Construction collections work differently because subcontractors and suppliers usually have lien or payment-bond rights with strict deadlines. We collect from the party that owes you while protecting those rights, and use them as leverage when the general contractor or owner will not pay.
Why construction invoices go unpaid
- Pay-when-paid and pay-if-paid clauses used to delay payment
- Retainage held long after work is complete
- Back-charges and disputed change orders
- Lien and notice deadlines that expire while you wait
Who we collect for
- Trade subcontractors (electrical, mechanical, plumbing, concrete, roofing, drywall)
- Material suppliers and distributors
- Equipment rental companies
- Engineering and design consultants
Leverage we use
On private projects a valid mechanic's lien clouds the owner's title, which motivates payment up the chain. On federal projects the Miller Act payment bond lets eligible subs and suppliers claim against the surety, and most states have equivalent "Little Miller Act" bonds for public work. We check which tools are still available on day one.
Public property generally cannot be liened, which is why the bond matters so much on government work. Under the Miller Act, a supplier or sub-subcontractor with no direct contract with the prime contractor must give the prime written notice within 90 days of last furnishing labor or materials, and suit on the bond must be brought within one year after the last labor or materials were supplied. State bond statutes set their own notice periods, and some are shorter.
How money moves on a project, and where it stalls
Payment in construction runs down a chain. The owner or lender funds a draw, the general contractor submits a pay application, and only then does the GC pay its subcontractors, who in turn pay their own subs and suppliers. Every link adds days, and every link is a place where your money can be held back.
The common choke points are predictable: a draw rejected because the lender wants more lien waivers, a pay application held over a disputed change order, retainage of 5% to 10% withheld until final completion or closeout, and a GC that uses your payment to cover a loss on another job. A supplier at the bottom of the chain often learns about the problem last, after its own notice deadlines have started running.
Excuses we hear from GCs and owners, and how we answer
- "We haven't been paid by the owner." We ask for the pay application history and check whether your contract has a pay-if-paid clause at all. Some states refuse to enforce pay-if-paid language, and many courts read pay-when-paid as a timing provision, not a reason never to pay.
- "Your work had punch-list items." We ask for the written punch list and the dates it was issued. Undocumented complaints raised after the invoice is due rarely justify withholding the whole balance.
- "The change order was never approved." We collect the emails, field directives and daily logs that show the extra work was requested and performed.
- "We're back-charging you." We request the itemized back-charge with supporting costs and check whether the subcontract required notice and an opportunity to cure.
- "Retainage isn't due yet." We confirm the completion date, any certificate of substantial completion, and the release terms in your subcontract.
A typical construction collection timeline
Day one, we confirm the project type (private, state or local public, or federal), the owner, any payment bond and surety, and the dates you first and last furnished labor or materials. Those dates control everything else, so we build the deadline calendar before the first call.
In the first two weeks we send a written demand to the party you contracted with and, where useful, a copy to the GC, owner or surety. Many GCs pay once an owner or bonding company asks why a sub is unpaid. If the account is still open as a lien or bond deadline approaches, we recommend filing rather than waiting, because missing that date usually ends your strongest claim. Lien foreclosure and bond suits move to an attorney in the project's county with your approval.
Terms that prevent the next loss
- Run a credit check on the GC and ask who the owner and lender are before you mobilize
- Send preliminary notices on every job where your state requires or allows them, not just the risky ones
- Exchange conditional lien waivers for payment and give unconditional waivers only after funds clear
- Negotiate pay-when-paid language with an outside date, such as payment within 30 to 60 days regardless of owner payment
- Get change orders signed before doing the extra work, even if only by email
- Keep a personal guarantee on credit applications from small GCs and developers
Documents that make your claim collectible
- Subcontract or purchase order
- Pay applications and invoices
- Change orders and approvals
- Preliminary notices and lien waivers issued
- Delivery tickets or daily logs
- Project address, owner and bond information
Frequently asked questions
Can a collection agency file a mechanic's lien?
Lien documents must be prepared and recorded correctly under state law; depending on the state they are signed by the claimant or prepared with an attorney. We coordinate the filing and the deadline tracking.
The GC says the owner has not paid them. Do I have to wait?
Not necessarily. Pay-if-paid and pay-when-paid clauses are interpreted differently by state, and lien and bond rights often still apply. Send us the contract for review.
How long do I have to file a mechanic's lien?
It depends on the state and your role on the project. Lien deadlines are usually counted from your last day of furnishing labor or materials, or from project completion, and some states also require a preliminary notice early in the job. Because the windows can be short, place the account as soon as payment is late so we can check your dates.
Can I collect retainage that the GC is still holding?
Yes, once the conditions in your subcontract are met. Many states also have prompt payment or retainage statutes that limit how long retainage can be held after completion. We review the release terms and push for payment when they are satisfied.
Should I keep working on a job where I am not being paid?
That is a business decision, but read your subcontract first. Some contracts and state laws allow a sub to suspend work for non-payment after written notice, while walking off without notice can expose you to a default claim. We can send a formal demand that sets out the overdue amounts and your next steps.
Where we collect for construction businesses
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