Arizona Prompt Payment Act
The prompt payment act provides protection to contractors by requiring payment for work when completed. However, the Arizona prompt payment act also provides protection to Arizona consumers from contractors who did not complete or properly complete their work.
Providing Notice of a Dispute to the Arizona ContractorArizona prompt payment act is set forth in A.R.S. section 32-1129 thru 32-1129.07. Under the prompt payment act of Arizona a person has the right to withhold all or part of a payment to a contractor for a variety of reasons, including defective construction work that has not been corrected.
However, before an Arizonan can just refuse payment to their contractor they must provide them with a notice detailing the reasons for withholding payments. This notice must be sent to the contractor within fourteen (14) days of receiving the bill.
Failure to Respond to Contractor's BillIf a person fails to provide the contractor with the written notice then the bill will be deemed approved. Once the bill is deemed approved then payment must be made within seven (7) days.
Generally speaking, a person can only withhold the amount in dispute. The amount not in dispute must be immediately paid to the contractor.