We supplied some materials to a projects in Kansas. Fortunately this was a small project for us and our total invoice amount is $13,560.00. We have a singed purchase agreement for this work between us and the General Contractor. We invoiced for this work in December 2020. We followed up on payment status this month (March 2021) and received a response from the owner of General Contracting company, saying they are ceasing all work and to contact the owner about payment. So I contacted the owner and the owner has already paid the General Contractor for the project. I guess the owner of the G.C. business is shutting down the company and depleting all the assets but not filing bankruptcy. I'm not sure what my next move should be? I assume if I filed a law suite against the G.C. I will be out more than the $13,560.00 in legal fees. Or do I file a lien against the owner? I appreciate any advise you can offer on this. Thanks,
Ultimately, a decision between the two doesn't necessarily need to be made as they are not mutually exclusive remedies.
The most cost effective route is a mechanics lien. The pressure a lien puts on a property owner is typically enough to get the ball rolling on payment, without having to pay attorney costs or court fees. However, if payment isn't forthcoming, then an enforcement action may be necessary.
On the other hand, filing suit against the GC under claims such as breach of contract or prompt payment violations, may also result in a fair amount of costs and fees. However, under the Kansas prompt payment act, if a claimant prevails they are entitled to the award of attorney fees. While there is no such specific reference to attorney fees under the Kansas Lien Laws.
You may want to reach out to a local attorney personally to discuss these options and conduct a full cost/benefit analysis. We have a few Kansas construction attorneys in our Levelset Community who may be able to help.
Good luck!