As a subcontractor, you may face the issue of someone blaming you for issues beyond your control. Maybe your portion of the work was delayed because other trades did not finish on time. Perhaps you have completed the job, but the contractor is withholding payment due to an unresolved dispute between themselves and the owner. When a dispute leaves you having to defend your work and secure your payment, here are some things to keep in mind.
Start with a clear contract
One of the most effective ways to protect yourself in a construction dispute is to begin with a solid, written contract. A well-drafted contract should clearly outline your scope of work, the payment schedule, and the dispute resolution process. This document sets expectations upfront.
Document everything
In addition to having a contract, thorough documentation is essential. Keep detailed records of your work, including progress photos, email communications, approved change orders and all invoices. If someone accuses you of causing delays, going over budget or delivering substandard work, this paper trail can help defend your position.
Understand your rights under Kentucky law
If you have done the work but the contractor has not paid you, you may be able to file a mechanic’s lien. This lets you claim a legal interest in the property to help recover unpaid compensation. In Kentucky, the deadline for filing this claim is within six months of the last day you provided your services, so it is important to act quickly and carefully. However, you must understand that Kentucky law often requires preliminary notice before you can file a lien. This is why legal guidance is crucial early on.
Do not let a dispute disrupt your business
Many disputes can be resolved before they escalate. Do not wait for a small problem to become a major legal issue. If you notice delays, miscommunication or red flags regarding payment, raise your concerns early with the general contractor or project manager. If you are facing a dispute or want to prevent one in the future, consulting with an attorney is a smart step toward protecting your hard work and reputation.