Construction work can be unpredictable. Large firms and successful professionals never know when they might have a sudden influx of projects. As such, the use of subcontractors is relatively common. Professionals and businesses hire others in the construction sector to manage certain aspects of a project. They have contracts outlining their expectations for those subcontractors and establishing terms for payments.
Generally speaking, subcontractors can expect to receive prompt payment in full once they complete their work on a project. However, sometimes construction companies or independent professionals do not fulfill their obligations to subcontractors. In such cases, those who have done work on a project or provided services for it may want to explore their options for pursuing payment. Requesting a mechanic’s lien is often the best option.
The property can become collateral for unpaid invoices
Construction professionals and suppliers who provide goods or services for projects typically understand that they have the right to request a construction lien, also known as a mechanic’s lien. Subcontractors typically also have that same right.
While they may not have a contract with the property owner, they do have a contract with the professional or firm hired by the owner. Any contracts assumed by the agent hired by the property owner can make outside parties eligible for a lien.
If a subcontractor does not receive payment in accordance with their contract, they have the same lien rights as the primary professional hired directly by the property owner. They can submit paperwork requesting a lien. The lien process requires a submission of formal notice to the property owner.
The person who hired a construction professional or business likely already paid for the work performed. When they receive notice alerting them of an impending lawsuit that could put their property at risk, they are likely to reach out to the professional or business they hired to inquire about the situation.
Pressure from the client can often lead to subcontractors receiving the payment they deserve. Occasionally, it may be necessary to proceed with acquiring the lien and possibly even seeking to enforce it.
Subcontractors trying to secure payment for services and/or materials already provided may need help reviewing their contracts and learning about state law, and that’s okay. Prompt action is usually necessary, as there are strict limitations on the right to seek a lien for unpaid construction work.
