Identify the contracting parties, invoice receipt, approval status, written reasons for withholding and applicable payment provisions before deciding a commercial plumbing payment is late. Arizona prompt-payment laws distinguish owner-to-contractor and downstream payments, with specific approval, notice and exception rules. Preserve the records and obtain qualified review before withholding payment, suspending work or treating a billing dispute as resolved.
Which payment step is disputed?
Section 32-1182 addresses owner progress payments, retention and final payments. Its general framework includes certification and approval, written reasons for withholding and payment after approval. For progress billing, the ordinary deemed-approval period is fourteen days unless the owner issues the required detailed written statement or an applicable statutory variation applies. The ordinary payment period is seven days after approval, with specified alternatives subject to the statute's contract and plan-notice requirements.
That is not a universal seven-day clock starting when any invoice is emailed. Check whether the bill was submitted as the contract requires, who received it, the payment stage and any valid alternate terms. Record the actual dates rather than substituting the inspection date.
What changes for subcontractor payments?
Section 32-1183 separately addresses payments by contractors and subcontractors. Where its conditions apply, payment for a subcontractor's work generally follows within seven days after the upstream party receives the applicable payment. The section also addresses invoices, conditional waivers, permitted withholding reasons and detailed written statements.
Ask for the reason and amount associated with the disputed work. Do not assume a problem with one trade automatically permits withholding every other trade's payment. Keep the conditional lien waiver aligned with the actual payment and covered work.
What should be preserved before work stops?
Section 32-1185 provides specific suspension and termination rights with written-notice conditions that differ by the party and payment situation. It is not permission to abandon a project immediately after a disagreement. Have a qualified adviser assess the facts and required notice before taking that step.
Maintain a timeline of submitted billings, receipt confirmations, approvals, detailed objections, corrective responses, payments and notices. Separate disputed work from accepted work and record who can approve changes. The commercial lease responsibility question is another issue; a landlord-tenant allocation does not itself settle the contractor's statutory payment rights.