There are usually several involved parties in a Scottsdale, Arizona, construction project. Examples include:
- The property owner
- You (the subcontractor)
- The contractor that engaged you
- And numerous materials suppliers
Considered by many as minor associates of a construction project, subcontractors often suffer from underpayment or non-payment. Unfortunately, many do not know how to pursue the pay they deserve in an affordable, efficient manner. Generally speaking, you have two options to choose from when seeking payment for your services.
You can initiate a lawsuit
Arizona enforces prompt payment on behalf of unpaid subcontractors (and other qualifying parties) in private or public construction projects. Under the statute, wrongfully withheld and late payments will also begin accruing interest each month.
If you do not get the pay you contracted for as a subcontractor, you have the right to file a lawsuit targeting the contractor. If you prevail, the other party must pay your legal fees and court costs on top of the payments outlined in your contract.
You can file a mechanic’s lien
A mechanic’s lien empowers you to secure payment for the work or materials you provide in a private Arizona construction project. This remedy places a lien against the property and its owner. If you do not get your payment from the party that engaged your services, the property owner must foot the bill or give up their property.
The theory behind the mechanic’s lien is that the property owner benefitted from your services. Due to this, they must ensure payment even if they were not the party that hired you.
Construction litigation and the laws that govern it are very complex. As a subcontractor, it is in your best interests to learn more about construction law and mechanic’s liens in Arizona.