Getting paid for completed work should be straightforward. However, for subcontractors in Florida’s construction industry, non-payment is a frustrating reality that can disrupt cash flow and threaten business operations. If you’re a subcontractor struggling to recover unpaid wages, you may wonder: What legal options do I have? How can I protect myself from this happening again? Read this blog and reach out to a seasoned Florida construction lawyer from Ansbacher Law to learn about the rights subcontractors have against nonpayment. Here are some of the questions you may have:
Can a Subcontractor File a Lien for Unpaid Work?
Yes. Florida’s Construction Lien Law provides subcontractors with the powerful right to file a mechanic’s lien against the property they worked on if they are not paid. A mechanic’s lien acts as a legal claim against the property, preventing the owner from selling or refinancing it until the debt is resolved.
However, to take advantage of this right, subcontractors must follow strict procedural requirements. First, they must provide a Notice to Owner (NTO) within 45 days of starting work unless they are contracted directly with the property owner. Then, if payment remains outstanding, they must file a Claim of Lien within 90 days of their last day on the job. Finally, to enforce the lien, a subcontractor must initiate a lawsuit within one year of filing the lien. Failing to meet these deadlines can result in losing lien rights entirely.
Can Subcontractors Sue General Contractors for Non-Payment?
Absolutely. Subcontractors often have the option to pursue legal action against the general contractor who failed to pay them. This is usually done through a breach of contract claim. If a subcontractor has a written or even an implied contract with the general contractor, they may file a lawsuit seeking payment for work performed.
In some cases, the subcontractor may also have a claim for unjust enrichment if their work improved the property, yet they were not compensated. Additionally, if the general contractor misappropriated funds or intentionally avoided paying subcontractors, there could be grounds for a fraud claim.
Before resorting to litigation, many subcontractors attempt to resolve disputes through mediation or arbitration, especially if their contract includes a dispute resolution clause. Litigation can be expensive and time-consuming, so exhausting other options first is often wise.
What Other Legal Protections Exist for Unpaid Subcontractors?
Beyond liens and lawsuits, subcontractors may have other avenues for securing payment. One such option is making a claim against a payment bond. Many large construction projects, particularly public ones, require the general contractor to post a payment bond. If a subcontractor isn’t paid, they may file a claim against this bond rather than pursuing a lien, as public property cannot be liened in Florida.
Additionally, Florida law prohibits “pay-if-paid” clauses in contracts. These clauses attempt to relieve general contractors of payment obligations unless they receive funds from the property owner. In Florida, such provisions are generally unenforceable unless they meet specific legal requirements. If a general contractor tries to withhold payment due to a pay-if-paid clause, subcontractors may still have legal recourse.
If you have further questions or wish to speak with an attorney, simply contact Ansbacher Law today.
