It’s common to have net 30 terms as a supplier in the construction industry, and unfortunately, it’s also common for payment to be made late. Generally, though, unless there’s a pay when paid or pay if paid clause in a net 30 contract, a customer will be in danger of breaching their contact when they wait an excessive amount of time to make payment.

When being slow payed on a construction job, there are a few different options for payment recovery that might be available. For one, sending something as simple as an invoice reminder might get the job done. Sometimes, late payment is a simple misunderstanding or clerical issue.

Notice of Intent to Lien
Other times, making a more official step might be in order. By threatening to take more serious action – like with a Notice of Intent to Lien – a supplier might be able to put more pressure on their customer to make payment. Sending a Notice of Intent to Lien to both the customer and the property owner can help show everyone you’re serious about getting paid, and having the owner on notice of a potential lien claim can put additional pressure on the general contractor and/or the customer to resolve the issue. More on that here: What Is a Notice of Intent to Lien and Should You Send One?

Filing a mechanics lien
Finally, mechanics liens are a powerful way to make sure payments are received and received on time. By filing a lien, a supplier puts a cloud on the owners title and escalates the payment dispute. Because a mechanics lien puts the property title in question, it really lights a fire under the higher tiers of the project to resolve the issue. Liens are a nuclear option, but when they’re requied, they get the job done. You can learn more about Arizona mechanics liens here: Arizona Mechanics Lien Guide and FAQs

Other options for recovery
Of course, there are always other options for recovery. For a situation where a customer has been cooperative, but has still not made payment, this article should be a good resource: Don’t Want to File a Mechanics Lien? Here Are 5 Other Options. In a situation where the dispute has gotten more contentious, but a mechanics lien might not be an enticing or available option, here’s a great resource: Can’t File a Lien? Here Are Some Other Options For Recovery

I hope this information was helpful! If you have any other questions, please don’t hesitate to ask them here or with another question at the Expert Center.

Lastly, here are some other resources you might find useful:
(1) Why Does it Take So Long to Get Paid in Construction? And What Can I Do About It?
(2) Who Is Really at Fault When Project Payments Are Slow?