Legal Question in Construction Law in Florida
Fraudulent liens
If a contractor includes his profit margin charges (15% charged on top of materials & labor) in a lien, does that constitute fraud? We were told that a contractor may not include profit in a lien amount, only material and labor/services
2 Answers from Attorneys
Re: Fraudulent liens
A contractor or sub can file a lien for the full amount covered under the contract(s), and that often includes their profit.
Re: Fraudulent liens
(This is not legal advice)
It would not constitute fraud. If there is a contract or subcontract, then then party claiming the lien can seek to lien whatever amount would be equivalent to the balance of the unpaid portion of their contract, including profits that were calculated in. There is no law which states that a contractor is not entitled to include their profits as part and parcel of their construction lien, particularly where their contract provides for same.
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