Greg Reaume is a construction attorney with the law firm Haight Brown & Bonesteel LLP. Mr. Reaume is licensed to practice both in California and Colorado and is also licensed as a real estate broker. He is an active member of several industry organizations, including the Sacramento Regional Builder's Exchange (as part of its Construction Law Council), the Sacramento County Bar Association, and the LA County Bar Association. More...More...
Hi Greg, I agree that contractors should avoid the AIA contracts, they really are the worst. That said, it is a smart choice to use template contracts. Here is why: - Most construction attorneys are familiar with the standard template contracts, which means it reduces their time to negotiate them. If opposing counsel receives a custom contract, they likely need to spend more time reviewing and cross-referencing its provisions. - Many times owners will rSee More...See More...
It depends upon whether the job is still in progress or not. If it is, then you can threaten to stop work per the contract and see if they will pay (but you might compromise future business with that GC). If the project is over and you are off-site, then you should sue for payment. What usually works is a demand letter from an attorney, that will prompt payment sometimes. If it doesn't then you will need to file a lawsuit. See More...
Agreed. You should contact one of the attorneys on here to file a lawsuit to foreclose the lien for you. You can also ask the homeowner for an extension, but I wouldn't count on that this late in the game. How much is the lien for? If it is under $10,000 you might want to consider the legal costs vs what you would get back. In that case a demand letter and small claims might be more efficient. See More...
The timeline for filing a lien for subcontractors if a valid Notice of Completion is filed is 30 days. However, the needed to notify you of each Notice for it to be valid. Also, if they filed a Notice then they might be admitting that the project is finished and they owe you money - and if they haven't paid on time they would be exposed to prompt payment violations. I would file a lien (or liens, depending on your strategy) and then if they have a valid argument fSee More...See More...
The GC should have submitted the claim as a pass through, but you would have needed to comply with contract requirements. You should have also put in a stop notice. At this point you need to send a demand letter threatening prompt payment penalties to see if you can get them back to the table.See More...