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What can a homeowner do when he is grossly over charged by a contractor and a lien id filed

MassachusettsMechanics LienRight to Lien

For a reno project my general contractor estimated costs and explicitly told me most of the time he over-estimates and adjusts as necessary. The plumbing estimate was $4500. The work took a total of 15 man hours to complete. The general contractor told me the plumber will not adjust the bill despite tje general contractor’s promise to adjust Over-estimates. This is an egregious over-charge. $300 an hour is twice industry market standard. I have been threatened with a mechanics lien. Any advice? Thoughts? ps: I have an email in which the plumber said he charges at $160 per hour per man. Accordingly the cost should have been $2400, not $4500.

2 replies

Nov 12, 2019
When a mechanics lien claim is exaggerated or fraudulently filed, the lien claimant can face serious penalties. There's a difference between a fraudulent lien and an honest mistake, but if a claimant knows and has even stated that they're overcharging, then it would seem more likely that their lien might be considered fraudulent. Before diving all the way in, here's a resource that should be helpful: I Just Received a Notice of Intent to Lien – What Should I Do Now?

What amounts are subject to mechanics lien in Massachusetts?

Subcontractors and suppliers are entitled to mechanics lien rights in Massachusetts pursuant to § 4 of the state's mechanics lien statute. And, under that section, the contract price for the claimant's work is subject to lien (to the extent that it hasn't yet been paid). So, note that in a situation where a claimant's lien doesn't exceed the price of their contract, they may well be entitled to file a lien for that amount - even if the value of the lien exceeds what might be expected for similar work. At the same time, if the amounts being charged are outrageous, or if the claimant has shown that they believe the price to be excessive, that might be enough to show the lien is improper.

A contractor will generally be responsible for payment to their subcontractors

If a contractor intentionally overestimated the job then signed an agreement for a price over market price - that contractor may well be responsible for making payment to their sub. And, if the contractor's sub files a mechanics lien against the owner's property due to nonpayment, then the contractor can be held responsible for that claim. Often, a contract for work will require the contractor to keep the job free and clear from lien claims. But, even it that's not set out under the contract, an owner will likely have claims available against a contractor when the lien claim is the fault of the contractor and not the owner.

What to do when a mechanics lien filing is imminent

Mechanics lien disputes can cause a lot of headaches and cost significant time and energy. To best assess what options an owner has for fending off a potential bond claim, it may be helpful to consult a local construction or real estate attorney - such as Andrea Goldman, who is an expert on the Levelset Expert Center. They'll be able to review all of the relevant documentation and communications then advise on how best to proceed in order to avoid a lien claim against the property. Further, note that an owner may be able to record a mechanics lien bond to protect their property from prospective mechanics lien claims. And, while that may not be a cheap or preferred option, it could certainly help an owner to fend off a potential lien filing. But, an attorney would also be helpful in determining if this option makes sense for you.
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Jul 2, 2020
I am having a shower stall redone and the contractor has marked up many if the fixtures 100%. Insurance is paying the claim because a leak is what necessitated the repair. Is that legal to mark up fixtures 100%?? I have found the exact fixture on Amazon for half the price (example~ the shower head I'm being charged $309.09 and on Amazon, the same shower head is $150.00).
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