We paid our contractor. He also collected insurance pmts.
After a flood in our church we asked a contractor to meet with the insurance adjuster and they reviewed the building together. We signed a $120,000.00 detailed contract complete with 30 pages of drawings defining the scope of the repairs. The contractor assured is that if anything was missed he would submit invoices for extras to the insurance company. We paid him 110,000.00 out of a depreciation check and the rest from savings the church had. Unfortunately we signed a contract that authorized direct payment to the contractor and a large final check went to him which included his extras BUT also our replacement costs. We only owed him 10,000.00 and we calculate he owes us at least 7000.00 to replace the money we took our of savings to pay him. When we brought this to his attention the insurance company asked him to explain and he responded with a convoluted invoice quoting Statement of loss numbers and other numbers with no clarification. We hadn’t heard from him in 3 months so we requested AAA arbitration get involved so he is forced to explain how he was entitled to the full amount of the final insurance check. Now he has threatened a mechanics lien claiming we owe an additional $5000!