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Questions Contractor Laws

What is a contractor?

A contractor or general contractor is the person that is responsible for the day to day oversight of a construction site, management of vendors and trades, and any and all communication of any information to any involved parties throughout the course of any building project. In most cases, the contractor is employed by the client with the advice of the architect. The contractor will normally assess the project specific documents and will calculate the price of the business that they are conducting. A contractor is responsible for providing any and all materials, labor, equipment, filing for any and all permits, securing the property, and disposing of any and all material.

What can a person do if his/her contractor moves into the house that they were supposed to be working on and refuses to leave?

The person would need to hire a professional server to serve the contractor with an eviction hearing and then the person and contractor would go to court where the judge would grant an eviction order. Once this is done then the person would need to contact the sheriff and have them forcibly evict the contractor and anyone else who may be in the home. Once all this is done then the person would want to file suit against the contractor for the full rental value of the home while the contractor was living there and all damages that were done while the contractor was practicing bad faith.

How would a contractor sub out the work to another contractor and not use his/her surety bond and insurance?

When the contractor draws up the contract with the other contractor, he/she would need to make sure that there is an indemnification provision in the subcontract that will protect the original contractor.

If the contractor does not pay the subcontractor and files a small claims case against the customer, can the subcontractor file the claim?

The subcontractor cannot file a claim against the customer unless he/she has followed the lien statute. In order for the subcontractor to be able to file the claim, he/she must follow the notice provisions of the lien statute and if he/she does not follow the statute, then the customer would not be in possession of a contract with the subcontractor. The only way that the subcontractor can possibly sue the customer or file a lien is through a construction lien.

In the state of New Mexico, if a person has a contract with a contractor, what is the statute of limitations for the contract?

The statute of limitations for a contract in New Mexico is 6 years from the date of the last payment that was made, so depending on when the last payment that was made is depending on the statute of limitations that applies. The customer may also any mechanics lien that is filed would have to been filed 120 days after the completion of the project. The contractor will need to prove his claim.

When dealing with a contractor, a person may have questions regarding the work, contracts, responsibilities, and other obligations of the contractor. Rules and laws can vary depending on your individual circumstances and even the state you live in. To be sure of your rights and the law as it applies to contracts, it's always better to ask an Expert.
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