i am a subcontractor on a large project. I am 99% finished with my work. the work was interrupted by Covid-19 Situation . The GC stopped paying us and is not returning my phone calls. what should I do?
1 reply
May 19, 2020
New York subcontractors are typically entitled to file mechanics lien claims if they go unpaid for their work, and filing a lien claim is a great way to force payment.
With that being said, there are some steps before a mechanics lien filing that can be useful before filing a lien becomes necessary. The deadline to file a New York lien claim is generally 8 months after the completion of the contract or the last date when labor or materials are furnished (shortened to 4 months on a single-family residential job). That means there should be plenty of time to try and force payment via alternative means.
Obviously, filing a mechanics lien will be necessary sometimes. And for help with that, these two resources should provide a lot of value: (1) How to File a New York Mechanics Lien – Step By Step Guide to Get You Paid; and (2) New York Mechanics Lien Guide and FAQs. Still, let's look at some other options.
Forcing payment without filing a New York mechanics lien claim
For one, sending formal invoice reminders could prod the GC into paying what's owed. An invoice reminder is just like it sounds - it reminds the customer that you're still unpaid and that it's time to make payment.
Further, escalating things some by sending a payment demand letter could be effective, too. Sending a letter that threatens to pursue legal claims (like a breach of contract claim, claim under New York's prompt payment laws, etc.) could be enough to force payment.
Finally, simply threatening to file a mechanics lien claim could be enough to get paid. Sending a Notice of Intent to Lien will let the customer and the owner know that a lien claim will soon be filed if payment isn't made. Often, this will be the first the owner's even heard of the dispute. And, the additional pressure from the owner could be just what it takes to force payment.