When dealing with construction projects it is not uncommon to run into payment disputes. However, things are handled a little differently when a global pandemic causes delays in payment.
So, what can you do to make sure you are collecting payments during the pandemic?
Common Payment Disputes
Unfortunately, cash flow has been an issue during the crisis and so has disruptions to current construction projects. When projects are suspended or delayed it can cause payment disputes.
When all else fails always refer back to your contract. Every construction project should have a contract in place and within the contract, it should give in full detail what to do when a payment dispute arises.
Since full payment is expected once a project is completed, the lack of cash flow can halt payment. Unless this has been discussed prior, delay in payment can be a good reason to file a claim.
How to Resolve Late Payments
When dealing with late payments during a construction project, always meet with a construction attorney in your area to discuss all of your options. Things can vary state to state so it is important to know what you are dealing with within your state.
A construction attorney can take things into their own hands and threaten to take legal action. Often this is all that is needed to receive full payment.
However, sometimes things need to be taken to the next level. This is when you will need to file a construction lien. This is when a claim is filed to receive a delayed payment.
Construction Projects in Arizona
In the state of Arizona, you have six years to raise a payment dispute, which starts when the project is finished and payment hasn’t been received in the specified timeframe.
If you are in the state of Arizona and need to meet with an Arizona construction attorney, the team at Murphy Cordier PLC has the experience handling construction law issues including payment disputes.