Subcontractors typically possess the ability to file mechanics' and materialmen's liens against improved properties to secure payment. This remedy extends to suppliers, laborers, and others who enhance real property value, enabling them to enforce payment against property owners even without direct contracts.
However, certain circumstances eliminate lien rights. Certain properties, such as owner-occupied homes, may be exempt in some states from mechanics' liens by subcontractors. Additionally, procedural failures or expired filing deadlines can eliminate this protection.
When lien rights disappear, the doctrine of unjust enrichment offers an alternative avenue. Under this legal principle, unpaid subcontractors and suppliers may pursue property owners directly if those owners have not compensated general contractors for the completed work or materials provided.
Conclusion
Subcontractors and suppliers facing non-payment should not abandon recovery efforts simply because general contractors face financial hardship. The recommended approach involves determining whether the property owner has actually paid the general contractor for the disputed work or materials, then pursuing recovery directly against the owner when payment remains outstanding.