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Navigating Payment Issues For Independent Contractors In Illinois

Independent contractor agreement form with blank spaces for names and dates - Donnelly Law LLCIn this article, you can discover:

  • Common reasons contractors fail to get paid
  • Ways contractors can protect themselves from being unpaid
  • Legal options for contractors seeking payment for completed work

What Are Some Common Reasons Contractors Fail To Receive Payment For Their Services?

Disputes over performance are the most common reason contractors fail to receive payment. These disputes between owners and contractors usually arise because the original contract is not as clear as it could have been.

Before any project begins, there should be a clear written contract in place explicitly outlining the following terms:

  1. The scope of the work,
  2. The price,
  3. The timeline for completing work,
  4. The timeline for payment, and
  5. The expectations for communication between the parties.

What Are The Options For A Contractor Who Hasn’t Been Paid?

If you are worried about how you’re going to get paid or how long it’s going to take, speaking with an attorney can alleviate some of your concerns. Contractors in Illinois are protected by different laws. You may be able to collect the money you’re owed using the mechanic’s lien statute or through rights given to you through general contract laws.

What Steps Should A Contractor Take When A Client Won’t Pay?

When building a case to collect money from a client, the first step is to gather all the documents supporting your claim. You should review your contract to confirm the payment schedule. In addition, you should make sure that the work you wish to collect payment for has been completed.

Most importantly, don’t delay getting started with the collection process. There are time limitations that can affect your rights. For example, you must file notice and serve a mechanic’s lien within a certain period. If you don’t meet the deadlines, you could lose out on this option.

What Legal Protections Do Independent Contractors Have In Illinois Regarding Payment?

As a contractor, your right to a mechanic’s lien gives you the most leverage in collecting payment. However, there are different time constraints for obtaining a mechanic’s lien depending on the relationship between the contractor and the owner. For example, there are different rules for contractors and subcontractors.

If you are owed payment and have an interest in exploring your rights under the mechanic’s lien statute, you should contact an attorney as soon as possible. Unnecessary delay could result in losing the right to get a mechanic’s lien.

Even if the deadline for obtaining a mechanic’s lien has passed, you can take legal action to enforce the original contract. This is why it is critical to have a clear contract in place before you begin the project. The contract should detail the scope of the project, payment schedules, and communication expectations.

For more information on Payment Issues For Independent Contractors In Illinois, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (630) 608-2124 today.

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