We’re very near completion on a condo bathroom remodel in CA. To our knowledge, no 20-day prelim notices were filed. Timely progress payments have been made to the GC. Final payment is is expected to be $1175. The sheetrock subcontractor completed his work on 11-28-21. That sub called on 12-30-21 to inform us he’s not been paid anything, and that he intends to file lien. He emailed us the invoice to the GC dated 11-29-21 for $1928.50. We notified the GC, who texted us to “ignore him, I will handle payment.” On 1-5-22, the sub notified us he’s received no payment, or offer of scheduled future or partial payment, and that he’s reached out to the GC, giving him the option to pay by credit card within 48 hours. After that, he says he’ll proceed with a lien, which will happen before our job is completed. We absolutely don’t want a lien. What are the risks if we pay the sub? In what instances can we withhold final payment to the GC?
If the subcontractor did not give preliminary notice and you did not have actual knowledge of his work then any lien he records would be invalid. But he may still record one and you would then have to deal with it. If you can confirm that the subcontractor is owed what he says you might insist on issuing a joint check to the subcontractor and the GC for the remaining $1175 owed at completion. But you also should make clear to the subcontractor that he does not have lien rights because he did not serve preliminary notice.