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Collection rights

New YorkRight to Lien

Hi, I was hired by a contractor and did work in a building. The owner and contractor aren't getting along anymore and the owner doesn't want to pay. Can I get a letter from the contractor that the owner can pay me direct and will be freed from that liability?

2 replies

Jan 13, 2022

The contractor can permit direct payment. However, the owner is only liable to its contractors' subcontractors (under a mechanic's lien theory) to the extent that there is money outstanding the original construction contract. If there is no money owed to the GC, such as if the owner paid everything, or the owner has excess completion costs or other backcharges against the GC, then the owner would have no obligation to make such a payment. 

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Feb 9, 2022
I'm on the other side of this. I'm the owner. My GC is behind on progress payments to plumber sub, but I have overpaid GC considering the overall project progress GC has made. GC has split with sub and has dismissed him. Will it cost me attorney's fees to get any wrongly placed liens removed? And, how do I substantiate that I have overpaid? I have proof of payment, but no partial lien waivers from anyone. Should I ask my architect or engineer for a written assessment before I take over and complete the job?
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