We have two projects from the same company and need to enforce collection activity. The project started before we had this service so we have nothing set in motion to enforce a Mechanics lien. What are our other options?
If you have a direct contract with the owner of the project, you should have lien rights for the labor and materials you furnished. If you are a subcontractor and your work isn't complete, or if you performed work within the last 20 days, you could still serve a preliminary notice to preserve some lien rights. If you have lien rights, you could record a mechanics lien or serve a stop payment notice, which will create significant leverage to get paid. If you don't have any lien rights, you will still have contract rights to payment. And you may have a claim under the prompt payment statutes to recover interest and attorney's fees. I recommend that you start with a demand letter from a construction attorney after preserving any lien rights you may have.
I would suggest starting with a certified commercial collection agency licensed and bonded to collect in CA send a 10 day free demand letter which will cause the debtor to respond as why payment hasn't happened, when it will happen, or refusing to make payment. Once you have these answers, the agency can take the appropriate to protect your interest and collect the debt for you. This can be done free or at least a small percentage of what is actually collected. Let me know any questions or if you want the free letter? Best regards getting paid, Steve
If you don’t have lien rights, you can still sue the company that hired you for breach of contract to recover the money you’re owed. If you were hired by the GC, you can also file a claim against the GC’s license bond for the amount of the bond. You may also have Stop Payment Notice rights against the construction funds in some circumstances. I’m happy to answer any questions you have about this.