Subcontractors are often plagued with cash flow issues from slow paying general contractors. It’s par for the course. However, subcontractors and suppliers have rights, and understanding the numerous laws, codes, procedures, and tools can and will help a subcontractor collect money in a more timely fashion. While serious matters of trouble collected should be consulted with an attorney, a subcontractor or supplier should know its rights. Here are some of the tools a subcontractor has to help collect:
For Private Work (per California Law, check each states rules)
For Public Work
As a subcontractor you have these tools at your disposal. It’s always best to try and resolve payment issues without making claims against bonds, or filing stop notices or mechanic’s liens. But a subcontractor should always file a preliminary notice so it has the recourse of the other items should he not be paid.