I own a small minority construction and asbestos abatement company in Albany, NY. We recently took on a job as a sub-contractor for a state contract that required me to hire more employees to get the job down, which increased my workers' compensation insurance. There were delays on the job and the repayment process hurt my company financially. To make a long story short, we are in the process of pursuing the General Contractor, and New York State for reimbursement but it will take some time. There is an outstanding balanced owed to us of over $200,000.00. Also, because of this, we have a worker's compensation insurance bill that is extremely high, and they are threatening to cancel our insurance. The money is coming, however, it is not currently available within the time frame they are demanding. As a construction company, we can not afford to lose our insurance. This would not only impact our ability to get future jobs, but it would mean bankruptcy. This isn't fair. Is there anything I can do?
Unfortunately, there isn't much you can do. The legal process can take a long time. You can apply pressure on the Contractor by placing a lien on the project. This will have the effect of stopping payments from the state to them, but they can bond the lien and restart payments. Also, if the project is over, and there are no monies left to the contractor, you may be out of luck. You may be in a scenario where you have to take a short-term loan to float your insurance obligations until the contractor pays you. You can force the legal process as quickly as possible, but it is unlikely to resolve in time, outside of a settlement.
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