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Construction contractor not paying bills

Hello, we are a company with office in Plano, TX, we have supplied goods to our client to the state of Kansas, and we have currently invoices outstanding starting from April month. How to proceed to claim correctly for our money? With same constructor we have few invoices also supplied to a job site in Texas. We have written emails, send notice by mail regarding the delay of payments.

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Aug 20, 2019

When unpaid for construction work, like supplying materials, one of the most powerful tools to recover payment will be to file a mechanics lien. Though, there are certainly other recovery options. Let's explore some of those below... Notice of Intent to Lien Mechanics liens are great payment recovery tools, and I'll discuss them more below. But, because they're so powerful, a mere threat or warning of a lien claim will often be effective - like a Notice of Intent to Lien. By sending a Notice of Intent to Lien to the property owner, to the prime contractor, and/or to a non-paying customer, the recipient(s) will know that the payment dispute can't be taken lightly. And, in the face of a potential lien claim, disputes tend to be resolved more quickly. You can learn more about that option here: What Is a Notice of Intent to Lien and Should You Send One? Mechanics liens Mechanics liens are available in every state, though the rules surrounding them will vary depending on the location of the project. In both Texas and Kansas, though, unpaid suppliers are generally able to file a mechanics lien when they've gone unpaid. When a mechanics lien is filed, that lien attaches directly to the property title, and it threatens the owner's right to their property. And, if the lien is not dealt with, an owner might even end up with their property being foreclosed upon. As a result, owners hate dealing with lien filings - and so do their contractors and subs. Ultimately, if a lien is filed on a given project, that lien becomes everyone's problem. So, a lien filing will generally encourage the owner, contractor, and/or the claimant's customer to resolve the dispute before further action becomes necessary. Of course, with great power comes great responsibility. Every state allows lien filings, but there are also strict notice and deadline requirements associated with lien claims. And, if those aren't followed, a valid and enforceable mechanics lien claim generally can't be filed. You can learn more about those requirements here: Texas Mechanics Lien Guide and FAQs; and Kansas Mechanics Lien Guide and FAQs. Other options Mechanics liens and leveraging the right to file a lien might be the most powerful way to force payment in the construction industry, but there are always other ways to recover payment. Levelset discusses a number of those options in these articles: Can’t File a Lien? Here Are Some Other Options For Recovery; and Don’t Want to File a Mechanics Lien? Here Are 5 Alternatives. As a final note - it can be frustrating when customers ignore invoices or make excuses when it comes time for payment. Things like invoice reminders can be valuable, but only to a certain extent. If a customer refuses to pay what you're owed, it may be time to consider escalating the dispute - potentially with one of the methods explained or linked above. If you do decide tha a mechanics lien claim might help here or in the future, here are two great resources on how exactly to file Texas and Kansas liens: How to File Your Texas Mechanics Lien – A Step by Step Guide; and How to File a Kansas Mechanics Lien - A Practical Guide.

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Mar 5, 2020

I wanted to follow-up and confirm you’ve been paid on this project matter.

If I can further assist your company with any unpaid invoices, please feel free to call or email. Remember, while perfected lien rights do afford a more direct path to payment, my firm can collect for you even when lien rights have expired or were never pursued.

Mike Ross Miller, Ross & Goldman mross@mrgpartners.com (512)275-6412 Direct https://www.mrgpartners.com/levelset

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