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How do you protect a retention balance due?

Anonymous Subcontractor

The original balance on a job we did was $45,275.10. The preliminary notice was filed in a timely manner by Levelset. We have been paid everything but the retention of $4527.50. It seems "bad form" to file a stop notice because of retention, but what is the right thing to do?

1 reply

Matt Viator

Construction Lawyer

Levelset Admin at Levelset

| 1,003 reviews

Jul 6, 2020

Ultimately, it's up to you to determine what recovery options are appropriate for your situation. That decision is based on a multitude of factors, such as the relationships on the job, the sums involved, and the status of the overall project. Before opting to file any claim, though, it's often a good idea to send documents like an invoice reminder or even a Notice of Intent. That way, you may be able to get paid without having to actually pursue a claim. Another important thing to keep in mind is the deadlines involved. In CA, the deadline to send a stop notice and a mechanics lien is the same: For subcontractors, generally, 90 days after the completion of the project, or 30 days after a Notice of Completion/Cessation (if one gets filed). These deadlines are based on the completion of the entire project (or at least a formal phase of the project) - meaning, you could make a claim long after your work is finished, if the project is continuing after your work was done. So, if there's no rush to file a claim, working with your customer to get paid might also be a worthwhile endeavor. More on those deadlines, here: When is the deadline to file a California Mechanics Lien? Finally, if you have a good relationship with your customer and feel confident that you'll be paid retainage - you don't have to pursue any claim. But, note that if the deadline for making a stop notice or mechanics lien claim passes, then recovery will only get harder. Still - even if those deadlines are missed, other options - like sending payment demand letters or pursuing legal action - will be on the table. For more discussion on retainage, specifically: - California Retainage Guide and FAQs - Retainage, Lien Rights, & Payments Rights Conflict to Give Contractors Difficult Choices

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