Contractor Payment Rights: A State-by-State Guide
By ClientCheck Team · 8 min read
You did the work. You deserve to get paid. Here's what the law says about your rights as a contractor — and how those rights vary dramatically from state to state.
Your Right to Get Paid Is Not Optional
Every state has laws protecting contractors' right to payment, but the specifics — lien deadlines, prompt payment requirements, and available remedies — vary dramatically. Knowing your state's rules isn't just good practice; it's the difference between getting paid and writing off a loss.
Mechanic's Lien Rights
A mechanic's lien is your most powerful tool. It places a legal claim on the property you improved, making it difficult for the owner to sell or refinance until you're paid. But every state has strict deadlines:
- Preliminary Notice: Many states (California, Arizona, Texas, and others) require you to send a preliminary notice within 20-30 days of starting work. Miss this deadline and you may lose your lien rights entirely.
- Lien Filing Deadline: Ranges from 60 days (some states) to 120 days after completion. The clock starts ticking the day you finish work or deliver your last materials.
- Enforcement Deadline: After filing, you typically have 6-12 months to enforce the lien through a lawsuit, or it expires.
Prompt Payment Laws
Most states have prompt payment statutes that set maximum timeframes for payment after you submit an invoice. Common provisions include:
- Payment within 30 days of invoice (residential) or 30-45 days (commercial)
- Interest penalties for late payment, often 1-2% per month
- Attorney's fee recovery if you have to sue to collect
- Pay-if-paid clauses may be void (varies by state — check yours)
Stop Work Rights
If a client stops paying, most states allow you to stop work without breaching the contract. However, the procedures vary. Some states require written notice and a cure period before you can walk off the job. Document everything — the missed payment, your notice, and the client's response (or lack thereof).
What to Do When a Client Won't Pay
- Send a formal demand letter — reference the contract terms and applicable state statutes
- File a mechanic's lien — if you're within the deadline
- Report to ClientCheck — help other contractors avoid the same client
- Consider mediation — faster and cheaper than court in most cases
- Small claims court — for amounts under your state's limit (typically $5,000-$25,000)
- Hire a construction attorney — for larger amounts or complex disputes
Protect Yourself Before the Problem Starts
The best defense is a strong contract with clear payment terms, milestone-based billing, and a change order process. ClientCheck's tools help you create professional contracts and track payments so you always know where you stand.