Real Estate & Construction

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.


Andrew Wenker

If the Recovery Fund makes a payment,

the license will automatically be suspended again

until the licensee has repaid the Recovery Fund, with interest. If the contractor does not incur costs at the outset to resolve the underlying complaint, it will inevitably do so at the end if it wants to continue in construction.

This creates a real hardship for contractors that have to generate income in order to repay the Recovery Fund
Continue Reading ROC license suspensions and Recovery Fund awards

The Arizona Supreme Court has ruled that, if an architect or engineer is negligent in their work on a project, and if they do not have a direct contract with the project owner, they are not obligated to reimburse the owner for the cost of their negligence.

  • “[D]esign professionals lacking privity of contract with project owners do not owe a duty to those owners to reimburse them for purely economic damages.”

That opinion does not mean that negligent design professionals get off scot-free. (“


‘s demise does not insulate design professionals from legal consequence for their negligence,” the opinion
Continue Reading No contract? Negligent architects, engineers not obligated to reimburse project owner for losses

Contractors in central and southern Arizona know all too well the work hazards that accompany Arizona’s notorious summers. OSHA’s recently launched National Emphasis Program on Outdoor and Indoor Heat Hazards (NEP) provides a useful reminder of the risks of heat stress and how to help workers avoid it.

Before we describe some of the resources at your disposal, let’s briefly discuss the NEP and its application in Arizona. The NEP, which went into effect April 8 and is scheduled to continue for three years, calls for heat-specific workplace inspections in over 70 high-risk industries (including construction) at locations where the
Continue Reading Heat stress: Reducing the safety risks to outdoor workers



follows through on its threat to strip workplace safety enforcement from the state, Arizona employers should expect a much harsher regulatory environment.

On April 20, citing what it termed the State of Arizona’s “decade-long pattern of failures” in enforcing private workplace safety, the federal Occupational Safety and Health Administration (OSHA)

announced its intention to revoke the Arizona State Plan

, under which the Arizona Division of Occupational Safety and Health (ADOSH) – in place of OSHA – conducts workplace safety inspections and enforcement.

Arizona is one of 28 states and territories that operate their own OSHA-approved state plans.
Continue Reading OSHA takeover? How Arizona contractors can prepare

Real Estate

Arizona Supreme Court Issues Guidance Concerning HOA AmendmentsApril 25, 2022
On March 22, 2022, the Arizona Supreme Court issued a favorable opinion for individuals residing in a community governed by a Homeowners’ Association (“HOA”) who may wish to challenge the validity of amendments to the governing documents passed by a majority vote. This recent decision may apply most directly to those homeowners who oppose short-term rentals in their communities. In Arizona, many residential planned communities are governed by an HOA who seeks to enforce covenants, conditions, and restrictions (“CC&Rs”). CC&Rs are typically the most important governing document
Continue Reading Arizona Supreme Court Issues Guidance Concerning HOA Amendments

Unintended Consequences.

A contractor can be disciplined for, according to

A.R.S. § 32-1154(A)(20)


“having a person named on the license who is or was named on any other license in this state or in another state that is under suspension or revocation for any act or omission that occurs while the person is or was named on the license.”

Why that is bad: If someone serves as the QP on their “buddy’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.

Additionally, unresolved
Continue Reading Are you really sure you want to be the qualifying party on your “buddy’s” ROC license?

A $74,000 order issued by the Arizona Registrar of Contractors illustrates the potential consequences for contractors of restitution orders, as well as a possible shift toward more aggressive restitution orders in the future.

The contract required the contractor to get all required permits and inspections. However, despite the contractor’s assurances, during the project the contractor either failed to get the permits and inspections or failed to get them on time. At one point, the contractor reached out to a local building official and asked whether doing certain work without a permit would be punished only by a “slap on the
Continue Reading Arizona contractors can be liable to pay financial restitution to homeowners

Lang & Klain is ranked among Arizona’s top 10 law firms in both

Construction Litigation (#4)


Commercial Litigation (#5)

in the 2022 edition of

Ranking Arizona


Generally considered to be Arizona’s largest business opinion poll, Ranking Arizona is a service of AzBigMedia, publishers of

AzBusiness, AZRE

and other business-related magazines.

The survey is open to the public and offers choices from among more than 20,000 companies and firms in over 200 industries and market sectors.
Continue Reading Ranking Arizona: Top 10 law firm in Construction Litigation, Commercial Litigation

Construction lawyers’ perspectives on the unique qualities of the roofing trade, the benefits of ARCA membership, and dealing with OSHA and the ROC.

For more than a decade, roofing contractors have been a major client segment at Lang & Klain, P.C., one of Arizona’s largest and most accomplished construction law boutiques.

Lang & Klain’s experience in advising and defending the roofing trade has proven to be a valuable – and sometimes business-saving – resource for many roofers.

Over lunch recently, three of the firm’s construction law partners — firm founder

Kent Lang


Best Lawyers’

construction litigation “Lawyer of the
Continue Reading Under the Same Roof: A construction lawyers' look at the roofing trade

By Rick Erickson

Welcome to 2022!  This year, the construction industry will undoubtedly reflect on the last two years as unprecedented times plagued by construction project delays.  The COVID-19 pandemic contributed to suspension of work and closure of construction projects worldwide in 2020.  The end of 2021 brought additional delays caused by an inexplicable clog in the supply chain of construction materials.  The combined impact of these events on project milestones and completion deadlines led our clients to ask, with unusual and particular urgency, who is liable for such delays and how do contracting parties lessen the consequences from such
Continue Reading When Is A Project Delay Material and Actionable?

Thanks to 2021 amendments to Arizona law, in an appeal of a state regulatory action, the Superior Court must disregard the state regulator’s original decision.


Under older versions of A.R.S. § 12-910, the decisions of administrative agencies received deference from the Court. That is to say, in any close question of fact or law, the Court was required to defer to the agency’s decision or interpretation.

The Court’s duty to defer to administrative agencies began to erode a few years ago. In 2018 the Legislature amended A.R.S. §
Continue Reading Good news for Arizona businesses: Appealing a state regulatory ruling now leads to a fresh trial in Superior Court

An appeal of an administrative agency’s decision now leads to a fresh trial in Superior Court, where the agency’s decision is disregarded.


Under older versions of A.R.S. § 12-910, the decisions of administrative agencies received deference from the Court. That is to say, in any close question of fact or law, the Court was required to defer to the agency’s decision or interpretation.

The Court’s duty to defer to administrative agencies began to erode a few years ago. In 2018 the Legislature amended A.R.S. § 12-910 to remove
Continue Reading Changes in Arizona law governing administrative appeals create new opportunities and challenges for contractors in ROC hearings

If you have a case before the Arizona Office of Administrative Hearings, an administrative subpoena can help you get the information you need to support your argument.


Mickell Summerhays


Jamie Hanson

In an administrative proceeding, there are two types of subpoenas: One compels a witness to attend the hearing, and the other – more common and often more useful – compels a party to produce documents.[1]

Obtaining a Subpoena.

Getting either type of subpoena is a two-step process.

First, you create the actual subpoena document, which includes the title of the case, what the subpoena is asking
Continue Reading Do-it-yourself subpoena: a useful tool in an administrative hearing