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payment and collection Archives

Seek advice before pursuing payment and collection actions

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.

Seeking payment and collection in construction cases

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.

How do payment bonds operate in Massachusetts?

In an ideal world, when a project owner in Massachusetts enters into a contract with a contractor in the construction industry, both parties will follow the terms of the contract and fulfill their obligations towards one another in full and on time. Unfortunately, in reality this doesn't always happen and sometimes a wronged party will need to pursue a means for payment and collection. One way to do this is through a payment bond.

How does one pursue a mechanic's lien in Massachusetts?

Construction projects in Massachusetts involve many entities. There is the property owner or developer, contractors, subcontractors and suppliers. Those who work on the construction project deserve to be paid per the terms of their contracts. Unfortunately, disputes can arise between parties, leaving some parties unpaid for the work they did. When a person does not receive what they are due per a contract, they may want to take action to recover what they are owed. One way to pursue payment and collection is to seek a mechanic's lien.

How do performance bonds protect Massachusetts property owners?

It is important that both parties to a construction contract in Massachusetts perform their part of the deal and are properly compensated for work done or goods supplied. For private projects, the aggrieved party can seek a property lien. However, this isn't an option for public projects. Thus, performance bonds must be issued for public projects in order to protect property owners.

How to resolve issues of non-payment for construction services

Working in the construction industry is a rewarding, but demanding job. Ensuring receipt of prompt payment is unfortunately one of those demands.  If you are a contractor, subcontractor or supplier who has not been paid for the work you have completed, there are laws in place to protect you.

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