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Terminated subcontractor

Alabama

I terminated a subcontractor for substandard work and also changing the construction plan without authorization from the permitting agency. The project was not anywhere near completion either. The subcontractor was paid approximately one half of their quoted labor before termination. Once terminated, they demanded full compensation for the project and another project they quoted but never got approval from the homeowner. Now they have sent a notice demanding payment to the client or will they will file a lien against them. This subcontractor had no signed contract for either project. What recourse does the homeowner have against a supposed lien?

3 replies

Aug 3, 2021

Unsure if you are the GC or the Homeowner, but the recourse depends on the lien they file. If it claims that entire amount, it may be considered fraud. They will also need to file it timely with all the proper notice provided as well. The must also timely file suit to enforce the lien. As such, there are many ways to attack the validity of the lien. I would recommend ensuring that you handled payment fairly and frankly waiting to see if they actually comply with all the statutory obligations of filing a lien and enforcing a lien properly.

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Aug 3, 2021
Thanks. I am the GC. The employee filed for more money than would have even been owed if they had completed the first job. They are adding a secondary job that was never approved by the client or the permitting agency. The client had not even received the final quote on the secondary job before they attempted to start it. Once the client decided against the secondary job, I had to physically go to the job site to make them stop. They would not answer my calls or texts. That’s when I discovered the first job was a substandard job and not built to the specifications that was agreed upon by me and the permitting agency. I have had to hire another subcontractor to tear out part of the work and reconstruct areas that were not deemed safe by 3 separate contractors I had quote to finish it. I’m just trying to protect my client and prevent my business from being slandered.
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Aug 3, 2021

I would put that all in a letter. I would also consider a cease and desist if they are spreading inaccurate information about the situation. 

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