Public High School Non-Payment

Question:

The contractor had a project for construction at a public high school. They have not been paid and want to know what remedies are available.

Answer: 

Because of the principle of sovereign immunity, a mechanic’s lien may not be recorded against a public/government project. However, there are remedies available. The law imposes a ten percent interest penalty on public construction projects to dissuade non-payment on these contracts. And you may present a stop notice and/or file an action on a public works payment bond. The payment bond stands in place of a mechanic’s lien. Like a mechanic’s lien, the timeline is very short. I recommend you make your claim promptly, and you may want to consult with an attorney to ensure any claims are made correctly.