I am a Real Estate business owner. I have hired a licensed GC and have contracted to rehab a residential house. Till date have paid 75% of the contracted fee. However, the contractor has completed only 40% of the work. Now he is saying unless I give him more money he would not start the work and threatens with a mech lien if I fire him. What are my legal options?
Give my office a call to discuss this in more detail and send over the contract please. 260-782-1712. Podlaski LLP Attorneys at Law.
In short, the contract's terms may govern and we would need to take a look at it to see if there are any applicable provisions. Addtionally, there are statutory requirements for home improvement contracts. GC probably has a basis (unless the contract provides otherwise) to file a lien as long as the lien/filing conforms to the statute. You may have a good basis to turn around a demand compliance with the statutes governing home improvement contracts that can provide 3x damages, attorney's fees, costs, and option to potentially void the contract.
Happy to speak with you.
Best,
Nick