should i send a demand letter

Sending a demand letter requesting payment can be a way to get an owner’s attention and shake payment loose. Sometimes, a more effective method is to harness the power of a mechanics lien. Sending a Notice of Intent to Lien document is like sending a payment demand letter, but backed by the power of a mechanics lien. Since a mechanics lien can result in the property being encumbered, or even ultimately sold, it is very likely to get the owner’s attention.

However, if the owner is willing to make payment after minor repairs are made, it seems like a situation in which some more communication and talking it out could resolve the issue without further acrimony.

Whenever a contractor is having trouble getting paid like this, I always recommend that they send a demand letter. Sending a demand letter, in other words, is almost always a good idea. And this is for a few reasons:

1. It escalates the situation
2. It is much better than in-person and telephone requests because you’ll have evidence of the demand
3. You can start the clock-related to a number of payment rights you have
Etc.
Etc.

The tricky part is writing and sending the demand letter that will be most effective! There are a few things to keep in mind to make your demand letter the most effective. We write about them in this article on Contractor Demand Letters.. Some very high-level points you’ll find in the article:

1. Be polite & pithy
2. Refer to the prompt payment laws and lien laws in your state
3. Make a specific demand with a deadline to reply
4. Note that you will proceed with lien (i.e. doubling the letter as a notice of intent to lien)

Good luck!