Notice of Commencement: What It Is and Why It Matters for Homeowners

A notice of commencement is a legal document filed with the county recorder's office before a permitted construction project begins. It establishes the property owner, contractor, and lender of record for the project and sets the starting date from which lien rights begin for all parties who perform work or supply materials on the project.

In Arizona, a notice of commencement is required for many permitted remodeling projects. Once filed, it creates a formal public record of the project that subcontractors and suppliers can reference when determining their preliminary notice and lien rights.

At Phoenix Home Remodeling, we handle the notice of commencement filing as part of our permit process where required. We explain to clients what the document means, who has lien rights under it, and how it relates to the lien waiver process throughout the project.

Because the filing starts the clock on lien rights for all project participants. Subcontractors and material suppliers who want to preserve their right to file a mechanics lien must serve preliminary notices within a certain number of days of first furnishing labor or materials. If a notice of commencement is on file, those parties can calculate their notice deadlines precisely. This structure is designed to create a clear, organized lien timeline that benefits both contractors and homeowners when managed correctly.

Property description: Legal description or address of the property where work is being performed.

Owner information: Name and address of the property owner.

Contractor information: Name and address of the general contractor performing the work.

Lender information: If the project is financed, the lender's information is included. This is relevant to lien priority if the project involves a construction loan.

Expiration: A notice of commencement typically expires after one year. If a project extends beyond that date, a new notice must be filed.

No. A building permit is issued by the city or county building department and authorizes the specific work to be performed. A notice of commencement is filed with the county recorder's office and is a lien-related legal document establishing the project record for mechanics lien purposes. A project can have a permit without a notice of commencement and vice versa, though many projects should have both.

Keep them organized. They are informational documents telling you those parties have preserved their right to lien. They are not demands for payment. Match them against your list of subcontractors and suppliers, and ensure lien waivers from those parties are collected as payments are made. An unreleased preliminary notice at project close is a gap in your lien protection.

We file the notice of commencement where required as part of our permit preparation. We provide you with a copy of the filed document and explain its relationship to the preliminary notices you may receive during the project. We maintain our lien waiver collection process in parallel so lien exposure is actively managed throughout construction.

• Will you be filing a notice of commencement for this project?
• What should I do with preliminary lien notices I receive during construction?
• How are you collecting lien waivers from your subcontractors and suppliers?
• Will I receive a final unconditional lien waiver at project close?
• Who are the subcontractors and suppliers likely to send preliminary notices?

See also: Lien Waiver, Construction Lien, Right of Rescission (Remodeling Contract), Building Permit (Remodeling), Substantial Completion, Fixed-Price Contract (Remodeling)