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"The construction work is done, but the client won't pay. Is a lawsuit the end of it?" This is a common question on construction sites. In reality, even a winning judgment may not get you paid if the other party has no assets, so litigation alone is often not enough. Here is what to check first and how to respond when your construction payment goes unpaid.

[Contents]

1. Litigation alone is not enough – consider provisional attachment and a lien

2. Watch the 3-year short statute of limitations on construction payment claims

3. Extra-work payment: keep this evidence to have it recognized

4. Stopping work is risky – it can become the contractor's own default

1. Litigation alone is not enough – consider provisional attachment and a lien

Filing suit is fine, but you must plan how to actually collect. A judgment is of little use if the other party has no money. That is why it helps to combine a construction payment lawsuit with a provisional attachment on the other party's assets and, where possible, the enforcement of a contractor's lien. Preparing litigation, attachment, and lien together as a single recovery strategy raises the chance of actually recovering the money.

2. Watch the 3-year short statute of limitations on construction payment claims

Under the Civil Act, a claim for construction payment is a claim relating to construction work and may be subject to a 3-year short statute of limitations. In other words, simply waiting too long can extinguish the right itself. If you are unpaid, do not let time slip by; it is safer to pursue the claim and preservation measures before the limitation period runs out.

3. Extra-work payment: keep this evidence to have it recognized

In disputes over extra-work payment, the court examines whether the extra work actually took place, whether it went beyond the original contract scope, whether the client gave any instruction or approval, and whether there was an agreement on the extra-work payment. The best evidence is an extra-work estimate and the client's written approval. If you received only verbal instructions on site, keep at least before-and-after photos, material delivery records, daily work logs, supervisor confirmations, and messaging chats. As long as the instruction or agreement for the extra work is recognized, you may claim the payment even if the exact amount was left to be fixed later.

4. Stopping work is risky – it can become the contractor's own default

Stopping work simply because you have not been paid is dangerous. If you halt construction merely because the other party delayed part of the payment, it may instead amount to the contractor's own default. That said, if payment already past due remains unpaid, or there are grounds showing that future payment is seriously insecure, you may in some cases assert a right to suspend work or refuse performance. Before stopping work, therefore, send a formal demand for payment by certified mail and review the amount owed, the other party's ability to pay, and the progress-payment terms of the contract before you act.

Facing a construction payment dispute? Talk to Cheongchul Law Firm

A construction payment dispute is best handled by preparing not only litigation but also preservation measures such as provisional attachment and a lien, along with evidence and limitation management, so that you can actually recover the money. Drawing on hands-on experience in construction and real estate, Cheongchul Law Firm designs a full payment-recovery strategy from start to finish. If unpaid construction fees are weighing on you, please feel free to request a consultation.

This post is provided for general legal information and does not constitute legal advice on any specific matter. The outcome of an individual case may vary depending on the facts and evidence, so please consult an attorney.