When working on a construction or extraction project, getting paid on time is crucial for subcontractors. In Florida, if your contractor doesn’t pay you, it can disrupt your business, so understanding the steps you can take to address this situation is important.
Protecting your payment rights
The first step is ensuring you have a written contract because this document outlines the payment terms and helps protect your rights. Without it, resolving construction project payment disputes can be more difficult, so always keep records of your work, including invoices and correspondence.
Utilizing lien rights
In Florida, subcontractors have the right to file a mechanic’s lien if they don’t get paid. This lien is a legal claim against the property you worked on. To file a lien, you must follow specific procedures, such as providing a Notice to Owner within 45 days of starting work.
Sending a notice of nonpayment
If payment has a delay, sending a Notice of Nonpayment can be effective. This notice informs the contractor and property owner of the unpaid amount. It is a formal reminder that payment is due and necessary to preserve your lien rights. You must send the notice within 90 days of the last day you provided labor or materials.
Bond claims on public projects
For public construction projects, filing a bond claim may be an option. These projects typically require contractors to have a payment bond, which guarantees that subcontractors and suppliers will be paid. If you don’t get paid, you can make a claim against this bond.
Navigating unpaid invoices
Facing unpaid invoices is a common challenge in the construction and extraction industry. Understanding your rights and options can make a significant difference. Taking timely action ensures you get paid for your work and can continue your operations smoothly.