As Sarasota construction attorneys, we understand that a construction business is the livelihood of many construction professionals. This is why we want to share important tools that you can use to protect yourself so you can continue operating your business with peace of mind. We bring this two-part article to a close by providing you with four options you can use to collect payment on your construction projects. Visit Part 1 for more insight.
1. File a Lien
Filing a lien is a good idea when dealing with private property projects. Licensed contractors, subcontractors, and material suppliers are a few examples of construction professionals that can file a lien against the property if they don’t get paid for their work. This helps them because a lien makes it difficult for the property owner to sell the property.
2. Payment Bonds Claim
When dealing with publicly-owned property, filing a payment bond claim can help you recover payment. Contractors are required to purchase a payment bond through a surety, which protects construction professional like laborers, subcontractors, and material suppliers in the case of nonpayment. Consult a legal professional to understand the proper filing deadlines to file your claim.
3. Demand Letter
A demand letter is a notice sent to the owner requesting that they fulfill their payment obligations to you, or otherwise, you will proceed with further legal actions. This letter should be addressed to the person that owes you payment, describe the dispute, lists the payment owed to you, and provides a response deadline. This letter must be sent by certified mail.
As a last resort, you may find that you need to file a lawsuit to collect payment. You may have a case on the grounds of a breach of contract if you are in direct privity with the defendant. In cases where there is no privity, and you can’t bring a lawsuit for a breach of contract, an unjust enrichment claim may be the solution for the nonpayment issue with the owner.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.