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I am a homeowner. How do I assure that I do not 'pay twice' because of his failure to pay subs?

Florida

I plan to have my lanai enclosed by a reputable contractor, but I want legal assurance that I do not have to pay twice for the labor or material because he failed to pay HIS suppliers? This happened to a friend of mine in Missouri, and it seemed like the most unfair thing I had ever heard.

2 replies

May 8, 2020

It's not unfair and I will explain why. Under Florida law, subcontractors and material suppliers who provide labor or materials to improve your property are entitled to the security of your property if they are not paid. How are you protected? These subcontractors and material suppliers will send you a document titled a "notice of owner" in the mail, usually by certified mail but sometimes by Fedex, UPS or a similar service. DO NOT THROW THIS DOCUMENT OUT. Instead, keep all of them that you receive and, for every subcontractor or supplier who sends you a notice to owner, ASK YOUR CONTRACTOR FOR A LIEN WAIVER FROM THOSE SUBCONTRACTORS AND MATERIAL SUPPLIERS. Once you have a lien waiver effective through the date of payment from a subcontractor or supplier, you are protected by that lien waiver from a later lien for that payment. Do this for EVERY payment you make to your contractor. If you still have questions, there are plenty of resources on this website that explain how the lien law works. But for expert advice, contact a construction attorney.

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May 18, 2020

This is a common concern among owners. You will need to require that the contractor provide you partial lien releases for each sub who is on your job for each payment you make. For instance, if the contractor sends an invoice for $15,000, you should require a breakdown of where the $15,000 is going. Ask which of the subs are going to be receiving a part of the $15,000 payment and how much, then require a partial lien release for each sub identified on the invoice in the amount they are being paid. Do not pay your contractor without partial lien releases.

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