9 | Page PAYMENT LETTER Assignment Value: 30 Points Due

9 | PagePAYMENT LETTERAssignment Value: 30 PointsDue Date: March 22, 2018Assignment: Draft no more than a one (1) page letter to Sun Devil Construction, LLC.Hint:Your letter must comply in all respects with ARS 32-1129.04. A copy of the statute is included for yourreference.This assignment is more about your ability to read, comprehend, and comply with the statute. The actualwritten portion should be no more than a paragraph or two.Grading Scale:30 Points – 0 errors25 Points – 1 error20 Points – More than 1 errorBackground Information:
You are ABC Concrete, LLC. ABC is a subcontractor to Sun Devil on a project. You submitted apayment application in the amount of $125,000 on December 1, 2015. It has been more than 60 dayssince that the last time you were paid by Sun Devil.You are not certain but you believe that Sun Devil Construction was paid for your work by the Owner.Your subcontract requires at least 7 days written notice.32-1129.04. Construction contracts; suspension of performance; terminationA. A contractor may suspend performance under a construction contract or terminate a constructioncontract for failure by the owner to make timely payment of the amount certified and approved pursuantto section 32-1129.01. A contractor shall provide written notice to the owner at least seven calendar daysbefore the contractor’s intended suspension or termination unless a shorter notice period is prescribed inthe construction contract between the owner and contractor. A contractor shall not be deemed in breachof the construction contract for suspending performance or terminating a construction contract pursuantto this subsection. A construction contract shall not extend the time period for a contractor to suspendperformance or terminate a construction contract under this subsection.10 | PageB. A subcontractor may suspend performance under a construction contract or terminate a constructioncontract if the owner fails to make timely payment of amounts certified and approved pursuant to section32-1129.01 for the subcontractor’s work and the contractor fails to pay the subcontractor for the certifiedand approved work. A subcontractor shall provide written notice to the contractor and owner at leastthree calendar days before the subcontractor’s intended suspension or termination unless a shorter noticeperiod is prescribed in the construction contract between the contractor and subcontractor.
A subcance orterminating a construction contract pursuant to this subsection. A construction contract shall not extendthe time period for a subcontractor to suspend performance or terminate a construction contract underthis subsection.C. A subcontractor may suspend performance under a construction contract or terminate a constructioncontract if the owner makes timely payment of amounts certified and approved pursuant to section 32-1129.01 for the subcontractor’s work but the contractor fails to pay the subcontractor for the certifiedand approved work. A subcontractor shall provide written notice to the contractor and owner at leastseven calendar days before the subcontractor’s intended suspension or termination unless a shorter noticeperiod is prescribed in the construction contract between the contractor and subcontractor. Asubcontractor shall not be deemed in breach of a construction contract for suspending performance orterminating a construction contract pursuant to this subsection. A construction contract shall not extendthe time period for a subcontractor to suspend performance or terminate a construction contract underthis subsection.D. A subcontractor may suspend performance under a construction contract or terminate a constructioncontract if the owner declines to approve and certify portions of the contractor’s billing or estimatepursuant to section 32-1129.01 for that subcontractor’s work but the reasons for that failure by the ownerto approve and certify are not the fault of or directly related to the subcontractor’s work. A subcontractorshall provide written notice to the contractor and the owner at least seven calendar days before thesubcontractor’s intended suspension or termination unless a shorter notice period is prescribed in theconstruction contract between the contractor and subcontractor. A subcontractor shall not be deemed inbreach of a construction contract for suspending performance or terminating a construction contractpursuant to this subsection. A construction contract shall not extend the time period for a subcontractorto suspend performance or terminate a construction contract under this subsection.E. A contractor or subcontractor that suspends performance as provided in this section is not required tofurnish further labor, materials or services until the contractor or subcontractor is paid the amount thatwas certified and approved, together with any costs incurred for mobilization resulting from theshutdown or start-up of a project.F. In any action or arbitration brought pursuant to this section, the successful party shall be awardedcosts and attorney fees in a reasonable amount.G. Written notice required under this section shall be deemed to have been provided if either of thefollowing occurs:1. The written notice is delivered in person to the individual or a member of the entity or to an officer ofthe corporation for which it was intended.11 | Page2. The written notice is delivered at or sent by any means that provides written, third party verificationof delivery to the last business address known to the party giving notice.