We are in a payment dispute with the GC based on work completed and progress billing . We will not be able to continue or will need to issue a suspension of work due to now being the 3 pay application in a row denied or not paid to its full direction of payment value signed . What should I do ? This is essentially their 3 strike on pay app denials .
You should make sure you have the right to file a lien and get a lien filed against the project if you can. Is this a commercial or residential project? That is important because it determines whether you have to serve a notice of furnishing beforehand and how much time you have from the last date of work to record a lien.
Then I would also make sure you are otherwise in compliance with the contract, and document as much as possible, from taking photos of your work, to only using email and text to communicate from now on so that there is a written record of all communications.
Then ultimately you may have to decide whether to sue or not. Depending on the amount owed, you will be in one of three different courts: small claims (amounts less than $6,000), municipal (amounts less than $15,000), or common pleas ($15,000 or more). You should look at the contract to see if it contains an attorney's fee provision, which could be helpful.
You may also be able to sue for prompt payment act damages depending on if the GC was already paid for your work.
You also want to look into the viability of the GC. Are they collectable if you get a judgment? Do they have money or other assets? Or is the judgment just going to be a slip of paper that you have but cannot get anything out of.
That's where I would start.
Thank you for you for your response Mr. Fortney . It will most def. be over 15,000 . Additionally another sticking point are change orders and how they are or will affect the project as a whole . We are trying to get a reasonoble increase for inflationary costs from the difference in bid / contract amount which was supposed to be finalize by Jan 31st 2022 meaning contract signed and money changing hand to take advantage of 2021 pricing which they expressed they most def wanted to do . The dragged their fit litterally or by way of process and signed the contract in dec of 2021 but I with the intention of the money changing hands prior to the Jan 31st supplier provided deadline to lock in 2021 pricing . They didn't pay us the initial deposit until the begining of March well after the deadline . Now they are say the contract including price fluctuations /increases . Do I take it to arbitration or am I SOL ?