Unpaid work and retainage
Disputed invoices, unpaid progress billing, withheld retainage and disagreements over completed work.
Payment dispute guidance
AW Construction Law / Who We Help
Construction law guidance for subcontractors.
Subcontractors perform specialized work under demanding schedules, detailed scopes and strict payment terms. When a dispute arises, understanding the subcontract, documenting performance and protecting available payment rights can be critical.
Specialized work. Distinct obligations.
Subcontract terms, project instructions and payment records
can determine the next steps in a dispute.
Understanding Your Position
The subcontract is central to the relationship.
A subcontract can allocate responsibilities for labor, materials, schedules, inspections, payment conditions and changes to the work. Problems often arise when the written agreement does not match field instructions, project conditions or expectations between trades.
Subcontractors may face payment withholding, backcharges, disputed change orders, defective-work allegations or schedule impacts. Those concerns can involve construction contracts, payment disputes and subcontractor disputes.
Common Legal Concerns
Where subcontractor disputes often begin.
These six issues frequently require careful review of the subcontract, communications and project records.
Scope and exclusions
Questions about included work, specifications, omissions, trade boundaries and responsibility for additional tasks.
Construction contractsChanges and extra work
Field directives, additional labor, added materials, pricing disagreements and missing written approvals.
Change order disputesBackcharges and deductions
Charges for cleanup, rework, alleged defective work or delays that reduce the subcontract balance.
Subcontractor disputesScheduling and coordination
Limited site access, out-of-sequence work, trade interference and disruptions to planned installation.
Construction delay claimsDefault and termination
Cure notices, suspension, disputed performance, termination provisions and remaining payment obligations.
Breach of contract
Protect the Project Record
Keep the documents that explain what happened.
When disagreements develop, subcontractors may need to demonstrate the agreed scope, completed work, payment history and the sequence of project instructions.
- Signed subcontracts, amendments and scope exhibits
- Invoices, pay applications, payment records and retainage
- Change requests, field directives and written approvals
- Daily reports, schedules, photographs and correspondence
- Notices, punch lists, inspections and closeout records
Project Relationships
Understanding responsibilities between project parties.
The subcontractor's position may be affected by several agreements and parties, even when the subcontract is the primary contract.
General contractors
Coordination, approvals, payment administration, schedule obligations and alleged subcontract defaults.
Contractor disputesProperty owners
Project payment flows, owner-directed changes, acceptance of work and disputed project conditions.
Property owner guidanceOther trade contractors
Work-area access, sequencing, coordination, overlapping scopes and responsibility for disruptions.
Subcontractor dispute issuesDevelopers and project teams
Multi-party claims, change management, project delivery and contractually allocated risks.
Developer guidance
Related Legal Services
Legal concerns often overlap on a construction project.
These practice areas may be relevant when a subcontractor faces a disputed payment, scope change or performance claim.
Payment Disputes
Address unpaid work, progress billing, retainage and disputed payment obligations.
Explore serviceMechanic's Liens
Understand potential lien rights, preliminary notices and time-sensitive payment remedies.
Explore serviceConstruction Contracts
Review subcontract provisions, payment conditions, notice requirements and risk allocation.
Explore serviceChange Order Disputes
Evaluate extra work, approval procedures and disagreements over changed scope or pricing.
Explore serviceConstruction Litigation
Consider formal claims when negotiations fail or a project dispute escalates.
Explore serviceArbitration & Mediation
Explore dispute-resolution procedures, settlement discussions and alternative processes.
Explore service
Construction Law Insights
Practical answers to subcontractor legal questions.
Explore common questions on construction payments, liens, change orders and contractor-subcontractor disagreements.
Frequently Asked Questions
Subcontractor questions, explained.
What is a subcontractor dispute?
A subcontractor dispute is a disagreement involving work performed under a subcontract. Common issues include nonpayment, change orders, backcharges, delays, deficient-work allegations and contract termination.
Can a subcontractor pursue unpaid construction work?
Potential options depend on the subcontract, payment records, project type and applicable law. They may involve a contract claim, negotiation, lien rights or another available remedy. Notice and timing requirements can be important.
What if a contractor refuses to approve extra work?
Review the subcontract's change-order process and preserve field instructions, pricing submissions, communications and evidence of performed work. Whether an additional payment is recoverable depends on the agreement and facts.
What should a subcontractor do after receiving a backcharge?
Review the reason for the charge, relevant subcontract provisions, notices, photographs, inspection records and supporting cost documents. The response may depend on the project's requirements and underlying evidence.
Are lien deadlines the same for every subcontractor?
No. Notice requirements, lien eligibility and deadlines depend on the jurisdiction, project type and subcontractor's position. Timely review is important because rights may be affected by missed deadlines.
Need guidance on a subcontractor issue?
If a payment, scope, backcharge or contract disagreement is affecting your work, contact the office to discuss the circumstances and possible next steps.