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When do I bill for retainage if we left the job because of issues with the GC?

FloridaRetainage

We worked on a school in Sanford, FL. We finished and billed for 95% of the job and was paid very slowly. The GC wanted us to use materials that was not approved by the architect and go over block work that someone else had messed up on. Without letting us know they brought in another company that was doing terrible work, using the non approved materials and making a mess of the work we had already completed. We have pictures of the work we did and up to 95% completion that was approved by the GC. We also have pictures of the other company using the non approved materials and doing work that was not up to the quality of work that our company had done on the buildings. We now want to get our retainage for the work that had been approved(up to 95%) completion. They were slow to pay at best and looking to cheat us out of the work that we had already completed. At this point we are worried they will try to keep the retainage that is owed to us. Should we bill them for the retainage or put a lien to be sure to get our retainage money?

1 reply

May 3, 2021

Generally, it makes sense to bill an outstanding amount before pursuing a mechanics lien for that work. That way, the customer has an opportunity to make payment before the headache of a lien claim takes place. Regardless - retainage represents amounts that are owed for work performed, so retainage amounts are generally billable and lienable. Of course, note that if the job is public, then pursuing a payment bond claim in place of a mechanics lien claim could be more appropriate: What’s the Difference Between a Mechanics Lien and a Bond Claim? 

Further, even after the amount is billed, there are other steps that could help with payment - like sending an invoice reminder. And, if payment still isn't made, simply threatening to pursue a mechanics lien claim with a Notice of Intent to Lien could force the customer to pay what's owed. By sending a Notice of Intent to Lien to the customer, the property owner, the lender, and whoever else is in charge of the job - you can make sure your situation is widely known so it can be resolved before a lien ruins the project for everyone.

With all that being said, FL mechanics liens have a strict deadline. A mechanics lien must be filed within 90 days of last furnishing labor or materials to the job. So, if that deadline is oncoming, then there might not be time to try and use alternative options for forcing payment.

For more talk on retainage, FL lien claims, and FL payment bond claims, these resources will be useful:

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