Sub-contractors rights

I manage a small renovation company in N.J. & PA. Some of our work is direct to the consumer, while some is sub-contracted through independent service companies. One such service company sub-contracted 10 N.J. renovation jobs to us. We use a work order form, filled in by the dealer as our "sub-contract". We have completed all jobs. There were some complaints as to workmanship, which we corrected. The service company refuses to pay us for 5 of the 10 jobs. I have tried to communicate with the service company owner, but he does not want to pay for these last 5 jobs until next spring, when he is sure there are no more problems. As far as I know, the consumers are satisfied with our work. Do we have the right to ask the consumer for payment? Can we contact the consumer and try to get them to pressure the service company to pay us? Do we have the right to lein the property where the work was done? What other rights do we have that can be used as collection tools?


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Dear MRPOOLZ:
Don't you love companies like this? First, take a look at the contract you signed; what provisions did you agree to regarding payments? If the usual clause of "full payment upon completion of work" is in that contract, and you have completed the work and have satisfied the complaints, sounds like this company owes you the money yesterday. Since it sounds like the contract you signed is with the independent service company, not the consumer, I don't think there's much the consumer can help you with. And if the consumer has already paid the independent service company, the consumer has no vested interest in "pressuring" the independent service company. I don't know NJ or PA law on liens, but if the consumer has already paid the independent service company for the work, my guess is you probably won't be eligible for a lien against the consumer; again, it's not the consumer's issue. This sounds to me like an out-and-out breach of contract issue: you vs. the independent service company. However, you may want to run this past a local attorney who is familiar with contractor law in your state. That attorney may charge you for a half hour or so of his or her time, but at least then you'll get a definitive answer. (Just because you talk to an attorney doesn't mean you have to hire one; just pay him/her for the consultation). And if there is statutory lien available to you, the attorney should know; I'm sure you'd much rather file a lien than litigate a breach of contract matter! Also, it sounds like you may need to talk to a local attorney about drawing up some contracts of your own so you're never in this position again. As far as collection tools, you can't collect until you get a judgment or file a lien. So the quicker you talk to a local attorney, the quicker you'll get your money. Best of luck with this matter...
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