Remedies Available To The Unpaid Contractor

Remedies Available to The Unpaid Contractor

Action

Parties to Action

Remedy

Limitation Period

Breach of Contract

Whomever you contracted with

Money judgment

Written Contract 4 years

Oral Contract 2 years

Common counts

Whomever you provided the goods and services to

Money Judgment

Generally 4 years, with certain exceptions for 2 years

Mechanic Lien

Owner of property and the entity you contracted with

Money judgment that can be collected by foreclosing on the property that was liened

File lawsuit 90 days after recording the mechanic lien, which is only valid if the prerequisites are satisfied

Payment Bond

Principal on payment bond (typically the general contractor) and the surety issuing the bond

Money judgment that can be satisfied by payment from the surety who issued the bond

Six months after the notice of completion or cessation is recorded, if none recorded than 6 months after the 60 day period expires from the date of actual completion

Stop Notice (Private Works)

Owner, General contractor and lender holding funds

Money judgment that can be recovered from the funds withheld in accordance with the stop notice

File lawsuit 90 days after serving the stop notice, which is only valid if the prerequisites are satisfied

This table is a simplified overview of the litigation remedies available to contractors. There are exceptions to the deadlines and application of the remedy. This table is not intended to contain legal advice and should not be relied on in making legal decisions.