When a contractor or subcontractor in Massachusetts performs work on a construction project or when a supplier provides goods for a construction project, it is natural that they expect that the terms of their contract will be followed, and they will be paid in full and on time. If these payments are not made, those owed money can suffer financially which could negatively impact the success of their business. When this happens, they may wonder what their legal options are.
One option is to work with a lawyer who has experience in payment and collection cases in the construction industry. At our firm, we understand how important it is for our clients to be paid what they are due efficiently and effectively. Some cases of nonpayment can be negotiated. However, if the negotiation process does not lead to a favorable settlement, we are prepared to represent our clients in collection actions. Enforcing bonds and mechanic's liens can be complex, but we understand the strict procedures that must be followed in order for our clients to receive what they are owed.
It should be noted that, in public contracts, general contractors who are not paid what they are owed after numerous attempts to collect compensation for their services may be able to hold the owner of the project responsible by having the owner pay subcontractors for the services they performed. However, this reprieve is a Massachusetts law, not a federal one, and it is only applicable to public contracts.
There are often many parties involved in a construction project, including project owners, developers, contractors, subcontractors, suppliers and more. These parties rely on contracts in order to be paid for the services they render. When they are not paid what they are owed under their contract it is important that they understand what their legal rights are. Our firm's webpage on payment and collection may be a good starting point for those who need further information on this topic.