I live in Dadeville al, I’m a custom cabinet maker, I got half of my money up front, the builder was financed by homeowners. They have said builder has been paid but has not made payments to subs, please help
2 replies
Jun 16, 2020
There are a number of different ways to force payment if your customer has failed to pay what they owe. For one, sending a simple, but formal, invoice reminder will often to prod the GC into paying what's owed. If that doesn't work, taking more serious action may be in order.
How to force the GC to pay what you're owed
Threatening a mechanics lien with a Notice of Intent to Lien could be useful. Sending the Notice of Intent to both the owner and the GC will typically put additional pressure on the GC to make payment since their owner will want to avoid a potential lien claim if at all possible.
Actually pursuing a mechanics lien may be an option. Generally, Alabama is considered an "unpaid balance" state - meaning, when the owner has fully paid the GC, subs' and suppliers' claims may be limited. But, those who furnish material to the job site can actually preserve full lien rights if a Notice to Owner is sent at the start of the job. Or, if the GC wasn't actually paid by the owner, then a lien claim would still be on the table too - regardless of whether the notice was sent.
Finally, other recovery options should be on the table too. For one, threatening to pursue legal claims with a payment demand letter may lead to payment. Or, actually pursuing claims - like breach of contract or a claim under the Alabama prompt payment laws - could work. For disputes under $6,000, small claims court could be on the table and might streamline things. Plus, sending the debt to collections might be an attractive option too. In any event - consulting with an Alabama construction lawyer would help to determine what options make the most sense for your situation.
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Jun 18, 2020
If you are not interested in filing suit and just want to get paid without any out of pocket expense or wasted time, email srauch@rauchmilliken.com for a free quote on getting your money collected. Best regards, Steve