Quantum MeruitĪ quantum meruit suit sounds very lawyery, but the principle is actually quite simple. In these types of suits, unjust enrichment could be when one person in a contract benefits from another unfairly.ĭoes an owner benefiting from the improvement to the property without paying the subcontractor seem unfair? Then there’s a chance that an unjust enrichment claim could help recover payment. Unjust EnrichmentĪn Unjust Enrichment claim may be available to subcontractors that go unpaid on construction projects. Not paying the subcontractor is definitely a breach of contract. Breach of contract suits are fairly common in construction, as any deviation from the contract is technically a breach. When a party in a contract doesn’t perform their responsibility in a contract, the other party may be able to file a Breach of Contract claim. In this case, the subcontractor may have the right to file one of the following legal claims: Breach of Contract When it comes to regularly scheduled payments to a contractor or sub, they drag their feet or attempt to skirt the contract. The problem arises when the hiring party doesn’t live up to the agreement. You have to complete the work, and the hiring party has to pay the bill. If you enter into an agreement to exchange work on a project in exchange for compensation, both you and the hiring party are legally responsible for your roles. As such, there are repercussions for not holding up your end of the bargain. Construction contract lawsĬontracts involving construction projects are just as legally binding as any other contract. See state-by-state guidelines and more in the Mechanics Lien Guide & FAQs- everything you need to know about mechanics liens. In those situations, sending a Notice of Intent to lien (NOI) will show the paying parties that you know your rights and that you aren’t afraid to file a lien if that’s what it takes to get paid. In many cases, the simple threat of a lien is all it takes for the prime contractor or project owner to cut a check. This can be a real challenge for some subs, as they spend much of that window waiting for a check to show up instead of taking action. Each state’s rules are different, but in general, you’ll have a deadline from the date of last furnishing to file a mechanics lien (usually within 90 days). Subs should also realize that there are windows they need to act within. It also preserves the subcontractors’ rights to a mechanics lien in the event that they go unpaid for their work. This document can serve as a friendly introduction to project owners and prime contractors. In some states, contractors, subs, and suppliers need to send a preliminary notice to protect their lien rights. But, it’s critical that subcontractors know and protect their lien rights. These liens are the easiest and most powerful way to speed up payment, and they can make a huge difference to a company’s cash flow. If a subcontractor is struggling to coax a check from their hiring party, they typically have the right to file a mechanics lien. Mechanics lien lawsįolks often marvel at how quickly a building can go up, but if they only knew how long it took those builders to get paid. Here’s a breakdown of each of these legally protected rights. This right is so important, that many states and federal construction laws outline them specifically. Legally protected payment rights for subcontractorsĪny way you cut it, subcontractors have the right to get paid for the work and improvements they make to real property. Subcontractors are responsible for protecting their payments.How subcontractors can enforce their payment rights.Legally protected payment rights for subcontractors.
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