Subcontractor Not Getting Paid – What Are Your Options?

Posted September 08, 2026 in Media

Transcript:

00:00:07

So subcontractors are in a very vulnerable spot on bigger projects. You know what happens is if there is a major construction defect that happens on a larger project and it’s not immediately clear to all the parties whose fault it is. Essentially everybody gets brought into the claim. Everybody has some type of an indemnification agreement in their contracts. Everybody has generally everybody has some type of liability insurance or or there’s a a liability policy for the whole entire project. And

00:00:42

ultimately there’s a risk allocation kind of setup that should have been put in place prior to the project starting. And ultimately, you know, you’re going to want to put your insurance carrier on notice early so that you don’t, you know, get in in the in the territory of maybe not giving timely notice of the claim. And then you can kind of start getting, you know, your law firm appointed if if you have a defense through your insurance company and start getting legal advice early on in the

00:01:11

situation as to how to extricate yourself from a situation like that that where there is a defect. Now, if it’s a if there’s a non-payment type issue, you know, you can look at your contracts and see how you work that out. You always have those mechanic lean rights where you can put a a lean on the project and you do have some leverage as a subcontractor when you put a lean on a on a project. It kind of holds things up. So, those do need to get resolved. And leans and non-payment issues and

00:01:38

funding issues tend to cause a lot of litigation on larger projects. So, it makes sense to move quickly if that’s happening and put your hand out first cuz it may turn into a situation where it trickles down and a lot of subcontractors aren’t getting paid.

This transcription was AI generated.