I am a subcontractor working for a general contractor, and I have not been paid still
1 reply
Aug 26, 2021
I am sorry for the issues. You should contact an experienced construction attorney to consider other strategies.
The first to consider would be a notice to disburser. Any person, except the principal contractor, may serve this notice to the owner or the owner’s place of business. On receipt of the notice, the owner is required to withhold from such principal contractor, or from any other person acting under such owner or reputed owner sufficient money due or that may become due to said principal contractor, or to other persons, to satisfy claim and any lien that may be filed. Most claimants use the disburser’s notice to assert a claim against funds. However, this notice allows the mechanics’ lien claimant to assert a claim directly against funds to be paid by the owner and let the owner know about the mechanics’ lien claimant’s existence. Experienced construction attorneys should be quickly consulted on this option as it can be very effective
Additionally, owners, lenders, subcontractors, and suppliers have options to exercise rights under the Colorado trust fund statute, which provides that all funds disbursed to any contractor or subcontractor be held in trust for the payment of subcontractors, materials suppliers, or laborers who have a lien, or who may claim a lien. This does not apply inapplicable if the contractor or subcontractor involved has furnished a performance or payment bond. The person violating the trust fund statute may be found criminally liable for the conduct as the misuse of trust funds is considered theft under the criminal code. Your construction attorney would make this demand and make clear the potential criminal consequences for not following the trust fund statute.
The best course of action whenever there are payment issues is to speak with a construction attorney first. Far too often contractors think a lien is the only or the most effective way to get paid and that is often not the case. Reach out to attorneys and get advice. Most of us offer free initial consultations.
I hope this information helped and I wish you all the best.
Robert Murillo
robert@pivotallegal.com