Nonpayment, Retainage, and Conditional-Payment Clauses
Subcontractors furnish the labor and carry the risk, and they are paid last. We represent Alabama subcontractors in payment disputes, retainage claims, pay-when-paid disputes, and lien enforcement against general contractors and owners.
Serving Alabama, Georgia & South Carolina · Commercial litigation and dispute counsel
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Three States
Alabama, Georgia & South Carolina
Contract deadlines and forums differ across the three states we serve. South Carolina gives half the time Alabama and Georgia do. Choose the state where your dispute sits for the law that applies to your company.
Six years on written contracts (Ala. Code § 6-2-34)
Subcontractor Payment Disputes in AlabamaSix years on written contracts (O.C.G.A. § 9-3-24)
Subcontractor Payment Disputes in GeorgiaThree years on written contracts (S.C. Code § 15-3-530)
Subcontractor Payment Disputes in South CarolinaSubcontractors perform the work, advance the materials, and wait the longest to be paid. When a general contractor withholds payment, the shortfall falls on a business that has already met payroll and paid its suppliers. Our subcontractor payment dispute lawyers represent trade contractors across Jefferson County, Shelby County, and the Birmingham-Hoover metro in nonpayment claims, retainage recovery, disputed change orders, and lien enforcement. Alabama's mechanic's lien remedies, breach of contract claims, and prompt-payment claims are frequently pursued together, because each reaches a different party.
When a general contractor or owner withholds money that has been earned, the response requires an understanding of construction contracts and of the remedies particular to the trades. We pursue subcontractor payment claims through the avenues available: breach of the subcontract, a mechanic's lien against the property, a claim against the payment bond, and prompt-payment demands. The analysis starts with the contract language general contractors rely on to defer payment - pay-when-paid and pay-if-paid clauses, retainage provisions, no-damages-for-delay clauses, and backcharge offsets - and with how Alabama courts have treated each of them. Some of those provisions are enforced as written. Others are not. The distinction is usually where the case is decided.
Subcontractors occupy the most exposed position on a project. They are bound by terms drafted to protect the general contractor and dependent on payment moving down a chain they do not control. Disputes over retainage, change orders, and conditional-payment clauses are the most common reasons a subcontractor goes unpaid, and each has its own treatment under Alabama law.
It depends on the exact clause and the state. A 'pay-when-paid' provision is usually treated as a timing mechanism rather than a permanent excuse for nonpayment, while a true 'pay-if-paid' clause attempts to shift the risk of owner insolvency onto the subcontractor - and courts scrutinize that language closely, with enforceability varying from state to state. The clause has to be read against the governing state's law before the answer is known.
Yes. Retainage is the subcontractor's money, withheld as security, and once the scope is complete and accepted there is usually no remaining basis to hold it. Retainage can be pursued through the subcontract, the mechanic's lien, and prompt-payment remedies.
Often both. A mechanic's lien secures the claim against the property and brings the owner and the lender into the matter. A breach of contract claim reaches the general contractor directly. The two remedies run against different parties, which is the reason they are commonly pursued in parallel rather than in sequence.
Unsigned change orders are common and are not necessarily unrecoverable. Alabama recognizes constructive change orders supported by emails, daily reports, RFIs, and the conduct of the parties. The claim is built from that documentary record. It is a harder claim than one supported by a signed change order, but it is not a lost one.
Construction projects generate complex disputes over payment, defective work, delays, and scope. We represent owners, contractors, and subcontractors across Alabama, Georgia, and South Carolina when projects go wrong.
Unpaid invoices and delinquent accounts tie up capital a business has already earned. We handle commercial debt collection and judgment enforcement for creditors across Alabama, Georgia, and South Carolina.
Where labor or materials have been supplied and the account is unpaid, a mechanic's lien makes the improved property security for the debt. We help contractors, subcontractors, and suppliers file, perfect, and enforce liens, and we defend against invalid ones.