Read the payment clause
Confirm conditions for invoicing, approval, retainage and payment timing rather than relying only on verbal expectations.
Construction contractsConstruction Law Insights / Unpaid work & documentation
What Should a Contractor Do If They Are Not Paid?
Practical considerations when an invoice or progress payment remains outstanding on a construction project.
The Short Answer
What you should know first.
Start by reviewing the payment terms and assembling the project record. The appropriate response to nonpayment depends on the agreement, whether the amount is disputed, notice obligations and local law.
Key Considerations
Important factors to evaluate.
The relevant contract terms, records and law help determine how these questions apply to a particular construction project.
Document the balance
Match invoices to approved work, pay applications, change orders, communications and amounts actually received.
Payment dispute servicesProtect potential lien rights
Mechanic's lien notices and deadlines can be time sensitive and vary significantly by jurisdiction.
Mechanic's liensConsider the dispute route
Payment claims may involve direct negotiation, mediation, arbitration or litigation depending on the contract.
Resolution optionsA Practical Starting Point
Organize the facts before deciding on next steps.
Construction disputes can involve short notice periods and overlapping obligations. A clear set of records helps make any review more productive.
Review the contract and unpaid invoice or pay application.
Reconcile disputed charges and documented work.
Preserve notices, communications and project records.
Assess available contractual and statutory options before deadlines pass.
Frequently Asked Questions
Common follow-up questions.
Should a contractor immediately stop work?
Not without reviewing the agreement and governing law. An improper suspension can create additional exposure.
Does nonpayment always support a lien?
No. Eligibility and required steps depend on the location and circumstances.
Can retainage be disputed?
Yes. A dispute may turn on the contract, completion status, punch-list items and payment conditions.
Need guidance on a construction matter?
Each project and agreement is different. Contact AW Construction Law to discuss the circumstances, relevant documents and possible next steps.