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liens and collections/

California

Licensed in California.... Received contract to perform work, license in good standing when contract signed and up until work was started by us on the project,.. however, because of a civil suit and payment issue to the collection company, and non payment, the license was suspended for a short time. We did not know the licence was suspended and continued work for GC. Then, the GC terminated the project and work and we learned of the suspension. At this time, license has been put to active status, we did not proceed to file any lien other than the pre lien filed at job start, and wonder now if we would have any right to go after the gc for the payment and breech of contract claim... I do not know if the GC even knew of the license suspension as the termination of the work was based on a change order directive by GC and the work being performed by us but then the GC would not approve the TM billing CO request. Lots of documentation of the directive to proceed with preliminary costs being given, promise to pay, and then when we required written co to continue additional co work on 2nd and 3rd floor, they decided to have another perform the contract work and I would believe the additional work created by the GC and out of sequencing work directive to other subs....We feel as if we have the back up to file claim but due to the lapse of the license while engaged in the work, need to ask the professionals....

2 replies

Feb 25, 2021
The license suspension is a difficult issue to overcome. If you dealt with the suspension quickly once advised, there are some provisions in the Business and Professions Code that may help you. I suggest you consult with an attorney who practices in the area of construction law to see what your options are. I can help you if you wish.
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Feb 26, 2021
Thank you for taking the time to reply to my question. Although we have council, construction related issues are sometimes more difficult and we all know that actually going to trial in these types of issues is rare as the costs associated with fees, depositions, findings, many times are as much as amount in question and then there is always the question of if you might prevail..
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