When General Contractors overcharge & lein deal
We sell Modular and Mobile Homes. In order to set our Modulars we must hire a General Contractor which we did. He verbally quoted one price and when job was done it was elevated by about $6600.00 We only had a $4000 deal anyway since it was our first one
When we disagreed he agreed to meet with us verbally and go over. Now that the loan has closed he has yet to me with us but liened the property . Do we have
any recoarse or are we going to have to lose. The problem is he has two more jobs going for us.. Do I have any recoarse at all or do I have to pay..We are totally at his mercy and we are not in business to make him money and lose us money
Any suggestions or can you refer me anywhere
Re: When General Contractors overcharge & lein deal
Because the facts are a little unclear, I recommend that you speak with an attorney for specific legal advice. However, as a threshold matter, it is important to remember that you are not totally at the contractor’s mercy. Both you and the general contractor have legal rights and obligations. In construction law, verbal contracts can be very difficult to enforce because the exact terms and conditions of the contract are hard to prove. What you feel is a legally binding contract the GC may characterize as merely a “rough estimate”. For future reference, you’ll be much better off if you seriously consider getting all future contracts in writing.
As for the lien, it is a claim against the Owner’s property, not against you. Read your contract with the Owner carefully and determine whether the Owner is contractually obligated for the cost overrun. If you determine that the Owner is without blame, the ethical thing to do is to keep them out of the dispute and have the lien removed.
In order to have the lien removed, you will need a Final Release of Lien from the GC, or you can transfer the Claim of Lien to a bond. Transferring the Claim of Lien to a bond will cost you some money, so figure that into your negotiations with the GC. You may also be able to get the lien thrown out for failure to comply with Florida’s Lien Laws, but you will likely need a lawyer’s assistance for that type of legal challenge.
If you cannot come to an agreement on how much is owed, you may wish to go to small claims court to resolve the matter or hire an attorney. If you decide to go to small claims court without a lawyer, the Clerk of Court may be able to assist you in filling out the paperwork. But remember, the Clerk of Court’s personnel are not lawyers and cannot give you legal advice. Whether you’ll win or lose is for the judge to decide and will probably turn on which party has the most credible testimony and witnesses. Be absolutely sure to bring all the evidence you have in the case. Best of luck to you, hope the information was helpful.
Sincerely,
FRANK V. REILLY, P.A.
Frank Reilly
Frank Reilly
Reilly Roche LLP
600 Corporate Drive, Suite 510
Fort Lauderdale, FL 33334