General Contractor

What is the name of your state? New Jersey
We have a small general construction business. We were in the middle of a rennovation of a garage to living space. The job was moving slow. The homeowner withheld a draw and demand other things be completed before payment that were outside the scope of the contract. We agreed after a week of dragging her feet she agrees to release payment. We go to pick up check and she states that we are thrown off the job, she had another contractor already there on the job. Should I automatically take her to court? Or should I send her a certified letter requesting the payment due? And my profit is in the balance of the contract do I have any way of getting some of that?

Was there a contract?

Yes a signed contract. Our contracts have nothing written into them about the homeowner defaulting on payment. Should there be and if so is there something I could look into about how to verb that? In the contracts we state the scope of work; the cost; the payment schedule and after completion of what phase of construction it should be paid at; start dates and compliance to inspections. I mailed the homeowner a certified letter stating the facts of and requesting at least the $1500.00 be paid. I mailed the same letter to the building department in that town along with a request to release our company from contractor of record on the permits. No response from the homeowner. I think the homeowner was in over her head financially and is going to take us to court to pay for the costs she incurrs by having another contractor finish the job. Anyway any advice based on what you know?
Thanks

I own a construction company, too. Do a search on the internet and find an "intent to file lein" form. Lots of sites offer them free. There are time limits, so I wouldn't wait to long. Send it to her certified and give her 10 days to respond. If she doesn't, then get to the courthouse and file a lein on her home, or wherever the work has been done. It costs about $75-100, but it's worth it! Most homeowners will get scared at the "intent" and will pay. I wouldn't worry about her suing you for the expenses of a new contractor. She's the one defaulting on your contract. Get tough and regain control.

Edited: ADD in your contracts that leins will be placed if payment isn't made. Ours say payment is due immediately upon completion, or a lein will be filed on the property after 30 days.