What to Do When a GC Doesn’t Pay: 5 Questions to Ask

An unpaid pay app rarely comes with a helpful note explaining what to do next. It just sits in A/R while the updates get increasingly vague:

• “Waiting on the owner.”
• “Should be in the next check run.”
• “The PM is looking into it.”

At this point, everyone knows payment is late. The harder question is what to do about it. Do you send another email? Call someone higher up? Send a demand letter? The answer depends on where the payment is stuck and how much time you have left to protect your rights. 

The decision tree below walks you through it. Start with the first question and follow the branch that matches your situation.

1. Is the payment actually past due?

This is worth confirming the actual payment due date before sending a strongly worded email to half the GC’s project team. A quick look at the contract will tell you whether the pay app that’s been sitting for 45 days is still inside the payment window.

If no: Confirm that the GC received the pay app and has everything needed to process it. Get the expected payment date and set a reminder to follow up if the payment doesn’t arrive.

Your message can stay simple:

Can you please confirm Pay Application 06 was received and is on track for payment by October 20? Let me know if you need any additional backup from us.

While you wait, keep an eye on your state’s lien notice and filing deadlines.

If yes: Move to Question 2.

2. Could waiting put your lien rights at risk?

Filing a lien is generally a last resort, but protecting your right to file one requires action much earlier. Depending on the state and project, you may need to send preliminary notices, NOIs, or meet other deadlines before your fifth reminder goes unanswered.

The requirements and deadlines depend on the state, your tier, when you performed the work, and whether the project is public or private. That's why it's important to check them at the start of every project. Siteline’s state lien rights resources break it all down.

If a deadline is approaching, or you are unsure: Verify the applicable requirements immediately and take any required steps before the deadline. Continue pursuing payment in parallel

If there is no immediate deadline risk: Calendar the relevant dates and continue through the tree.

Revisit this question before agreeing to another delay. A GC’s promise to pay next Friday generally does not extend a lien or bond claim deadline.

3. Do you know what is holding up payment?

If all you know is “we have not been paid,” find out why. Skip the open-ended “just checking in” email and ask questions the GC can answer:

• Has the pay app been approved?
• Is any backup missing?
• Is there a waiver or compliance issue?
• Has the owner funded the draw?
• Is payment scheduled? If so, for what date?
• Is any portion of the balance being disputed?

What you learn will determine your next move.

If there’s a billing or documentation issue: Find out exactly what's missing or incorrect, whether that's a lien waiver, insurance certificate, pay app, supporting documentation, or change order. Once you've addressed the issue, confirm that the GC has everything needed to process payment and ask for an updated payment date.

If the balance or work is disputed: Ask the GC to identify the disputed amount and explain the reasoning in writing. Then involve the appropriate person internally to resolve it. That might be your PM for a scope disagreement, accounting for a billing discrepancy, or legal counsel for a significant contract dispute.

If payment is approved or supposedly on its way: Move to Question 4 to establish a firm payment date.

If the GC won’t provide an explanation or isn’t responding: Move to Question 5 to determine whether it’s time to escalate.

4. Did the GC give you a firm payment date?

“Soon,” “once the owner pays us,” and the always-popular “next check run” aren’t commitments. Get an actual calendar date, not a vibe.

If yes: Document the promised date and amount, along with who provided them, and follow up if payment doesn't arrive as agreed. If the GC misses that commitment, move the invoice up your escalation queue and proceed to Question 5. Just make sure waiting for payment won't put any notice, lien, or bond claim deadlines at risk.

If no: Keep pressing for a specific date and an explanation of what's holding up payment.  Our payment reminder email templates offer ready-to-use examples if you need help crafting your message. If repeated attempts produce no useful answers or payment, move the invoice higher in your escalation queue and proceed to Question 5.

5. Has routine follow-up run its course?

Your A/R escalation process should establish when it’s time to move beyond routine reminders. Otherwise, one person escalates after seven days while another lets the same balance sit for 60.

Signs that it’s time to escalate include:

• Multiple unanswered emails or calls
• Repeatedly missed payment dates
• A corrected billing issue followed by continued nonpayment
• Internal escalation that hasn’t produced results
• An invoice that reached your threshold for age, amount, or customer risk

If no: Continue your regular follow-up cadence. Assign the next action, set a date, and recheck your rights deadlines before agreeing to wait again.

If yes: Consider more formal action, like sending a demand letter when appropriate (we've got a free template to help), pursuing a mechanic’s lien or bond claim, or involving legal counsel. The appropriate next step depends on your circumstances, contract, and any approaching lien deadlines. Don't delay any required notice or filing while waiting for a response.

Put the decision tree into your collections process.

Following this decision tree is easier when everyone has access to the same information. But when payment terms live in accounting, the PM has the latest payment promise in a text message, and lien deadlines are tracked in a separate spreadsheet, it's easy for something to fall through the cracks.

Siteline brings all those moving pieces together. Its Collections workspace gives teams visibility into outstanding invoices, A/R aging, payment and waiver status, and expected and predicted payment dates. Teams can also automate personalized follow-ups so overdue invoices are always getting worked.

Meanwhile, Siteline’s Lien Rights Management keeps state-specific requirements, deadlines, milestones, and protection status connected to each project. Teams can generate state-specific notices and coordinate certified-mail delivery when needed.

Together, these tools help billing and operations teams see what's outstanding, understand what's holding up payment, and determine what needs attention next. See how Siteline can help your team take control of collections.