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Handling payment related to damage to residential structure caused by neighbor's construction

CaliforniaConstruction Contract

I am hoping you might advise me as to whether I might require an attorney. My situation is that my front terrazzo stairs were damaged during a neighbor's construction project. They excavated down about 8 feet and drilled directly against my foundation without reinforcing it in any way. I have discussed this with my neighbor who is willing to pay for the repair, which is extensive, and recover from his insurance. I've sent him the estimates that total around $40K, and am setting up an escrow account. I'm not sure if I need a letter describing the work and what they've agreed to or a contract drafted by an attorney. I'm concerned that if they don't pay into the escrow account as monies are due to my contractors, I may be held responsible for paying them myself. Do you think this situation calls for a contract, a letter, or something else? Do you think I need an attorney at this point? If so, are these the types of situations you handle? I thank you in advance for your input. My Best, Vicki

1 reply

Jul 15, 2020
Considering the amounts in play, the relatively rare circumstances, and the complex nature of the issue - it'd be wise to get this agreement in writing. And, consulting with a local California construction attorney to help draw up that documentation would be wise. It's absolutely a fair concern that your contractors will look to you if the work is not paid for by your neighbor. Disputes over payment and even mechanics lien claims are common on construction jobs - even when the owner of the property isn't the one who will be making payment. So, avoiding those issues from the jump would be wise. For help finding the right attorney, select your city here: Find a California Construction Lawyer. Additionally, if you're having work done on your home, this article may be helpful too: The Property Owner’s Guide to Lien Waivers.
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