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Lien from subcontractor due to unlicensed contractor not paying them in full.

California

I had an unlicensed contractor hire a licensed subcontractor to build a patio cover on my property. The unlicensed contractor did not pay the subcontractor and now the subcontractor is asking me for payment or a lien will be placed. The contract was between unlicensed contractor and sub contractor. The unlicensed contractor told us he was licensed and gave us his brother's license number. Do I have any other options in this case besides paying the subcontractor directly.

1 reply

Oct 16, 2019
Assuming the subcontractor properly and timely served you with a preliminary notice, then you may owe the subcontractor for the reasonable value of his/her/its labor and materials furnished or the subcontract price, whichever is less.  If you do pay the subcontractor directly, you should secure the proper written releases from both your contractor and the subcontractor before you provide any such payment and you may consider making payment via joint check delivered to the subcontractor.  If the subcontractor did not properly or timely serve you with a preliminary notice, you may have other options.  A construction attorney may be able to assist you with your specific situation to make sure you close our the project and potential claims correctly. --CN
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