If we have not been paid and we sent a prelein do we continue work or do we stop
1 reply
Jul 15, 2020
Stopping work isn't always a great option - sometimes, it could actually result in increased liability. When a contractor or sub stops work, they may end up putting themselves in breach of the contract. And, even if your customer has been breaching the contract by refusing or simply failing to pay, that could work against you. However, sending a notice to the customer and/or owner threatening to stop work might at least draw more attention to the issue and could help work toward getting paid.
There are a number of factors which should be considered when deciding whether to stop work, not the least of which are the terms of your contract. So, without intimate knowledge of the situation, it's hard to say whether walking off the job is warranted. But, Levelset discusses the issue in great detail in this article: Can you Walk Off the Job? | The Right to Stop Work for Non-Payment.
Finally, note that you're generally entitled to file a mechanics lien while work continues on the job, if that's a route you're interested in. That could secure your right to payment for past work while also not putting your contract or future payments in jeopardy. Plus, if your customer or the owner refuses to let you work after a lien is filed, then that could put them in breach of the contract instead of you.