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Richard
Richard, Attorney
Category: Business Law
Satisfied Customers: 45513
Experience:  32 years of experience practicing law and a businessman.
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I am having trouble agreeing with a contractor on obtaining

Customer Question

I am having trouble agreeing with a contractor on obtaining an "unconditional lien release". I want to make sure that no one can come back against me from the work that was done-either the company, their subs, or suppliers. Contractor has sent me their own lien release which reads as follows:
Company hereby releases and waives rights to a construction lien in the amount of "x" (contract price) for improvements and/or materials furnished to, the property described below (my address).
Company warrants that all laborers and subcontractors employed by Company, and all suppliers from which it acquired materials, have been paid their respective portion and that none of such laborers, subcontractors, or suppliers have any claim against the project listed above.

This waiver is conditioned upon full satisfaction of the amount shown above"

My concerns are this:

1) I sent my own lien waiver form that has the company releasing me, a separate form requesting them to list all subs/suppliers by name and stating all have been paid in full.

2) The term "paid their respective portion" to me is not the same as "paid in full". Am I being too concerned?

3) In Georgia it is very easy to lien a homeowner, and this contractor did a lot of damage to my house (their insurance company paid for damages) so I want to be very conservative here. Thanks.
Submitted: 9 months ago.
Category: Business Law
Expert:  Richard replied 9 months ago.
Hi! My name is XXXXX XXXXX X look forward to helping you!

You are not going overboard here. You have the absolute right to be provided a full list of all subs and suppliers, including their contact information, and that they have been paid in full. "Paid their respective portion" is not acceptable because it clearly does not cover you. I would in fact go one step further and demand that the contractor also provide lien waivers from each subcontractor and supplier. The blanket lien waiver from the contractor doesn't due you any good if the contractor is lying, hasn't paid the subs and/or suppliers, and is broke. You can get a judgment, but it would be uncollectible. You do have the leverage here because you can let the contractor know that until and unless he delivers the acceptable lien waivers, you're not paying him.


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Richard, Attorney
Category: Business Law
Satisfied Customers: 45513
Experience: 32 years of experience practicing law and a businessman.
Richard and 13 other Business Law Specialists are ready to help you
Customer: replied 9 months ago.


Richard,


 


Thank you so much. I appreciate your words of wisdom!!


 


Dave

Expert:  Richard replied 9 months ago.
Thank you so much for the positive rating! I truly appreciate you taking the time to do that!

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