Legal Question in Construction Law in Nebraska

Builder has not paid subcontractors

We built a new home and our builder has received the majority of the money for our final invoice, until we were able to refinance our new home and get the extra cash out to pay the remaining balance to the builder.

We now have the remaining balance available that we owe the builder, but we have had three liens filed against our home by subcontractors that haven't received payment for their invoices for work on our new home. The builder has already received all of the money to cover the costs of the construction, plus over $100k profit for himself, but all of the subcontractors still have not been paid. Obviously our money was not all going toward the construction of our home, we are assuming that some of it was used to pay old jobs not even related to our home.

My question is now we are nervous about paying the builder the remaining balance that we owe him, because if he doesn't pay the subcontractors with the balance, they will come after us. Do we have a right to demand to know who is still owed money for work on our new home and to say that we will pay these contractors ourselves and give any remaining amount due to the builder?

Asked on 11/07/07, 9:58 pm

1 Answer from Attorneys

Duke Drouillard Drouillard Law, LLC

Re: Builder has not paid subcontractors

Hire an attorney immediately. Your attorney will advise you of your rights and obligations under the contract you have with builder. Don't delay, don't try to do it yourself. Your attorney will need to see the contract you have with the builder, your loan papers, and your title insurance papers. Do not pay anything to the builder until after you have received instructions from your attorney.

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Answered on 11/07/07, 10:10 pm

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