How Washington Handles Unpaid Contractor Disputes – Liens, Lawsuits, and Mediation

Unpaid contractor disputes are common in the construction industry, affecting both contractors seeking payment and property owners disputing work quality or costs. In Washington State, contractors have several legal tools to recover what they are owed, while property owners have ways to contest or resolve payment issues. Understanding these options is key to protecting your financial interests and avoiding lengthy, expensive conflicts.

Mechanic’s and Materialmen’s Liens

One of the most powerful remedies for contractors in Washington is the mechanic’s lien (often called a construction lien). Under RCW 60.04, contractors, subcontractors, and suppliers who have not been paid for labor, materials, or services can file a lien against the property where the work was performed. This lien creates a legal claim on the property, preventing its sale or refinancing until the debt is resolved.

Strict timelines apply—generally, a contractor must give a pre-claim notice for certain types of projects and must record the lien within 90 days of last providing labor or materials. Failure to meet these deadlines can forfeit lien rights. Once filed, the lien can be enforced through foreclosure proceedings if payment is still not made.

Lawsuits for Breach of Contract

If a lien is not appropriate or the deadline has passed, a contractor can file a breach of contract lawsuit to recover unpaid amounts. In Washington, the written or oral contract between the parties will guide the claim, and courts will look at the agreed scope of work, payment terms, and performance. Property owners may defend against these claims by alleging defective work, failure to meet specifications, or breach by the contractor.

Mediation and Alternative Dispute Resolution

Many unpaid contractor disputes can be resolved without going to court through mediation or other forms of alternative dispute resolution (ADR). Mediation allows both sides to present their positions to a neutral third party who helps negotiate a mutually acceptable settlement. This process is often faster, less expensive, and less adversarial than litigation. Some construction contracts in Washington require mediation or arbitration before a lawsuit can be filed, so reviewing the contract’s dispute resolution clause is critical.

Protecting Your Rights

For contractors, keeping detailed records of contracts, change orders, invoices, and correspondence can strengthen a claim. For property owners, documenting issues with the work and communicating concerns promptly is essential. In either case, missing statutory deadlines or failing to follow proper procedures can significantly weaken your position.

Unpaid contractor disputes in Washington require a careful understanding of lien rights, contract law, and alternative dispute resolution options. Whether you are a contractor seeking payment or a property owner contesting charges, the right legal strategy can make the difference between a swift resolution and a prolonged dispute. The Law Office of Erin Bradley McAleer represents both contractors and property owners in construction payment conflicts, helping clients protect their financial interests and resolve disputes effectively. Contact us today for a free consultation.