Pay contractor or subcontractor? - Page 3 - DIY Chatroom

framer53 · 07-21-2009, 10:38 AM

The attorney informed us that here, you cannot file a mechanic's lien unless the value of the home has been improved at least a certain percentage>>>>>>>>>>>>>>>>>>>>>

New one to me. What state do you live in. I think that he is wrong.

I think a judge might look at the emails that he has sent as proof that he didn't abandon the job.
Chances are you will never hear from the contractor again if the facts are as you have presented.

ARI001 · 07-21-2009, 10:56 AM

Quote:

Originally Posted by framer53

The attorney informed us that here, you cannot file a mechanic's lien unless the value of the home has been improved at least a certain percentage>>>>>>>>>>>>>>>>>>>>>

New one to me. What state do you live in. I think that he is wrong.

I think a judge might look at the emails that he has sent as proof that he didn't abandon the job.
Chances are you will never hear from the contractor again if the facts are as you have presented.

New one to me to. I think he may have meant you would not be able to perfect the lien.

framer53 · 07-21-2009, 11:07 AM

Quote:

Originally Posted by ARI001

New one to me to. I think he may have meant you would not be able to perfect the lien.

Maybe, even though the worth of an improvement has never come up when I have tried to perfect a lien.
I think there maybe some confusion somewhere.

Mom In Charge · 07-21-2009, 12:22 PM

He1en, may I _STRONGLY_ suggest that you print every posting on this webite related to your issue. And retain the copies for years (until statute of limitations expire in your area). Your contemporaneous statements here will support you in court, if needed.

Also, ALWAYS write on your check$ comments about the "what for", when and why. Payment for materials could be argued as for labor, unless so labeled on your check. If you need to write 5 checks to pay one invoice (with comments), then DO IT.

Be careful that your checks are payable to the name of the company EXACTLY as on the license (same as on contract, too -- it you were careful). And do look at the endorsement on your checks after they are cashed. Banks no longer look at endorsements (except on largest amounts -- they hedge their bets and write off "small" errors). Verify that the endorsement matches the name of the payee (e.g., check payable to "Complete Morons, Inc." should NOT be endorsed just by John C. Moron).

PLEASE realize that your bigger concern is not the workmanship, but any claimed "injury" (which the GC, or a worker, may not discover -- have diagnosed by an M.D. -- until much later). The entire value of your house is ar risk. Unless you prefer sleeping in a tent, pay attention NOW and keep your files!

he1en · 07-21-2009, 05:42 PM

I have everything documented, my job requires a long paper trail so it's second nature. Hadn't yet printed this thread but now I will. The emails he has sent to me specifically say they won't do certain things - show up, provide materials, and explicitly tell me to provide his duties. He says "if you want this to get done, you'll take care of it" and does not answer any more of my questions. I had 2 choices: Stay in the contract, or terminate the contract. I chose the latter. I'm confident I made the right choice. There are so many laws (not just our silly little contract) that he broke: In our state, you can only require 30% down, he forced 50%. He sent over illegal and unlicensed subcontractors, and the list goes on. He'd be an idiot to pull anything.

I appreciate all of the concern, but I have to put this behind me. The facts here are simple: I followed the contract and can prove it, he didn't follow the contract and I can prove it. I haven't heard from him since I 'fired' him, so I'll create my little file, stick it in a safe place, move on, and hopefully never have to get it out.

Y'all made me a little nervous about having not heard about this type of mechanics lien requirement before so I gave a different attorney a call, and he confirmed what the previous attorney had said: home improvement mechanics liens can only be brought upon a 15% increase in value. I also found it in our state's legal code online and I'll send the link to anyone who wants it.

kbsparky · 07-21-2009, 06:29 PM

Maryland is one such state that has a minimum increased value requirement before a lien against a home can be perfected. I know that there are others out there as well ....

cochise7969 · 07-21-2009, 06:52 PM

I hate how contractors are like this, I consider them to be cavemen. Good if you tell them to do something but bad when it comes to running a business.

**Scuba_Dave** · 07-21-2009, 07:06 PM

Not all contractors....some (most?) are very responsible
Its the "bad" ones that create the problems
And you usually hear more about problems then when things go smoothly

framer53 · 07-21-2009, 07:36 PM

Quote:

Originally Posted by cochise7969

I hate how contractors are like this, I consider them to be cavemen. Good if you tell them to do something but bad when it comes to running a business.

What business are you in?

framer53 · 07-21-2009, 07:41 PM

Quote:

Originally Posted by kbsparky

Maryland is one such state that has a minimum increased value requirement before a lien against a home can be perfected. I know that there are others out there as well ....

So how do you protect yourself from nonpaying customers? You have to take them to court?

Man, I'm glad I don't live in your state!

jomama45 · 07-21-2009, 07:43 PM

Quote:

Originally Posted by cochise7969

I hate how contractors are like this, I consider them to be cavemen. Good if you tell them to do something but bad when it comes to running a business.

What a great contribution you have made to this forum!

IMO, there's many contractors on this site that are great professionals, experts in business, & are even willing to offer some hard earned experience up to those looking for guidance.

**Scuba_Dave** · 07-21-2009, 07:48 PM

Quote:

Originally Posted by framer53

What business are you in?

Real estate according to his Profile

It's the contractors on this site that come to the aid of peiople who run into problems with another contractor. They give advice & recommend how to proceed

framer53 · 07-21-2009, 08:04 PM

Quote:

Originally Posted by Scuba_Dave

Real estate according to his Profile

It's the contractors on this site that come to the aid of peiople who run into problems with another contractor. They give advice & recommend how to proceed

Shall we all start talking about the hard time we have had with overpriced realtors?

he1en · 07-21-2009, 08:10 PM

There are really good, and really bad people in both profession. Unfortunately I just happened to run into a really bad contractor. Next time, I will do more vetting and hope to end up with a really good one. FWIW - when we were purchasing our home, we had a real estate agent try to talk us into upping our price point $200k, just because the mortgage company said we *could* --

While the 15% may be a detriment to contractors trying to collect from customers that do not pay, it also protects people like me who have been taken advantage of by contractors. So... I can't say I'm totally against it!

kbsparky · 07-24-2009, 05:14 AM

Quote:

Originally Posted by framer53

So how do you protect yourself from nonpaying customers? You have to take them to court?

Man, I'm glad I don't live in your state!

I have had several non-paying "customers" that I took to court. Taking someone to court is a waste of time most of the time. I have always "won" the case, but rarely been able to collect anything.

Had one case where I got the judgment, but the guy was slick. Seems he held 3 part-time jobs, so that any one employer was paying him less than the legal threshold amount for a garnishment to stick. Never collected a penny from that one.

On another case, I perfected a lien on house that stuck us for several thousand -- ½ the job, plus extras. We successfully got a wage garnishment on them, but it was the lawyer who ended up with most of the loot.

I still have the lien, but the house is now in foreclosure and its unlikely we will ever see any of the remaining amounts due.

My best ammo in getting paid is holding up the final inspection and certification for ransom. Makes the POCO have to switch off the power after the temp card expires ....

On smaller jobs where a cut-in-card is not required, I am at risk for being taken for a ride. I turn over those accounts to a collection agency, who can make their credit reports go downhill for non-payment.