Home>Levelset Community>Legal Help>Getting paid without a written contract.

Getting paid without a written contract.

I am at the end of an expensive house remodel. The GC has not made the last payment, we have no written contract, he is now claiming I made mistakes and has to hire someone to fix them. All work was done at his direction. My supply house has lien rights for the materials, the last payment is to pay them. There is no written contract between us. This money is from 2019.

1 reply

Jul 13, 2020

It's always a good idea to use written contracts, but there are still recovery options that will be on the table when the contract isn't in writing. Montana doesn't require written contracts in order for mechanics lien right to be present. So, pursuing a lien claim may be an option. Even if the debt was for work done a while back, Montana'a lien deadline runs from the last date labor or materials are furnished to the project by the claimant - not necessarily when the exact debt become due. More on Montana lien rights here: Montana Mechanics Lien Guide and FAQs. Of course, before filing a lien, leveraging the potential lien claim could lead to payment all by itself. Sending a Notice of Intent to Lien to the customer and to the property owner can force the customer's hand. For one, the customer won't want a lien on the job. Further, the owner will really want to avoid potential lien claims - plus, this might be the first they've heard of the payment issue. So, sending them a Notice of Intent can help put pressure on the customer to make payment. Further discussion here: What is A Notice of Intent to Lien And Should I Send One? Lien rights are only one recovery tool, though. If the lien deadline has past, then there are some other steps that can be taken. For one, sending a simple invoice reminder might be enough to compel payment. Or, if the customer is holding out, threatening to pursue legal claims - like breach of contract, unjust enrichment, a claim under the Montana prompt payment laws, etc. - could lead to payment. Sending a payment demand letter that includes specific legal threats will often jar funds loose. Plus, obviously, pursuing legal claims could be an option too. For help evaluating potential legal claims: Find a Montana Construction Lawyer. Finally, sending the debt to collections could be yet another fruitful option for getting paid.

0 people found this helpful

Helpful