What Can You Do If a Customer Does Not Pay You for Work Done to Their Home?

Why the answer changes from state to state

The basic steps are the same everywhere. You prove the work was done, you ask for payment in writing, and if that fails you use a legal tool to collect. What changes by state is the detail: who can file a lien, what notices you must send first, how long you have to file, how much you can claim in small claims court, and whether your license affects your right to sue.

We are not going to list fifty sets of deadlines here. Rules change, and a wrong date can cost you your claim. This guide gives you the steps in order, then a checklist of exactly what to look up for your own state. This is general information, not legal advice. For a large unpaid balance, talk to a local construction attorney.

Step 1: Build your paper trail before you push

Pull together everything that shows what was agreed and what was done. That means the signed estimate or contract, any change orders, the invoices, texts and emails, and dated photos of the finished work. If the customer approved extra work by text or in a portal, save that message. A verbal okay is hard to prove. A written one is easy.

Then add up what is owed. Separate the original contract amount, approved extras, and any late fee your contract allows. If you did not put a late fee in writing, do not add one now. A clean, simple number is easier to collect than a padded one.

Also look at why they are not paying. If the customer disputes part of the job, that is a different problem from someone who just goes quiet. Our guide on handling a customer who disputes an invoice covers that case.

Step 2: Ask for payment in writing

Many unpaid jobs get settled at this stage. Start with a friendly reminder that includes the invoice and a link or way to pay. If that gets no answer, send a formal demand letter. Keep it short and calm. State the work done, the date, the amount owed, the date you expect payment by, and what you will do next if it is not paid.

Send it in a way you can prove, such as email plus a tracked mail option. Keep a copy. A demand letter also helps later, because a judge or lien office can see you gave the customer a fair chance.

Offer an easy way to pay. Some customers delay because writing a check is a hassle. Online card and bank payment options remove that excuse. If money is tight, a short written payment plan beats no payment at all.

Step 3: Pick your legal route

Lien claim. In many states, a contractor who improves a property can file a claim against it, often called a mechanics lien. It can pressure a homeowner because it clouds the title when they want to sell or refinance. Most states require specific notices and strict filing deadlines, and rules for homeowner (residential) jobs are often different from commercial ones. Missing a deadline can end this option.

Small claims court. Every state has a court for smaller money disputes, and you can usually file without a lawyer. Each state sets its own dollar limit, filing fee, and process. It is often the quickest route for a modest balance. Bring your contract, invoices, photos, and demand letter.

Regular civil court. If the balance is above the small claims limit, you may need to file in a higher court. A lawyer is usually worth it here. Some contracts say the loser pays attorney fees, so check yours.

Collection agency. Some agencies take unpaid accounts for a share of what they collect. This avoids court, but you give up part of the money and some control over how the customer is treated.

Winning a judgment is not the same as getting paid. You may still need to use your state's tools to collect, which can take time.

What to check for your state before you act

Use your state's official websites, such as the court system, the contractor licensing board, and the secretary of state. Or ask a local attorney. Look up these items:

Lien rules: whether you have lien rights on residential work, what preliminary notice you must send, the deadline to file, and the deadline to enforce it.

Licensing: whether your license must be active, and whether working without one limits your right to collect.

Contract rules: whether your state requires certain wording, a written contract, or cancellation notices on home jobs. Missing these can weaken your claim.

Court details: the small claims dollar limit, where to file, the filing fee, and how to serve the customer.

Time limits: how long you have to sue on an unpaid invoice. This is separate from lien deadlines.

Interest and fees: whether you can charge interest or late fees and what must be in your contract.

How to make non-payment less likely next time

Most collection problems start before the job. Use a written estimate the customer signs. Put every change in a written change order before the work happens. Bill in stages on bigger jobs so you never carry the full cost of the work. Do not let a final payment drift for weeks after the finish.

A customer job portal that holds the approved estimate, change orders, photos, and invoices in one place gives you a clear record if you ever need to collect. If you want to bill in stages and take card or bank payments online, see our progress billing software page.

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