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How long can a contracto withhold payment from a subcontractor?

IdahoMechanics LienSlow Payment

Hello I work for a construction company and we work as a subcotractor for anther larger company sometimes and I was wondering how long the cotractor can withhold payment from us. The longest they have gone without paying has been 2 years and they still have not paid for that job.

1 reply

Aug 17, 2020
In Idaho, there are no "prompt pay" laws that specify the timing of payments to subcontractors on construction projects. Additionally, Idaho courts will enforce a "pay if paid" (or "pay when paid") clause in a contract between the direct contractor and a subcontractor when the clause is explicit. This means that, in a situation in which the GC is never paid for some of the work, the payment to the sub may not become due. These contingent payment clauses create a valid condition precedent to payments HoffCos v. Danner, 822 P.2d 55 (Idaho 1991). Note, however, that if the work has been completed, a lien right arises to protect against nonpayment. A mechanics lien secures the value of the work performed or materials furnished through the property itself. This means that a mechanics lien claimant can skip over the GC and collect directly from the property owner in some cases. In Idaho, the deadline to file a mechanics lien is 90 days after the labor or materials were furnished to the property, and then must be enforced (through a foreclosure lawsuit) within 6 months from filing the lien. Mechanics liens provide strong protection to ensure payment on all projects, but the timelines must be strictly complied with. 2 years is well outside the time for a mechanics lien, but there could still potentially be a valid action for breach of contract, or some other cause of action through which you could recover payment. It may be worth talking to a local attorney about the specifics of your potentialscase here, and in the future, implementing a mechanics lien policy to make sure you stay secured.
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