My GC was hired in SC to provide materials and labor to frame, install roof, siding, doors and windows on a very small, new construction home I am building. After semi-completing framing and roofing he filed bankruptcy. I had a total contract of $72,000 and had paid $47,000 so far, which covered his price quote for framing and roofing (including materials). I have now been served liens for ALL of the framing and roofing materials that were not paid. What is the likelihood they will try to enforce the lien? I provided the attorney for the suppliers proof of my contract and payments. Can I be made to pay TWICE for the materials? I live in South Carolina. TIA
The answer is probably not. Under South Carolina law, Subcontractor and Supplier liens are to be pro-rated based on what you owed the Contractor at the time the liens were filed. It sounds like the Contractor did not finish the job so the $25,000 contract balance would be reduced by the amounts you actually spend to complete the work of the original contract and/or correct defects in that original work. If there is anything left of the $25,000.00 contract balance after that you would be obligated to pro-rate it among the lienors (and to pay them that pro-rated amount).
SECTION 29-5-60. Proration of payments among lienors.
(A) In the event the amount due the contractor by the owner is insufficient to pay all the lienors acquiring liens as herein provided it is the duty of the owner to prorate among all just claims the amount due the contractor.
(B) In the event the amount due a subcontractor by the contractor is insufficient to pay all the lienors acquiring liens under Section 29-5-20 as a result of supplying labor, materials, or services to that subcontractor, all just liens must be prorated by the contractor among sub-subcontractors and suppliers to that subcontractor.