Getting Paid
How to Collect Payment From a Customer Who Won't Pay (Georgia Contractors)
- Document everything and send a firm, written demand letter before taking any other action.
- A mechanic's lien is one of the most powerful tools a Georgia contractor has on a private project, but it comes with strict deadlines.
- You cannot file a lien against public or government property — the remedy there is a payment bond claim.
- Smaller unpaid-invoice disputes can often be pursued in Magistrate Court; larger claims go to State or Superior Court.
- Strong contracts, deposits, and progress billing prevent most nonpayment problems before they start.
You finished the job, sent the invoice, and now the customer has gone quiet — or worse, is making excuses about why they can't pay right now. For Georgia contractors and small-business owners, an unpaid invoice isn't just an inconvenience. It's payroll you can't make, materials you can't restock, and cash flow that's supposed to be funding your next job.
The good news is that Georgia law gives contractors real tools to get paid, from a simple demand letter all the way up to a mechanic's lien and a lawsuit. This post walks through the escalating steps you can take when a customer won't pay, what's different about private versus public projects, and how a stronger contract up front can help you avoid this fight altogether.
Step 1: Document Everything and Send a Written Demand
Before you escalate, get your paperwork in order. Pull together the signed contract or work order, change orders, invoices, photos of completed work, delivery tickets for materials, and any texts or emails where the customer acknowledged the debt or the scope of work. This documentation is the foundation for every step that follows, whether that's a lien, a bond claim, or a lawsuit.
Once your file is organized, send a formal written demand letter. A demand letter should state the amount owed, reference the contract and invoices, set a firm deadline to pay, and explain — professionally but clearly — what happens next if the customer doesn't respond. Many nonpayment disputes resolve at this stage once the customer realizes you're serious and organized.
Step 2: File a Mechanic's Lien on Private Projects
- A mechanic's (or materialmen's) lien attaches to the property itself, giving you leverage that a simple invoice doesn't — it can cloud the title and complicate a sale or refinance until you're paid.
- Contractors, subcontractors, materialmen, laborers, and design professionals can all claim a lien in Georgia.
- The claim of lien must be filed within 90 days of the last day labor or materials were furnished, in the superior court clerk's office of the county where the property is located.
- A copy of the filed lien must be sent to the property owner within 2 business days of filing.
- Filing the lien isn't the end of the process — you must file suit to enforce the lien within 365 days of when it was filed, or it becomes unenforceable.
- Georgia's lien framework also involves Notice of Commencement, Notice to Contractor, and preliminary-notice requirements, and lien waivers can be conditional or unconditional — get guidance before you sign or accept one.
Step 3: File a Payment Bond Claim on Public Projects
If the nonpaying customer is a government entity, or you worked on a public building, road, or school, the mechanic's lien process doesn't apply — you cannot lien public property in Georgia. Instead, public construction projects typically require the general contractor to carry a payment bond specifically so subcontractors and suppliers have a way to get paid when a dispute arises.
Your remedy on a public job is a claim against that payment bond. Just like a lien, a bond claim has its own notice requirements and deadlines, so it's important to identify early on whether you're working on private or public property so you pursue the right remedy from the start.
Step 4: Pursue a Breach-of-Contract Lawsuit
If a demand letter, lien, or bond claim doesn't get you paid, a lawsuit for breach of contract is often the next step. Georgia's court system offers different venues depending on the size of your claim.
For smaller unpaid-invoice amounts, Magistrate Court offers a faster, less formal, and less expensive path to a judgment. Larger or more complex claims — especially those involving disputed change orders, defective-work counterclaims, or significant dollar amounts — are generally better suited to State Court or Superior Court, where more extensive discovery and procedure are available. An attorney can help you evaluate which venue fits your claim and what a realistic timeline looks like.
Step 5: Consider Attorney's Fees
Depending on the language in your contract and the circumstances of the case, you may be able to recover attorney's fees and costs in addition to the amount owed. Whether fees are available depends on your specific contract terms and the nature of the claim, so this is worth discussing with your attorney early — it can affect both your strategy and the pressure a demand letter puts on a nonpaying customer.
Prevent Nonpayment Before It Starts
- Use a written contract for every job that spells out scope, price, payment schedule, and what happens if a payment is late or missed.
- Collect a reasonable deposit before work begins so you're not financing the entire job out of pocket.
- Bill in progress draws tied to project milestones rather than waiting until the job is 100% complete to invoice.
- Require signed change orders before doing extra work, so scope creep doesn't turn into a payment dispute.
- Follow Georgia's Notice of Commencement and preliminary-notice steps at the start of a project so your lien rights are fully protected if a payment dispute arises later.
Frequently Asked Questions
How do I collect an unpaid invoice as a contractor in Georgia?
Start by documenting the debt and sending a formal written demand letter. If that doesn't resolve it, private-project contractors can file a mechanic's lien; public-project contractors can file a payment bond claim. If the customer still won't pay, a breach-of-contract lawsuit in Magistrate, State, or Superior Court is the next step.
Should I file a lien or file a lawsuit?
It often makes sense to do both in sequence. A mechanic's lien on a private project puts pressure on the owner quickly and protects your right to the property's value, while a lawsuit to enforce the lien (or a straight breach-of-contract suit) is what ultimately produces a collectible judgment.
How long do I have to file a mechanic's lien?
In Georgia, you must file the claim of lien within 90 days of the last day you furnished labor or materials, in the superior court clerk's office of the county where the property sits. You then have 365 days from the filing date to file suit to enforce that lien.
What if the job was a public or government project?
You cannot file a mechanic's lien against public property in Georgia. Instead, your remedy is a claim against the project's payment bond, which general contractors on public jobs are typically required to carry for the benefit of subcontractors and suppliers.
Can I recover my attorney's fees?
It depends on your contract language and the specifics of your claim — some contracts allow for fee recovery, and Georgia law may provide additional avenues in certain circumstances. An attorney can review your contract and situation to tell you what's realistically available.
Have a Question About Your Business?
This article is general information, not legal advice. For guidance on your specific situation, talk to Jerry Parisi directly.