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What is the best way to protect myself if I believe a subcontractor is taking advantage of us so I hold his payment.
I believe a subcontractor is taking advantage of us so I hold his payment and he has filed a mechanics lien?
1 reply
Jan 2, 2020
It's common for subcontractors to file a mechanics lien when their payment is being withheld. And, subcontractors are generally entitled to file a mechanics lien even if there's a dispute as to what's owed, and even if there's a dispute over the quality of their work. Merely withholding payment, without further communication about what's being billed or why certain payments are being called into question, is usually a good recipe for a payment dispute.
Of course, simply because a mechanics lien has been filed doesn't mean that the lien claim is necessarily valid or that the amounts in question are actually owed. Rather, an owner, GC, and/or other project relevant participants will have the opportunity to dispute the claim.
If a mechanics lien has been filed on your project, though, it'd be wise to consult a local construction attorney (such as one of these North Carolina Construction Payment Experts). They'll be able to review the project documentation and invoices to determine how best to move forward. Additionally, this resource should be valuable: A Mechanics Lien Was Filed on My Property – What Do I Do Now?