Construction Payment Dispute

Cash Flow

A disagreement between parties on a construction project regarding payment terms, amounts, change orders, or completion milestones. Common causes include disputed change orders, incomplete work claims, retainage disputes, and slow-pay practices. Resolution mechanisms include preliminary notices, mechanics liens (RCW 60.04 in Washington), prompt pay act enforcement, mediation, and arbitration. Proper documentation and bookkeeping are the contractor's best defense in payment disputes.

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