I work for a GC in Texas. We had a very problematic subcontractor on multiple projects, that we finally terminated his contract, and paid him everything that was owed, including retainage. We have the Unconditional Final Waivers for each project from this subcontractor. We recently received a call from a debt collector in Washington that claims the subcontractor has an outstanding debt for equipment rental. The subcontractor did give the equipment rental company a promissory note, that he has since reneged on. We never received any lien notices from the equipment rental company while this subcontractor was on-site, so this is all a big surprise. The debt collector is claiming we must pay the outstanding amount or liens will be placed on two different projects. Is this true or just a typical scare tactic of the debt collector attempting to collect the debt?
Hi there,
I see that this is an old question and may well be resolved by now. In any case, from the facts provided, unless the subcontractor acted as an agent for your company in executing the paperwork, I would not think the rental company would have a valid claim as against the GC on the project. If they have secured a lien, which seems very doubtful, then their right of redress would be with the owner versus the GC.
I will tell you in my experience debt collectors rely much more on hastle than legal knowledge. However, I'm not suggesting that your company ignore this debt collector.
I would be happy to discuss this with you further in a confidential call/setting.
Very best,
Ben House
281-762-1377
ben@houseperron.com