In construction litigation, winning the case is often only half the battle. Many property owners and developers discover that after obtaining a judgment against a construction company, there is little or nothing to collect.
This is not an accident. Construction companies are frequently structured to limit exposure, operate with minimal assets, and wind down or shift operations once a dispute arises. As a result, a judgment can look strong on paper but feel meaningless in practice.
The key is understanding that judgment enforcement in construction cases requires strategy, not just procedure.
Why Are Judgments Against Construction Companies So Hard to Enforce?
Construction companies often:
- Maintain low balances in corporate bank accounts
- Lease equipment instead of owning it
- Operate through multiple related entities
- Shut down or go dormant after litigation
Traditional post-judgment tools—bank restraints, information subpoenas, property levies—frequently lead to dead ends. When the corporate debtor has no attachable assets, the enforcement approach must change.
What Can You Do If the Construction Company Has No Assets?
When assets are unavailable, the correct question is not “What does the company own?” but rather:
“What does this company need in order to keep operating?”
In many construction cases, the answer is licensing.
Contractors performing home improvement work in New York City must hold an active license issued by the NYC Department of Consumer and Worker Protection (DCWP). That license is essential to legally perform work and generate income.
A judgment that threatens a contractor’s license is often far more powerful than one that targets an empty bank account.
Can a Contractor’s License Be Used to Enforce a Judgment in NYC?
Yes.
In the right circumstances, unpaid judgments related to a contractor’s business can be raised in proceedings before DCWP. If a license holder fails to cooperate or resolve outstanding obligations, the agency has authority to suspend or revoke the contractor’s license.
That regulatory leverage can change the dynamics of enforcement immediately.
A Real Example: Turning a “Paper Judgment” Into Real Leverage
In one of our matters, we obtained a judgment in 2021 against a construction company. Post-judgment discovery confirmed what we suspected: the corporation itself had no meaningful assets from which to collect.
Rather than abandoning enforcement, we examined how the company continued to operate. We discovered that the judgment debtor held a valid NYC home improvement contractor license.
We initiated a proceeding directed at the license holder, placing the judgment directly at issue before the licensing authority. The risk was no longer abstract. The contractor faced the possibility of losing the legal ability to operate in New York City.
The result was swift. The judgment debtor entered into negotiations, an agreement was reached, and the judgment was ultimately collected.
The leverage came not from assets—but from the license.
Why Licensing Pressure Often Works When Traditional Enforcement Fails
Licenses matter because they:
- Directly affect a contractor’s livelihood
- Cannot be ignored without consequences
- Create urgency where none existed before
A contractor can ignore a judgment for years if it has no assets. It cannot ignore the risk of losing the right to work.
When traditional collection methods fail, judgment enforcement requires a deeper analysis.
Speak with an attorney experienced in construction litigation to evaluate alternative enforcement strategies.
What This Means for Construction Litigants and Property Owners
If you have a judgment against a construction company that appears uncollectible, that does not necessarily mean enforcement is over. It means the analysis must go deeper.
Effective judgment enforcement may involve:
- Reviewing licensing and regulatory status
- Identifying agencies with enforcement authority
- Applying pressure where it actually impacts operations
Every case is different, but in construction litigation, regulatory leverage is often the missing piece.
The Bottom Line
A judgment only has value if it can be enforced. In construction cases, enforcement frequently requires thinking beyond bank accounts and real property.
When a contractor depends on a license to operate, that license can be the leverage that finally gives a judgment teeth.