§ 32-1188 — Applicability to construction of a dwelling for an owner-occupant; definitions

A. The requirements in section 32-1182 do not apply to construction contracts for the construction of a dwelling for an owner-occupant unless the following legend or substantially similar language appears in clear and conspicuous type on the front page of each billing or estimate from the contractor to the owner-occupant:

Notice to owner of applicability of Arizona prompt pay act

(Notice required by Arizona Revised Statutes

section 32-1188)

Attention: Your obligations to pay your contractor are subject to the Arizona prompt pay act. That act is set forth in title 32, chapter 10, article 5, Arizona Revised Statutes. The full text of the statutes are available at your local public law library or on the internet. Under that act, you have the right to withhold all or a portion of a payment to a contractor for a variety of reasons, including defective construction work that has not been corrected. However, in order to do so, you must issue a written statement setting forth in reasonable detail your reasons for withholding payments within fourteen (14) days after the date you receive a billing or estimate. If you fail to issue the written statement within that period, the billing or estimate will be deemed approved. Once the billing or estimate is deemed approved, you must pay the billing or estimate within seven (7) days. Generally, you are limited by the act to withholding only an amount that is sufficient to pay the direct costs and expenses you reasonably expect to incur to protect you from loss for which the contractor is responsible. You are encouraged to read the act in full to know your obligations and rights.

B. For the purposes of this section, "dwelling" and "owner-occupant" have the same meanings prescribed in section 33-1002.