Menu
Home>Levelset Community>Legal Help>What are my option?

What are my option?

Washington

Hello, So basically we had some problems getting paid for this particular project and the lien was sent, which they then quickly had a check ready. It seemed like things were going to be fine except, they never sent the check they prepared for us and then said that they only owed us around 8K which is ridiculous since if we got the check then they would owe us 17K. It's a very long story to type but I'll try to have the rundown here and if you need any additional details I'm available through phone as well. When we were first contacted for a job here, it was on June 2nd with the plans and later on June 8th for a purchase order of a little more than 7K. We signed the PO and were paid for this specific PO on Sept 14 and it's the only time we've been paid by them. Between June 4th-10th they were asking if we could take on another portion of the job to install some fixtures and so we provided an estimate of around 20K saying we will assemble and install (anchor to floor) these fixtures. They liked our number, however, due to them not giving us the entire scope we told them on June 15th that we only bid for certain fixtures since that's all the plans showed and they responded by saying we needed to revise the estimate, which is reasonable. On June 21st we received an email with a Purchase Order of the original 20K, detailing the job will start on the 30th with us providing wood supports for the shelves which was not part of our original estimate. We sent the Change Order on June 28th detailing that we will be cutting drywall and replacing it with plywood and installing blocking where the shelves are for 8K. The man we were in contact with received it and hasn't done anything with it until last month where he randomly rejected it and said they shouldn't pay since it was part of our contract. It's very weird that he tells us it will be accepted but then later formally rejects it after MONTHS of it already being done! Not to mention that on the check that they prepared for us it has the exact amount for our change order on it! On the check they prepared, it has half of the 20K PO, a couple of other change orders and PO's AND THE EXACT AMOUNT FOR THE 8K CHANGE ORDER WE SENT! I thought it weird and didn't make sense as if they don't want to pay for it, why include it in the check? They're explanation: add that 8K to the 20K PO so that it will leave 2K leftover plus another 6K in change orders so we should only owe you 8K total. If we were to go to court, what would our options be? Would they really not have to pay even though we spoke to them about the amount increase due to the increase in work and sent in a change order before we even started that portion of the job?

1 reply

Dec 3, 2021

When unpaid for construction work, there are a few different options that could help to speed up recovery. For one, sending a mechanics lien threat - a Notice of Intent to Lien - could show the customer you're serious about getting paid and willing to do something about it. More on that here: What is A Notice of Intent to Lien And Should I Send One? 

If the warning shot doesn't work, a lot of contractors will pursue an actual lien filing. Granted, taking another step and sending something like a payment demand letter could be useful before pursuing a lien claim. If a lien does become necessary, then this article should help: How To File A Washington Mechanics Lien | Step-By-Step Guide to Get You Paid.

Note that Washington is generally not considered a state that requires a written contract in order to pursue a mechanics lien claim. Note that change orders can complicate lien claims, though, especially when the change is not in writing or hasn't been approved: Change Order Format Can Make or Break Mechanics Lien Claims.

As for what legal claims may be available for a lawsuit - breach of contract may be an actionable claim, or unjust enrichment might be available if a breach claim isn't. Ultimately, though, any claims will very much be dependent on the details of your contract, the communications between you and your customer, and other details about the job. And, for the most clarity about what options are available, it'd be wise to consult with a construction lawyer in your area. For help finding a WA lawyer: Top Washington Construction Lawyers.

0 people found this helpful
Helpful