Full question:
We hired a contractor to do work for our business. We secured an SBA loan and received a quote from him as required by the bank. We had known him previously, and no contract was signed. We have paid him 50% more than his original quote and the project has taken four months longer than promised. His last bill we refused to pay as we did not see that he had done any work justifying the amount and was 25% of the original cost for the project. As I said we had already paid 50% above the original quote. He then went on vacation and we had to meet with the various inspectors to get passed as he was not around. He has not contacted us since he left for vacation which was 4 weeks ago. I now need an unconditional waiver signed for the property company and can not get a response from him. Can he put a lien against us? We have overpaid on his original quote and he has doubled the original end time that was promised on the job so I would hope not. What are my options? I don't want to sue him, I just want this waiver signed so I can move on with my business.
- Category: Contractors
- Subcategory: Construction Liens
- Date:
- State: California
Answer:
A construction lien can be filed if a contractor has provided labor or materials that remain unpaid. In California, there is a specific process to create a valid lien. An original contractor must record their claim of lien after completing their work and within certain timeframes: (a) ninety days after work completion if no notice of completion is recorded, or (b) sixty days after a notice of completion is recorded. If this period passes, they cannot enforce a lien.
This process assumes a contract exists between the contractor and the property owner. A quote alone is not a contract unless it was accepted in writing. Any work outside a written contract may form a separate verbal contract.
Unfortunately, there is no legal way to compel a contractor to sign a waiver of their lien rights. Enforcing a contract requires proof of the agreed terms, including the work to be performed and payment amounts.
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.