How and when to write a ‘written demand for payment’ letter

3 months ago

I am aware that CO labor laws only apply to “employer/employee” relations. In regards to independent contractors is a “written demand for payment of services “ applicable? Will it hold up in our civil suit or would it be considered a form of harrassment?

Senior Legal Associate Levelset
180 reviews

Colorado independent contractors and subcontractors are absolutely entitled to demand payment for their services, whether that’s by written demand, verbal demand, or some other form. A demand for payment is simply a written reinforcement pushing a customer to do what they’re required to do.

As for whether a demand letter would hold up in suit – I’m not sure I follow. A demand letter is an informal attempt at recovering a debt. And, often, demand letters will include specific legal threats – legal claims that the unpaid party will be entitled to pursue if they remain unpaid. But, I’m not sure whether there’s anything to hold up in court in the first place – a demand letter isn’t an official or formal legal claim, and it’s an attempt to avoid a lawsuit.

Finally, as for whether sending a payment demand letter would be considered harassment – the answer here should be “no.” Certainly, if a demand letter goes off the rails, uses abusive language, and threatens questionable or even bogus claims, then it would be easy to see how a demand letter could cause problems for the claimant. But a strong demand that simply lays out the debt that is owed and threatens to proceed with (rational) legal claims is not harassment. There are limitations on how debt collectors try to collect payment and on the demands they can make, but for a contractor or sub simply trying to recover a debt they’re owed, those restrictions won’t come into play.

For more information about demand letters, this article should be helpful: Construction Demand Letters – How To Write One That Gets You Paid.

Disclaimer: The information presented here is not legal advice and should not be construed as such. Rather, this content is provided for informational purposes. Do not act on this information as if it is advice. Further, this post does not create any attorney-client relationship. If you do need legal advice, seek the help of a local attorney.
1 found this helpful

You so much for your response. Your information was super helpful. Much appreciated. Kandi

Your answer or comment:
Are you a Registered Expert?
You are not logged in and will be posting
anonymously. Log in Now
Get answers from construction attorneys and payment experts
120 Character Limit