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Getting money from a general contractor who is doing a remodel

UtahPayment Disputes

This is a question when doing business in the state of Utah.: When we do a “remodel” that’s a cash payment to a general contractor(from a home owner)….and our contract is with the general….then the general doesn’t Pay his subs…what’s the best and quickest legal way to get our money….we did NOT FILE A PRELIMINARY NOTICE because it was a remodel (total gutting out of an existing home).

1 reply

Jan 12, 2021

It looks like you probably already know that you don't have lien rights in the absense of a preliminary notice. For other projects, keep in mind that you aren't prohibited from filing a preliminary notice on remodel jobs. You can also file a preliminary notice after work has begun, and depending on timing it may protect you for at least some of your future work. 

If the owner has not paid the general contractor for all work, you may be able to get paid directly from the owner with a joint check (you should carefully consider the option before approaching the owner, and probably discuss with an attorney, as circumventing the owner could have potential negative consequences). 

In the absense of any lien rights, if an owner pays a general contractor in full, and the general contractor does not pay the subcontractor, then the subcontractor most likely only has claims against the general contractor (for breach of contract). The best (and likely only) way to get paid is to make a written demand for payment, followed up with a legal action. 

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