I hired a contractor to do concrete work on my home.The contractor was responsible for supplying the concrete. After completion, I paid the contractor and had him sign a full unconditional waiver for labor and materials.I am now being contacted by the concrete supplier that they did not receive payment for concrete delivered to my property. The contractor is not responding, what is the next step I should take?
I'm sorry you find yourself in this predicament. There are a couple of things you can do now, even before the concrete supplier records a construction lien against your home.
First, write a letter to your contractor demanding they provide proof of payment to their supplier. Detail the timeline of your payment to the contractor. Even if the contractor does not respond, you're making a record.
Second, since you paid your contractor in full, you can rely on a provision in the Michigan Construction Lien Act designed to protect homeowners from paying twice.
To set up this defense, you will need to prepare an affidavit setting forth the facts to establish that you've already paid your contractor the full amount of the contract. You should include proof of of the contract amount and proof of payment (i.e., canceled checks, lien waivers).
Section 118a of the Act provides:
"(1) A claim of construction lien does not attach to a residential structure, to the extent payments have been made, if the owner or lessee files an affidavit with the court stating that the owner or lessee has paid the contractor for the improvement to the residential structure according to the contract, indicating in the affidavit the amount of the payment. The owner or lessee shall attach to the affidavit copies of the contract, any change orders, and any
evidence of the payment that the owner or lessee has, including, but not limited to, a canceled check or a credit card or other receipt."
Even if the conrete supplier has not filed a construction lien or a lawsuit, I would send a Section 118a affidavit to the supplier as a way to discourage them from pursuing a lien against your home.
If LevelSet doesn't have a Section 118a Homeowner's Affidavit form, I can help you prepare one to send the concrete supplier.