Defining project completion might sound simple, however, in Arizona, you have a limited amount of time after project completion before their lien filing deadline approaches. So for contractors, it’s important to find out when project completion officially occurred when filing a mechanics lien. If you happen to miss this short window, you could lose your payment rights.
Here’s how project completion is defined in Arizona, and other factors that can impact it.
Deadlines
You must file your lien no later than 60 days after the notice of completion is recorded. You also have the option to file 120 days after “completion” if no Notice is recorded.
Project Completion Defined with No Notice
Project completion might seem straightforward, but actually pinpointing that final date can be complex. Completion is considered the day the general contract is complete, not the day your contract is complete.
There are three main ways project completion can be defined with no notice. The first is when no labor has been completed on the project for 60 continuous days. Another option is 30 days after a Certificate of Occupancy is issued. However, if no certificate is issued or if it’s not followed up by a building inspection and final written acceptance, then the “last date of furnishing” is considered the completion date.
The last date of furnishing is the final day that any labor or materials were furnished to the project.
Completion Factors
- Change Orders – A change order has the potential to push back the project completion date which as a result could extend your lien filing deadline.
- Punch-List Additions – This typically isn’t a factor that impacts a completion date. Only significant additional work will have an effect on the completion date.
- Warranty Work – Warranty-related tasks or punch-list additions (labor or materials) to correct work that did not conform to contract specifications is not considered when determining a completion date.