Can a contractor hold payment for services already completed?

I am a sub-contractor. As of Oct. 31 - my contractor and I have terminated our agreement, however, he is not paying me for services completed between 10/1 - 10/15, and our written agreement states that all payments for services completed are to be paid on the 1st and 15th of every month. Can this contractor legally withhold this check from me?
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Paul Walter Leithart II

Paul Walter Leithart II

Contributor Level 3
As with many legal questions involving contracts of any kind, the answer to your question will depend upon the language and terms of the contract between you and the general contractor. Thus, this answer will provide you with some general guidance, but I cannot provide specific answers without reviewing the contract. For example, many construction contracts between a general contractor and the sub-contractors include "pay if paid" provisions. This means that the general contractor does not owe money to the subcontractors if the general contractor has not been paid. If there is such a provision in your contract, and the general contractor has not been paid, then he may not owe you the money for your services. Also, if the general contractor believes that your work has not been in compliance with the contract or industry standards, he may have a basis for denying payment. You also need to review the termination provisions of your contract to determine if there may be payment issues that apply when your contract is terminated. If none of these apply to your situation, then you may well be entitled to payment and the general contractor may be in breach of the contract. You have several potential ways to approach this problem. One of them is to file a mechanic's lien against the real estate. There are very specific procedures to follow when filing a mechanic's lien. In addition, there are very specific time frames for the filing of a mechanic's lien. The advantage of a mechanic's lien is that it is a lien against the real estate, and the owner of the real estate has to potentially deal with that lien. Thus, you have an added pressure point to use against the general contractor. It is very critical to obtain the advice and guidance of an attorney immediately in order to protect your mechanic's lien rignts. You also have the right to file a lawsuit against the general contractor for breach of contract. Lawsuits can be expensive and time consuming and there are no guarantees as to the outcome of most lawsuits. Thus, this option must be carefully reviewed before filing.
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