Payment & retainage
Nonpayment Claims
Review unpaid progress bills, disputed change orders, offsets, payment records, and the available contract or statutory response.
Read the related answer
Shin Law Office · Construction dispute attorneys
Subcontractor & Supplier Dispute Attorneys in Northern Virginia
Protect your payment.
Protect your position on the project.
An unpaid invoice, disputed repair, or missed delivery can put more than one company under pressure. We help general contractors, subcontractors, and suppliers pursue payment, respond to claims, and address the obligations that keep a project moving.
Contract, performance, retainage, lien, and payment-bond disputes. Serving Northern Virginia from Leesburg and Fairfax.
General contractors, subs & suppliersPursue or defend claimsReview deadlines early
What rights does an unpaid subcontractor or supplier have?
An unpaid subcontractor or supplier may have a contract claim, statutory payment rights, a mechanic’s lien, or a payment-bond claim. The available routes depend on the project, contract tier, work or materials supplied, notices, and deadlines. A disputed invoice does not automatically establish every remedy.
Shin Law Office reviews the agreements and project record to identify the payment claim, any performance defenses, and the steps that need attention while the dispute is addressed.
Identify the projectPrivate, Virginia public, and federal work require different checks.
Preserve the recordContracts, delivery dates, notices, and costs connect the facts.
Start with your role and the problem
Where is the project dispute affecting you?
Choose your situation and the issue that needs attention. The guide points to useful records and a related answer.
Step 1 of 2
What brings you here?
Your contract, your customer, and the type of project help determine the starting point.
This guide helps organize a conversation. It does not calculate deadlines, decide claim eligibility, or send a legal notice.
Mention the earliest known deadline. A notice to cure, proposed release, lien notice, bond demand, or court paper can require attention before the invoice dispute is resolved. Keep delivery evidence and the first and last dates of your work or materials.
Subcontractor & supplier disputes we handle
Find the issue in your own words.
Search for the payment problem, work issue, or document. A single dispute may involve more than one of these services.
Try “owner has not paid,” “late delivery,” “retainage,” or “Miller Act.”
Showing all six issues.
Work & schedule
Defective Subwork
Pursue or defend claims involving defective or incomplete work, nonconforming materials, cure notices, correction costs, and backcharges.
Read the related answerWork & schedule
Missed Deadlines
Address late performance, delivery failures, access problems, acceleration, work stoppages, and claims that connect time impacts to added costs.
Read the related answerPayment & retainage
Retainage Disputes
Evaluate retained amounts, release conditions, punch-list disputes, closeout requirements, final-payment documents, and the scope of proposed releases.
Read the related answerPayment & retainage
Pay-When-Paid Clauses
Review upstream-payment language against current Virginia law, the contract date, project type, tier, and applicable payment or notice requirements.
Read the related answerLiens & bonds
Lien & Bond Claims
Identify the private, Virginia public, or federal project route and evaluate claimant eligibility, contract tier, notices, filing, and enforcement requirements.
Read the related answerTry the payment, document, or work problem.
Use a shorter phrase or select “All issues.” We can help identify the question behind your concern.
Discuss your projectThe contract chain
The same project can involve different rights at each tier.
A supplier’s contract with a subcontractor is not the general contractor’s agreement with the owner. Identify each legal entity, agreement, scope, payment obligation, and incorporated term before treating the project as one dispute.
That distinction affects who may owe money, who must receive a notice, which defenses are available, and whether a lien or payment bond may provide another route. We represent the client’s position within that chain after reviewing conflicts and the scope of the engagement.
- Identify the owner, prime contractor, customer, and lower-tier parties.
- Read the complete subcontract or purchase order and incorporated documents.
- Separate the disputed work, amount, project, and requested remedy.
General contractors
Review nonperformance, disputed invoices, notice and cure, replacement costs, and demands from lower tiers.
Subcontractors
Address unpaid work, added scope, withheld retainage, schedule accusations, backcharges, and payment protection.
Suppliers
Connect orders, specifications, deliveries, acceptance, invoices, and the customer’s position in the contract chain.
Nonpayment & pay-when-paid clauses
Read the payment clause with current Virginia law.
“The owner has not paid” starts a legal question; it does not finish the analysis. Review contract timing, satisfactory performance, statutory coverage, notice, and the amount actually in dispute.
Private construction
Section 11-4.6 addresses payment timing, withholding notices, and upstream-payment conditions. The statute includes an insolvency or bankruptcy exception and separate coverage rules for lower-tier agreements. Check the contract date, parties, project type, and value.
Sources: Virginia Code § 11-4.6: private payment and wage provisions
Private-project payment timingVirginia public construction
Section 2.2-4354 requires payment and interest provisions in covered state and local contracts, including requirements when upstream payment has not arrived. It also addresses written reasons for withholding and requirements flowing to lower tiers.
Sources: Virginia Code § 2.2-4354: public-contract payment clauses
Public-project payment rulesMake the invoice record complete.
Identify the work period, scope, amount, supporting approvals, submission method, and receipt date. Reconcile prior payments, credits, disputed deductions, and the remaining balance.
Make the withholding reason specific.
Identify the contractual noncompliance, evidence, affected amount, and required notice. Read cure rights, backcharges, retainage, and unrelated project offsets separately.
Cross-project withholding
A dispute on one job does not automatically justify holding money on another.
Virginia Code § 43-13 invalidates provisions allowing funds due on one contract or subcontract to be withheld for alleged claims or damages on another. Review the specific payments and documents before applying an offset across projects.
Sources: Virginia Code § 43-13: project funds and cross-contract withholding
Read about cross-project offsetsLien & payment-bond claims
Match the payment route to the project.
Start with property ownership, the public or private nature of the work, and your contractual relationship. Obtain the actual bond when one exists. A payment bond, a performance bond, and a mechanic’s lien serve different purposes.
A contract claim may coexist with another remedy, but each has its own eligibility, notice, filing, and enforcement requirements. Negotiations and a general demand letter do not automatically satisfy those separate requirements.
- Confirm who owns the property and who awarded the contract.
- Identify the bonded contractor and your direct customer.
- Preserve first and last furnishing dates, delivery records, and notices.
- Review the bond wording, governing statute, and required recipients.
Private-project lien review
Sections 43-7 and 43-9 impose additional requirements for subcontractors and lower tiers, including notices and limits tied to upstream amounts. Residential lien-agent rules can arise before payment becomes overdue.
Sources: Virginia Code § 43-7: subcontractor lien notice and limits · Virginia Code § 43-9: lower-tier lien notice and limits · Virginia Code § 43-4.01: residential lien-agent notice
Mechanic’s Liens & Payment ClaimsPayment-bond review
Virginia public bond claims and federal Miller Act claims arise under different statutes. Identify the claimant’s tier, the covered labor or materials, the required notice, and the lawsuit deadline. Notice to a surety should not be assumed to replace notice to the required contractor.
Sources: Virginia Code § 2.2-4341: public payment-bond actions · 40 U.S.C. § 3133: federal Miller Act payment-bond claims
Bond & Surety ClaimsSeparate deadlines, separate steps
There is no single construction-claim clock.
A contract limitation period does not replace an earlier notice, lien, or bond requirement. Establish the governing dates from the actual records instead of counting from the day you decided payment was overdue.
| Potential remedy | Timing framework | Additional review |
|---|---|---|
| Virginia lien filing | Section 43-4 generally uses 90 days after the last day of the month of last qualifying work or materials, with an outside limit of 90 days after completion or termination. | The 150-day rule, earlier notice, included amounts, property, and claimant requirements also matter. Sources: Virginia Code § 43-4: lien filing and included amounts |
| Virginia lien enforcement | Section 43-17 generally uses the later of six months after recording or 60 days after completion or termination. | Recording and suing are separate steps; the enforcement rule does not extend the original filing deadline. |
| Virginia public payment bond | Section 2.2-4341 generally requires a qualifying second-tier notice within 90 days and suit within one year, measured under its last-furnishing rules. | Confirm tier, notice service, the waiting period, and the statutory retainage exception. Sources: Virginia Code § 2.2-4341: public payment-bond actions |
| Federal Miller Act bond | Section 3133 generally requires qualifying second-tier notice within 90 days and suit no later than one year, under its last-furnishing rules. | Confirm coverage, delivery, claimant tier, the waiting period, and federal venue. Sources: 40 U.S.C. § 3133: federal Miller Act payment-bond claims |
Check the residential notice requirement at the start. Covered one- or two-family projects with a designated mechanic’s lien agent have a separate 30-day notice framework under § 43-4.01. Late notice can limit the work protected. Read about lien-agent notice
Sources: Virginia Code § 43-4.01: residential lien-agent notice
Five years is not the answer to every contract claim. Signed written contracts, other agreements, and goods-sale claims can have different limitation periods. Read the contract-deadline answer
Defective subwork & missed deadlines
Connect the allegation to the work and the amount.
A backcharge needs more than a total. A delay demand needs more than a missed date. Compare the promised performance with the project record and explain why the disputed conduct caused the correction cost, schedule impact, or other claimed loss.
The same work supports a response when your company is blamed. Review access, other trades, design changes, owner directives, accepted materials, and the opportunity to cure before accepting an allocation of responsibility.
- Preserve photographs, reports, and original project records.
- Document correction work before the condition changes, when practicable.
- Separate added scope from correction of allegedly deficient work.
- Review the need for construction, scheduling, or other experts.
Scope
What was promised?
Identify the executed scope, plans, specifications, exclusions, submittals, and authorized changes.
Event
What actually happened?
Preserve site conditions, delivery facts, inspections, schedule updates, directives, and notices.
Causation
How did it affect the project?
Connect the disputed event to the correction or delay claimed and assess other contributing causes.
Amount
How was the loss calculated?
Support quantities, rates, correction invoices, time, equipment, labor, and any credits or avoided costs.
Before suspension, termination, or replacement
Review the right to act and the required process.
Stopping work, refusing delivery, or replacing a trade can change both sides’ exposure. Review the notice, cure, authority, and continuing obligations before treating that step as the available remedy.
Read about stopping workRetainage, closeout & releases
Know what is being held and what a release gives up.
Retainage, a disputed correction charge, and an unpaid invoice may appear on the same ledger. Separate them, then compare each amount with the contract and project status.
Review the release conditions.
- Identify the retainage amount, percentage, and relevant payment clause.
- Match completion, acceptance, punch-list, and closeout requirements to the records.
- Ask for the stated basis and amount of continued withholding.
Section 2.2-4333 limits retainage on covered Virginia public progress payments. Do not assume that its five-percent limit applies to every private project.
Review the document before signing.
- Check whether the waiver is conditional on payment actually received.
- Identify the covered period, amount, claims, and any reserved exceptions.
- Coordinate the release with change orders, delay claims, and bond rights.
Section 43-3 restricts advance contractual lien waivers before furnishing. That protection does not eliminate the need to review a later payment waiver or final release.
Sources: Virginia Code § 43-3: lien eligibility and advance waivers
A title such as “progress waiver” does not define the entire document. Read the operative language and what it says about unpaid or disputed claims. Lien Waivers & Payment Documents
Claim, defend, and resolve
Choose the next step from the contract and the record.
The right approach depends on the amount at issue, the parties’ positions, available payment protection, deadlines, and the ongoing project. We assess those considerations before selecting a demand, negotiation, mediation, arbitration, or court strategy.
Contract and incorporated terms
Identify required claim submissions, dispute clauses, notice recipients, flow-down provisions, and any selected forum.
Negotiation or mediation
Use an organized statement of the amount, supporting records, defenses, and proposed terms to make the discussion concrete.
Arbitration or litigation
Evaluate the available claims and defenses, the proper parties, evidence, cost, and any steps needed to preserve separate remedies.
Unpaid crews can raise a separate wage issue. Current § 11-4.6(C) includes general-contractor wage liability for qualifying subcontracts and circumstances. A business payment dispute and an employee wage claim should be evaluated separately. Read about subcontractor wages
Sources: Virginia Code § 11-4.6: private payment and wage provisions
Prepare for the first conversation
Bring the complete project record, starting with the contract.
You do not need a perfect claim file to begin. The documents you already have can help identify the issue and the most immediate requirements.
Parties & projectWho hired whom, and who owns the project?
Identify each company and legal entity, your direct customer, the owner, public agency if any, project location, contract dates, and the parties involved in the dispute.
Contract & changesWhat did the agreement require?
Bring the full subcontract or purchase order, incorporated prime terms, scope, specifications, addenda, changes, directives, and relevant bid or proposal documents.
Payment & retainageWhat is earned, paid, and disputed?
Provide invoices, payment applications, receipt evidence, approvals, ledger, credits, retainage calculation, withholding reasons, joint checks, waivers, and releases.
Work & deliveryWhat happened on the project?
Gather daily reports, schedules, delivery tickets, photographs, inspections, submittals, staffing records, procurement logs, and communications.
Claim & costsHow is each demand supported?
Bring itemized backcharges, correction invoices, extra-work records, delay calculations, estimates, expert reports, demands, and your responses.
Notices & protectionWhich dates and documents may preserve rights?
Bring the payment bond, permit and lien-agent information, first and last furnishing dates, completion or termination records, notices and delivery proof, recorded liens, and court papers. Ask how to provide sensitive records securely.
Working with Shin Law Office
A clear claim starts with a clear account of the project.
We evaluate the payment and performance issues together, explain the available options, and work with you on the next step.
Identify the dispute
Confirm the proposed client, contract chain, project type, disputed amount, and immediate deadlines.
Review the record
Compare the agreements, performance, invoices, notices, and available lien or bond documents.
Set the response
Develop the claim or defense and identify any required notices, filings, or dispute procedures.
Pursue the resolution
Negotiate or proceed through the appropriate forum with attention to evidence, costs, and project consequences.
Meet the attorney
Anthony I. Shin, Esq.
A construction dispute often combines a payment problem with a disagreement about scope, quality, or time. Reviewing the full project record helps separate those issues and identify the requirements that need attention while a resolution is pursued.
Learn more about Anthony ShinNorthern Virginia construction disputes
Offices in Leesburg and Fairfax.
Tell Shin Law Office about the project, your company’s role, and the claim or payment problem. Identify whether the work is private, Virginia state or local, or federal, and mention any notice, lien, bond, arbitration, or court deadline.
Request a consultationLeesburg
118 Edwards Ferry Road, N.E.
Unit 110
Leesburg, VA 20176
Fairfax
8300 Arlington Boulevard
#B2
Fairfax, VA 22031
Office: 571-445-6565 · Cell: 571-215-8823 · Fax: 703-442-8938
Answers before you call
Subcontractor and supplier dispute questions.
Direct answers about payment, performance, retainage, and claim protection. The actual documents, facts, project, and applicable law determine the result.
Discuss your disputeWhat disputes arise between contractors, subcontractors, and suppliers?
Common disputes involve unpaid invoices, disputed extra work, defective or incomplete performance, late deliveries, delay costs, backcharges, retainage, payment conditions, and lien or bond claims. The starting point is the actual contract chain: who hired whom, what each party promised, and which project and payment rules apply.
Does Shin Law Office represent general contractors, subcontractors, and suppliers?
Shin Law Office represents general contractors, subcontractors, and suppliers in Northern Virginia construction disputes, including pursuing and defending claims. The firm first identifies the proposed client, other parties, project, deadlines, and scope. Representation in a particular matter depends on a conflict check and an agreed engagement.
What can I do if a contractor will not pay my invoice?
Gather the agreement, invoice and delivery records, approvals, payment history, and any written reason for withholding. Review the amount due and the available contract, statutory payment, lien, and bond remedies. Each route has its own requirements, and a payment demand alone does not preserve every claim.
What is the difference between pay-when-paid and pay-if-paid?
Pay-when-paid language addresses payment timing; pay-if-paid language attempts to make upstream payment a condition of the downstream payment obligation. Labels do not control the result. Virginia statutes restrict payment conditions in covered construction contracts, so review the actual language, execution date, project, tier, and applicable exceptions.
Can a Virginia contractor withhold payment just because the owner has not paid?
For covered private contracts, § 11-4.6 generally bars making upstream payment a condition of payment, but includes an insolvency or bankruptcy exception and distinct rules for lower tiers. Section 2.2-4354 governs covered Virginia public contracts. An unpaid owner invoice is not a complete answer without checking the applicable statute and contract.
When must a general contractor pay a subcontractor on a private Virginia project?
For covered general-contractor subcontracts, § 11-4.6 generally requires payment by the earlier of 60 days after receipt of an invoice following satisfactory completion of the invoiced work or seven days after receipt of the corresponding upstream payment. The statute also addresses reductions, withholding notices, retainage, exceptions, and lower-tier coverage.
What payment rules apply on a Virginia public project?
Section 2.2-4354 requires payment and interest clauses in covered public contracts. It addresses payment within 60 days after an invoice for satisfactorily completed work when upstream payment has not arrived, and payment or a withholding notice within seven days after upstream payment. Review the statute’s coverage and notice requirements with the contract.
Can I withhold payment for defective or incomplete subcontract work?
Potentially, but the contract and applicable law govern the basis, amount, and notice. Identify the specific noncompliance and supporting evidence, follow required notice and cure procedures, and distinguish disputed charges from undisputed work. Virginia’s covered payment statutes include written withholding requirements; a general complaint may not satisfy them.
Can a contractor offset a claim from a different project?
Virginia Code § 43-13 makes a contract or subcontract provision allowing funds due on one contract to be withheld for alleged claims or damages on another contract void as against public policy. Review the specific contracts, payment, and asserted offset rather than assuming a broad cross-project withholding clause is enforceable.
When should construction retainage be released?
Retainage is an amount held back under the payment terms to support performance. Its release depends on the contract, project type, completion requirements, and applicable law. Review punch-list items, approvals, closeout documents, releases, and the stated reason for continued withholding. A completion dispute and an unpaid progress invoice may require different analysis.
Is retainage always capped at five percent in Virginia?
No universal five-percent rule applies to every project. Virginia Code § 2.2-4333 limits retainage to five percent for covered public construction progress payments based on estimated completion and applies to public-project subcontracts with similar payments. Private contracts require separate review; do not import that public-project rule automatically.
Should I sign a lien waiver or final release before being paid?
Review the exact scope, covered dates and amount, payment condition, exceptions, and whether the document also releases contract, delay, change-order, or bond claims. Virginia limits advance contractual waivers of lien rights before work or materials are furnished, but that does not make every later release ineffective. Confirm what payment has actually been received.
Can an unpaid subcontractor or material supplier file a Virginia mechanic’s lien?
Possibly, if the work, materials, property, claimant, and notices satisfy the statute. Subcontractor and lower-tier lien rights can be limited by amounts owed upstream. Sections 43-7 and 43-9 impose additional notice and amount requirements. Supplying a project does not automatically establish an enforceable lien for every unpaid invoice.
What is the Virginia mechanic’s lien filing deadline?
Section 43-4 generally requires filing within 90 days after the last day of the month in which the claimant last furnished qualifying labor or materials, and no later than 90 days after project completion or termination. A separate 150-day rule limits included charges, with exceptions. Earlier notice, amount, licensing, and property requirements also matter.
Does a residential project require notice to a mechanic’s lien agent?
For covered one- or two-family residential projects with a designated lien agent, § 43-4.01 includes a 30-day notice framework tied to first furnishing or permit issuance. Late notice can limit protected work and materials. Permit information, statutory exceptions, and delivery requirements must be checked early rather than waiting for an unpaid bill.
Is recording a mechanic’s lien enough to preserve it indefinitely?
No. Filing and enforcement are separate steps. Section 43-17 generally requires an enforcement suit within the later of six months after recording or 60 days after project completion or termination. That rule does not extend the original perfection deadline. Review the correct parties, property, notices, and court requirements.
What deadlines apply to a Virginia public payment-bond claim?
Under § 2.2-4341, a qualifying claimant contracting with a subcontractor but not the bonded contractor generally must give the contractor written notice within 90 days of the last work or materials claimed, subject to the retainage exception. Suit generally must be brought within one year after the claimant last furnished labor or materials. Eligibility, service, and the waiting period require separate review.
What deadlines apply to a federal Miller Act payment-bond claim?
Under 40 U.S.C. § 3133, a qualifying claimant contracting with a subcontractor but not the bonded prime generally must give the prime written notice within 90 days of the last labor or materials claimed. Suit must be filed no later than one year after the claimant’s last labor or materials. Coverage, delivery, the waiting period, and federal venue also matter.
Does every supplier have payment-bond rights?
No. Identify the bonded contractor, your direct customer, the customer’s role, what you supplied, and the governing bond and statute. Supplying a subcontractor is not the same as supplying another material dealer. Contract rights, private-project lien rights, and payment-bond eligibility need separate review.
How do you prove or defend a defective-subwork claim?
Compare the agreed scope, plans, specifications, approved submittals, and changes with the work actually performed. Preserve photographs, inspection results, daily reports, notices, cure opportunities, and itemized correction costs. Evaluate causation, other trades’ work, and expert needs before assuming every repair cost belongs to one subcontractor.
Can I stop work or terminate because I have not been paid?
Do not assume nonpayment creates an immediate right to walk off. Review suspension and termination terms, materiality, notice and cure, continuing duties, and applicable law. An unsupported stoppage can create competing default and delay claims. Preserve payment rights while the proposed response is evaluated.
What if a supplier delivers late, defective, or incorrect materials?
Review the purchase order, specifications, approved substitutions, delivery commitments, inspection and acceptance records, warranties, and remedy limits. Document the shortage or defect and the effect on the work. Goods-law notice and remedy questions may differ from a subcontract claim, particularly if materials were accepted or replacements were purchased.
What evidence matters in a delay or acceleration claim?
Useful records include baseline and updated schedules, daily reports, procurement logs, access restrictions, directives, notices, staffing and equipment records, and actual added costs. Connect the event to its effect on the project schedule and separate concurrent causes. A late activity alone does not establish every claimed day or dollar.
Can I recover for extra work without a signed change order?
Possibly, but recovery is not automatic. Review written-change and notice provisions, who had authority to direct the work, communications, field tickets, performance, and the other party’s conduct. Preserve scope, quantity, pricing, and schedule evidence. A signed daily ticket may document work without approving its price or waiving other requirements.
Will the dispute go to court or arbitration?
The agreement may require notice, a claim submission, negotiation, mediation, arbitration, or a particular court. Incorporated prime-contract terms may affect the process. Review those requirements alongside lien and bond rights; pursuing a dispute-resolution process does not by itself establish that a separate deadline has been preserved.
Do I always have five years to sue on a construction or supply contract?
No. Section 8.01-246 generally provides five years for qualifying signed written contracts and three years for certain other contracts, while § 8.2-725 generally provides four years for covered goods-sale claims and permits some contractual reductions. Accrual and other rules matter. Lien, bond, and notice deadlines can arise much earlier.
What should I bring, and how are fees determined?
Bring the complete contract or purchase order, incorporated documents, invoices, payment ledger, change orders, schedules, delivery tickets, notices, waivers, and any bond. Identify every party, the project owner, your last work or delivery, and pending deadlines. Ask about the proposed scope and fee arrangement; the work required depends on the claim and records.
Can unpaid subcontractor wages create liability for a general contractor?
Potentially. Current § 11-4.6(C) addresses joint wage liability under qualifying general-contractor subcontracts entered on or after July 1, 2026. It includes knowledge, non-single-family-project, and project-value conditions. A business invoice dispute and an employee wage claim are different matters; review the contract date, facts, and statutory requirements.
Address the dispute before the next deadline passes.
Whether you are seeking payment or responding to a claim, bring the agreement and project record. We can help evaluate your position and the next step.
Mention notice and cure dates, proposed releases, last furnishing dates, lien or bond notices, and court papers.
Based in Loudoun County and serving clients across Virginia, Washington DC, and Maryland, we know that when everything’s on the line, the right attorney doesn’t just make a difference, they determine the outcome.
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Copyright © 2026 Shin Law Office, PLC. All rights reserved.
Reproduction of any content on this site is prohibited except for individual, non-commercial, informational use. This limited permission does not allow modification, distribution, or incorporation of any content into other works or publications in any medium. You may not reproduce or distribute content from this site to any third party.