This question is asked all the time. When is an owner justified in withholding payment? The answer depends on many variables but typically on commercial jobs you’ve got an AIA 201, the Prompt Pay Act, and years of precedent that offer guidance.  

When working on public jobs, general contractors can quickly find themselves in a bind. This is because if a subcontractor files a bond claim, whether the claim has merit or not, the bonding company (surety) pressures the contractor to resolve the claim. If the contractor delays, the contractor will have to indemnify the surety.  

There are so many landmines buried in these agreements that you MUST review them when you’re getting ready to start a project. I understand that for some smaller contractors you don’t have a great deal of negotiating power to change the agreement but this does not mean that you should not make sure that you…

It happens all the time. You hire a subcontractor, they perform work and its less than stellar, to say the least. Depending on your subcontract agreement you’re left with a few choices. First, you can pay the sub for the work, terminate them, and get a new subcontractor to correct the work. Second, you can…

Nothing is more frustrating than doing work and not getting paid. However, you have to be careful when abandoning a project because you haven’t been paid. The contract and on public projects, the relevant statutes give guidance as to the procedure for suspending performance. Watch the video to learn more.

So you missed your lien deadline and you’re a general contractor. Well, as long as the property has no been sold, you can still protect your interest.  You should file your lien as quickly as possible.

Many contractors don’t understand the difference between lien rights for public and private jobs. Lien rights vary depending on whether the job is public, or private, and commercial or residential.

If you work in construction you’re familiar with the American Institute of Architects more commonly known as the AIA. They create form contracts used by many construction companies in various types of construction projects. Many smaller contractors pull these contracts offline and present them for execution without much modification at all. Given the frequent use…

It is not uncommon for a general contractor or subcontractor to stop working on a project when they are not paid for work previously performed and invoiced. However, professionals in this situation should be careful to make sure their contract does not have any provision that forbids them from stopping their work.  They should also…

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