Payment turn around time

2 weeks ago

I submitted a Pay app request before their deadline of the 22nd of each month. I emailed it April 19th and was accepted. I have not received Payment yet. I mar e a inquiry on it and they emailed me this:

“Thank you for your email! Please refer to Article 2 Payment Terms of your Subcontractor Agreement which states:

2.8 The subcontractor is paid only if the general contractor is paid for corresponding work. The total price paid to the Subcontractor

shall be the contract price, as detailed in Article 2.1, no part of which shall be paid until ten business days after payment is received

by the Contractor from the Owner.

And to keep checking for updates.

Additional info about this contractor
Project Role: Other
Project Type: Commercial
Senior Legal Associate Levelset
355 reviews

Colorado generally enforces pay if paid and pay when paid language clauses in contracts, especially when the language is extremely clear about what it’s trying to do. So, if the contract makes it obvious that you won’t be paid unless your customer is paid, then you’ll generally be bound o the terms of the contract. With that being said, it doesn’t mean you aren’t able to force payments in some other way.

Mechanics lien rights are statutory, not contractual. So, generally, lien rights can be leveraged or even used to force payments even if payment is slowed by pay if paid or pay when paid clauses. Plus, sending a Notice of Intent to Lien can help your customer get paid faster, too, since the owner will know that they’ll face a lien claim if they don’t pay their contractor so the contractor can pay you.

For more information on sending Colorado Notices of Intent to Lien: (1) What Is a Notice of Intent to Lien in Colorado?; and (2) Colorado Notice of Intent FAQs & Guide.

For more information on pursuing a mechanics lien claim in CO: (1) How to File A Colorado Mechanics Lien – Step By Step Guide To Get You Paid; and (2) Colorado Mechanics Lien Guide and FAQs.

Disclaimer: The information presented here is not legal advice and should not be construed as such. Rather, this content is provided for informational purposes. Do not act on this information as if it is advice. Further, this post does not create any attorney-client relationship. If you do need legal advice, seek the help of a local attorney.
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