$$$$ Money, Money, Money- How Do I Get Paid On Rhode Island Construction Matters? 

By William M. Dolan on January 20, 2026

Those paying attention to the construction industry lately know that owners, general contractors, subcontractors, and suppliers alike are all feeling the effects of a lagging economy where promises are many but money is short.  Your lawyers see it in the recent significant surge of new lawsuits in the courts seeking payment on construction claims.  It’s a good time to review your options so you can maximize the return on your collection efforts.  What follows are some handy reminders of the ways in which collection can be achieved be it the simple lawsuit, the mechanics lien claim, or the payment bond claim where and when indicated, and some of the rules to keep in mind and act on. 

Rule Number 1- Know ( And Maybe Improve ) Your Documents

Each of the available remedies- the lawsuit, the mechanics lien claim, the payment bond claim- may be controlled or impacted by the terms of the parties’ prevailing contracts which sometimes specify, limit or condition the available remedies and the forum in which they can be brought.  Make sure you are aware of what they say, do, and require of you lest you miss important deadlines and filing requirements.  If your contract does not provide for recovery of costs of collection such as attorneys fees, consider adding such a provision to your standard contract form or invoice in the future  as the available law is somewhat limited and may often not be helpful in permitting such recovery. 

Rule Number 2- When Filing Suit Consider Prejudgment Remedies

We all know that lawsuit can take forever to resolve and even when they are often do not easily achieve the goal of payment because they often require you to chase your judgment debtor to find assets from which to satisfy your judgment.  So, maybe do some homework on the front end and see what you can find out about the assets owned by the person or party who owes you money before you file suit.  Those assets can be found by searching the tax and land records or simply paying attention to the means by which they have paid you in the past such as by check or wire from a checking or other account they maintain with a bank which may contain cash.  If you are aware of such assets, you can seek from the court  at the commencement of your lawsuit what is known as a prejudgment attachment on the asset, effectively a lien,  to be held subject to the outcome of the lawsuit.  In order to obtain such an attachment you will have to establish by adequate proof- usually an affidavit with backup- that you have a substantial likelihood of winning and that you are in need of security for your claim because of some particular circumstance- the debt is long overdue, the person or entity cannot be found, or there is evidence of transfers of assets or other activity -placing you at risk of nonpayment.  Often, the issuance of a prejudgment attachment that hits pay dirt- that is actually gets an asset and renders it unavailable to your debtor- may quickly  prompt them to find the means to pay you some or all of what you are owed without the need to finish the lawsuit.    

Rule Number 3- Meet the Notice and Filing Deadlines for Mechanics Liens

On nongovernmental private construction projects, any person or entity of any character be they general contractor, subcontractor or supplier,  that performs work or labor or that provides materials  or equipment to an owner or a tenant with the owner’s consent pursuant to an oral or written contract for the construction or improvement of buildings or land, may seek to establish what is known as a mechanics lien on the building, improvements or land of the owner as a means of securing payment of amounts due.  In order to do so, the person or entity must strictly and timely comply with the notice, recordation and filing requirements which are partly noted below, the failure of any one of which can prevent the lien from being established.   

For those persons or entities that contract directly with the owner or the owner’s tenant , they must provide a required statutory written form of Notice of Possible Mechanics Lien to the owner and/or tenant 10 business days prior to the commencement of work or providing materials  lest they lose the right to assert a lien and potentially assume an indemnity obligation to the owner if some other person without a direct contract with the owner asserts a lien. 

All persons or entities asserting a mechanics lien , including those with a direct contract with the owner , must also by no later than 200 days after the doing of the work or the furnishing of the materials,  transmit the required statutory form of Notice of Intention to Do Work or Furnish Material, or Both to the owner of the land by prepaid registered or certified mail,  and must file the notice in the land records of the city or town where the land is located.  Additionally, within 40 days of the filing of the  notice in the land records, the claimant seeking the lien must file a complaint to enforce the lien in the superior court where the land is located and a notice of lis pendens. 

These are not steps that a claimant should seek to take without the benefit of legal counsel as the steps and the required  form of the notices and complaint are specified by the mechanics lien stature and complete compliance is required.  Further, there are additional actions beyond those mentioned that are required to fully establish and enforce the lien. 

Rule Number 4- Meet the Notice and Filing Deadlines for Payment Bond Claims

Payment Bonds are financial instruments issued by commercial sureties and insurance companies that provide specified protection to certain classes of contractors, subcontractors, laborers and suppliers on public and private construction jobs from risk of nonpayment by their counterparties. 

In the public contracting sphere where payment bonds are required for contracts of certain amounts  for the construction or improvement of roads, bridges or public buildings or land, there are specific statutory deadlines for issuance of notice of claims and for the commencement of lawsuits.  All persons who perform work or labor or who provide materials  or equipment and who remain unpaid for a period of 90 days from the last date the work or labor was performed or materials or equipment was furnished may assert a claim for payment under the bond by giving written notice to the surety that issued the bond or by filing a lawsuit on the bond.  Additionally, those persons or entities who are unpaid but lack any direct contract with the contractor who has obtained the bond from the surety must also provide a prescribed form of written notice to the contractor within 90 days of the last date that the work or labor was performed or materials or equipment was furnished.  Further, any lawsuit to recover on account of a claim under the payment bond must by statute be commenced at the later of two years or the period specified in the bond from the last day of the work or labor performed or materials or equipment furnished.  While strict compliance with the notice and lawsuit deadlines is always recommended, the courts have held in certain circumstances that failure to give timely notice may not necessarily  bar an otherwise timely lawsuit. 

In the private contract sphere , there will only be a payment bond when the principle parties to the construction contract- the owner, the owner’s lender or the general contractor -agree by contract to obtain one from a commercial surety or insurer.  The form and content of the bond and who it protects depends upon the specific terms  of the bond.  The bond will also contain requirements for timely notice and timely commencement of suit on the bond to recover.  As in the public sphere, compliance with the notice and lawsuit deadlines is always recommended.  But here again the courts have held that failure to give timely notice may not necessarily preclude a claimant from filing a lawsuit that meets the time limits of the bond. 

HAPPY COLLECTIONS !