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The GC is complaining the work is taking too long and won't pay. What are my options to recover?

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Hired as a contractor to perform remodel work on a clients rental property. Ultimately, client stated that he was going to find another contractor. This is when the remaining work was trim out for plumbing and electrical and punch list. He stated that he was unhappy with the amount of time it was taking to complete. There is no contract, just the original proposal, no deadline for completion, mostly because he was unsure of exactly what additions would be added to the original scope. This project was started in the last week of Feb 2020 so we were immediately affected by the Covid 19 shut downs. He has now hired an attorney because I sent him an email with an invoice due for over $24,000.00. This is money I have out of pocket for payments to subs and materials. He offered to pay me $12,000 until he hires a new contractor and he completes the job. I’ve never had this happen. I have been a licensed contractor for 15 years. I really feel like he’s just trying to avoid spending the money.

1 reply

Jun 24, 2020
Without a written contract in place, it can be hard to determine what the price, scope of work, and schedule were supposed to be. But, even without a written agreement, there are steps you can take to help force your customer to pay what's owed. When negotiating with your customer, showing them that you understand your rights and that you're serious about using them can go a long way. If they're refusing to pay what's owed, sending a Notice of Intent to Lien or a payment demand letter will let them know you're prepared to file a lien claim or a lawsuit, respectively, if they continue to refuse to make payment. If threats of action don't work, then pursuing a mechanics lien claim could be a powerful way to force payment without having to hire a lawyer. Mechanics liens are generally the strongest recovery tool in the industry, and an owner can't ignore a payment dispute any longer if a lien is filed on their property. For more on Tennessee mechanics liens: (1) Tennessee Mechanics Lien FAQs; and (2) How to File a Tennessee Mechanics Lien. Obviously, filing a lawsuit is an option, too. Claims like breach of contract might be on the table, among others. So, if need be, consulting with a Tennessee construction lawyer might be worthwhile. They'll be able to review your situation and advise on what claims might be most appropriate. You can find an attorney here: Find a Tennessee Construction Lawyer.
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