If a contractor does not make timely payments to a subcontractor, how many days notice must the subcontractor give before suspending performance?

The requirement for a subcontractor to provide a notice period before suspending performance due to non-payment by a contractor is set to ensure that the contractor is given a reasonable opportunity to remedy the situation. In Arizona, the law stipulates that the subcontractor must provide a notice of 7 calendar days to the contractor before they can suspend performance because of overdue payments.

This notice period serves as a formal acknowledgment that payment responsibility has not been fulfilled, thereby giving the contractor a chance to address the issue. The notice enables both parties to communicate regarding payment concerns and potentially resolve the dispute without needing to halt work on the project. By stating that 7 calendar days is the appropriate notice, the rule establishes a defined timeframe that balances the rights of subcontractors with the contractor’s ability to respond.

Other timeframes mentioned, such as 15, 21 days, or stating that no notice is required, do not align with the established legal framework governing construction payments in Arizona, making the 7-day notice requirement the correct choice.