How to Get Paid as a Subcontractor: The Complete Guide
Getting paid is the #1 challenge for subcontractors. Here's everything you need to know to protect your right to payment.
The Payment Problem
You did the work. You deserve to get paid.
Before You Start: Protect Yourself
1. Credit Check the GC
Before signing, check:
2. Review Contract Payment Terms
Look for:
3. Send Preliminary Notice
In most states, you must send preliminary notice within 20 days of starting work to preserve lien rights. Missing this deadline can eliminate your most powerful collection tool.
During the Project: Document Everything
Keep Daily Records
Submit Invoices Properly
Track Payment Status
When Payment is Late
Day 1-7: Friendly Follow-Up
"Just checking on the status of invoice #1234 dated [date]. Please let me know if you need anything else to process."Day 8-14: Escalate
Call the project manager and accounts payable. Document the conversation in writing.Day 15-30: Formal Demand
Send written notice referencing the contract terms and your intention to exercise remedies if not paid.Day 30+: Exercise Your Rights
Your Collection Tools
1. Mechanics Lien
Your most powerful tool. A lien encumbers the property and must be paid before the owner can sell or refinance.Requirements vary by state:
2. Payment Bond Claim
On bonded projects, you can make a claim against the payment bond. This bypasses the GC entirely.Key deadlines:
3. Joint Check Requests
Ask the GC to issue payment jointly to you and your supplier. This protects both parties.4. Prompt Payment Acts
Many states have prompt payment laws requiring payment within a set period, with interest penalties for late payment.What NOT to Do
State-Specific Resources
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Automate Your Protection
SubShield analyzes your contracts for payment risks before you sign. We identify pay-if-paid clauses, unfair retainage terms, and other red flags that threaten your right to payment.
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*Questions about getting paid? Email us at hello@trysubshield.com*