE estimate of the value of the labor, materials, equipment or services to be provided under the contract.

7]        In the event the value of your work exceed the original price listed by more than 20%, you must send in an amended notice to cover the additional amount (e.g. if the original contract was for $100,000 and a preliminary notice was mailed out for that amount, and through change orders, the new contract price is $130,000, you would have to send in an additional or amended notice for $30,000 to be fully covered).

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