The payment for labor and material furnished to a project is a frequent target of dispute in the construction industry.  Contractors believe that the owner’s primary responsibility under the contract is to pay for the labor and materials that have benefited the project. Owners worry that the payments they make under the contract will not find the way down through the contracting tiers to those furnishing the labor and materials.

The payment process in the construction industry has always been challenging, and many state legislatures have taken an interest in how payment is made and secured on construction projects. Their goal is to balance the interests of those furnishing labor and materials to the project against those who are paying for the construction and receiving the improvement.

The construction lawyers of DSV routinely handle a variety of remedies that are available to a claimant on private and public construction projects, including: (1) mechanic’s liens; (2) personal liability and stop notice claims; (3) claims on public works; (4) payment bond claims; (5) Miller Act claims; (6) little Miller Act Claims; (7) prompt payment laws; (8) false claim laws; (9) trust fund statutes; (10) conditional payment terms; and (11) Articles 2 and 9 of the Uniform Commercial Code.

DSV lawyers have arbitrated and litigated numerous cases involving payment remedies on behalf of a wide range of construction industry clients. Although there is great diversity in the mechanic’s lien and statutory remedies available under the laws of each state, the following issues have frequently been adjudicated: (1) claimants entitled to exercise the remedy; (2) notice and perfection requirements; (3) the priority of such remedies; (4) the waiver of such remedies; (5) the labor and materials that can be included in such claims; (6) enforcement requirements; (7) the property subject to the remedy; and (8) defenses.

The experience of DSV construction lawyers in adjudicating such claims has enhanced their expertise and enabled them to provide effective and efficient representation. While not without risk, the statutory remedies afford significant leverage to the claimant and may have a substantial effect on completion of the project.