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Just want paid on labor of new construction

I am a subcontractor that provided labor on the building of the new house the customer had paid the contractor with the contractor has not paid me can I ask for payment from the customer for labor so I can sign off on the lien so he can move forward with his construction

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Jan 17, 2020

Slow payment can be frustrating, especially when a customer or owner is waiting on a lien waiver. Let's look at a few options for speeding up payment. Then, we can look to some interesting functions of Georgia's lien waivers.

How to speed up construction payments

One option for speeding up payments is to send a simple invoice reminder. That document acts just like it sounds - it serves as a reminder that payment is outstanding, and often, that's enough of a nudge to get the contractor to make payment. Further, if necessary, sending a demand letter that demands payment and puts a deadline on doing so can work to speed things along - though it may also strain relationships. More on that here: Construction Demand Letters – How To Write One That Gets You Paid. Finally, threatening to pursue a mechanics lien can go a long way to speed up payment. Mechanics liens are generally considered the nuclear option - and because they're so powerful, the mere threat or potential for a lien claim can go a long way to force payment. For further discussion: What Is a Notice of Intent to Lien and Should You Send One?

Georgia mechanics lien waivers and negotiating payment

Finally, it's important to fully understand Georgia lien waivers in order to know whether you can safely sign one before being paid. Georgia has statutory mechanics lien waiver forms which must be used. And, those forms start off as conditional waivers, then convert to unconditional waivers. Practically: Georgia lien waivers don't initially fully waive lien rights. So, if a claimant goes unpaid, then they may still be able to file a lien or pursue contract claims even if they haven't been paid - at least at first. 60 days after that waiver is signed, though, it becomes fully binding and effective. So, even if a claimant isn't paid, they can no longer bring a claim for payment. So, a claimant can pretty safely sign a lien waiver shortly before they're paid - but, if payment isn't made shortly after the waiver is submitted, then the claimant can proceed with their claim. And, to cancel a waiver during that 60-day period, the claimant can either file an Affidavit of Nonpayment or a mechanics lien claim. For more on how Georgia waivers work: (1) Georgia’s Very Unusual Rules for Mechanics Lien Waivers; and (2) Georgia Lien Waivers Can Waive More Than Just Lien Rights.

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