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New York Construction Law Blog

You deserve prompt pay as a subcontractor in New York

Posted by Karl Silverberg | Jul 01, 2021 | 0 Comments

As subcontractor, one of the issues you have to avoid running into is not getting the pay you deserve. When you're subcontracted in, you rely on the main contractor to pay you as they said they would. If they fail to do so, you could have trouble covering your expenses from the project and may have to go without an income.

It's important to talk to someone who can help you take the steps to get the money that you deserve. If you do work and complete your end of the contract, it's only fair that you receive the pay you're entitled to.

How can you get your payment if the general contractor hasn't offered it?

For example, your attorney may help you file a mechanic's lien, which attaches to the property that was improved. As long as the customer has not yet paid the general contractor in full, they are still liable for your payments, too. Placing a lien on the home or project will help resolve any outstanding debt with the general contractor if you do it soon enough.

Another option is to send a notice to the general contractor that you'll invoke the prompt payment statute, which states that any subcontractor working on a private project (over $150,000) is able to receive higher interest on any unpaid debt. Sometimes, this reminder is helpful in getting payment faster, so that the contractor can avoid high interest rates.

Finally, you may be able to hold the general contractor liable due to the trust fund statute. To put it simply, general contractors are required to hold funds aside for suppliers and subcontractors. If they don't do this, then they are in breach of their fiduciary duties. In that case, you may be able to have the debt enforced by taking the general contractor to court.

There is help for subcontractors waiting for their payments

There is help available for subcontractors who are waiting for their pay. The above debt collection methods are just a few ways to try to get the general contractor to pay, but there may be several other legal options to explore.

About the Author

Karl Silverberg

Karl Silverberg Contact Me: (631) 778-6077 Email me Practice Areas: Construction Law Biography Prior to law school, Mr. Silverberg worked as a professional engineer, and has eight years of experience working as a structural engineer on public sector transportation projects. Mr. Silver...


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