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Can a Contractor file a lien when contracted amount has been paid ?

Illinois

I am a homeowner and got a paint job done for the house. A contract was agreed to and signed for providing the labor and materials in lieu of specified Down payment and Final payment. Down payment was made and work started on schedule - with a 2-1/2 target. Half-way through the project, the contractor had family issues and caused delays in paying the subcontractor. Our project was suffering , so after some chasing, a Change Order was put on the original contract, for us to pay the remaining Final payment directly to the subcontractor. The Contractor and Sub contractor both signed the change Order. Work restarted after a 3 week delay, but completed in another 2 weeks. Upon completion of the project, payment to subcontractor was made in the agreed amount (thereby settling the full amount noted in the original contract and change order). But soon after, the Contractor came to us with a revised Invoice, saying the cost of paint turned out to be higher than originally estimated, and hence we would need to pay an additional amount to the Contractor, else he would not provide the final invoice of completion and is threatening a lien on house. Can he do this ? What is the validity of a contract then ? Should we even try to negotiate a compromise when the full contracted amount has already been paid ?

1 reply

Mar 16, 2022

The facts appear to be somewhat garbled, but from what I understand, you have a contract with a painter, who caused delay, and you paid his subcontractor. A change order was signed by the painter and his subcontractor. The stated amouns have been paid, but the painter now wants more money or he is threatening to lien the project.

If the above is an accurate recap, then the question is what the contract provides. If it is just a "time and materials" contract, then it is possible that the time and materials came out higher than initially suspected. If the signed change order represents the only change to the scope of the contract, and has been honored, then you should not owe more than specified.

In any event, remember that a Mechanics Lien is based on "the value of improvements to the property" - not merely the terms of a contact. You could satisfy the contract, but not have paid in full for the value added to the property. In any case, depending on the amount that the painter still claims to be due, this may not be worth disputing. But you certainly have grounds to demand proof of the work done, and a Final Waiver of Lien, before paying anything.

I hope this information was helpful. Best of luck!

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