Home>Levelset Community>Legal Help>Should I take check owed to subcontractor is owed

Should I take check owed to subcontractor is owed

I am a Dump truck company, I was working for a subcontractor and we signed a contract working by the hour. Come to find out the sub was getting paid per load, and the contractor only owes then $48K. the contractor has been talking to me and they said they will give me subs check so I can square away some owner operators. I don't think they will make me sign a release. Contractor states take check and go after sub and collect the rest. So my question is: Should I take the check as a partial payment and still go after bond to place lien. or by taking check will it affect me collecting the open balance? I'm just trying to square of some owner operators.

1 reply

Apr 8, 2022

I would immediately request the contract between the up-tier subcontractor (who you have contracted) and the GC. Additionally, you will have to review your contract and specifically the default provision to determine whether you will be impacted by accepting partial payment from someone that you have not contracted with yourself. That being said, it is important to record against the property for the full amount owed (including issuing whatever lien notices are required per K and statute). To the extent, you receive partial payment subsequent to that, you can draft a partial lien release for the amount paid and be certain you have not impacted your recovery rights.

Report Spam