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What can i legally do for an overdue payment

I am a small heating and cooling contractor in Athens Ohio. I got tied into doing business with a guy installing furnaces and ac’s. I sent an invoice on August 29th 2019 and I have not received a payment on it. He has repeatedly given me dates and time and time again he hasn’t paid the balance. I know I can’t file a lien it’s been too long since the work was completed. The balance owed is $2,200. I had level set send a “ intent to file a lien” on the other contractor and he responded by text to me that he “ has an attorney looking into the matter” I have every text message saved from any conversation I have had with him.

1 reply

Feb 24, 2020

Slow payment is incredibly frustrating and can really do damage to a construction business. Luckily, using a tool like a Notice of Intent to Lien will often go a long way toward speeding up payment. Unfortunately, though, that won't always result in payment.

How to collect overdue payments

Other tools could help to speed up payment. For one, sending regular invoice reminders can help to prod a customer into doing the right thing and paying what's owed. Sometimes, that little push is all that's needed to get paid. Escalating matters by sending a payment demand letter can help, too. Demand letters will usually set a hard deadline for when payment must be made, and a good demand letter will lay out legal threats and ramifications if payment isn't made. Letting the customer know that you won't stand for going unpaid and that you're willing to do what it takes to force payment can go a long way. If threats and reminders don't do the trick, then actually pursuing a claim might be in order - like a breach of contract claim, claim under Ohio's prompt payment laws, etc. For disputes under $3,000, taking matters to Ohio small claims court could be an option. Small claims court can really streamline a dispute and can pose a much cheaper option for claimants since obtaining a lawyer isn't always required. Though, regardless of how claims will be pursued, it'd be wise to consult with an Ohio construction attorney to decide on how, exactly, to pursue the debt. Finally, while it may not result in full payment for the work that was done, sending a debt to collections might be a fruitful option, too.

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