Legal Question in Construction Law in California

trying to ensure contractor properly pays all subs

General Contractor has submitted pay request #3 for a commercial project using AIA form G703. Line item for ''lath and plaster'' has a scheduled value for $47,000 and with this pay request a completion percentage of 99%. Previous payment made and shown on the form is $11,800.00.

Trying to get the sub-contractor out on-site to clean off his stucco from the parking area and sidewalks has been a chore. I called today to ask what the problem is and he says he has only received $5900. from the GC from the previous pay request.

Now, the Owner receives a lien from the sub for the balance.

How can one make sure that the subs are getting properly paid?

Should joint checks be issued?

Should individual checks be issued to the subs directly from the Owner?

Can a portion of payment for the Contractor's general requirements and profit and overhead be held back until all the subs and vendors are current?

How can the subs get the shortages that the contractor has held back from them without involving the Owner in double payments?


Asked on 2/24/05, 9:49 pm

1 Answer from Attorneys
Philip Iadevaia Law Offices of Philip A. Iadevaia

Re: trying to ensure contractor properly pays all subs

Not only should joint checks be issued, but you should also require the contractors to execute and deliver to you a release of all claims upon payment. That way, the cannot return a lien on the property saying they did not get paid.

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Answered on 2/28/05, 3:36 pm


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