You did the work. You submitted your invoice. And now... silence. The general contractor isn't returning calls, payments keep getting "delayed," or you're getting excuses that don't add up. Unfortunately, this is one of the most common — and most frustrating — problems subcontractors face.
The good news: you have more legal protections than you might think. The key is knowing your rights and taking action in the right order.
Step 1: Document Everything
Before you do anything else, get organized. Gather every piece of documentation related to the project:
This documentation is your ammunition. The subcontractor with better records usually wins payment disputes. If you haven't been keeping detailed records, start now — it's never too late to document what you remember.
Step 2: Send a Formal Demand Letter
A demand letter is a formal written request for payment that puts the GC on notice that you're serious. It should include:
Send the letter via certified mail with return receipt requested, so you have proof they received it. You can also send a copy via email for immediate delivery.
Here's a sample template:
"Dear [GC Name],
This letter constitutes a formal demand for payment of [amount] owed to [Your Company] for work completed on [project name/address].
The following invoices remain unpaid:
Total Amount Due: $[total]
Payment must be received within 14 days of this letter, by [specific date].
If payment is not received by this date, we will pursue all available legal remedies, including but not limited to filing a mechanics lien on the property and pursuing collection through the courts.
Please contact me immediately at [phone/email] to arrange payment.
Sincerely,
[Your Name]"
Many payment disputes get resolved at this stage. A formal demand letter signals you're not going away.
Step 3: File a Mechanics Lien
If the demand letter doesn't work, your most powerful tool is a mechanics lien. A mechanics lien is a legal claim against the property where you performed work. It creates a cloud on the title, meaning the property can't be sold or refinanced until the lien is resolved.
Important: Mechanics lien deadlines are strict and vary by state. In many states, you only have 60-90 days from your last day of work to file. Miss the deadline, and you lose this option entirely.
To file a lien, you'll need:
In most states, you must have sent a preliminary notice earlier in the project to preserve your lien rights. If you didn't send one, you may still be able to file depending on your state's laws.
After filing, you typically have 6-12 months to enforce the lien by filing a lawsuit. The lien itself often motivates payment, since property owners don't want liens clouding their title.
Step 4: File a Bond Claim (If Applicable)
If the project is bonded (common on public projects and large commercial jobs), you may be able to file a claim against the payment bond. Payment bonds are insurance policies that guarantee subcontractors will be paid.
Check your contract to see if a payment bond was required. If so, you can file a claim with the bonding company to recover your money. Bond claims have their own deadlines and procedures, so act quickly.
Step 5: Consider Small Claims Court
For amounts under your state's small claims limit (typically $5,000-$15,000 depending on the state), small claims court is a fast, affordable option. You don't need a lawyer, filing fees are low, and cases are typically heard within 30-60 days.
Bring all your documentation, keep your presentation simple and factual, and let the evidence speak for itself. Judges in small claims court see a lot of contractor payment disputes and generally rule in favor of the party with better documentation.
Step 6: Hire an Attorney
For larger amounts or complex disputes, hiring a construction attorney may be worth the investment. Look for an attorney who specializes in construction law and has experience with payment disputes.
Many construction attorneys work on contingency (they get paid only if you win) or offer reasonable flat fees for common tasks like demand letters and lien filings.
Step 7: Report to the State Licensing Board
If the GC holds a state contractor's license, you can file a complaint with the licensing board. Unpaid debts to subcontractors can result in license suspension, fines, or other disciplinary action.
This won't get you paid directly, but it adds pressure and creates consequences for the GC's behavior. It also protects future subcontractors from the same treatment.
How to Prevent This in the Future
The best way to handle non-payment is to prevent it. Before your next job:
Vet GCs Before You Sign
Research every GC before bidding on their projects. Check their payment history with other subcontractors using tools like SubPaid's PayScore. A GC with a track record of slow payment or non-payment isn't worth the risk, no matter how good the project looks.
Get Everything in Writing
Never start work without a signed contract that clearly states payment terms, retainage, change order procedures, and dispute resolution. Verbal agreements are nearly impossible to enforce.
Send Preliminary Notices
Send a preliminary notice on every project, regardless of whether your state requires it. It preserves your lien rights and signals professionalism.
Invoice Properly
Submit detailed, accurate invoices with all required documentation. Include contract references, PO numbers, and backup materials. Invoices that are easy to process get paid faster.
Track Payment Patterns
Use payment prediction tools to identify at-risk invoices early. If a client's payment pattern is deteriorating, you'll know before it becomes a crisis.
The Bottom Line
Getting stiffed by a GC is infuriating, but you're not powerless. Document everything, escalate methodically, and use your legal tools. Most importantly, vet your GCs before you sign and maintain documentation that protects you from day one.
Frequently Asked Questions
Can I stop work if a GC doesn't pay me?
Generally yes, but check your contract first. Most contracts allow you to suspend work after proper notice if payment isn't received. Document everything and follow the contract's dispute resolution procedures.
How long does a mechanics lien last?
It varies by state, but typically 6-12 months. After that, you must file a lawsuit to enforce the lien or it expires automatically.
Will filing a lien hurt my relationship with the GC?
Maybe, but a GC who doesn't pay you isn't a relationship worth preserving. Most professional GCs understand that subcontractors have a right to protect their payment rights.