When a subcontractor is not getting paid, the single most effective lever available is a mechanics lien — a legal claim against the property itself that forces payment or clouds the owner's title. Most states give subcontractors 60 to 120 days from last furnishing to record a lien, but the right to file one is often conditioned on serving a preliminary notice much earlier — sometimes within 20 days of first furnishing, as required under Cal. Civ. Code § 8200 and similar statutes in Arizona, Nevada, Washington, and Oregon. Skipping the preliminary notice eliminates lien rights entirely in many states, leaving you with only breach-of-contract claims. The recovery steps below apply whether you are 30 days past due or staring down a GC that has gone dark.
What Should a Subcontractor Do Immediately When Payment Is Late?
Stop absorbing the cost silently and start creating a paper trail the moment payment is overdue. Send a written demand — email with read receipt, certified letter, or both — referencing the invoice number, contract amount, amount due, and the date payment was originally required under your subcontract.
Day 1 of non-payment: Do these four things.
Pull your subcontract. Find the payment terms, dispute resolution clause, and any pay-when-paid or pay-if-paid language. Pay-when-paid clauses (the GC passes payment risk to you when the owner pays late) are enforceable in most states. Pay-if-paid clauses (you bear the loss permanently if the owner never pays) are enforceable in some states but void in others, including California under Cal. Bus. & Prof. Code § 7108.5 and New York.
Check your preliminary notice status. If you have not served one and you are still within the filing window, file it today. If the window has already passed, determine whether partial lien rights survive under your state's rules.
Send a formal written demand. Reference the contract, the invoice, the amount, and the due date. Give the GC or owner a 7-to-10-day deadline to respond.
Document everything. Photograph completed work, save all texts, emails, and voicemails. Courts and arbitrators award money based on evidence.
According to Rabbet's 2024 Construction Payments Report, 82% of contractors face payment waits of more than 30 days, up from 49% just two years earlier. You are not alone — but waiting longer than necessary is the mistake that costs most subcontractors their legal remedies.
Why Is a Preliminary Notice the Most Important Tool for an Unpaid Subcontractor?
A preliminary notice is the foundation of your entire payment recovery strategy because without it, you may have no lien rights at all. In California, Arizona, Nevada, Washington, and Oregon, a sub who skips the preliminary notice cannot record a mechanics lien — period. In Florida, a Notice to Owner (NTO) under Fla. Stat. § 713.06(2)(c) must be served before the lienor has furnished more than 45 days of services or materials.
What does a preliminary notice actually do?
It puts the property owner on legal notice that you are on the job and entitled to payment. This matters because an owner who pays the GC in full, without knowing you exist, may have a defense against your lien. A properly served preliminary notice eliminates that defense.
Who gets served?
Typically the property owner, the general contractor, and the construction lender (if there is one). Exact recipient requirements vary by state.
What if you filed late?
Late is better than never in some states. In California, for example, a late preliminary notice still protects lien rights for the 20 days before service forward — it just does not reach back further. In Florida, a late NTO limits your lien to work performed after service. In states where the preliminary notice is a strict prerequisite (Nevada, Washington), late filing does not help — the right is simply gone.
Use the lien deadline calculator to find your exact window:
How Does a Mechanics Lien Force a GC or Owner to Pay?
A recorded mechanics lien attaches your unpaid claim directly to the real property, which means the owner cannot sell, refinance, or obtain clear title until the lien is resolved. That is leverage. Most payment disputes settle after a lien is recorded because owners and lenders hate encumbered title.
Step-by-step: Recording a mechanics lien
Confirm you are still within the deadline. Deadlines run from last furnishing — the last date you provided labor or materials. Missing this deadline by even one day typically voids the lien.
Prepare the lien document. Required content varies by state but always includes: your name and address, the property owner's name, a legal description of the property, the amount claimed, a description of the work or materials furnished, and the date of first and last furnishing.
Record the lien with the county recorder's office (or equivalent) in the county where the property sits. Recording fees are typically $15–$50 per document.
Serve the lien on the owner. Some states require formal service of the recorded lien on the property owner within a specific window after recording — California requires this within 15 days of recording under Cal. Civ. Code § 8416.
File a lien enforcement action before the deadline. A mechanics lien is not permanent. You must file a lawsuit to enforce it within the state's enforcement deadline — 90 days in California (Cal. Civ. Code § 8460), 1 year in Florida (Fla. Stat. § 713.22), 6 months in Arizona (A.R.S. § 33-998). Miss this and the lien expires.
What Is a Notice of Intent to Lien and Should You Send One?
A Notice of Intent to Lien (NOI) is a demand letter — separate from the preliminary notice and the lien itself — that warns the GC and owner that you will record a lien within a specific number of days if payment is not received. It is not legally required in most states, but it is tactically valuable.
Many GC payment disputes resolve at this stage. The NOI signals that you are organized, you know your rights, and you are prepared to follow through. A GC who is managing cash flow problems will often prioritize payment to the sub who sends an NOI over the one who just calls and complains.
Best practice: Send the NOI by certified mail 10–14 days before you plan to record the lien. Keep the language simple: invoice number, amount owed, last furnishing date, and the statement that you will record a mechanics lien against the project property on a specific date unless payment is received.
What Are Your Legal Options Beyond a Mechanics Lien?
A mechanics lien is your strongest tool, but it is not your only one. Depending on the facts, one or more of the following may apply.
Bond claims on public projects. On federally funded public construction, the Miller Act (40 U.S.C. § 3131–3134) requires GCs to carry payment bonds, and first-tier subcontractors can file a claim against that bond if unpaid. Notice must be served within 90 days of last furnishing. States have their own "Little Miller Acts" for state-funded projects, with varying notice deadlines.
Prompt Payment Act claims. Most states have prompt payment statutes that impose interest penalties on late payments — sometimes 1–2% per month — and may allow you to recover attorney's fees. Florida's Prompt Payment Act (Fla. Stat. § 715.12) and the federal Prompt Payment Act (31 U.S.C. § 3901 et seq.) are examples. These claims can be filed independently or alongside a lien enforcement action.
Small claims court. For amounts under your state's small claims limit (typically $7,500–$15,000 depending on the state), small claims court is fast, inexpensive, and does not require an attorney. You present your contract, invoices, and delivery records, and the judge rules — often at the initial hearing.
Arbitration or mediation. Many subcontracts contain mandatory arbitration clauses. Check your contract before filing a lawsuit — you may be required to arbitrate first.
Contractor licensing board complaints. In states that license contractors, filing a complaint with the licensing board can trigger an investigation that results in license suspension or a claim against the GC's license bond. It will not get you paid quickly, but it is leverage — and it may protect the next sub.
How Does Slow Payment Affect Your Business Beyond One Job?
Payment delays compound fast. Slow payments cost the U.S. construction industry an estimated $280 billion in 2024, adding roughly 14% to total construction spending, according to Rabbet's 2024 Construction Payments Report. That cost is not abstract — it is the line of credit you are carrying to float payroll while your invoice sits unpaid.
The average days sales outstanding (DSO) in construction is approximately 90 days, double the 45-day threshold that financial experts consider healthy, according to Rabbet's 2024 data via For Construction Pros. A 90-day DSO means you are functionally lending money to your GC for three months on every job.
The structural fix is protecting lien rights from day one. Filing a preliminary notice on every project — not just the ones where you smell trouble — is the equivalent of an insurance policy. You do not wait to see if a job goes sideways; you file at the start because the preliminary notice window closes while the job is still running smoothly.
State-by-state deadlines differ significantly. Review them before you start any new project:
What Should You Do If the GC Claims the Owner Has Not Paid Them?
Verify the claim independently, then proceed with your lien rights regardless. "The owner hasn't paid us yet" is the single most common reason GCs give for slow payment, and sometimes it is true — but it does not change your legal rights.
Here is why: most states make mechanics liens effective against the property owner even if the GC is the one withholding payment. The owner, who benefits from your work, bears the risk of paying a GC who then fails to pay subs. Recording a lien against the property puts the owner — not just the GC — under pressure to resolve the dispute.
Steps to take when a GC claims owner non-payment:
Ask the GC for a copy of the payment application they submitted to the owner and the owner's response. If they refuse, that tells you something.
Contact the owner or owner's representative directly, in writing. Introduce yourself, state the amount owed, and reference your preliminary notice (if served). This is not prohibited — it is your right as a lien claimant.
Request a copy of the payment bond if the project is publicly funded. Bond claims run independent of the GC's dispute with the owner.
Record your mechanics lien. Do not wait for the GC-owner dispute to resolve. Lien deadlines run on your timeline, not theirs.
In Florida, subcontractors who have served a proper Notice to Owner can also send a Notice of Nonpayment to the owner's construction lender under Fla. Stat. § 713.06(3)(c), which can trigger the lender's obligation to withhold funds from the GC.
Frequently Asked Questions
Can a subcontractor file a mechanics lien without a preliminary notice?
In some states, yes — Texas does not require a traditional preliminary notice for most subs (though monthly lien notices apply). In California, Arizona, Nevada, Washington, and Oregon, no. Skipping the preliminary notice eliminates lien rights entirely in those states. In Florida, a Notice to Owner is required for subs not in direct contract with the owner. Always check the requirement for your specific state before assuming you are covered.
How long does a subcontractor have to file a mechanics lien after last furnishing?
Deadlines vary by state. Common windows: 90 days in California (Cal. Civ. Code § 8412), 90 days in Florida (Fla. Stat. § 713.08(5)), 120 days in Arizona (A.R.S. § 33-993), 90 days in Nevada (NRS § 108.226), 90 days in Washington (RCW § 60.04.091), and 75 days in Oregon (ORS § 87.035). These deadlines run from the date of last furnishing — not the invoice date, not the payment due date.
What happens if the GC goes bankrupt before paying me?
A mechanics lien recorded before the bankruptcy filing may survive as a secured claim against the property. An unperfected lien claim (no lien filed) is typically an unsecured claim in bankruptcy, which means you get pennies on the dollar or nothing. Recording a lien promptly — before a GC's financial trouble becomes public — is critical. Consult a construction attorney immediately when you learn a GC has filed for bankruptcy.
Is a pay-when-paid clause enforceable against subcontractors?
Pay-when-paid clauses are generally enforceable and shift timing risk to you — meaning you must wait until the GC receives payment from the owner before you are technically owed payment. However, they do not transfer permanent non-payment risk in most states. Pay-if-paid clauses, which attempt to permanently eliminate your right to payment if the owner never pays, are enforceable in some states (Texas, Virginia) but void in others (California, New York). Read your subcontract carefully before signing.
Can I stop work if I am not getting paid?
Yes, but do it correctly. Most states and most subcontracts allow you to suspend work after proper written notice of non-payment — typically after 7 days of written notice under the AIA subcontract standard and similar agreements. Stopping work without proper notice can expose you to a breach-of-contract claim. Send written notice, reference the unpaid invoices, and state that work will suspend after a specific date unless payment is received.
What is a Notice of Intent to Lien and is it legally required?
A Notice of Intent to Lien is a pre-lien demand letter telling the GC and owner you will record a mechanics lien within a set timeframe if payment is not received. It is not legally required in most states, but it resolves many payment disputes before a lien is necessary. Send it 10–14 days before your planned lien recording by certified mail. Keep the text straightforward: amount owed, invoice references, and the specific date you will record.
Does filing a mechanics lien damage my relationship with the GC?
Possibly — and that is a business decision only you can make. Practically speaking, a GC who refuses to pay a valid invoice is already damaging the relationship. Subcontractors who protect their legal rights consistently tend to attract GCs who pay on time, because those GCs know the sub will not absorb payment failures quietly. Subcontractors who never file liens often attract slow payers precisely because the risk of non-payment is zero.
How much does it cost to file a preliminary notice?
County recording fees for mechanics liens typically run $15–$50. Preliminary notice costs depend on method — postage plus certified mail fees (USPS Certified Mail base fee is $4.85 in 2026 per USPS Notice 123, plus standard First-Class postage) if you handle it yourself, or a flat-fee service if you use a filing platform. LienFlash charges $24.99 per preliminary notice, which includes attorney-reviewed form completion and USPS Certified Mail with a Certificate of Mailing PDF — the proof of service your lien rights depend on.
Protect Your Lien Rights Today
Every day you wait after a missed payment is a day closer to a blown deadline. Preliminary notice windows close while a job is still running, lien deadlines run from last furnishing whether you are tracking them or not, and bond claim windows on public projects do not pause for negotiations.
LienFlash generates state-compliant preliminary notices in about two minutes, mails them via USPS Certified Mail, and delivers your Certificate of Mailing PDF — the proof that protects your rights if the dispute ever goes further. A single notice costs $24.99. The lien rights it preserves are worth multiples of that on any real job.