What are the legal remedies available when a contractor fails to pay?

In New Jersey, when a contractor fails to pay for services or materials related to a construction project, the person or business who is owed money has legal remedies available to them. Generally speaking, the first step for a business or person should be to contact the contractor directly in order to obtain payment. If this does not work, it may be possible to file a claim with the New Jersey Court System, as construction law is a specialized area of law. A lawsuit can be filed in either the Superior Court or the Small Claims Court, depending on the amount owed. If a lawsuit is filed in the Superior Court, it is likely that the contractor will be required to answer to the complaint and may be found liable. The court can then order the contractor to pay the money that is owed. If the contractor has not paid, there are other legal remedies, such as obtaining a lien on the property for the amount owed. A lien is a legal claim that allows the person or business owed money to have a financial interest in the property. If the contractor transfers or sells the property, the lien will remain and the money can be collected at that time. Another legal remedy is to file a mechanic’s lien, which is a lien that is placed on the tangible goods or services provided to the contractor and the property. These are some of the legal remedies available in New Jersey when a contractor fails to pay. It is important to consult with a lawyer before taking any legal action.

Related FAQs

What is the role of the builder in a construction project?
What are the legal requirements for subcontractors?
How is damages assessed in a construction dispute?
How is the scope of work for a construction project defined?
What are the requirements and restrictions on change orders in construction contracts?
What are the legal requirements for insurance in the construction industry?
What are the insurance requirements for a construction company?
What is the appellate process for construction disputes?
What is the difference between a general contractor and a subcontractor?
What are the legal requirements for filing a claim against an owner in a construction dispute?

What are the legal remedies available when a contractor fails to pay?

Related FAQs

Related Blog Posts