Florida Building Contractor Business/Finance Practice Exam

What can individuals owed money by a contractor do if the contractor fails to pay them?

1. Contact the city council

2. Request payment from the subcontractors

3. Sue the contractor only

4. Sue the owner for payment

The correct answer is: Sue the owner for payment

When individuals are owed money by a contractor who fails to pay them, one option available to them is to sue the owner for payment. This practice stems from the concepts of lien rights and contract obligations within the construction industry. In many jurisdictions, including Florida, subcontractors and suppliers have the right to file a lien against the property if they don’t receive payment for their work or materials. If the contractor has not paid them, they may seek payment from the property owner, especially if the work has been completed satisfactorily and the owner has benefited from it. This route often encourages owners to ensure their contractors are paying all parties involved because the property can be at stake. The other choices do not provide a viable or effective means of recourse in this situation. Contacting the city council does not pertain to financial recovery and typically focuses more on regulatory or municipal matters. Requesting payment from subcontractors is unlikely to yield results, as it would be the primary contractor's responsibility to settle payments with them. Additionally, suing the contractor is an option; however, if the contractor is unable to pay, this may not be beneficial. Thus, pursuing payment from the owner is a legitimate legal strategy that acknowledges the interconnectedness of contractual obligations within the construction