What action can a contractor take if they do not receive payment from a project owner?

Suspension of performance is a valid action a contractor can take if they do not receive payment from a project owner. This approach allows the contractor to halt work on the project until payment is made. It's a way to protect the contractor's financial interests while maintaining their contractual rights. By suspending performance, the contractor can avoid incurring additional costs or obligations related to the project during the non-payment situation.

This course of action is often supported by the terms outlined in construction contracts, which may permit a contractor to pause work in the event of non-payment, reinforcing the importance of fulfilling payment terms in a timely manner. By suspending work, the contractor sends a clear message about the seriousness of the situation, which may prompt the project owner to resolve the payment issue more swiftly.

Options such as filing a lawsuit or renegotiating payment terms could involve lengthier processes and potentially antagonistic relations between the contractor and the owner. Adjusting the contract price could create further complications without directly addressing the immediate issue of non-payment.