Suggestion for contracting out work

[JMURiz]

All,
Just a helpful hint to all of you guys building garages, wish I would have known about this before I started.

Be sure to get a lien release from your general contractor, if they are sub-ing out any work! The AIA has a form that is great, think it's $10 or so.

Just found out my GC didn't feel like paying his concrete subcontractor, and guess why they put a mechanic's lien on...yep, my house. Even though I had never signed a contract with the concrete company.

Just be safe, not sorry when dealing with GCs.

Oh yeah, got the letter the day I finally passed framing inspection, way to put a damper on what should be a good day!

 

[Willy Victor]

That not good Kemo Sabe.

Willy

 

[sharpshooter]

Well I guess you cant give that GC a good reference. That really ***** to hear, so what is the proposed plan? do you pay it, do you go to court???

 

[JMURiz]

Still working out the details, but as you can expect, hard to get a straight answer out of the GC. If it goes to court I will probably be OK, I have pictures proving that the lien was completed beyond 90 days from the end of the month the work was completed (you must file a lien w/in 90 days of the work). More of a severe headache than anything else. Hopefully I'll have better news to report in the coming weeks.

 

[Ken P]

Thanks for that info. I can see this is going to be a very helpful site when it comes time for me to build my garage.

 

[Stuart in MN]

Yup, it's a good idea. You shouldn't have to get the $10 forms, the contractor should supply signed waviers himself at no extra cost.

I had a new furnace and central a/c installed this summer; the contractor had subs (the guys who removed the asbestos from the old furnace, etc.) so I asked for lien waviers and they handed them over, no problem.

If it has been over 90 days you should be in the clear, but I believe the time period varies from one state to the next so make sure what the local requirements are.

 

[Wardrum]

Be sure to get a lien release from your general contractor, if they are sub-ing out any work! The ADA has a form that is great, think it's $10 or so.

Just found out my GC didn't feel like paying his concrete subcontractor, and guess why they put a mechanic's lien on...yep, my house. Even though I had never signed a contract with the concrete company.

Getting a lien release just from your GC only protects you from your GC filing a lien. You should also get one from each of the subcontractors, and make sure to include the ones that didn't do any work directly on your site like the building materials suppliers, sub-assembly suppliers (like truss manufacturerers), etc. For example, if your GC subcontracted the concrete work and either the GC or the cement contractor failed to pay the ready-mix company, guess who can sue you. Insist on receiving the lien releases BEFORE you pay the GC. You can't be too careful.

 

[boiler7904]

You're probably talking about the AIA (American Institute of Architects) not the ADA (Americans with Disabilities Act). If you think liens and waivers are complicated, you don't want to start thinking about making your garage handicap accessible.

Like Wardrum was saying, there should be subcontractor waivers for each trade contractor hired by the gc and every large material supplier (like lumber, roofing, windows, doors, etc.) that the gc bought material from for your project. You wouldn't get a waiver at from the gc after the first payment - I have yet to meet a gc that that fronts the money for a job. You should get what are known as trailing waivers throughout the remainder of the job. I.E. At draw #2, the gc presents waivers for all bills paid and invoiced in draw #1. Continues until the final payment. At that point, the GC presents a final waiver of lien for all labor and material on the job when he picks up the last check.

Producing a waiver of lien is not your responsibility. That falls on the GC and his subs.

Good luck on this. I've had to deal with liens on commercial projects and know what a pain they are.

 

[Bolt11]

Perhaps he meant the assistant district attourney. Either that, or I watch too much Law & Order.

 

[JMURiz]

You're probably talking about the AIA (American Institute of Architects) not the ADA (Americans with Disabilities Act). If you think liens and waivers are complicated, you don't want to start thinking about making your garage handicap accessible.

Yeah that's what I meant, I didn't have the form in front of me, and my fiancee is the one that knows the details. But yeah, it's a total pain. I keep reading tidbits of the lien law (haven't paid the $ to get a full copy for VA yet) but there are lots of things that may have been done incorrectly, hopefully for my sake.