October 15, 2026

Here are 3 Essential Steps to Recover Your Funds

Few challenges jeopardize a construction business faster than client property owners that withhold progress payments or refuse to pay the final balance upon completion of a project, especially if you’ve dropped capital into the work and have ongoing payroll obligations!

Because Massachusetts enforces strict statutory mechanisms and unforgiving deadlines for construction liens and collections, contractors must act methodically to preserve their rights without exposing themselves to counterclaims.

If you are a general contractor or subcontractor facing nonpayment in Massachusetts, follow this three-step protocol.

1. Audit Your Documentation and Issue a Formal Demand Letter

Before initiating formal litigation, compile a complete audit trail:



• Executed prime contract and all signed, written change orders.
• Building permit copies, inspection sign-offs, and certificates of occupancy.
• Detailed schedule of values, itemized labor hours, material invoices, delivery receipts, and photographic proof of completed stages.

Retaining legal counsel to issue a formal Attorney Demand Letter demonstrates that you are prepared to exercise your full statutory remedies. The demand letter establishes a hard payment deadline, outlines contractual interest, and serves as vital evidence of good faith if the dispute proceeds to court.

2. Strictly Perfect Your Mechanic’s Lien Under M.G.L. c. 254

A Mechanic’s Lien is a contractor’s most powerful tool, placing a direct cloud on the property’s title that prevents the owner from selling, refinancing, or closing on construction loan draws. However, Massachusetts courts strictly enforce the statutory timelines under M.G.L. c. 254; missing a single deadline invalidates the lien as a matter of law:

1. Notice of Contract (M.G.L. c. 254, § 2 for Prime Contractors; § 4 for Subcontractors): Must be recorded at the Registry of Deeds in the county where the real estate is located within 90 days of the last date labor or materials 4 were furnished (or within 90 days of recording a Notice of Substantial Completion).
2. Statement of Amount Due (M.G.L. c. 254, § 8): Must be recorded under oath at the Registry of Deeds within 120 days of the last date work was performed.
   
3. Enforcement Lawsuit & Lis Pendens (M.G.L. c. 254, § 11): You must file a civil complaint in Superior Court or District Court within 90 days of recording the Statement of Amount Due, and simultaneously record an attested copy of the complaint (Notice of Lis Pendens) at the Registry of Deeds.
   
4. 4. File a copy of the suit with the Registry of Deeds. This one is often overlooked, but under §§5, a true copy attest of the lawsuit must be filed with the registry of deeds within 30 days.
   

3. Enforce the Contract, Breach of Covenant, and Prompt Pay Rights in Court 

Simultaneously with enforcing your lien, your complaint should pursue parallel legal remedies if applicable:

• Breach of Contract & Quantum Meruit: Direct damages for unpaid labor and materials.

• Massachusetts Prompt Payment Act (M.G.L. c. 149, § 29E): For private commercial or large residential projects where the prime contract exceeds $3,000,000, statutory timelines mandate that payment applications must be formally approved or rejected within strict windows, and payment issued within 45 days.



• Pre-Judgment Real Estate Attachments: Securing an ex parte or hearingbased judicial attachment on other non-exempt assets or real estate owned by the defendant.