Georgia Construction, Bond & Lien Law Blog


How To Assess Commercial Accounts on Georgia Construction Projects

So many people contact us regarding nonpayment issues on Georgia construction projects, and I thought you might appreciate reading a summary of options we usually discuss during our first conference with our clients:

First, we assess some fundamental issues by asking the following questions:

•    What type of services, labor or supplies did you provide?
•    What was the last day you actually provided services, labor or supplies to the project?
•    Have you been given any notices regarding failure to perform, defects, or other notices?
•    Were you providing services, labor or supplies on a privately-owned project, a project owned by a governmental entity (local, State of Georgia or federal project)?
•    Are they payment bonds covering the project?
•    Was your contract written or oral?
•    With whom was your contract (what tier are you)?
•    Did you have a personal guaranty from someone guaranteeing payment of the amounts you are owed?

Assuming that you were a general contractor, subcontractor or supplier who provided quality services, materials and labor in a timely fashion, then whomever you contracted with probably owes you the money you are due.   And, that is great.  However, Georgia construction laws, when correctly applied, may allow you to seek recovery of the debt from a third party.  Thus, our next assessment is whether there is any viable third-party who may also be liable for the debt.  This can get very technical and complex, but here are some of the common areas we explore:

•    Can a materialmen or mechanic’s lien be filed (which may make the real estate where your services, materials or labor was provided liable for the debt)?  Click here for more information on this topic!
•    Can you make a payment bond claim (which may make a third-party insurer liable for the debt)?
•    Can a Constructive Trust be claimed (which may make retainage or other monies owed to a higher tier) which may make provide a source of recovery for your debt?
•    Are there circumstances which allow a quantum meruit claim (which may make a third party liable for the debt based upon “fairness” issues)?
•    Is there a guarantor which can be pursued?

Needless to say, the more opportunities there are for recovery, then (i) the more likely the recovery will be made, (ii) the higher the recovery is likely to be, (iii) the more quickly the recovery will occur, and (iv) the lower your costs of collection will be.

Ultimately, then, how do you and your Georgia construction lawyer work to improve your recovery?

•    Periodically, review your contracts to make sure they comply with current regulations and statutes;
•    Obtain a personal guarantee and other useful information (click here for details!);
•    Learn all the various deadlines in Georgia for filing Lien Claims and for making payment bond claims (click here for some important Georgia Lien & Bond deadlines);
•    Learn the statute of limitations for filing suits to perfect your Georgia Mechanic’s Lien Claims, your private project payment bond claims, your local municipality, State or Georgia and federal government payment bond claims;

If you are looking for a Georgia Construction Law Firm who can handle your files anywhere in the State of Georgia and who understand Georgia’s Construction Lien Laws, Subcontractor Laws, Miller Act and Miller Act Claims, please contact the Cobb Law Group to see how we can improve your collection rate!

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