What You Can Do to Make Sure you Get Paid

September 29, 2016 Uncategorized 0 Comments

Why is it important to know who you are and where you are in a building project?  In our last video and post we looked at the many tiers of subcontractors.  Let’s dive deeper into why it’s important and how to make sure you get paid at the end of completing your portion of a large construction project.

So, let’s say that you are the counter top subcontractor and you have finished your countertops beautifully.  No defects or chance of set offs.  Now, he’d waiting for his check.  And let’s say the casework contractor stops answering the phone.  So, the casework contractor owes the countertop contractor $5,000.  Now, here is where it becomes very important to know who you are and where you are in the grand scheme of the general project.  If the casework contractor fails to pay the countertop contractor on the project, the counter top contractor has a right to send preliminary notices, intent to lien and ultimately file a lien on the project.  However, if and ONLY if he does it in the timeline set by his state.

So, let’s say that he was on top of it and the countertop contractor sent a preliminary notice to the casework contractor.  Then the casework contractor doesn’t reply.  So the countertop contractor sends the notice to the finish work contractor.  Now the finish work contractor says, “Wait!  I’ve already paid the casework contractor!”  Now the countertop contractor sends the notice all the way up the line to the general contractor and owner.  Ultimately, the countertop contractor had to make a rucus to get paid his $5,000 and the casework contractor had taken off with his money.

So, who is going to pay the countertop contractor?  Does the general contractor not require his subs, subs, subs to prove they have paid their subs?  That is why it is important to know where to you fall in the project and what measures you need to take to make sure you get paid.

At Construction Finance, we can help you by filing the appropriate paperwork within your state’s timeline to make sure you are paid at the end of the job.

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About the Author

Dia Sawyer

My husband John Sawyer and I have 8 children and run an amazing business, Construction Finance. We have been married 23 years and are busy looking for new construction clients all while taxiing our busy children to activities.