Legal Question in Construction Law in Louisiana

Re: Non payment

This depends on what type of contract you have with the subcontractors - & highlights the importance of having subs sign a solid contract with you defining the terms.

Most Contractor/Subcontractor contracts have either "pay when paid" OR "pay if paid" clauses in them.

If you have a "pay when paid" clause in your contract, if you do not receive payment from a client you will be liable for paying your subs w/in a "reasonable time," regardless of whether you ever receive payment from the subs.

If you have "pay if paid" clause, however, you are only liable for paying the sub IF and ONLY IF you receive payment from the client. You must then pay the sub w/in a reasonable time.

In LA, a contractor must pay its subs w/in 14 days from receipt of payment from an owner, or they may be sued for atty fees and 15% penalities, plus damages.

Good luck.