Full question:
I have paid my building contractor in full, If my building contractor does not pay the sub-contractors with the money I have given him, am I responsible to pay the sub-contractors? I have only a contract with building contractor, not the subs.
- Category: Contractors
- Subcategory: Construction Liens
- Date:
- State: New Mexico
Answer:
If you have paid your building contractor in full, you generally are not responsible for paying the subcontractors directly, as your contract is only with the contractor. However, subcontractors may still have a right to file a lien against your property if they are not paid.
In many states, subcontractors must file a pre-lien notice to protect their right to claim a lien. This notice typically includes details about the property, the subcontractor's information, and the contractor they worked with. If they fail to file this notice within a specific timeframe (often within 60 days of starting work), they may lose their right to lien the property.
Importantly, if you have made full payment to your contractor, this can cut off the lien rights of subcontractors who have not filed a lien prior to your payment. Therefore, if you have paid in full and the subcontractors have not filed a lien, you should not be held liable to pay them (N.M. Stat. § 48-2A-11).
To avoid potential issues, it’s advisable to ensure that your contractor provides proof of payment to all subcontractors before you make the final payment. This can include signed waivers of lien from the subcontractors.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.