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Is there a time limit to collecting on unpaid invoices?

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I work for an excavation company. We don't use Levelset at the company I currently work for. The company that I used to work for used Levelset, and it was very helpful. Recently, I took over the billing at the company I currently work for and noticed that there are more than a few jobs that have unpaid invoices dating as far back as 2016. Our contract is fairly basic regarding client invoicing and payment, basically we will submit invoices every (30) days, client shall pay invoices in full within (30) days, If client fails to pay we may give (10) notice to client to secure the default, if they fail to do so, we can stop work. I would like to attempt to collect on some of these old invoices. Do I have any recourse, if so, what steps would I have to take in order to do so? Thank you in advance.

14 replies

Aug 3, 2022
You have 4 years after the breach of written contract to file a lawsuit.
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Aug 3, 2022

It depends upon whether the job is still in progress or not. If it is, then you can threaten to stop work per the contract and see if they will pay (but you might compromise future business with that GC). If the project is over and you are off-site, then you should sue for payment. What usually works is a demand letter from an attorney, that will prompt payment sometimes. If it doesn't then you will need to file a lawsuit.

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Aug 3, 2022
This is all very helpful information. Thank you both for your time!
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Aug 3, 2022
As long as you are within the statue of limitation in the State you are doing business, you should certainly place the account with a licensed and bonded collection agency to see if the debts can be collected on a contingency bases. There are no upfront cost and the agency only receives a percent of what is actually recovered. Feel free to contact for a quote. Best regards, Steve
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