Legal Question in Construction Law in New Jersey

What are homeowners rights?

I have just found out that my GC has not paid several of his subs that worked on my addition. Apparently the GC is broke and obviously mismanaged the money we paid him. Two of the subs called us and said they had not been paid, so we paid them ourselves. Whe we found out about his situation we stopped paying the GC and took over what we could, which were jobs that hadn't even been started yet. The GC signed papers agreeing to this. Also at this point the only payment left was the final pmnt which was only a fraction of what we had already paid him.

The job isnt done but we are through with the GC. He has been paid for everything that has been done here except for the work that we took over.

One of the subs mentioned the possibility of a mechanics lien to me. My GC has everyones money, not me. What are the homeowners rights? From reading your BB, it seems like we dont have any and we can be forced to pay for the same work twice?? Do judges actually rule in favor of the subs in a situation like this? What good is suing a bankrupt GC? Please tell me I have other options because it looks like he hasnt paid any of the subs that worked here in full.


Asked on 1/12/05, 11:11 pm

1 Answer from Attorneys
John Corbett Corbett Law Firm LLC

Re: What are homeowners rights?

No. You don't have to pay twice, but you need to be careful. Make no further payments. Set whatever money you believe that you owe to the GC aside so that you can pay it into court if necessary.

You have the right to demand performance under the contract from the GC. Do that. Let the GC know that you are aware of demands from the subs, but that does not relieve the GC of the responsibity to perform.

Don't panic. Keep your temper. Cooperate with the GC. Get the work done, but don't pay anything more than you have.

When the dust settles and you have the job done, call. 856-767-0910.

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Answered on 1/13/05, 11:24 am


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