Updated Nov 2025 | Private Projects: A.R.S. § 33-1051
When payment disputes arise on private projects in Arizona, material suppliers can serve a stop notice, separate from a mechanics lien, as a way to secure payment.
What Is a Stop Notice in Az?
In Arizona, potential mechanics lien claimants can also use a stop notice. A stop notice, served on the property owner and/or construction lender, freezes or withholds remaining construction funds until the claimant is paid. Similar to a mechanics lien, stop notice rights require the prior service of an Arizona 20-day preliminary notice (A.R.S. § 33-1056(B)(1)).
Also note that a stop notice only applies to unreleased amounts. This means that a construction lender or a property owner may only withhold whatever amount that they have not disbursed yet. If all payment has been made and there is no remaining balance, a stop notice is practically ineffective.
What Is a Bonded Stop Notice?
Material suppliers who wish to serve a bonded stop notice must secure a surety bond in the amount at least one hundred fifty percent (150 %) of the claim stated in the notice (A.R.S. § 33-1062(A)). Per A.R.S. § 33-1058(A)), a construction lender must withhold funds when the stop notice is accompanied by a proper payment bond. While the solution is more robust, it comes with an increased financial cost.
When Do You Serve an Arizona Stop Notice?
Serve the Stop Notice after filing the 20-Day Preliminary Notice and before the time expires to record a mechanics lien—i.e., 120 days after project completion or 60 days after a recorded Notice of Completion (A.R.S. § 33-1056(B)(2)).
Note that a property owner or a construction lender may also ask a construction participant to serve them with a stop notice. If you receive a written demand from an owner or a lender, you must serve the stop notice within thirty (30) days or you forfeit the remedy (A.R.S. § 33-1054 (owner) & § 33-1055(A) (lender)).
How to Serve an Arizona Stop Notice
1. Prepare your Arizona stop notice form
There is no statutory form in Arizona but the stop notice should include the following:
- The labor, services, or materials furnished or agreed to be furnished.
- The person or company for whom they were furnished.
- The value furnished and total amount agreed.
- Any payments already received.
- The claimant’s name and address.
2. Serve your Arizona stop notice on the intended recipient:
Serving the Arizona stop notice may be done via personal delivery or certified mail. If serving in person, be sure to hand the stop notice to a manager or responsible officer in the construction lender’s office service requirements: (A.R.S. § 33-1056(A)).
When Do You Enforce an Arizona Stop Notice?
You can file a lawsuit to enforce your Arizona stop notice any time after 10 days from serving it and no later than 3 months after the lien filing deadline.
After initiating the action, you have five (5) days to serve a Notice of Commencement of Action on the owner or construction lender (A.R.S. § 33-1063). Failing to give this notice invalidates your stop notice and causes the release of previously withheld funds.
If your enforcement action is successful, you have the right to recover reasonable attorney fees and costs (see A.R.S. § 33-1063(C)).
Best Practices for Serving an Arizona Stop Notice
- Serve a 20-day preliminary notice to protect your stop notice rights
In Arizona, you have no stop notice rights unless you served a valid 20-day preliminary notice (A.R.S. § 33-1056(B)(1)). - Do not inflate your payment claim
Inflating the claim or including work not performed violates (A.R.S. § 33-1061) and jeopardizes both lien and stop-notice rights.
Remember to serve the Notice of Commencement of Action
Failing to send this post-filing notice within five days results in the automatic release of funds A.R.S. § (33-1063(B)–(C)).