Arizona Bond Claim (Little Miller Act) Overview

It’s easy to file and manage your Arizona bond claims with zlien, the industry’s only all-in-one bond claim and security rights management platform. Get complete control over your bond claim rights on a state, county, or municipal project, by using intelligent technology. To learn more about Arizona’s bond claim laws and requirements, read the frequently asked questions below.

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Arizona

Preliminary Notice Deadlines
None / not applicable.

Arizona

Bond Claim Deadlines
None / Not applicable.

Arizona

Preliminary Notice Deadlines
20 Days

Those who did not contract with the prime contractor must deliver a preliminary notice within 20 days of first furnishing labor and/or materials.

Arizona

Bond Claim Deadlines
90 Days

Those not hired by prime contractor must file written notice of bond claim with the prime contractor within 90 days of last furnishing labor and/or materials to the project. All parties seeking a claim, regardless of who hired them, must file their lawsuit to enforce their claim within 1 year of last furnishing labor and/or materials to the project.

Arizona

Preliminary Notice Deadlines
20 Days

Those who did not contract with the prime contractor must deliver a preliminary notice within 20 days of first furnishing labor and/or materials.

Arizona

Bond Claim Deadlines
90 Days

Those not hired by prime contractor must file written notice of bond claim with the prime contractor within 90 days of last furnishing labor and/or materials to the project. All parties seeking a claim, regardless of who hired them, must file their lawsuit to enforce their claim within 1 year of last furnishing labor and/or materials to the project.

Arizona Bond Claim (Little Miller Act) FAQs

Arizona Bond Claim FAQs

Who Is Protected under Arizona Bond Claim Laws?

In Arizona, parties who furnish labor and/or materials to the general contractor or first-tier sub are protected. Lower tier subcontractors and suppliers to suppliers are not covered.

When is the Deadline to File a Arizona Bond Claim?

In Arizona, the claimant must provide the general contractor with notice of the bond claim within 90 days after the claimant’s last furnishing of labor and/or materials to the project. While not explicitly stated, this likely is the date by which the notice must be received – not sent.

Who Should Receive the Arizona Bond Claim?

In Arizona, the only party required to receive the bond claim is the general contractor providing the bond. It is may be advisable, however, to also provide a copy of the bond claim to the contracting public entity, and the surety (if known).

When is the Deadline to Initiate Suit, or, How Long is My Arizona Bond Claim Effective?

In Arizona, a suit to enforce must be initiated more than 90 days, but less than 1 year, after the claimant’s last furnishing of labor and/or materials to the project.

What Must the Arizona Bond Claim Include?

In Arizona, the bond claim must include only the amount claimed to be due, the name of the party to whom the labor and/or material was furnished, and a demand for payment. It may also be advisable to include the identity of the contracting public entity and some description of the project and the labor and/or materials furnished.

What Are the Lien Waiver Rules?

Arizona statutorily mandates that all parties on a construction project use certain legislatively designed construction lien waiver forms. This state is one of only 11 states that requires this. If a contractor or owner asks you to use a lien waiver form that does not conform to the statutory form, the waiver will be invalid, and the contractor could get in legal trouble. See this article: The States with Statutory Lien Waiver Forms. Also, Arizona state law prohibits contractors and suppliers from waiving their right to file a mechanics lien in contract. You can learn more about the prohibition of such “no lien clauses” at this article: Where Can You Waive Your Lien Rights Before Payment?

Can Suppliers to Suppliers File Bond Claims?

No, suppliers to suppliers likely cannot file a bond claim in Arizona.

How Must the Arizona Bond Claim Be Sent?

An Arizona bond claim must be served via registered or certified mail. If the mail is refused, it may be advisable to have the notice of the bond claim personally served.

Arizona Public Project Preliminary Notice FAQs

Do I need to send a Arizona Preliminary Notice?

It depends. Arizona requires preliminary notice to preserve a claimant’s right to make a bond claim if the claimant does not have a direct contract with the general contractor.

When do I need to send a Arizona Preliminary Notice?

When required, preliminary notice in Arizona must be given within 20 days of the claimant’s first furnishing of labor and/or materials to the project. In Arizona, the service of the preliminary notice is effective when mailed, not received, so a notice sent to the general contractor within the 20-day period is timely.

What if I send the Arizona Preliminary Notice Late?

If the preliminary notice is not sent within 20 days from the claimant’s first furnishing of labor and/or materials, it is only effective as to labor and/or materials furnished 20 days prior to the sending of the notice, and thereafter.

How Should the Arizona Preliminary Notice be Sent?
Arizona preliminary notice should be served by registered or certified mail, and may be mailed to any office or residence of the general contractor.
To Whom Must the Arizona Preliminary Notice be Given?

If required, the preliminary notice must be given to the general contractor.

Arizona Bond Claim (Little Miller Act) Statutes

When you perform work on a state construction project in Arizona, and are not paid, you can file a “lien” against the project pursuant to Arizona’s Little Miller Act. Since the claim is not against the state or county’s actual property, but instead against a posted bond, the claim is not really called a “lien” but is more frequently referred to as a “bond claim” or “little miller act claim.”Arizona ‘s Little Miller Act is codified in Title 34 of Arizona Revised Statutes, Article 2, Contracts, §§ 34-222 – 224, and is reproduced below.

Arizona Little Miller Act

34-222. Surety bond required; suit on bond; limitations

A. Except where specifically exempted by statute, before any contract is executed with any person for the construction, alteration, or repair of any public building, a public work or improvement of any county, city or town, or officer, board or commission thereof, and irrigation, power, electrical, drainage, flood protection and flood control districts, tax levying public improvement districts, and county or city improvement districts, the person shall furnish to the agent entering into such contract the following bonds which shall become binding upon the award of the contract to such person, who, for purposes of this article, means “contractor”:

1. A performance bond in an amount equal to the full contract amount conditioned upon the faithful performance of the contract in accordance with plans, specifications and conditions thereof. Such bond shall be solely for the protection of the public body awarding the contract.

2. A payment bond in an amount equal to the full contract amount solely for the protection of claimants supplying labor or materials to the contractor or his subcontractors in the prosecution of the work provided for in such contract.

B. Each such bond shall include a provision allowing the prevailing party in a suit on such bond to recover as a part of the judgment such reasonable attorneys’ fees as may be fixed by a judge of the court.

C. Notwithstanding any other statute, each such bond shall be executed solely by a surety company or companies holding a certificate of authority to transact surety business in this state issued by the director of the department of insurance pursuant to title 20, chapter 2, article 1. The bonds shall not be executed by an individual surety or sureties, even if the requirements of section 7-101 are satisfied. The bonds shall be payable to the public body concerned.

D. Such bonds shall be filed in the office of the department, board, commission, institution, agency or other contracting body awarding the contract.

E. It shall be illegal for the invitation for bids, or any person acting or purporting to act on behalf of the contracting body, to require that such bonds be furnished by a particular surety company, or through a particular agent or broker.

F. The conditions and provisions in the payment bond regarding the surety’s obligations shall follow the following form:

Now, therefore, the condition of this obligation is such, that if the principal promptly pays all monies due to all persons supplying labor or materials to the principal or the principal’s subcontractors in the prosecution of the work provided for in the contract, this obligation is void. Otherwise it remains in full force and effect.

Provided, however, that this bond is executed pursuant to the provisions of title 34, chapter 2, article 2, Arizona Revised Statutes, and all liabilities on this bond shall be determined in accordance with the provisions, conditions and limitations of title 34, chapter 2, article 2, Arizona Revised Statutes, to the same extent as if they were copied at length in this agreement.

The prevailing party in a suit on this bond shall recover as a part of the judgment reasonable attorney fees that may be fixed by a judge of the court.

G. The conditions and provisions in the performance bond regarding the surety’s obligations shall follow the following form:

Now, therefore, the condition of this obligation is such, that if the principal faithfully performs and fulfills all of the undertakings, covenants, terms, conditions and agreements of the contract during the original term of the contract and any extension of the contract, with or without notice to the surety, and during the life of any guaranty required under the contract, and also performs and fulfills all of the undertakings, covenants, terms, conditions and agreements of all duly authorized modifications of the contract that may hereafter be made, notice of which modifications to the surety being hereby waived, the above obligation is void. Otherwise it remains in full force and effect.

Provided, however, that this bond is executed pursuant to the provisions of title 34, chapter 2, article 2, Arizona Revised Statutes, and all liabilities on this bond shall be determined in accordance with the provisions of title 34, chapter 2, article 2, Arizona Revised Statutes, to the extent as if it were copied at length in this agreement.

The prevailing party in a suit on this bond shall recover as part of the judgment reasonable attorney fees that may be fixed by a judge of the court.

H. If the prime contract or specifications require any persons supplying labor or materials in the prosecution of the work to furnish payment or performance bonds, these bonds shall be executed solely by a surety company or companies holding a certificate of authority to transact surety business in this state issued by the director of the department of insurance pursuant to title 20, chapter 2, article 1. Notwithstanding the provisions of any other statute, the bonds shall not be executed by an individual surety or sureties, even if the requirements of section 7-101 are satisfied.

I. All bonds given by a contractor and surety, pursuant to the provisions of this article, regardless of their actual form, will be deemed by law to be the form required and set forth in this article and no other.

34-223. Payment bond provisions

A. Every claimant who has furnished labor or material in the prosecution of the work provided for in such contract in respect of which a payment bond is furnished under the provisions of section 34-222, and who has not been paid in full therefor before the expiration of a period of ninety days after the day on which the last of the labor was done or performed by the claimant or material was furnished or supplied by the claimant for which such claim is made, shall have the right to sue on such payment bond for the amount, or the balance thereof, unpaid at the time of institution of such suit and to prosecute such action to final judgment for the sum or sums justly due the claimant, and have execution thereon, provided however that any such claimant having a direct contractual relationship with a subcontractor of the contractor furnishing such payment bond but no contractual relationship express or implied with such contractor shall have a right of action upon such payment bond upon giving the contractor only a written preliminary twenty day notice, as provided for in section 33-992.01, subsection C, paragraphs 1, 2, 3 and 4 and subsections E and H, and upon giving written notice to such contractor within ninety days from the date on which such claimant performed the last of the labor or furnished or supplied the last of the material for which such claim is made, stating with substantial accuracy the amount claimed and the name of the party to whom the material was furnished or supplied for whom the labor was done or performed. Such notice shall be served by registered or certified mail, postage prepaid, in an envelope addressed to the contractor at any place the contractor maintains an office or conducts business, or at the contractor’s residence.

B. Every suit instituted under this section shall be brought in the name of the claimant, but no such suit shall be commenced after the expiration of one year from the date on which the last of the labor was performed or materials were supplied by the person bringing this suit.

C. The contracting body and the agent in charge of its office shall furnish to anyone making written application therefor who states that it has supplied labor or materials for such work, and payment therefor has not been made, or that it is being sued on any such bond, or that it is the surety thereon, a certified copy of such bond and the contract for which it was given, which copy shall be prima facie evidence of the contents, execution and delivery of the original. Applicants shall pay for such certified copies such reasonable fees as the contracting body or the agent in charge of its office fixes to cover the actual cost of preparation thereof.

34-224. Effect of article on prior contracts

This article shall not apply to any contract awarded pursuant to any invitation for bids issued on or before the effective date of this article or to any person or bonds in respect to any such contract, but rights, duties and obligations of parties arising under, or incidental to, bonds executed prior to such effective date shall continue to be governed by the prior statutes applicable to such bonds.

33-992.01 (C)(1-4) and (E)(H). Preliminary twenty day notice.

C. The preliminary twenty day notice referred to in subsection B of this section shall be given not later than twenty days after the claimant has first furnished labor, professional services, materials, machinery, fixtures or tools to the jobsite and shall contain the following information:

1. A general description of the labor, professional services, materials, machinery, fixtures or tools furnished or to be furnished and an estimate of the total price thereof.

2. The name and address of the person furnishing labor, professional services, materials, machinery, fixtures or tools.

3. The name of the person who contracted for the purchase of labor, professional services, materials, machinery, fixtures or tools.

4. A legal description, subdivision plat, street address, location with respect to commonly known roads or other landmarks in the area or any other description of the jobsite sufficient for identification.

E. If labor, professional services, materials, machinery, fixtures or tools are furnished to a jobsite by a person who elects not to give a preliminary twenty day notice as provided in subsection B of this section, that person is not precluded from giving a preliminary twenty day notice not later than twenty days after furnishing other labor, professional services, materials, machinery, fixtures or tools to the same jobsite. The person, however, is entitled to claim a lien only for such labor, professional services, materials, machinery, fixtures or tools furnished within twenty days prior to the service of the notice and at any time thereafter.

H. If a notice contains a general description required by subsection C of this section of the labor, professional services, materials, machinery, fixtures or tools furnished up to the date of notice, it is not defective because after the date the person giving notice furnishes labor, professional services, materials, machinery, fixtures or tools that are not within the scope of the general description, or exceed by less than twenty per cent the estimated total price thereof.