We are a masonry subcontractor; we did work on a public school. We billed for retainage on 03/20/20 and still have not been paid. Since then a change order was issued for additional work in August 2020. We last worked on site 08/14/20. Now, we are owed retainage $7,000.00 and change order amount $8,000.00. We haven't been able to bill for the change order yet. Please let me know our options. Should we send a written notice of claim on retainage only? Or include the additional $8,000?
Hello,
Since this is a public works project, you have a slightly different situation than normal. Somewhere up the chain is the contractor who originally won the contract. Prior to beginning work on the project, that GC was required to get what is called a Payment Bond. It guarantees that subcontractors will be paid because government buildings are not subject to ordinary mechanic's liens.
Go find the GC and request the Payment Bond information. This request should be made in writing and the GC has to provide that information. Once you have the information for the insurance company that provided the bond, send a demand letter to the contractor and to the insurance company (surety) that wrote the bond. You will likely start to see movement. If nothing else, someone is going to tell you they aren't paying retainage until the project is done (which isn't proper but that's the subject of another question).
The surety will not pay out on the unbilled change order. That has to be sent to the GC and be unpaid past the ordinary payment agreement for them to even consider it.
E. Aaron Cartwright III
214.789.1354
Aaron@EACLawyer.com