Unpaid Invoice? Know Your Contract Before You Stop Work

Short Answer: Can a Contractor Stop Work Over Unpaid Invoices in Florida?

Whether a contractor can stop work over unpaid invoices often depends on what the written contract says. Florida statutes on filing deadlines also run alongside the contract. Whether a particular pause is allowed depends on the facts. This page explains the contract terms to check, the written notice to send first, the difference between a pause and an abandonment, and the deadlines that keep running during a payment dispute. Ayala Law PA focuses on business and construction litigation, including contractor and subcontractor disputes.

Withholding Work vs. Abandoning the Project

Withholding work means pausing for a reason the contract allows, such as an overdue payment, after proper notice. Abandoning a project means leaving the job without that basis. The difference matters. Whether a pause in performance counts as a breach depends on the facts and the contract’s terms. The contract’s payment and default provisions are often central to these questions. A pause that is written, dated and tied to a clause reads very differently from a walk-off with no paperwork.

What the Contract Needs to Say Before Work Stops

The contract usually decides whether you can pause work over money. Start with the suspension or stop-work clause, the payment due dates and any late-payment remedy. Next, check the notice-and-cure terms. These spell out the form of notice, how it must be delivered, the address to use and how many days the other side has to pay. Some subcontracts use pay-if-paid or pay-when-paid language. That wording can change when a subcontractor gets paid while the owner has not paid the general contractor. Read the termination clause too. Many contracts require notice before termination, and skipping that step can turn a valid pause into a problem. Finally, look at the attorney’s fee, interest and dispute resolution clauses. Under Fla. Stat. § 57.105, a contract that allows fees to a party who must enforce it lets the court allow reasonable fees to the other side when that side prevails, for contracts entered on or after October 1, 1988.

How to Give Written Notice Before Suspending Work

A written notice that names the unpaid amount and a firm deadline is the most useful step before any pause. State the invoices or pay applications involved, their due dates and the total owed. Give a clear date to pay. Say that work will stop if payment does not arrive by that date. Send the notice the way the contract requires, to the address it names, and keep proof of delivery. Save copies of every invoice, change order and message with the owner or general contractor. Avoid vague statements such as “we’ll stop soon.” A specific notice shows what was owed, when it was due and when the work would pause. That record matters if the dispute reaches a judge or arbitrator.

Florida Notice to Owner and Lien Deadlines That Run Alongside

Lien rights and suspension rights are separate questions. A lien notice and a work stoppage raise separate questions, and the answers depend on the contract and the facts. Lien steps can carry short time limits, so check them early in any payment dispute. Court filing deadlines are a different issue. Under Fla. Stat. § 95.031, a cause of action generally accrues when its last element occurs. A contract term that shortens the filing period is void under Fla. Stat. § 95.03.

Risks of Stopping Work Without Written Notice

A stoppage without notice gives the other side a stronger story. Without a written notice, the other side can argue that your pause was the first breach, not their missed payment. That can make it harder to recover what you are owed. Unannounced stoppages also create disputes over site access, unfinished work and warranty responsibility. Those issues often take longer to resolve than the unpaid invoice itself. Do not assume a side claim will fill the gap. Under Florida law, where an express contract covers the same subject matter, claims arising out of that contractual relationship will not support a claim for unjust enrichment, as Williams v. Johnson explains. Keep daily logs and photos. They show the work completed and the materials on site.

Practical Steps Before and After Suspending Work

Confirm the numbers first, then send written notice, then track every deadline. Check the amount owed against invoices, pay applications and any lien waivers you have signed or received. Send the written default and cure notice before you stop. Keeping a written list of the contract’s notice and payment dates can help you track what has happened. Preserve the job site record, including photos, daily logs, delivery tickets and correspondence. A demand letter is often the next move. If a lawsuit is filed for money damages, a Florida court must refer the case to mediation on request, provided the requesting party is willing and able to pay the costs of the mediation or the costs can be equitably divided between the parties, unless an exception applies. Under Fla. Stat. § 44.102, one exception is an action filed to collect a debt. If your contract has an arbitration clause, Fla. Stat. § 682.02 makes that agreement valid and enforceable, except on grounds that exist to revoke any contract.

Talk Through Your Unpaid Project With Ayala Law PA

If work has stopped, or is about to stop, over an unpaid invoice, the contract, the notice history and the deadlines are the first things to sort out. Eduardo A. Maura is the responsible lawyer for this page. The firm’s bona fide office is at 1646 W Snow Ave in Tampa. The firm serves businesses in Tampa, Hillsborough County, Brandon, Riverview, Plant City, Temple Terrace and the wider Tampa Bay area. Call (305) 570-2208 or use the contact page to talk through your project. Fees vary by matter, so ask how the firm bills before any review. Your case may be referred to another lawyer or firm.