Legal Question in Construction Law in Arkansas
billing dispute
My excavation contractor works for me without a contract on a pay as you go basis. However he has become very sloppy and slow in his billing practices. The last job we did together went to closing in December of 2005. This was a cost plus 10% job I did for a client. In October 2005 I contacted the excavation contractor and his wife by phone and in person requesting any outstanding bills to be presented before we closed on the construction loan. There was no response to this request so we assumed that the job was paid in full. In Feb. 2006 the excavation contractor began harassing myself and my client about a bill for over $24,000.00 he claims is owed to him. He has also filed a lien on the property. Can someone describe any legal jeopardy myself or my client might be in. Also, what are our legal options in dealing with this matter?
1 Answer from Attorneys
Re: billing dispute
First, you need to determine if you actually owe him any or all of the $24,000.00. If you do owe him, you may want to consider settling your debt with him.
Just because he didn't respond doesn't necessarily mean he has lost his claim to anything he is owed. In the future you may want to have a written contract with him with a deadline for submitting bills.
Your legal options are to pay all, part or none. If you pay part or none, you may have to defend against a lawsuit.
I have provided some rather broad answers. I would need more details to determine whether you owe him any money or not, and whether it is worth it to fight this lien he put on the property.
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