Payment disputes are one of the most common problems in construction projects. Whether it’s a homeowner, contractor, or subcontractor, disagreements over money can delay projects, damage relationships, and even end up in court. In Oklahoma, the law provides clear remedies for unpaid parties, but the best approach is always to prevent disputes before they start.
Common Causes of Payment Disputes
Payment issues can arise for many reasons, including:
- Disagreements over the scope of work or contract terms.
- Claims that work was incomplete, delayed, or defective.
- Unexpected costs or change orders not properly documented.
- Cash flow problems for the general contractor or property owner.
- Failure to follow Oklahoma’s statutory payment deadlines.
Legal Remedies for Payment Disputes in Oklahoma
If payment is withheld, Oklahoma law gives contractors and subcontractors several legal tools to recover what they are owed:
Mechanic’s Liens
- Contractors, subcontractors, and suppliers can file a mechanic’s lien against the property to secure payment.
- The lien creates a legal claim on the property and can prevent its sale until the debt is resolved.
- Oklahoma law requires strict filing deadlines and notice requirements, so timely action is essential.
Breach of Contract Claims
- If a written or oral contract has been violated, the unpaid party can file a lawsuit for breach of contract.
- Remedies may include damages, interest, and attorney’s fees if provided for in the contract.
Unjust Enrichment and Quantum Meruit
- If no valid contract exists, a contractor may still recover payment by showing that the property owner benefited from their work and it would be unfair not to pay.
Prompt Pay Act
- Oklahoma’s Prompt Pay Act requires timely payments on construction projects. If payments are late, contractors may be entitled to interest and attorney’s fees.
Preventing Payment Disputes
The best way to deal with payment disputes is to stop them before they happen. Preventive steps include:
- Clear Contracts – Put all agreements in writing, including scope of work, payment terms, deadlines, and how change orders will be handled.
- Detailed Invoices – Submit clear and accurate invoices with supporting documentation.
- Communication – Keep open lines of communication with all parties to avoid misunderstandings.
- Lien Waivers – Use lien waivers when payments are made to provide security for both sides.
- Legal Review – Have an attorney review contracts and advise on compliance with Oklahoma’s construction laws.
Tulsa Construction Lawyers
If you are facing payment disputes in construction projects—whether as a property owner, contractor, or subcontractor—knowing your rights is critical. Our team at Tulsa County Lawyers Group can help. Get a free consultation from an attorney by calling 918.379.4864, or you can ask an online question by following this link.