- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Hired a contractor with a suspended license. what is my risk and how do I mitigate it.
Posted on 5/15/19 at 12:55 pm
Posted on 5/15/19 at 12:55 pm
Doing an addition to my home. We are almost done framing. Found out my contractor has a suspended license (prod due to financial reasons). Total cost is about $150K and I'm 2 payments in. What should I do to mitigate risk going forward? I've heard get a "release of lien" so no subs can sue if he doesn't pay them. I can get him to show me receipts of when he pays for material/subs. Anything else I should be worried about?
8
Posted on 5/15/19 at 1:07 pm to schlodc
How big are the two payments and what does your contract say?
Posted on 5/15/19 at 1:11 pm to schlodc
Did he represent himself as having a license?
This would guide my reaction to this news and determine if he had finished his last day for me or not.
This would guide my reaction to this news and determine if he had finished his last day for me or not.
Posted on 5/15/19 at 2:05 pm to cave canem
You need these things right away.
A copy of his worker's comp insurance.
A certified copy received in the mail from his insurer of his liability insurance WITH you (and your spouse if her name is on the house) named as "OTHER INSURED". This is free from the insurer and guarantees that if anything the contractor does causes damage or injury to anything or anyone that you are covered. Do not accept NO as an answer from your contractor and tell him he can't step foot on your property to work until you get it.
Call the worker's comp company and verify the policy is in force.
Agree to payout amounts for materials delivered and work completions. TD can help you with those values. Withhold 10% back of everything until your final punch list is completed and you approve a final inspection of the work. Then release final payment.
*Edit: UNDER NO CIRCUMSTANCE release final payment until he signs a waiver of lein in front of a notary and delivers an original signed and stamped copy.
A copy of his worker's comp insurance.
A certified copy received in the mail from his insurer of his liability insurance WITH you (and your spouse if her name is on the house) named as "OTHER INSURED". This is free from the insurer and guarantees that if anything the contractor does causes damage or injury to anything or anyone that you are covered. Do not accept NO as an answer from your contractor and tell him he can't step foot on your property to work until you get it.
Call the worker's comp company and verify the policy is in force.
Agree to payout amounts for materials delivered and work completions. TD can help you with those values. Withhold 10% back of everything until your final punch list is completed and you approve a final inspection of the work. Then release final payment.
*Edit: UNDER NO CIRCUMSTANCE release final payment until he signs a waiver of lein in front of a notary and delivers an original signed and stamped copy.
This post was edited on 5/15/19 at 2:09 pm
Posted on 5/15/19 at 2:23 pm to schlodc
quote:
I've heard get a "release of lien" so no subs can sue if he doesn't pay them.
FYI, a general contractor signing a lien release will has no affect whatsoever on a subcontractor's ability to lien a project or file a lawsuit. A lien release will have him swear that he paid his subs, but there is a chance may sign it even if he hasn't done so.
If the subcontractors have met all of the legal requirements laid out in the Private Works Act, they will be able to lien the project and sue you, as the owner of the project, even in the absence of a contractual relationship.
There are significant consequences for your contractor for performing work without a license. You'll probably get some good advice here, but it wouldn't hurt to sit down with an attorney and hash this out.
Posted on 5/15/19 at 10:43 pm to schlodc
How has he pulled a permit with a suspended license?
Has anything been inspected by local authority (framing, plumbing rpugh in, etc)?
Can't get a c.o. until all inspections are signed off
Has anything been inspected by local authority (framing, plumbing rpugh in, etc)?
Can't get a c.o. until all inspections are signed off
Posted on 5/15/19 at 10:45 pm to schlodc
So you hired Matt Morris, eh?
Posted on 5/16/19 at 6:59 am to schlodc
Your state laws may differ. I'm in Tennessee, so I can only speak to my local laws. As a sub, I cannot file a lien on a residential property for non-payment unless the homeowner is acting as the GC. I have to sue the GC directly. That's different from commercial job where I can file a lien on the owner. Hopefully your state has a similar law.
Posted on 5/16/19 at 9:10 am to BottomlandBrew
I think OP is in LA, and subs can definitely lien residential projects. That said, the general contractor who is licensed cannot lien a residential project.
Posted on 5/16/19 at 9:50 am to schlodc
Thanks for the advice. I am in LA, first 2 payments were for $25K each. He has a different contractor name and number on the permit he got. Not the same as on the contract I signed. wonder if i should get that contactor's name on the contract.
Posted on 5/16/19 at 4:06 pm to schlodc
Ahh yeah. You need him.
Posted on 5/16/19 at 4:23 pm to schlodc
quote:
Not the same as on the contract I signed. wonder if i should get that contactor's name on the contract.
Hell yes you should get that name. Figure out who it is, likely a friend helping him out for a kick back. If that guy is legit, you can approach him. Or sue them both if needed.
Posted on 5/17/19 at 8:08 pm to HubbaBubba
Homeowners are specifically exempt from comp in LA so you don’t have anything to worry about there.. I think it’s RS23:1035 but I’m too lazy to look it up right now. If you really want to check and see if he has comp, do a search for the online work comp verification system and look him up.
I’d be getting a new contract ASAP and communicating with the subs.
I’d be getting a new contract ASAP and communicating with the subs.
Posted on 5/17/19 at 9:56 pm to schlodc
What all are you getting added to your home?
Posted on 5/18/19 at 10:33 pm to schlodc
quote:
Thanks for the advice. I am in LA, first 2 payments were for $25K each. He has a different contractor name and number on the permit he got. Not the same as on the contract I signed. wonder if i should get that contactor's name on the contract.
If you were unaware of this going in then ask him to leave your property immediately and contact an attorney.
To the poster who claimed no comp issues for the owner all bets are now off as he is well aware the man is unlicensed and is no longer protected by that law.
OP you really need to go back and read the fine print on YOUR insurance policies and mortgage if any and sort out where you stand with them.
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News