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Need to install a Lien

Georgia

Hello, My name is Pete Zappasodi. I have a contract for the rmodeling of a home in Sandy Springs Georgia. The construction is being financed through Bank South in Georgia. As we approach the final leg in this work the owner tells me that I have reached my maximum draw potential with this project. We discussed this and understood that I would need to take a look at the scopes of work left, and also take a look at the work completed because something is off balanced. in reviewing it looks like the customers product selections had jumped several categories of cost. I went through receipts on tile work, trim work, interior doors, and electrical work. What i found were serious deficiencies. I requested a. meeting with the owner and discussed what I found. He asked me to go ahead and lay it out on paper so they can review. Well I was told today that they will not do anything for me. This work is clearly legible to match up with the improvements made. In a nutshell they will not pay me and have tried to do nothing except blame me for this. I should have been watching the receipts closer but with constantly fighting the elements and pushing on the schedule, it just got out of sight on me. Do I have a right to install a Lien on this property?

3 replies

Aug 4, 2020

More information is needed about your situation. Was this a cost plus agreement or a lump sum? Did the owner make unanticpated selections beyond the quality called for in the contract? It sounds like because of the upgrades, you may be entilted to assert a right to claim for extra/changed work, and the right to assert that the quality upgrades should be part of a change order. The details need to be discussed, but if this is the case, the Owner arguably owes you additional funds and you would be entitled to claim a lien.

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Aug 4, 2020

You have the right to file a lien, subject to your contract terms. For example, if this was a guaranteed maximum contract you may be bound to the maximum amount to which you agreed. If it is not a guaranteed maximum contract (or somethuing similar) you will still have to prove the amount of work that was performed and payment received to date. I also suggest investigating why the owner refuses to pay.

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Aug 4, 2020

Did you have “allowances” built into the contract for the product selections. If so, and the owner’s selections exceeded the allowance prices, you would be entitled to an increase in the overall contract price for the amount in excess of the allowance. Give me a call if you need legal assistance. Josh Stone 770-390-9950. Thanks.

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