Legal Question in Construction Law in California

Contractor not paying sub-contractor in pool project

We are having a pool installed at our home. The sub-contractor has been having difficulty getting payment for the plastering from the Contractor. The sub now wants me to pay for the plastering directly. I have already paid the contractor the entire cost with the exception of a final $2000 which is to be paid at job completion. Am I responsible for paying the sub even though I have no written or oral agreements with him. What can he do to collect from me? What can I do to protect myself?

TIA for any advice.


Asked on 10/29/06, 2:09 pm

1 Answer from Attorneys
EZRA FRUCHTER LAW OFFICES OF E. LEONARD FRUCHTER

Re: Contractor not paying sub-contractor in pool project

If the sub has sent you a "preliminary notice" in a timely manner, he has mechanic's lien rights and you may have to pay him directly even if you have paid the general. The notice is effective retroactively 20 days; thus, if the sub started work on day one and sent the notice on day 30, he has lien rights for all work done from day 11 and forward.

The only thing you can do to protect yourself is to record a "Notice of Completion" or a "Notice of Cessation" as applicable. These will cut off the sub's lien rights at some point. This may or may not be effective depending on the circumstances.

Is the pool complete or is there still work remaining?

What does the Pool Contractor say? Failure to pay his sub may be a criminal act (diversion of funds) as well as a violation of the contractor's license law!

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Answered on 10/31/06, 1:12 pm


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