Full question:
The Owner pays the contractor. The contractor pays the sub contractor, Gets a wavier from the sub. The sub contractor does not pay the material man who has a NTO. The Material man files a lien, who has to pay this lien off? The owner or the contractor who has paid the the Subcontractor in full?
- Category: Contractors
- Subcategory: Construction Liens
- Date:
- State: Florida
Answer:
If the contractor is due their final payment, they must provide the owner with a Contractor's Affidavit before any lien can be enforced. This affidavit must confirm that all subcontractors, sub-subcontractors, and material suppliers have been paid. If any subcontractors remain unpaid, the affidavit must list them and the amounts owed. The contractor cannot file a lien until the affidavit is submitted to the owner. Additionally, if the total contract amount is less than $2,500, only the contractor can file a lien, as subcontractors and suppliers without a direct contract with the owner have no lien rights on such jobs.
According to Fla. Stat. § 713.14, when payments are made, the person making the payment must specify which contract or account the payment applies to. If a materialman files a lien for unpaid materials, it can be a defense against the lien claim if it can be shown that the owner paid the contractor for those materials, and the contractor paid the subcontractor. If the subcontractor fails to demand a designation of how the payment should be applied, they may not have a valid claim.
Furthermore, Fla. Stat. § 713.346 states that anyone receiving payment for construction must pay undisputed obligations for labor, services, or materials within thirty days. If they fail to do so, the provider of those materials can file a verified complaint to seek remedies.
In summary, if the contractor has paid the subcontractor in full, the contractor may not be liable for the lien if they can prove that they paid the subcontractor for the materials in question. However, the owner may still be responsible if they did not ensure that all parties were paid.
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.