Mission Viejo Construction Payment Dispute Lawyer

Are you looking for a construction payment dispute lawyer in Mission Viejo, CA?

At Ghassemian Law Group, we have a construction payment dispute practice built on 26 years of client representation.

If your company has completed its work on a project and has not received payment, a Mission Viejo, CA construction payment dispute lawyer can determine which collection remedies your company may still use and pursue them before the applicable deadlines expire. Ghassemian Law Group represents contractors, subcontractors, and suppliers in the recovery of unpaid balances. We also defend property owners and general contractors against payment claims that are overstated or unsupported.

Our attorneys practice from our headquarters in Mission Viejo, and we offer a free consultation to review the amount in dispute and the records of the project.

Construction Payment Dispute Lawyer Mission Viejo, CA

A construction payment dispute lawyer recovers money owed for labor, materials, or services furnished to a building project and defends clients against claims for amounts that are not due. California law provides construction claimants with several remedies in addition to an ordinary lawsuit, and each remedy carries its own notice requirements and deadlines.

The City of Mission Viejo’s proposed 2023-25 budget allocated $18.6 million to capital improvements, including $12.3 million for street and road resurfacing. Payment claims on public projects of this kind follow different procedures than claims on private property. A contractor cannot record a lien against public property, so an unpaid claimant must proceed against the project funds or the payment bond. A Mission Viejo construction payment dispute attorney selects the appropriate remedy according to the type of project and the claimant’s position on it.

Types of Construction Payment Dispute Cases We Handle in Mission Viejo, CA

Payment disputes tend to arise at identifiable stages of a construction project. Some concern a single overdue invoice, while others affect every company working on the site. Our construction payment dispute attorneys represent claimants and paying parties in each of the following matters.

• Unpaid progress payments. An owner or general contractor may stop paying monthly billings while work on the project continues. We issue a formal demand for payment and advise the client on whether the contract permits a suspension of work.
• Withheld retention. Many construction contracts allow the paying party to hold back a percentage of each payment until the project is complete. Disputes arise when that party continues to hold the funds after completion on the basis of unfinished or allegedly defective work. We evaluate whether the amount withheld is proportionate to the items actually in dispute.
• Final payment claims. The final invoice is frequently the most difficult to collect because the paying party no longer depends on the contractor’s continued performance. A contractor can take specific steps to collect money owed after a final invoice remains unpaid.
• Mechanics liens. A mechanics lien secures the unpaid debt with an interest in the property that was improved. We prepare and record liens on behalf of claimants, and we file the lawsuit required to enforce the lien before it expires.
• Stop payment notices. A stop payment notice directs the owner or the construction lender to withhold project funds for the benefit of the claimant. It serves as the principal remedy on public projects, where mechanics liens are not permitted.
• Payment bond claims. Public projects and certain private projects are covered by payment bonds that guarantee payment to subcontractors and suppliers. We present claims to the bond company and file suit on the bond when a valid claim is denied.
• Lien defense for owners. An owner who has paid the general contractor in full may still receive a lien from a subcontractor who was not paid. We challenge liens that are untimely, overstated, or unsupported by the required notices. We also advise owners on the releases and joint check arrangements that reduce lien exposure during a project.
• Smaller balances. The amount in dispute determines whether a case belongs in small claims court or in a higher division of the superior court. We advise clients on the forum in which the expected recovery justifies the cost of the proceeding.

Why Choose Ghassemian Law Group as My Construction Payment Dispute Lawyer in Mission Viejo, CA?

A Founding Attorney Who Teaches Contractors How to Get Paid

Mahyar Ghassemian has litigated payment claims on behalf of construction companies, and in defense of them, for 26 years. She lectures regularly on construction law, and she writes articles for the Southern California Contractors Association and other industry publications. Her clients include contractors, developers, architects, engineers, and owners of custom homes.

Contractors who need a construction lawyer in Mission Viejo, CA for a payment claim can also obtain advice on the contract terms that gave rise to the dispute.

Payments Recovered and Businesses Protected

Our payment cases have returned millions of dollars to construction clients.

• An owner refused to pay $900,000 of a $2.1 million hospital remodeling contract, and the contractor’s business attorney had been unable to collect the balance for more than a year. We filed a timely lawsuit that brought the owner to the negotiating table, and the contractor recovered more than $800,000.
• A general contractor refused to pay a subcontractor for completed work on a government project and then filed suit against the subcontractor. The subcontractor’s own bond company subsequently threatened to pursue our client’s personal residence. We persuaded the bond company to support our client, and it assisted him in pursuing the general contractor.
• A subcontractor sued a general contractor and a shopping center developer over an alleged failure to pay. We resolved the claim and preserved the general contractor’s recurring work for the developer, which was worth approximately $3 million per year.

Understanding Construction Payment Dispute Cases

What Is The Construction Payment Dispute Case Timeline?

Payment cases proceed more quickly in their early stages than most civil lawsuits because the deadlines for liens and statutory notices are short.

1. Demand. We send a written demand that states the amount due and identifies the contractual basis for the claim.
2. Securing the claim. We record a mechanics lien, serve a stop payment notice, or submit a bond claim, depending on the type of project. The deadlines for these steps are measured in days from the completion of the work.
3. Negotiation. A recorded lien or a pending bond claim frequently prompts settlement discussions, and many cases are resolved at this stage.
4. Lawsuit. If the balance remains unpaid, we file suit to enforce both the lien and the contract. A recorded lien becomes unenforceable unless a lawsuit is filed within the legal deadline to enforce it.
5. Judgment and collection. A judgment permits the creditor to collect from the property, from the bond, or from other assets of the debtor.

What Are Important Aspects of a Construction Payment Dispute Case?

A construction payment dispute attorney examines four matters before recommending a remedy.

• Preliminary notice. Subcontractors and suppliers are generally required to serve a written notice early in the project in order to preserve their lien and bond rights. The absence of that notice can eliminate those remedies entirely.
• Releases already signed. Contractors routinely sign lien releases in exchange for progress payments. The language of each release determines which claims remain enforceable.
• Billing records. The right to payment is considerably easier to establish when it is supported by timely invoicing, signed change orders, and written records of any delay.
• The paying party’s defenses. An owner may assert an offset for defective work or late completion. We assess the strength of those defenses before the client incurs the expense of litigation.

Claims, Liability, and Damages in Construction Payment Dispute Cases

Most payment cases are based on a claim for breach of contract. The claimant must establish that it performed the work and that the other party failed to pay the agreed price. A claimant that has no signed contract may still bring a claim for the reasonable value of the work it furnished.

The claimant must sue within four years of the breach when the contract is written, whereas an oral agreement allows only two years. The deadlines for liens, stop payment notices, and bond claims are considerably shorter than either period.

Recoverable damages begin with the unpaid contract balance, and the claimant may also seek interest on that amount. Attorney’s fees are recoverable when the contract contains a fee provision. The same provision exposes the claimant to liability for the opposing party’s fees if the claim is unsuccessful.

What Should You Bring to Your Construction Payment Dispute Consultation?

The timing of events is central to a payment case, and we therefore ask clients to bring documents that establish when those events occurred.

• The contract and all change orders establish the price that was agreed.
• Invoices, payment applications, and a record of payments received establish the outstanding balance.
• Any preliminary notice, lien, stop payment notice, or release that has been served or signed affects the remedies that remain.
• We also need the date on which you last performed work on the project.

During the free consultation, we calculate the deadlines that remain. We also advise you on whether the amount owed is likely to be collectible from the property, from a bond, or from the debtor directly.

Mission Viejo, CA Courts and Public Project Resources

• The Orange County Superior Court maintains a small claims self-help guide that explains how to file a claim, serve it, and collect a judgment.
• The City of Mission Viejo publishes a list of its current capital improvement projects together with their construction schedules. Contractors on these projects rely on stop payment notices and bond claims because liens are not permitted.
• The California Department of Industrial Relations explains the wage and reporting requirements that apply to public works projects throughout the state.

Reach Out to Ghassemian Law Group to Schedule a Consultation

Clients who are owed money on a construction project, and clients who are defending against a payment claim, may request a free initial consultation with Ghassemian Law Group. A construction payment dispute lawyer will review your documents and advise you on the remedies that remain available. Because the deadlines for liens and bond claims are short, we schedule these consultations promptly. Contact us to schedule your consultation in Mission Viejo.