What are the rights of subcontractors when a contractor is paid?

When a contractor in Minnesota is paid for their work, the rights of the subcontractors must be taken into consideration. According to the Minnesota State Statute 514.11, contractors and subcontractors are required to receive payment in the same order as their contract arrangement. If a contractor is paid, they must then pay the subcontractors based on the volume and value of the work they completed. When a contractor fails to pay their subcontractors, the subcontractors have the right to place a lien on the work being performed. This lien prevents the contractor from being able to receive payment until the subcontractors have been paid. A subcontractor can also file a lawsuit in court and obtain damages or a judgment if they are not paid in the agreed upon timeline. In order to protect their rights and ensure they get paid, subcontractors should keep detailed records of all money exchanged and the work that was completed. A well-written contract that outlines the payment timeline and expectations of both contractors and subcontractors can also be a helpful tool in guaranteeing the subcontractor is paid in the event of a dispute. By understanding their rights and the legal steps that can be taken to protect them, subcontractors in Minnesota can ensure they are paid for their hard work and services.

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What are the rights of subcontractors when a contractor is paid?

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