What are some of the available payment remedies for contractors on Minnesota projects?
Minneapolis construction law attorney, Aaron Dean, shares how contractors can make sure they are paid for projects.
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Well, in Minnesota public construction projects you will always have the ability to pursue a payment bond claim if you’re a subcontractor or a supplier. If you’re contracting directly with the owner, you can’t pursue a bond claim against yourself, but what you can do is pursue a statutory prompt payment claim. And for unpaid substance suppliers, they can pursue the bond claim that I mentioned or statutory prompt payment claim or a trust fund claim. And all of those statutory claims have the ability to recover legal fees. So that’s a very important part of seeking relief when you’re not paid as a subcontractor or a supplier. And on private construction projects, probably the most prevalent payment remedy is a mechanics lien. And there is a lot of tricky rules that have to be followed, each and every one of them, in order to have your lien rights perfected. And I’ve probably handled over 1,000 mechanics lien cases over the course of my career, so it’s something that I’m pretty familiar with.