Articles on construction-related legal topics for Arizona contractors, subcontractors and construction suppliers
TOPICS
Contractor Licensing
| Getting Paid
| Construction Law
| Contracts
| Labor and Employment
Contractor Licensing
Inconsistency among Arizona’s trial courts in how the 2021 statutory revisions are to be applied make legal strategies difficult for contractors to employ statewide.
Under a recent Arizona law, a contractor can lock in a favorable hearing decision before the ROC can modify or reject it.
Two years after the Arizona legislature revised that statutes that govern appeals from Registrar of Contractors (ROC) hearings, this article revisits the changes and discusses what we now know and still don't.
On a residential project, even a minor ROC discipline against your contractor’s license can trigger a Recovery Fund award and a second license suspension.
If someone serves as the qualifying party on another contractor's license, while simultaneously being the QP for their own company, their own company could be disciplined because of the discipline imposed on the other license.
An appeal of an administrative agency’s decision now can lead to a fresh trial in Superior Court, where the agency’s decision is disregarded.
Getting Paid
As of August 27, 2019, contractors can continue to receive Prompt Payment Act protection for qualifying invoices not supplied within the preceding 30-day billing cycle.
A payment dispute over the quality of road signs installed at the Grand Canyon ends in the Court of Appeals’ finding that a federal agency is not an “owner” under Arizona’s Prompt Payment Act.
The Ninth Circuit Court of Appeals’ Ramona ruling is significant for material suppliers who furnish materials for federal projects through open accounts.
Effective July 3, 2015, architects and engineers are entitled to prompt payment for services provided on many public projects in Arizona.
The Miller Act applies to contracts awarded for the construction, alteration, or repair of any public building or public work of the federal government.
The Court of Appeals finds that, despite initial documentation errors, a contractor’s timely corrections preserved the validity of its liens.
Construction Law - General
The decision leaves the state plan in place, and worker safety enforcement will remain in the hands of the Arizona Division of Occupational Safety and Health (ADOSH).
Contractors that pay workers on a piece-work basis must keep accurate time records to show that the wages paid satisfy minimum wage and overtime requirements.
In Arizona, liquidated damages provisions are generally enforceable if they are intended to compensate the non-breaching party rather than penalize the breaching party.
A recent Arizona lawsuit over crane repair and rental costs illustrates the importance of understanding the lease agreement and what can happen when things go wrong
The Arizona Supreme Court rules that a homebuilder cannot contract its way out of its obligations under the implied warranty doctrine.
Properly drafted contractual provisions can be among your construction business’s best allies.
If an AZ architect or engineer is negligent and does not have a contract with the owner, they are not obligated to reimburse the owner for cost of their negligence.
In a September 2019 decision favorable to contractors, the Arizona Court of Appeals upheld a contractor's right to have notice of, and a reasonable opportunity to cure, its alleged workmanship issues before it can be found in breach of contract.
Contracts
In Arizona, liquidated damages provisions are generally enforceable if they are intended to compensate the non-breaching party rather than penalize the breaching party.
A recent Arizona lawsuit over crane repair and rental costs illustrates the importance of understanding the lease agreement and what can happen when things go wrong
The Arizona Supreme Court rules that a homebuilder cannot contract its way out of its obligations under the implied warranty doctrine.
Properly drafted contractual provisions can be among your construction business’s best allies.
In Yanni v. Tucker Plumbing, a claim by homeowners against plumbing subcontractors failed for lack of a contract between the plaintiffs and the defendants.
With construction activity in the Phoenix area and across Arizona rebounding, now is a good time to brush up on contract provisions that, if overlooked, could stall your comeback
Labor and Employment
By Christian Lestinsky Receiving a citation from Arizona’s OSHA equivalent – the Division of Occupational Safety and Health (ADOSH) – can be stressful, disruptive, and costly. Beyond potential penalties, an ADOSH citation can affect employee morale, operations, insurance, and your company’s reputation. How your company responds, particularly in the first days after receiving a citation, can have lasting consequences. Below are practical, real-world steps you should take if you receive an ADOSH citation. 1. Immediately Abate the Alleged Safety Risk. Employee safety is the top priority. Whether or not you agree with the citation, the first step should always be addressing the alleged hazard. Prompt abatement protects employees and demonstrates good-faith compliance. Depending on the circumstances, abatement may also include: removing employees from hazardous conditions; repairing or replacing unsafe equipment; implementing interim administrative or engineering controls; and reinforcing required personal protective equipment (PPE). Taking swift corrective action not only reduces the risk of injury; it may also help mitigate penalties and strengthen your position during the enforcement process. One of your first actions should also be posting a copy of the citation where the alleged violation occurred — something that ADOSH requires. If this is not practical, then you must post it somewhere where it will be visible to all affected employees. 2. Immediately Seek Legal Counsel. ADOSH citations are time-sensitive legal matters. An ADOSH citation is a formal enforcement action with strict deadlines. If you wish to challenge any portion of the citation, a Notice of Contest must be filed within the required timeframe: 15 working days after receiving the citation(s). You may also request an informal conference with an ADOSH supervisor during this 15-day period to discuss the citation and any penalties. 3. Reinforce or Build a Strong Safety Culture. Use the citation as an opportunity to improve. ADOSH citations often reveal broader gaps in safety systems, training, or oversight – not just a single isolated issue. You should use the citation as an opportunity to evaluate and strengthen your overall safety culture. General steps might include: reviewing and updating your written safety policies and procedures; holding regular safety meetings or talks; clarifying safety responsibilities for supervisors and managers; encouraging employee participation in safety initiatives through incentives; and improving incident and near-miss reporting practices. 4. Invest in Training and Education. Training is prevention – and evidence of good faith. While a citation is pending, employers should actively pursue safety training for both management and employees. ADOSH regularly offers training sessions, outreach programs, and employer education events designed to help businesses understand and meet safety obligations. ADOSH even has an in-house Consultation Unit that provides confidential advice to employers seeking concrete ways to build a safety culture. 5. Allocate Financial Resources to Safety Improvements. Safety spending is risk management. Improving workplace safety often requires a financial commitment. You should be prepared to allocate resources toward meaningful safety improvements. This helps prevent future workplace safety incidents and demonstrates an overall commitment to safety. 6. Coordinate With a Safety Consultant. Align technical compliance with legal strategy. Consider working with a qualified safety consultant, particularly when citations involve technical standards or complex work environments. Final Thoughts An ADOSH citation should be taken seriously. If handled correctly, the citation process can be an opportunity to reinforce a culture of safety, demonstrate good faith, protect your reputation, and position your business for success. Need help responding to an ADOSH citation? ADOSH citations move quickly and can carry lasting consequences if not handled properly. Our experience in dealing with ADOSH citations can make a meaningful difference in the outcome for your company – especially if you involve us early in the process. For additional information, please see the following articles by our attorneys and descriptions of our regulatory compliance services: ADOSH inspection program focuses on heat-related illness, injury Heat Stress: Reducing the safety risks to outdoor workers Worker safety lawyers at Lang Thal King & Hanson Government regulation defense at Lang Thal King & Hanson
On July 17, 2023, the Arizona Division of Occupational Safety and Health (ADOSH) announced the launch of a state emphasis program focused on “high heat” industries such as construction and agriculture.
The decision leaves the state plan in place, and worker safety enforcement will remain in the hands of the Arizona Division of Occupational Safety and Health (ADOSH).
Arizona employers would be wise to double-down on heat-stress prevention – not just to satisfy state and federal regulators, but because keeping workers safe, healthy, and on the job is good business.
If the federal government wrests worker safety enforcement from the state Industrial Commission, Arizona employers will face greater regulatory compliance burdens.
Not many people like to be told what to do – especially by the federal government – but complying with tighter OSHA standards and keeping your workforce intact are good for business.