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Material Suppliers' Rights

Material Suppliers: Your Rights Under Construction Law

As a material supplier, you deserve to be paid as much as anybody else. Like contractors and subcontractors, construction law statutes give you a wide variety of ways to ensure you receive payment. This includes:

Gill and Baldwin is an AV-rated* law firm that has handled construction law since 1962. Our attorneys provide experienced, efficient, practical and cost-effective services to help clients recover the payment they deserve. Call 866-778-8034 or contact us online for an appointment.

What's a "Writ of Attachment"?

A writ of attachment is very similar to a stop notice. Say you are owed $100,000 for materials you supplied, and the general contractor refuses to pay you.

You can serve a writ of attachment directly upon any bank account the general contractor owns. The bank will be required to put $125,000 from that account — or 125 percent of what you're owed — into a secured trust.

The money stays locked inside that trust either until you and the general contractor reach an agreement, or until a judge decides what to do with it.

How Can a "Personal Guarantee" Work?

If you supply materials to a corporation and the corporation refuses to pay you or can't pay you, what can you do? The corporation's directors and stockholders don't feel the "sting" of the corporate debt, and they aren't personally obligated to pay you back.

That is, unless you obtain a personal guarantee before signing the contract. You can demand that the principals of the corporation agree in writing to guarantee payment. If the corporation fails to pay, you can go after the individuals instead.

To discuss construction law with a lawyer at Gill and Baldwin, P.C., call 866-778-8034 or contact our firm online.

*CV, BV and AV are registered certification marks of Reed Elsevier Properties Inc., used in accordance with the Martindale-Hubbell certification procedures, standards and policies.

*Martindale-Hubbell is the facilitator of a peer review rating process. Ratings reflect the confidential opinions of members of the bar and the judiciary. Martindale-Hubbell ratings fall into two categories - legal ability and general ethical standards.

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