Question #1
Question:
I hired a contractor to add a room onto my house. I've paid him but he hasn't paid
his subcontractors. The unpaid subcontractors filed liens on my home! How do I
get out of this mess?
Answer:
First, there are a couple of steps you can take to prevent such problems before a project
starts. You can require the contractor to take out a performance bond. If
liens are filed wrongly, you file a claim with the bond company and they pay the
subcontractors, who then release the lien. Performance bonds, however, can be expensive
and may not be appropriate for small jobs. A better tactic, probably, would be to require
the contractor to submit signed lien releases from his subcontractors and his material
suppliers before you hand over final payment for the job. This protects you from any
liens being filed.
But it's too late for that. You might need to contact an attorney and file a lawsuit
to settle the matter. If the amount in dispute is less than $5,000, you may file a
small claims court action against the contractor for a small fee. Win or lose in
court, you still would have to pay the lienholders off in order to get the liens released.
You also may file a complaint with the Contractors State License Board. This board
must investigate each complaint and the contractor must respond to the complaint.
The contractor's license hangs in the balance if he does not.
Question #2
Question:
A friend of mine had a terrible experience with a contractor. Her home remodel
dragged on forever and it seemed it never would be finished. I'm planning to add on
to my home and want to avoid a similar situation. What can I do to prevent problems?
Answer:
There's no substitute for doing your homework and thoroughly checking out a contractor's
qualifications and references before choosing one.
Happy customers are the best references. Ask any prospective contractor to provide
names, addresses and phone numbers for satisfied customers. Call them and quiz them
about the contractor's work.
You should also check with the state Contractors State License Board (800-321-2752) to
ensure your contractor has a current license. Ask if any complaints have been filed
against the contractor and whether they were satisfactorily resolved. A few resolved
complaints aren't necessarily a problem. But a long list of complaints is a definite
danger sign. At the very least, it indicates you might have a tough time working
with the contractor.
Taking these precautions does not guarantee a trouble-free remodel but it does minimize
potential problems.
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