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Construction nightmare?

My wife and I hired a contractor to perform a major addition/renovation to our new home. The contract was for 90-120 days. Currently, the project is at 210 days and we are still quite a ways from finishing. We have paid him almost 80% of the total job at this point. We are thinking of firing him. However, we are afraid that any subcontractors he has hired can come after us if he did not pay them. The same thing with any vendors. Since our contract was only with him, can any vendor or subcontractor come after us if we have not been pd?

Thanks,
Nick

Additional information
Sorry, I mistyped the last sentence. I meant that can the vendor or subcontractor come after us if THEY have not been paid...
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Attorney answers (3)

Reputation Level 6
I do not practice in Connecticut, but here in New Jersey, yes, the subcontractors would be able to file a lien against your property for the amount due from the general contractor. Due to the fact that this would be a lien on a residential project, the subcontractor would have to go through an extensive process in order to file a lien (a Notice of Unpaid Balance would need to be filed and arbitration would have to take place). This process can be expensive, so many people do not go through the hassle of filing liens when the project is considered residential. It usually depends on the amount owed to the subcontractor. I'm sure Connecticut also has a similar Construction Lien Law, but I don't know that the law is restricted in residential settings like it is in New Jersey. I n New Jersey, you would, of course, have an action against the general contractor, if a subcontractor successfully placed a lien on your home, and you paid the general contractor for that subcontractor's work.

DISCLAIMER: This information is provided solely for educational and informational purposes, and does not constitute legal advice. Please understand that no attorney-client relationship is formed by this post or your communications with me, and please do not send me confidential or privileged information. You should obtain professional assurance that the information provided is appropriate to your particular situation by consulting an attorney who is actively engaged in this area of the law and who is admitted to the bar in your jurisdiction. If you are seeking such an attorney, you may wish to consult a state or local bar association or use an online directory of lawyers, such as Martindale-Hubbell.
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Reputation Level 7
Generally, subcontractors who have not been paid on a project can place a mechanics lien against the property. However, many jurisdictions have restrictions on placing liens against residential real estate. In addition, many jurisdictions provide certain defenses, unique to residential real estate owners, which may be used to defeat a subcontractor mechanics lien. You need to check with a knowledgeable attorney who is licensed to practice law in your jurisdiction to ascertain the specific laws and defenses applicable to your unique situation. You may also wish to explore whether there is some way that you can work this out with your contractor because, in addition to the risk of liens, if you fire your contractor, you will end up paying replacement contractors more money to complete the job than is left in your budget. You will then be faced with the prospect of either absorbing the additional costs or suing the contractor to recover the additional costs you incurred.

Good luck.

Reputation Level 8
You should review your contract with the Home Impovment Contractor(HIC) to see if it complies with the CT Home Improvement Act (HIA). See if he is licensed, by taking a look at the CT Dept. of Consumer Protection website. That site will allow you to check the status of his license and see if the contract complies ( for examle you must be given a 3 day right to rescind). If his contract does not comply or he is not registered, you may not be obligated to pay him. Hopefully, the 20 % you still have will be enough to pay someone else to finish the job. In CT if you do not have knowledge of any outstanding claims by the subs, and you have paid the HIC for the work that was done, you may be able to have any mechanics lien removed, if any are filed. If you pay money to the contractor knowing that a sub has not been paid, you might be held responsible. But if you have innocently paid the HIC, without knowing that he has not paid a sub, you should be in decent shape. The subs and the HIC would have 90 days from last working on the property to file a lien. Take a look at the web site it is helpful. Good luck. Chuck Norris

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