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Should I accept the contract as written?

California
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Anonymous contractor
Jan 7, 2020

Good Morning, There is a section in a subcontract we are looking to sign with our customer, and it pertains to the removal of liens. My Controller wanted me to ask if you would find this acceptable or if we should try to negotiate this off of the contract: 22. REMOVAL OF LIENS: Subcontractor agrees to pay, when due, all claims for labor and/or materials and/or subcontracts applied on or furnished hereunder, and to prevent the filling of any lien of mechanics or materialmen, or attachments, garnishments or suits involving the title of the property upon which the improvements are erected. Subcontractor agrees within ten (10) days after written demand by Contractor, by United States mail, to cause the effect of any such suit or lien to be removed from the premises, by posting an appropriate bond or as is otherwise acceptable to Owner and Contractor, and in the event the Subcontractor shall fail to do so, Contractor is authorized to use whatever means it may deem best to cause said lien, attachment or suit, together with its effect upon the title, to be removed, discharged, compromised or dismissed, and the costs thereof, together with reasonable attorney's fees, shall become immediately due Contractor. Subcontractor may litigate any lien or suit above described provided it causes the effect thereof to be removed as required herein above. Subcontractor shall further do such things as may be necessary to cause Owner not to withhold any monies due to Contractor from Owner by reason of such liens or suits, and shall execute and deliver to Contractor such affidavits, contracts, bills, records, accounts, etc. as Contractor may deem necessary for its protection in such events. Thank you, Marchelle Havens Staff Accountant Finance Department [CRG_LogoRGB] Please note our new address: 1875 N. MacArthur Drive Tracy, CA 95376 800.536.6858<tel:800.536.6858> 209.836.4100 Ext. 153 209.836-3889<tel:209.836-3889> Fax mhavens@crg.us.com<mailto:mhavens@crg.us.com>

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Anonymous contractor
Jan 7, 2020
These types of provisions are fairly typical, but we always try to get them conditioned upon fulfillment of the GC's obligations under the subcontract, i.e., payment.  If you have been paid up to date, there is no reason why you shouldn't have the responsibility to clear liens arising under your work.  On the other hand, if you haven't been paid, there is no reason why you should be the bank.
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