Direct Answer
When a GC withholds payment on disputed work, document the dispute immediately in writing, request a written explanation of the specific basis for withholding (which line items, which amounts, which alleged deficiency), and respond within the timeframe required by your subcontract. Do not stop work on other project elements while pursuing payment — work stoppages can expose you to additional claims unless specifically authorized by your subcontract.
Full Explanation
Payment dispute resolution steps: (1) Written notice — within the timeframe specified in your subcontract, put the dispute in writing. (2) Specific documentation — request the GC's written explanation of what is being withheld and why. (3) Review your documentation — assemble all supporting records (approved shop drawings, approved change orders, delivery receipts, inspection sign-offs). (4) Meet — request a formal dispute resolution meeting per the subcontract's dispute process. (5) Mediation — if the contractual dispute process fails, most subcontracts require mediation before litigation or arbitration. (6) Mechanic's lien — file a mechanic's lien on the property as a protective measure before the filing deadline (varies by state, typically 60–120 days after last work performed).
What This Means for Your Shop
Mechanic's lien rights protect steel fabricators even when disputes are unresolved. Many states allow fabricators to lien a property for materials furnished, even if the material was delivered to a GC who hasn't paid. Know your state's lien filing deadlines — missing them extinguishes your lien rights.
Common Mistakes
Waiting too long to file a mechanic's lien. Many fabricators miss lien filing deadlines while waiting for the dispute to resolve 'amicably.' File the lien as a protective measure and continue negotiating — it can always be released when paid.
Recommended Process
Establish a payment tracking system that flags invoices at 45 days outstanding (before lien deadlines). Consult a construction attorney about lien deadlines in each state where you fabricate before a dispute arises. Have lien filing documents prepared in advance.