We had to remove one of our subs because they could not keep the schedule. We gave them a deductive Change Order and a termination letter. (They have been paid a fair amount for the work they completed, so don’t expect our 1st sub to file a lien.) They have been unresponsive as we have tried to get them to sign the deductive CO and final lien waiver. The GC now has our payment on hold until we get them the waiver.
Your issue is an interesting one as the terminated sub is probably not going to voluntarily sign a deductive change order or lien waiver. If the last date of supply of labor or material for that subcontractor is more than 90 days ago (in South Carolina) then the sub has no basis to file a mechanic's lien as their rights have expired. You could therefore advise the GC of this and request they issue payment. Alternatively, you could ask the GC to pay you while withholding some reasonable amount until such time as the terminated subcontractor's lien rights expire. The GC can require lien waivers if its in your contract but the contract may or may not include the obligation to provide sub-sub lien waivers. In any case, there are several variables here so please contact me if you would like to discuss it further.
Thank you so much. This is the 1st time utilizing this service and you are very prompt. Let me pull my subcontract and get back with you.