When a supplier, subcontractor or contractor enters into a construction contract in Massachusetts, they do so with the expectation that they will be paid for the goods or services they provide per the terms of their agreement. Unfortunately, for a variety of reasons, sometimes these parties are not paid in a timely manner. This can be very detrimental to their business. However, they may have legal remedies in such situations.
For example, the harmed party may be able to negotiate a payment plan with the other party. However, if negotiations fail to result in an acceptable settlement, it may be necessary to pursue a collection action to enforce any bonds or mechanic's liens in place. And, if the contract is a public contract, it may even be possible to pursue payment directly from the owner of the project.
However, all these payment and collection actions can be legally complex, and any missteps along the way could seriously affect whether the harmed party will be appropriately compensated. For this reason, those who have not been paid per the terms of their contract often choose to seek legal advice before proceeding. At our firm, we can negotiate payment disputes, and we will represent our clients in collection actions if necessary. We also understand what it takes to enforce a bond or mechanic's lien.
Construction contracts form the backbone of many projects in Massachusetts, so it is important that all parties to the contract uphold their end of the bargain. However, it is not unheard of for one party to fail to pay the other party for goods and services rendered. The aggrieved party may have several legal options to consider in their pursuit of compensation. Before proceeding, however, it can help to talk to attorneys experienced in construction law so that informed decisions can be made.