Menu
Home>Levelset Community>Legal Help>Retainage Hasn't Been Paid

Retainage Hasn't Been Paid

New Jersey

We completed a large project in January 2020 and still have not been paid retainage. There are two jobs from the same company that is refusing to pay. Also, we had an executed contract for a portion of the job that they reneged on. I believe we missed our opportunity to file a mechanics lien in NJ. Do we have any recourse?

2 replies

Mar 19, 2021
Yes. You may have several avenues to get paid. A breach of contract action is likely your "bread and butter" approach. You may also have prompt pay act claims and/or bond claims depending some of the specifics of your situation. Feel free to reach out if you would like to discuss it further.
0 people found this helpful
Helpful
Mar 20, 2021

The deadline to file a lien on a non-residential commercial project in New Jersey is ninety (90) days from the last date you provided contract work on the improved property. That is not your only option.

Under the New Jersey Prompt Payment Act (the "PPA"), owners have an obligation to pay contractors within 30 days of when the billing is approved. In order to withhold payment on a received invoice, the owner must provide a written reason for why payment is being withheld. Additional and similar protections exist for subcontractors. See https://www.levelset.com/blog/new-jersey-prompt-payment-act/. Violators of the PPA are liable for statutor interest on improperly withheld sums AND the recovery of attorney's fees and costs of suit.

You should present the contractual agreement and any invoices that you issued to an attorney who understands the applicable New Jersey statutes which were enacted to protect contractors. A knowledgable attorney may be to you paid for the overdue retainage that is being withhheld and have the opposing party pay your legal bills.

0 people found this helpful
Helpful