Contractors who own a construction business know how difficult it can be to get paid on time. With many property owners choosing to delay or forgo their payment obligations altogether, it is important to know what legal recourse you have when this inevitably occurs.

Thankfully, there are construction laws in place to protect contractors who fail to receive the payment they deserve. However, it is important to be aware of what these laws are. Whether we’re talking about contracts, mechanics’ liens, or prompt payment, there are a lot of legal terms you need to know about to comply with the law—in addition to getting paid as quickly as possible.

Contracts are the cornerstone of any construction agreement. They hold each party involved in the project accountable to uphold their responsibilities. Everyone involved in a project is usually connected by some kind of contract to ensure that each party delivers on what they promise to do.

Most importantly, contracts also provide the basis for how and when payments will be made. The clauses in the contract that refer to payment procedures need to be paid attention to and understood completely.

Some payment contracts are written out in a way that gives the property owners too much time to pay for the work– leading to even more delays and sometimes no payment at all. While many contracts are often verbal, it is recommended to get them in writing. This is especially true in states that require a written contract for contractors to secure mechanic liens rights.

Filing a mechanics lien is one of the best ways to collect payment for an unpaid job. However, it is important to know how the process works in your state. In many states, the law requires the filing of preliminary notices that state the cost of the materials for which payment is owed. The process can then escalate to a notice of intent letter that warns the owner that a lien will be filed unless full payment is received quickly. Aside from these notices that need to be sent before filing a mechanics lien, it is also important to know about lien waivers. These waivers are used as a form of payment to protect property owners from inaccurate lien claims.

These laws mostly apply to federal and state government projects; however, they can also cover private projects, in some cases. These laws set a time for when payment should be received. If the client doesn’t pay within the specified time frame, then suppliers or contractors can send a demand letter to request immediate payment under statutory law.

Now that we’ve gone over some of the main legal considerations known as a contractor, it has become clear that there are many things to be aware of when it comes to construction laws that can often be complicated and confusing.

If you need assistance regarding a project dispute or any other legal concern, contact the professionals at Nationwide Notice. We are a lien and notice service company dedicated to getting contractors the money they deserve. Our experts can help guide you through the mechanics lien process and provide the support you need to resolve any project dispute. Nationwide Notice specializes in helping resolve your collection problems, improve your collection effectiveness, and more. We help with construction payment, dealing with general contractors, lien release, change order forms, and general construction payment. To learn more about us, click here. For specifics on our services, click here. Find out more information on our website today. We assist construction companies in securing payment for work they’ve provided on any project, in any state.