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What is my recourse when my general contractor did not pay subcontractors?

WashingtonForeclosureMechanics LienPayment DisputesRight to Lien

I am a homeowner. I have been paying my general contractor promptly for all work. It turns out my GC was not paying the subcontractors. The subcontractors have filed liens and are now threatening foreclosure. What recourse do I have? I cannot afford to double pay everything and now I am worried I will lose my house.

1 reply

Dec 18, 2019
Dealing with the payment messes caused by an unscrupulous or unorganized contractor can be a headache - whether that will require double payment (at least for a time) depends on many circumstances. In Washington, all parties who did not contract directly with the property owner are required to provide a "Notice to Owner" in order to retain the ability to file a valid and enforceable mechanics lien, unless they furnished only labor. This notice must be provided within 60 days of first furnishing labor or materials to the project unless the project is the original construction of a single-family residence (in that case the notice must be sent within 10 days). There are also specific time deadlines that must be met in order for a lien to valid and enforceable. In Washington, all mechanics liens within 90 days from the date services, labor, or materials were last delivered to the project. And, there are very specific rules with respect to the form of the lien itself, and the service of the lien on the property owner. If any of these strict rules and requirements are not met, the lien(s) can be challenged, and removed. Additionally, Washington provides pretty strong protection to property owners when liens are claimed by subcontractors or suppliers. § 60.04.151 states that: 1. a contractor is required to defend the property owner from liens brought by subs/suppliers, at the contractor's owner expense; 2. during the pendency of the lien action, the owner may withhold from the contractor the amount of money for which a claim is recorded by any subcontractor, supplier, or laborer; 3. if the lien is judged valid, and a judgment is made against the owner or owner's property, the owner can deduct the lien amount (plus such costs, including interest and attorneys’ fees) from the amount if any still owed to the GC; and 4. the owner shall be entitled to recover back from the prime contractor the amount for which a lien or liens are established in excess of any sum that may remain due from the owner to the prime contractor.  
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