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Contractors and subcontractors must be paid promptly

On Behalf of | Nov 22, 2018 | Construction Litigation |

Construction projects in Florida vary in size and complexity, but many involve various different types of trades in order to complete the project. This is especially true for large projects such as office buildings and apartment buildings. These types of projects will include heavy equipment operators, steel workers, electricians, people to put up sheetrock, painters and many more professionals. Generally, there is not one company who will do all these tasks, so construction projects generally involve many different companies to do each specialty.

So, usually there is a general contractor who oversees the whole project and hires the various subcontractors to complete specialized parts of the project. These various subcontractors will also complete their part of the project at various times since oftentimes certain steps in the overall project must be completed before the next step in the project begins. This also means that these subcontractors will be expecting payment at various times throughout the project.

Contractors and subcontractors are entitled to payment after their specific work on the project is complete or according to their contract with the contractor — when the general contractor has been paid for their services and after the subcontractor has signed any lien waivers and other documents so the property owner can make the payment. Once those three events have occurred the contractor must pay the subcontractor within 14 days. If they do not, then they must also pay interest on the amount owed beginning on the 15th day after those events are done.

Since there are so many different contractors and subcontractors involved in large construction projects in Florida, there is the possibility of many disputes and construction litigation. However, the law is clear that if a subcontractor has completed their portion of the work correctly, they must be paid promptly. If they are not, then they are entitled to interest on what they are owed. Experienced attorneys understand the various conflicts that can arise in construction and may be a useful resource.