"We haven't been paid by the owner yet." Every sub has heard it. Sometimes it's true. Sometimes it's a stall. Either way, your lien clock keeps running while you wait.
Quick answer: Don't let the excuse run out your deadlines. Send the notices your state requires and protect your lien rights now. If the owner really hasn't paid, a lien pressures the owner directly. If the owner has paid, the GC owes you, and in some states it may be holding trust funds.
Pay-when-paid vs. pay-if-paid
Check your subcontract. A pay-when-paid clause generally just sets timing: the GC pays you within a reasonable time after it's paid. A pay-if-paid clause tries to make the owner's payment a condition of yours. Many states limit how far those clauses go, and some don't let them block your lien rights. Texas, for example, puts conditions on when a GC can rely on a contingent payment clause. If your contract has one, get advice on your state's rules.
Protect your lien rights while you wait
- Send your notices on time. In Texas, subs and suppliers send notice of claim by the 15th of the 3rd month (2nd month on residential) after each month of unpaid work.
- Calendar your lien deadline from your last day of work, not from when the GC promised payment.
- Ask for proof. A pay application history or a joint check offer shows whether the owner really is behind.
Why a lien helps either way
If the owner truly hasn't paid the GC, a lien puts the owner on notice that you're owed, and owners often hold back from the GC or issue joint checks once they see one. If the owner has paid, the lien and the notices put pressure on the GC to stop sitting on your money.
When it's past the lien window
If your lien rights have already lapsed, the GC still owes you under your subcontract. That's a collections file. We send formal demands and follow up on contingency, 10% to 33%, nothing if we don't collect.
Still in your window? Start a lien → Past it? See collections →
Frequently asked questions
Can a GC refuse to pay me because the owner didn't pay?
It depends on your subcontract and your state. Pay-if-paid clauses are limited in many states and often don't block your lien rights. Protect your lien rights while you sort it out.
Should I file a lien if the GC says the owner hasn't paid?
If you're inside your deadline, it's often the best way to get the owner's attention and protect yourself either way.
What if the owner already paid the GC?
Then the GC owes you directly. A lien and notices can still apply pressure, and collections can go after the GC.
This article is general information, not legal advice. LevelSet Collections is not a law firm. If your situation needs legal advice or a lawsuit, talk to an attorney licensed in your state.
Owed money on a job?
Liens from $199. Collections on contingency, no collection, no charge.
