Construction Projects and Remedies for Non-Payment

If you are not getting paid on a construction project, there are possible remedies to securing payment. The tools available to collect the monies owed to you depend on the circumstances.

First, you must consider whether the construction project is publicly or privately owned. If the project is public (federal, state or local), you have certain remedies available to you. MECHANIC’S LIENS ARE AVAILABLE ONLY ON PRIVATELY-OWNED PROJECTS. On public projects, under the federal law, the “Miller Act” or comparable state public contractor bond laws such as the Colorado “Little Miller Act” are available. These laws provide for bonds, which are used to replace the mechanic’s lien remedies found on private projects. In addition, under Colorado state law, Verified Claims can be filed, which will cause funds to be withheld from the general contractor pending payment to the unpaid subcontractor or supplier.

Each one of these remedies has its own requirements and deadlines. Consult with a construction attorney to learn more about Colorado construction remedies.

By: Jean C. Arnold, Esq. Arnold & Arnold, LLP