Construction Law

What to Do When You’re Unable to Collect Payment featured image

What to Do When You’re Unable to Collect Payment

You’ve signed a contract, performed the work as promised, and now after several attempts you are unsuccessful in collecting the money that is owed to you from the property owner. Even though you thought you knew exactly how you would handle this type of situation, in this moment you find yourself not knowing what to do next. The following are some suggestions for contractors and others in the construction industry who find themselves in this scenario.

Have a Lien Provision in Your Contract

Before you finalize any construction contracts, make sure that your best interests are protected by confirming that there is a lien provision in the contract. If you are unsure whether or not your contract includes a lien provision, seek the help of a professional Tampa construction attorney to review your contract, and make any adjustments if necessary. Having a lien provision in your contract is very important because this provides you with the legal grounds to file a construction lien against the property owner if payment is not received.

Send a Demand Letter

If you are unable to collect payment after several attempts, send the owner(s) a final demand letter. This can be done by sending the letter via certified mail and requiring a signature at delivery or by paying a visit to the owner’s property and taping it in a sealed envelope to the front door. A final demand letter is a notice to the owner informing them that you are giving them one last opportunity to reconcile the outstanding balance before further action is taken. If you are unfamiliar with this process, you may want to consider contacting a construction attorney in Tampa to handle this matter for you.

File a Claim of Lien

If after these attempts, you are still unable to collect the money that is owed to you, the next step would be to file a claim of lien. Filing a claim of lien can be a tedious process and requires a great deal of time and knowledge in construction lien law. For the best possible outcome, it is highly recommended to engage a Tampa construction attorney to file a claim of lien on your behalf.

We have experienced construction attorneys in Tampa. If you are in need of legal representation, please contact us today.

Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.