need waivers as I am a sub

2 years ago

Im a sub and seems GC is getting his payments from the project paid timely but is slacking in catching up with me. He may also be owed less than he owes me as he has gotten advance payments.

I need to protect myself and make sure the architect/owners are aware I am supplying supplyng the windows and labor and I am behind 60 days in payment.

Chief Legal Officer Levelset
134 reviews

It’s frustrating to wait for payment, especially when it seems like there is no good reason. Unless the issue has been specifically mentioned that waivers are needed prior to getting paid (as a precautionary measure to protect the project property form potential mechanics liens) it is not clear how lien waivers play into the slow payments, or protecting yourself.

Since New York does not have preliminary notice requirements, a way to get the owner’s and architect’s attention can be as simple as an email or phone call, or can rise to the level of sending a notice of intent to lien. In many circumstances a notice of intent to lien can jump-start some communication, and result in payment without needing to file a lien itself.

In the event that initiating communication with the property owner or GC doesn’t result in payment, it may be possible to escalate the conversation through filing a mechanics lien or making a claim pursuant to New York’s prompt payment laws.

New York requires that, in the absence of any of the following:

Unsatisfactory or disputed progress;
Defective work that is not remedied;
Disputed work materials;
Noncompliance with the contract; or
Failure to make required payments to parties below;

payment due for completed work must be made to a sub within 7 days from the date on which the GC received payment from the property owner. If payment is made later, the amount due begins to accrue interest at 1.5% per month (or a higher rate if provided by the contract).

I hope you are able to get paid what you have earned.

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