Contractor failed to provide lien waivers as specified in the contract
Our contract with our general contractor on our home rebuild includes the following sections:
a. ”Contractor shall submit to Owner an invoice for payment and fully executed lien waivers in a form acceptable to Virginia mechanic’s line law(s), ……”
b. Indemnification to Owner on the payment or nonpayment by Contractor to any of its subs or sub-subs for work performed on or off site.
I’ve had several subs who haven’t been paid, and they both have contacted me about helping get paid. They mentioned putting a lien on the house to get paid. The contractor did not submit lien waivers or invoices for the work.
What are my options – is the contractor in breach of the contract? Can the subs put a lien on my house?
Re: Contractor failed to provide lien waivers as specified in the contract
Yes, the unpaid subs could file liens against your house, provided they met the necessary criteria provided for in the mechanic’s lien statute(s).
One approach would be for you to send written notice to the general contractor that the subs have contacted you regarding their unpaid status for work which they’ve completed on your house and are threatening to file liens against your property and, consequently, you expect these matters to be cleared up
in a timely manner. And, furthermore, you could point out in this letter that the general contractor has failed to comply with subsections a. and b. of
the contract between you and him and, consequently, if the subcontractors’ claims have not been properly addressed within a reasonable time and that one or more mechanic’s liens is recorded against your property, then you will have no alternative but to consider pursuing appropriate legal action against this general contractor.
Michael E. Hendrickson
Attorney & Counsellor at Law
211 North Union Street Suite 100
Alexandria, 22314