In Arizona, every residential construction contract contains an implied warranty of workmanship and habitability (“Implied Warranty”). Even if the residential construction contract does not have an express warranty, [...]

Usually a surety posting a lien discharge bond, insures payment of your mechanic’s lien, but not always. A contractor who records a mechanic’s lien for amounts it is owed is thrilled when the owner or person with whom [...]

The DOL’s Independent Contractor Final Rule March 26, 2024, By Katya Lancero and Greg Gillis      In late 2022, we published an article about the U.S. Department of Labor’s (“DOL”) Proposed Rule that would modify [...]

The Arizona Court of Appeals recently issued a memorandum decision that offset and recoupment are not valid defenses to a ROC Prompt Pay Act proceeding. Shea-Connelly Development, LLC (“SCD”) and Revive Construction and [...]

The California Appellate Court decision is not binding on Arizona courts, but its rationale is equally applicable, and Arizona courts may find it persuasive. In Arizona, pay-when-paid clauses in a construction contract can be [...]

In AZDOR v. Tunberg, the Arizona Court of Appeals held a company’s member-manager and CEO personally liable for collected but unremitted Transaction Privilege Taxes (TPT). Following a tax audit, the Arizona Department of [...]

This article was featured by the American Bar Association Forum on Construction Law in its October 2019 Under Construction newsletter. The impact of a bankruptcy commenced by an owner, general contractor, or subcontractor [...]

New law will return Arizona’s Prompt Pay Act to the customary understanding of the 30-day payment cycle. In an early 2019 decision, in S.K. Builders, Inc. v. Smith, the Arizona Court of Appeals ruled that [...]

Residential subcontractors will be obligated to indemnify a general contractor only in proportion to the fault caused by the indemnifying subcontractor. Governor Ducey’s April 10, 2019, signing of Senate Bill 1271 ended [...]