As a subcontractor, you also deserve to be paid in a timely fashion by the primary contractor on any construction job. If you’re being brought on to a job by a prime contractor, chances are, you are not going to have all the details of the contract with the end client. You are there to complete one aspect of the project, and then go about your business.
If you’re not being paid on time or believe you have been underpaid, you need to know when the prime contractor received its money and how much it received. How are you going to have that information? You may also need to file a claim of lien or serve a request for a written statement under oath. The statement provided needs to show the amount of all direct contracts on the completed project, along with how much the owner paid the primary contractor for labor and materials provided, and on what date or dates, along with the prime contractor’s estimate of the total cost to complete all relevant direct contracts.
Depending on the situation, as a subcontractor or supplier, you may be eligible to file a Construction Lien (a primary contractor can also file a Construction Lien). This type of legal claim is used most often by subcontractors and suppliers who have yet to get payment for work done to remodel or improve a home. Homeowners may be subject to a Construction Lien even if they paid the prime contractor, if the prime contractor did not fully compensate all subcontractors or suppliers used on the project.
A construction lien of any type essentially says the property or house cannot be sold unless the construction lien has been paid. The claim must be resolved first, because the lien is saying you have a claim on that land. In fact, a homeowner usually cannot even re-finance their property if there is a lien on it. If a homeowner does not quickly resolve a lien, the person filing the claim can move to foreclose on the property to recoup the money they are owed. That’s one reason owners often pay quickly if a lien is filed. Here at ZinnLaw we can help you with that claim.
