PDA

View Full Version : Lien on construction company


entus
Dec 4, 2006, 03:40 PM
So I signed a contract for a construction company to do some building on the house. Which is coming along nicely. Today a man stops by my house and advises me that he was the one that did the concrete work and he needs to be paid because the contractor did not pay him. He then threatens to put a lien against my house. The contract with the contractor specifies that a foundation will be poored and I have paid the contractor the 25% of the bill.

The bill from the contractor is borken into 25% when excavation/foundation is poored, 25%when walls are up and trusses are delivered, 25% when windows etc.. Are up and 25% upon completion to final inspection.

Is it possible for this gentleman from the concrete company (who has a contract with my contractor) to put a lien against my home? Is this a pressure tactic for me to lean on my contractor? If this is some BS tactic by the concrete guy, how do I prevent him from doing anything? Should I call my Lawyer and put in some expense?

mr.yet
Dec 4, 2006, 04:03 PM
Your contract is with the construction co. you did not hire or contract with the concrete co. no contract no lien. Besdie he will have to get a udgment against you before he can place any lien.

If seems as your constrauction co. has defaulted with the concrete co which is not you contraact.

Fr_Chuck
Dec 4, 2006, 05:25 PM
This is a unique area of the law, and yes, if the contractor you hired does not pay the subcontractors, and you did not have each subcontractor sign a wavior, yes they can come back against you for payment. He will have to go to court and show he was not paid, and most likely file against you and the contractor, if he wins the judgement, he can put a lien.
You need to contact the contractor at once.

This is not fair but happens everyday. That is why picking the proper contractor, who is licensed and insured is so important.

entus
Dec 5, 2006, 07:52 AM
I have had the contractor sign a release of lien conditonal on final payment. If I understand right then once I have paid the contractor and final payment has cleared then no sub-contractors can come at me for not being paid by the contractor? It is not a fair practice by any means. I am waiting on a return call from my attorney and have contacted the contractor. My contractor is licensed, bonded and insured. I have all his information through the state for his license. He had no outstanding complaints with the BBB and was sued once in ten years on a construction project in 1998. According to the LNI (washington state) that suit was dismissed.

But the release of lien should put me free and clear of any all subcontractor BS... I hope.

ScottGem
Dec 5, 2006, 08:32 AM
I'm not sure the release as signed by the contractor would be binding on the subcontractors unless they signed a similar release.

But I think you are a bit overly concerned here. A lien is simply an interest in the property. A mechanics lien (which the concrete contractor is talking about) simply means that you can't convey clear title (sell the house) until the lien is satisfied. If you are doing work on the house it indicates you plan on staying for awhile.

You said you contacted the contractor. What did he say about the sub-contractor's claims?

Basically, I would sit tight here. Before the sub can place the lien, they would have to take you AND the contractor to court. If they do, and win, you can countersue the contractor.

entus
Dec 6, 2006, 02:29 PM
Appreciate all the comments. Although I generally overkill with attempting to protect myself and family from this crap, its bound to happen. I spoke with the contractor and he has paid the sub for the concrete and pump truck, but they are dueling over the sum of the hours. I have managed to get them both together and discuss ( I am not real nice when I feel threatened at all) and things are settling down and agreements are being settled. I have looked into the "mechanics Lien" thanks for that. I am now armed with some (not a lot) of knowledge surrounding that process. Considering the amount they are dueling about should be settled in no time.

thanks thanks