Does signing a contract make you feel like you're
stepping off of a cliff??
Contract Clauses to Watch Out For in Construction
3. Payment terms (continued
from page four):
Never be afraid to call the general contractor and ask him when
you can expect payment. If you wait too long to ask about a late
then you might lose out.
Unfortunately there are general contractors
(as well as subcontractors) out there that won't think twice
stiffing you. If he can get away with it, he will. [That's
not to say that there aren't excellent general contractors out
there, there are
and they are wonderful to work with.]
There are avenues to follow
if this does happen such as contacting the owner to determine
has been made to the general contractor or not. If yes, find
out when. If no, find out why not and when payment will be made
If the general has indeed been paid (but has not paid you), then
you need to start hounding him immediately. If he won't pay you
then file a complaint with
the Contractors State License Board, with the
G.C.'s license bond company and file a complaint with his payment
company if he has a payment bond.
The State License Board can give you the name of his license bond.
If there is a payment bond, the owner of the project can give
the name and contact info of that bond company.
If you do not stay on top of this, you could end up not getting
the money that is owed to you. Once you know for a fact that payment
is being withheld by the general contractor you can file a 'stop
A 'Stop Funds Notice' is designed to freeze all money on the project
until the problem is resolved.
These are serious steps but sometimes
this is what it takes to
get the payments that are owed to you. Please contact an attorney
to help you through this.
Contracts Continued on page 6