YOUR GC IS PAYING LATE.
HERE'S WHAT YOU
ACTUALLY CAN DO.
When a GC pays late, most subcontractors send a polite follow-up email and wait. That's the wrong move. You have real leverage — lien rights, contract terms, pay-when-paid limitations, and the GC's relationship with the owner — but leverage evaporates the longer you wait to use it. The response to late payment is systematic, not emotional.
A GC paying at net 60 when the contract says net 30 is not a relationship problem. It's a business problem. Every extra day they hold your money is a day you're financing their project at zero interest. The question isn't whether to address it — it's how to address it in a way that gets paid without damaging the relationship you need for the next project.
WHAT YOU ACTUALLY
HAVE TO WORK WITH.
Lien Rights
In every state, subcontractors have the right to file a mechanic's lien against the property for unpaid work. The threat of a lien — or an actual lien filing — is the most powerful collection tool available. A lien clouds the title, prevents refinancing or sale, and puts pressure on the owner, not just the GC. Critical: lien rights have deadlines. File preliminary notices at project start and know your state's lien filing window.
Pay-When-Paid Clause Limitations
Many GC contracts include pay-when-paid clauses — the GC claims they can delay paying you until the owner pays them. In most states, pay-when-paid is a timing mechanism, not a risk-shifting mechanism. If the owner never pays the GC due to GC default, pay-when-paid may not protect the GC from paying you. Know your state's law before accepting this as a reason for delay.
The GC's Relationship With the Owner
A GC who has a lien filed against one of their projects has a problem with their owner. GCs pay subcontractors who make filing liens feel like the obvious next step — because it is. A professionally worded notice of intent to lien, sent on letterhead, resolves most late payment issues within a week.
WHAT TO DO AND
IN WHAT ORDER.
The key principle: Leverage exists before work is done. After the lien window closes, your leverage is gone. Most subcontractors wait too long to escalate — then lose their legal tools right when they need them most.
HOW TO BUILD A
PROCESS THAT PREVENTS THIS.
Late payment from GCs is predictable. Some GCs pay consistently late as a cash management strategy — they know most subs won't escalate. A systematic collections process changes the dynamic.
CFOS collections cadence: every pay application is tracked from submission to receipt. Status call Tuesday after any application over 14 days outstanding. Escalation protocol triggers automatically at 30 days. Lien rights preserved on every project from day one.
A $2.3M electrical contractor implemented this process with SPM and recovered $365K in overdue AR. All debt cleared within 120 days. The first time Christmas bonuses were paid in 11 years. See the case study →
