Subcontractor Not Getting Paid?
Business Litigation Lawyers Can Take Public Works Subcontractor Cases on Contingency
Subcontractors depend on a timely payment of costs and wages for projects of all sizes. However, as our litigation attorney has frequently seen, the owner of the property may not pay the construction team on time, and the general contractor does not always pay his subcontractors fairly. This is especially harmful in public works projects like schools or libraries, where a mechanics lien is not possible. Robert Klein has handled these kinds of cases before, and he can help you seek reimbursement if you are not paid for construction work.
Unpaid Prevailing Wage for Publicly Funded Construction Work
Construction laws vary depending on whether the project is for public or private use. For buildings completed in the private sector, contractors can use mechanic liens to encourage timely payment. If the owner fails to pay the construction workers on time, contractors can issue a lien against the property. Mechanics liens ensure payments and offer the owner a strong incentive to pay to remove the lien.
However, in projects involving public funds, there are no mechanic lien provisions in the contracts, giving subcontractors fewer options if payment does not come through. Before starting a major construction project, the general contractor must obtain a surety bond from a third party if the project is worth more than $150,000. Usually, he will obtain a performance bond, which is a type of surety bond that stipulates that the team must complete the project exactly in accordance with the terms spelled out in the construction contract. Otherwise, this could result in a breach of contract.
Prime Contractor Not Paying Subcontractor?
Unfortunately, even if the general contractor receives payment, he may not pay subcontractors for their work. When this occurs, the unpaid subcontractor must file a suit against the surety bond issuer to receive payment. Business litigation lawyers may have experience with this kind of conflict and will consider legal representation on contingency basis, meaning that attorney fees are only due once the case is complete. If you are not getting paid for a public works project, call our law office to see how we can help.
Attorney for Claims Against Surety Companies on Public Works Projects
Los Angeles litigation attorney Robert Klein has decades of experience with unfair business practices in the public and private sectors. As a former CPA, he can track financial records, determine who owes payment to whom and seek reimbursement for for unpaid wages. He has a history working with businesses of all sizes and industries, and his cases have involved both American and international operations. Call today to see if he can help you obtain the fair prevailing wage from a construction project.