Full question:
What legal form should my plumbing company send a customer that has an unpaid bill refusing to pay in order to collect the debt?
- Category: Contractors
- Subcategory: Construction Liens
- Date:
- State: Rhode Island
Answer:
Every state provides a process for contractors to get paid using the property they improved as leverage. This is different than other service providers such as mechanics who work on cars or even someone like a beautician. A contractor who provides home improvement services, including plumbing services, on residential property may pursue payment for the services and materials by placing a lien on the property. With a valid lien in place, when the property is sold or re-financed, the lien would have to be satisfied (paid).
In Rhode Island, a contractor has only 120 days after the providing of labor or materials to begin the lien process. Certain notices are required to be provided to the homeowner.
If the property improved is not residential property or if the lien process is not adequate, a contractor may pursue an action in civil court. Claims for payment of less than $2,500 may be brought to the small claims court for adjudication. A successful case would lead to a judgment which may be enforced by the court.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.
