Good morning, I have a subcontractor on a project in Colorado that has been paid his contracted amount. He has signed all interm and a final lien waiver. I received a call from his supplier stating the Subcontractor owes them approx $10,000 and they are moving to liening the project. The invoices date back to April, May..i have given them (supplier) documents showing his payment and final lien waiver etc. But they still want me to pay his bill. What are my rights on this?
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Good morning,
Are you the general contractor or are you the owner? Is this a project for a single-family home? Colorado has a specific statutory exception to mechanics’ liens for single-family dwelling units. Under this exception, it is a complete defense to the enforcement of any mechanics’ lien if the owner has paid its principal contractor in full. It sounds like this may be commercial but that is not entirely clear.
Ultimately, the subcontractor can file a lien. You should not pay this amount, pending my suggested steps on this matter.
As to what you can do against the subcontractor depends on the terms of your lien waiver. If this was a good lien waiver drafted by an attorney, it should include clear indemnification (including their payment of legal fees and costs) and representation provisions if they violate the waiver provisions. Your attorney would contact the sub and threaten an expensive suit that you will win easily if they don’t pay this supplier ASAP.
Contact your attorney and provide them the signed partial and final lien waivers and they can go from there to hopefully get this paid by them soon. If you have no construction attorney, then reach out to one of us for a free consultation so they can help.
Robert Murillo