Payment Delays: Navigating Work Stoppage in Construction
In this episode, host Alex Barthet delves into one of the most frequently asked questions received in our construction law practice: “If I’m not getting paid, can I cease operations, and if I do, how will I secure my payment?” Answering this question involves careful consideration of several factors.
Alex discusses these considerations in detail, including:
- The provisions of your contract regarding work cessation
- The current status of work and payments on the project
- The existence of a pay-when-paid clause in your contract
- The protection offered by your lien or bond rights
- Your readiness to face the potential consequences
When no written agreement exists, or if your agreement doesn’t explicitly prohibit work stoppage, you might have the option to cease work. However, this doesn’t necessarily imply that stopping work is your best move. This episode helps you further analyze whether halting operations is the right decision for you.
If you’ve ever wondered about your rights and obligations when payment is delayed, this episode is an absolute must-listen! Tune in for expert insights and practical guidance that can help you navigate these tricky situations.
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