I am a steel fabrication subcontractor. I haven't filed any types of lien documents or notices. I sent my first invoice 3 months ago for $10K for detailing/blueprint cost. I have not received payment. I completed the job and sent my final invoice for $160K last month. I am scheduled to deliver steel to the jobsite soon. I fear that if I deliver the steel I lose all leverage. They have not paid me for 3 months on $10K. Who knows how long they'll wait on $160K. I'm contemplating holding all material and requesting payment in full. Can I get into legal trouble doing this?
That is exactly what I would do. I would argue that their delay in payment on the prior invoices justifies a modification to the contract terms and you are entitled to “reasonable assurances” of payment. In this case, payment in advance of delivery. I would also serve a lien notice on the steel fab and remind them that these are “specially manufactured goods” for which they can’t just terminate the contract for convenience and refuse to pay.