Home>Levelset Community>Legal Help>How can our company be paid?

How can our company be paid?

Our small sole proprietor ship performed labor on a powerplant. The owner slowly fell behind so we had to pay our laborers. We sent her the bill twice via the plant manager and his email. It is about $16,000. What should we do? Send certified letter for Prompt Payment demand with intention to place lien in 90 days? What form must I complete for the lien or court case.? Superior Court? Does she have to be served by a sheriff? Thank You!!

1 reply

Sep 24, 2019

When unpaid for construction work, leveraging the mechanics lien process is often a powerful way to compel payment. But, before it gets to that point, it's generally worth exploring some additional options. Invoice reminders and payment demands Sometimes, simply reminding the customer that payment is outstanding will be enough - and including outright demands or threats might not be necessary. Even in a situation where the customer understands their late on payment, reminding them that the nonpayment is hurting your business may be enough to get the ball rolling. Escalating the matter a bit may be necessary, though. Before diving into something more serious, sending a demand letter might be helpful. We discuss that idea in this article: Demand Letters for Contractors – How To Write One That Gets You Paid. As mentioned in that article, as well as your question, including threats like bringing in the Connecticut prompt payment laws can help speed up payment. And, mentioning the potential for a mechanics lien claim or other legal claims might move the needle, too. Notice of Intent to Lien Making a more-serious, imminent threat could be effective too. Connecticut claimants who are hired by someone other than the property owner actually have to send a Notice of Intent to Lien before they can make a lien claim - so, it's a natural part of the mechanics lien process. That notice, as mentioned above, must be sent within 90 days of last furnishing labor or materials. Note that this is the same deadline for actually filing a Connecticut mechanics lien, so it's likely a good idea to send a Notice of Intent to Lien a fair bit earlier than the 90-day deadline. More on required Connecticut notices here: Connecticut Notice Guide and FAQs. But, even in a situation where a Notice of Intent to Lien isn't required, it's typically a good idea to send one anyway. Sending the threat of lien before actually proceeding with one can help to speed up recovery and actually help avoid having to file a mechanics lien. And, if the threat isn't taken seriously, a claimant can always actually proceed with their claim. More on Notices of Intent to Lien, here: What Is a Notice of Intent to Lien and Should You Send One? Pursuing a Connecticut mechanics lien Sometimes, filing a mechanics lien will become necessary. While nobody wants to file a mechanics lien, liens are generally a preferable option than going immediately to a lawsuit since they're specifically designed to help construction businesses recover payment while avoiding the court system. You can learn more about how exactly to file a Connecticut mechanics lien here: How to File a Mechanics Lien in Connecticut. And, you can find a free, downloadable template for a Connecticut lien here: Connecticut Certificate of Mechanics Lien Form. As for the details you asked about above - Connecticut mechanics liens are filed with the town clerk in the town where the work was performed. Notice must be given to the property owner once the lien is recorded, but if the owner resides in the same town as the project, service need not be made by the sheriff, specifically. Service can be made "...by any indifferent person, state marshal or other proper officer, by leaving with such owner or original contractor or at such owner’s or the original contractor’s usual place of abode." And, if the owner resides elsewhere, notice can generally be made by mail. If you've got other questions about the Connecticut mechanics lien process, this is a great source of information: Connecticut Mechanics Lien Guide and FAQs.

0 people found this helpful

Helpful