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Do I have any recourse to collect the money from the property manager because they did not get final Unconditional lien releases from the subs but our conditional lean releases were used by the GC to collect payment. Shouldn’t the Property manager have confirmed we were paid or send out two-party checks to the GC and subcontractor?
Response: Yes, you do. The property management is ultimately liable. If your request to be paid is denied or ignored, you should file a lawsuit against the company for breach of contract. You can obtain lawsuit forms online on the Court's website or the clerk's office. The lawsuit would be filed at the Superior Court in the County where the work was performed.
In the meantime, you should file complaint against the contractor's license with the Contractor's Board if the license is still active to prevent him from doing this to another subcontractor.
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I disagree with the assessment of the situation by the management company. Because you signed the Conditional Waiver and Release of Progress Payment, NOT on Final Payment, the management company had the obligation to verify that the payments were actually made by the general contractor. You can still file lawsuit against property management company.