Subcontractor not paid by the general contractor: your options

Updated 2026-10-24

A subcontractor not paid by a general contractor should check the subcontract's payment terms, send a written demand, and immediately calendar lien and bond deadlines. On private projects, a mechanics lien may be available if required notices were given. On public projects, liens usually are not allowed, so claim against the payment bond: the Miller Act for federal work or the state's Little Miller Act. These deadlines are short and strict, so act early.

First, read your subcontract

Before demanding anything, find the payment clause. Many subcontracts include a pay-when-paid or pay-if-paid clause tying your payment to the owner paying the GC. A pay-when-paid clause is generally read as setting timing, meaning the GC must still pay within a reasonable time. A pay-if-paid clause tries to make owner payment a condition of your payment. Some states refuse to enforce pay-if-paid clauses or limit them, and some states' prompt payment acts set deadlines for paying subcontractors on certain projects.

Also check for retainage terms, notice requirements, dispute procedures, and any clause that waives or limits lien rights. Some states restrict advance lien waivers, but you need to know what you signed.

Calendar your deadlines today

Construction payment remedies are deadline-driven. Many states require a preliminary notice early in the job, sometimes within a set number of days of first furnishing labor or materials, to preserve lien rights. Lien filing deadlines usually run from your last day of work or the project's completion, and they vary widely by state. Bond claim notices have their own time limits.

Missing a deadline can eliminate a remedy entirely, no matter how clearly you are owed the money. If you are not sure of the dates, get advice from a construction attorney in the project's state now, not after the next pay application is rejected.

Send a written demand

Send a demand to the GC listing each pay application or invoice, the work completed, any approved change orders, retainage held and the balance due. Ask the GC to confirm whether it has been paid by the owner for your work. If your state allows it and your subcontract permits, notify the owner as well that you have not been paid. Owners and lenders often push a GC to clear subcontractor claims to avoid liens on the property.

Keep working only if you are comfortable with the risk. Some contracts and statutes allow suspension of work for nonpayment after notice; others do not, and walking off a job can expose you to a breach claim.

Private projects: mechanics liens

On most private projects, unpaid subcontractors and suppliers can record a mechanics lien against the property if they followed the state's notice and filing requirements. The lien gives the owner a strong reason to see that you are paid, because it clouds title and can lead to foreclosure of the lien if not resolved.

Liens are technical. The claimant's name, property description, amounts, signatures, notarization, service on the owner and the deadline to file suit to enforce the lien all matter. An overstated lien can carry penalties in some states. Many subcontractors use a lien service or attorney for this step.

Public projects: payment bonds

• Public property generally cannot be liened, so payment bonds take the place of liens on public work
• Federal projects: the Miller Act requires payment bonds on larger federal construction contracts to protect those who furnish labor and materials
• Under the Miller Act, a subcontractor with a direct contract with the prime contractor can claim on the bond; a second-tier claimant must give written notice to the prime within 90 days of its last labor or materials
• A Miller Act suit generally must be brought within one year after the last labor or materials were furnished
• State and local projects: most states have Little Miller Acts with their own bond thresholds, notice periods and suit deadlines
• Some states also allow stop notices or similar claims against undisbursed construction funds

Other pressure points

Check whether the GC is licensed in the state, because licensing boards in some states take complaints about nonpayment. Find out whether the project has a lender or a title company handling disbursements, since they may require lien waivers before releasing funds. If the GC provided a payment bond on a private project, you may have a bond claim there too.

If the GC is simply slow, a written payment plan tied to specific pay dates can work. If the GC has stopped paying everyone, move quickly to protect your lien or bond rights before the money runs out.

When to involve a collection agency or attorney

Lien and bond claims are legal filings with strict requirements, and that work belongs with a construction attorney or a qualified lien service. A commercial collection agency is useful alongside them: pushing the GC for payment, investigating the GC's financial condition and its other jobs, and negotiating a resolution. We handle construction receivables on contingency and coordinate with local attorneys on lien enforcement or suit, with your approval. We are not a law firm, so we do not advise on lien deadlines; please confirm those with counsel in the project's state.

Frequently asked questions