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Can I file a complaint against a business license to get paid for work we have completed?

MinnesotaCollections

I have a job that we completed in May of 2019 and we have never been paid. I understand we are outside the 120 day limit. Do we have any options? Can we file a complaint with the state to inactivate their business license or any other tactic to get paid?

2 replies

Nov 20, 2019

Minnesota's deadline to file a mechanics lien is 120 days from last furnishing, as you alluded to above. However, there are always options outside of the mechanics lien process that might help for recovering payment.

Recovery options outside of the Minnesota mechanics lien process

We'll dive into more detail below, but this article should be valuable: Can’t File a Lien? Here Are Some Other Options For Recovery.

Invoice reminders and demand letters

Sending something as simple as an invoice reminder can often lead to payment without having to escalate the dispute further. Sometimes, all it takes is a little push to get a customer to do the right thing and pay what's owed. More on invoice reminders here: How Invoice Reminders Help Contractors Get Paid Faster. Escalating things a bit before actually pursuing a claim can help too. Payment demand letters offer a warning shot for a nonpaying customer before things get more serious. And, a demand letter featuring specific legal threats (such as those listed below) could be enough to get paid. You can read more about demand letters here: Demand Letters for Contractors – How To Write One That Gets You Paid.

Breach of contract

For one, payment is a crucial term to any contract. So, if a customer has failed to make payment, a breach of contract claim could be available. More on that here: Construction Contracts | A Deep Dive on Breach of Contract.

Prompt payment claims

Minnesota, like many states, has prompt payment laws dictating timely payments on construction projects. And, filing suit to recover interest owed under the state's prompt payment laws could be a strong way to force payment. More on those laws here: Minnesota Prompt Payment Guide and FAQs

Complaints and negative reviews

Filing a contractor complaint with the Minnesota Department of Labor and Industry could be a good step to hold a customer accountable for their actions. Or, even going so far as to file a consumer complaint with the Minnesota attorney general could be effective too. What's more, posting negative reviews of the customer online might also hold them accountable. Levelset's Contractor Pages provide an opportunity to review customers' payment practices. Further, leaving reviews or complaints on sites like the Better Business Bureau, Google Reviews, or Facebook might help too. They can work to warn others about potential payment issues, and may even prompt a resolution of the dispute.

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Dec 3, 2019

If you still have not been paid after making your demand for payment, I would recommend contacting a commercial collection agency of the Commercial Collection Agencies of America Association which can collect the account on a contingency bases so to not throw good money after bad accounts. If you have questions feel free to send an email to srauch@rauchmilliken.com

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